Bangladesh International Arbitration Centre (Biac) today settled a commercial dispute through a fast track arbitration process for the first time, under its rules.
The dispute between a Bangladeshi and Japanese company arose because of the non-performance of a contract.
The fast track arbitration is a simplified and expeditious arbitration procedure for the final resolution of smaller amount disputes.
Citing the World Bank's Doing Business Index 2020, Biac's Chief Executive Officer Muhammad A (Rumee) Ali said that enforcing contracts through courts in Bangladesh takes years.
He said arbitration could be a way out, which is a quick, economical, and binding alternative dispute resolution method. "This method has been gaining popularity around the world."
"The increased use of institutional mediation and arbitration would go a long way in freeing the courts of Bangladesh to deal with other issues in the best public interest effectively.
"This, in turn, can improve the country's rank in the Doing Business Index."
Biac's General Manager Mahbuba Rahman said the parties agreed to resolve their dispute under the Arbitration Rules 2019. "Arbitration clause, under the rules, was included in their contract for dispute resolution."
"Disputes of below or equivalent to Tk5 crore can be treated as fast track arbitration and resolved effectively in ninety days under the arbitration rules.
"The parties requested Biac to appoint a sole arbitrator from its panel. Then, Biac appointed Ajmalul Hossain QC, senior advocate of the Supreme Court of Bangladesh and also a fellow of the Chartered Institute of Arbitrators, UK. He has years of experience in national and international arbitration."
Forrukh Rahman of Rahman's Chambers moved for the plaintiff while Abdul Baset represented the defendant.
Ajmalul Hossain issued the final award to the parties based on their submissions to the tribunal.
Biac is the first government recognised international arbitration institution in Bangladesh to resolve financial and corporate disputes.