Problems of Alternative Dispute Resolution Mechanisms and Proposals For Improvement: A Study in Bangladesh
Problems of Alternative Dispute Resolution Mechanisms and Proposals For Improvement: A Study in Bangladesh
Problems of Alternative Dispute Resolution Mechanisms and Proposals For Improvement: A Study in Bangladesh
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Abstract
INTRODUCTION
ADR is a term generally used to refer to informal dispute resolution processes in which the
parties meet with a professional third party who helps them resolve their dispute in a way that
is less formal and often more consensual than is done in the courts.1 While the most common
forms of ADR are mediation and arbitration, there are also many other forms, in particular,
judicial settlement conferences, fact-finding, ombudsmen, special masters and others. 2 Albeit
often voluntary, the ADR is sometimes mandated by the competent courts. An ADR can refer
to everything from facilitated settlement negotiations in which disputants are encouraged to
negotiate directly with each other prior to some other legal process, to arbitration systems or
mini trials that look and feel very much like a courtroom process. Processes designed to
manage a community tension or to facilitate community development issues can also be
included within the rubric of the ADR, the systems of which may be generally categorized as
negotiation, conciliation, mediation, or arbitration systems.3 Negotiation systems create a
structure to encourage and facilitate a direct negotiation between parties to a dispute, without
the intervention of a third party. Mediation and conciliation systems are very similar in that
they interject a third party between the disputants, either to mediate a specific dispute or to
reconcile their relationship.4 Mediators and conciliators may simply facilitate communicative
interchange, or may help direct a speedy structure settlement, but they do not have the
authority to decide or rule on a settlement. Arbitration systems authorize a third party to
decide on how a dispute should be amicably resolved without recourse to further litigation. 5
It is important to distinguish between the binding and the non-binding forms of the ADR.
Negotiation, mediation, and conciliation programs are non-binding, and scrupulously depend
on the willingness of the parties to reach a voluntary agreement. Arbitration programs may be
either binding or non-binding.6 A binding arbitration produces a third party decision that the
disputants must follow even if they disagree with the result, similar to a judicial decision. A
non-binding arbitration produces a third party decision that the parties may reject. It is also
important to distinguish between the mandatory processes and the voluntary processes
wherein some judicial systems require litigants to negotiate, conciliate, mediate, or arbitrate
prior to a court action. ADR processes may also be required as part of a prior contractual
agreement between the parties. In voluntary processes, submission of a dispute to an ADR
process depends entirely on the will of the parties.7
Sections 89A and 89B of the Code of Civil Procedure, 1908, deal with the provision for
mediation. The application for a mediation may be submitted by both parties at any stage
after filing the written statement that they will mediate the dispute after which the court
would adjourn the proceeding for mediation. The Judge himself can mediate on the dispute
under this section. The fee of the mediator shall be fixed by the parties and if the court
mediates the dispute itself, the judge cannot claim any fee or charge for it. Within ten days
after the order for mediation, both parties will serve notice in writing to the court on the
progress of initiation for mediation and the mediation procedure will have to be completed
within 60 days which can be extended to a further 30 days if necessary. If the mediation
becomes successful, the mediator will draft an agreement on such terms and conditions as the
parties have mutually agreed upon. The parties will sign on the established agreement after
which the lawyers and representatives will then sign as witnesses. This agreement will be
submitted to the court which will pass a decree. If the Judge mediates the dispute, he will also
follow the same procedure as explained above. If the mediation procedure fails, the
proceedings of the suit will start from the stage it has been stopped before mediation. If the
mediation succeeds to adduce a statement, evidence or other statements made at the time of
mediation, this can then be used at the time of trial of the suit.
When the written statement is filed by the defendant, the Family Court will fix a date
normally not more than thirty days from the date of filing the written statement for a pre-trial
hearing of the suit. On the date fixed for the pre-trial hearing, the Court shall examine the
written statement and documents filed by the parties and shall ascertain the points in issue
between the parties. If no compromise or reconciliation is possible, the Court will frame the
issues in the suit and fix a date for recording evidence. 8
An arbitration in Bangladesh is governed by the Arbitration Act 2001. This Act repealed both
the Arbitration (Protocol and Convention) Act 1937 and the Arbitration Act of 1940 and
consolidates the domestic and international arbitration regime in Bangladesh. The Act
provides that an arbitral tribunal may rule on its own jurisdiction that an arbitral tribunal will
not be bound by the Code of Civil Procedure and Evidence Act of Bangladesh and that the
arbitral tribunal shall follow the procedure to be agreed on by the parties.9
Disputes arising from contracts are usually settled through an arbitration in which these
disputes are generally commercial in nature involving employment contracts, government
contracts, contracts relating to business transactions, etc. The contracts must contain a clause,
agreement or reference stating that the disputes will be resolved through an arbitration. As a
result the arbitration must be conducted under the rules of the Arbitration Act 2001 and the
rules of the Bangladesh Council for Arbitration. The arbitrations can take place where the
parties choose or at the Bangladesh Council for Arbitration.10
On application of any party to any dispute or conflict, the chairman of the Union Parishad
concerned can form a village court11 which is composed of the Chairman of the Union
Parishad and four representatives – two from each party one of whom must be a member of
the Parishad.12 Normally, the Chairman of the Union Parishad acts as the Chairman of the
court, but whenever he is, for any reason, unable to act or his impartiality is questioned by
any party to the dispute, any member of the Parishad can act as the Chairman.13 The Village
Courts have an exclusive jurisdiction to try all disputes that are enumerated in a schedule to
the Act.14
The Artho Rin Adalat Ain 2003/ the Money Loan Court Act 2003
Sections 21 and 22 of the Artha Rin Adalat Ain, 2003 provide for the Settlement Conference
after the filing of a written statement. The Judge may request the parties and their lawyers to
remain present in Court to resolve the dispute. The Judge will convene the meeting and fix up
the venue, procedure and function and the conference will be in camera in which the Judge
will explain the matter in dispute before the parties or representatives, identifying their issues
in dispute. If the parties or their representatives agree to resolve the dispute, they will sign the
agreement and the lawyers and others will then sign as witnesses after which the Judge will
pass a decree on the basis of the agreement and no appeal or revision can be filed from the
decree passed on the settlement conference.19
In family disputes, an alternative to the arbitration is also possible. The Muslim Family Laws
Ordinance 1961 provides that the Arbitration Council can be set up by the Chairman of a
local administrative Unit (otherwise known as Union Parishad) to resolve disputes relating to
a divorce, for example. Polygamous marriages contracted without the permission of the
relevant authorities are not rendered invalid, nor is there a penalty for failing to obtain the
present wife’s consent as long as the Council has permitted the polygamous marriage. In
Jesmin Sultana v. Mohammad Elias20 the Court ruled that section 6 of the Ordinance
prohibiting the contracting of a polygamous marriage without the prior permission of the
Arbitration Council is against the principles of the Islamic law.
Section 345 of the Code of Criminal Procedure provides for compounding of offences.
Through Ordinance Nos. XLIX of 1978 and LX of 1982 some more offences of the Penal
Code have been added in the list of compounding offences but the procedure provided therein
being obsolete is required to be modified otherwise it will not give the parties a chance to
avoid adversarial litigation altogether.21
Arbitration
An arbitration is a private process where disputing parties agree that one or several
individuals can make a decision on the dispute after receiving evidences and hearing
arguments. An arbitration is different from a mediation because the neutral arbitrator has the
authority to make a decision on the dispute. The arbitration process is similar to a trial in that
the parties make opening statements and present evidences to the arbitrator. Compared to the
traditional trials, an arbitration can usually be completed more quickly and is less formal. For
example, the parties often do not have to follow the state rules of evidence and, in some
International Journal in Management and Social Science
http://www.ijmr.net 26
IJMSS Vol.01 Issue-01, (May, 2013) ISSN: 2321–1784
cases, the arbitrator is not required to apply the governing law. After a hearing, the arbitrator
issues an award where some awards simply announce the decision (a “bare bones” award),
and others give reasons (a “reasoned award”).32
Mediation
A mediation is a private process where a neutral third person, called a mediator, helps the
parties to discuss and try to resolve the dispute. The parties have the opportunity to describe
the issues, discuss their interests, understandings, feelings, provide each other with
information and explore ideas for the resolution of the dispute. While courts can mandate that
certain cases go to a mediation, the process remains ‘voluntary’ in that parties are not
required to come to any agreement. The mediator does not have the power to make a decision
for the parties, but can help the parties to find a resolution that is mutually acceptable. It is
indeed a litigative irony that the only people who can resolve the dispute in a mediation are
the parties themselves. There are a number of different ways that a mediation can proceed.
Most mediations start with the parties involving together in a joint session. The mediator will
describe how the process works, will explain the mediator’s role and will help to establish the
ground rules and an agenda for the session. Generally, the parties then make opening
statements. Some mediators conduct the entire process in a joint session. However, other
mediators will move to separate sessions, shuttling back and forth between the parties. If the
parties reach an agreement, the mediator can help reduce the agreement to a written contract
which may be enforceable in court.33
Conciliation
A conciliation is a type of mediation whereby the parties to a dispute use a neutral third party,
called conciliator, who meets with the parties separately in an attempt to resolve their
differences. A conciliation differs from an arbitration in that the conciliation process, in and
of itself, has no legal standing, and the conciliator usually has no authority to seek any
evidence or call witnesses, usually writes no decision, and makes no award.34 A conciliation
differs from a mediation in that the main goal is to conciliate, most of the time by seeking
concessions. In mediation, the mediator tries to guide the discussion in a way that optimizes
the parties’ needs, takes feelings into account and frames representations. In conciliation, the
parties seldom, if ever, actually face each other across the table in the presence of the
conciliator, instead a conciliator meets with the parties separately. Such form of conciliation
(mediation) that relies exclusively on caucusing is called “shuttle diplomacy”.35
Negotiation
A negotiation is a voluntary and usually informal process in which parties identify issues of
concern, explore options for the resolution of the issues, and search for a mutually acceptable
agreement to resolve the issues raised. The disputing parties may be represented by attorneys
in the negotiation. A negotiation is different from a mediation in that there is no neutral
individual to assist the parties to negotiate.36
Ombudsman
The ombudsman works within the institution to investigate the complaints independently and
impartially. The process is voluntary, private and non-binding.37
Med-Arb.
It is considered as the blending of mediation and arbitration. Sometimes the mediator shall
facilitate and on some cases he may decide on the disputed issues which will be binding upon
the parties to follow.38
Settlement Conferences
A dispute resolution outside of courts is not new in Bangladesh; non-judicial and indigenous
methods have been used by the societies for a very long time. But the main problem is that
there is no uniform ADR law in Bangladesh. There are a lot of legislations which contain
provisions relevant to the ADR process in Bangladesh and there are some well known ADR
mechanisms in Bangladesh, such as, mediation, negotiation, conciliation, arbitration and so
on.40 Different legislation has prescribed different ADR mechanisms and different procedures
to settle the dispute. This is a problem for the person who acts as a neutral mediator or
conciliator because all procedures are different in different cases. Sometimes, the people who
are involved in an ADR process are not properly trained and they do not have an adequate
knowledge on how to manage and convince the disputants to settle the dispute. Sometimes,
the decision of an ADR is biased and politically motivated. For this reason the vulnerable
party is not getting a proper justice.
In the development context, particular issues arise in considering the potential impacts of the ADR.
Firstly, some are concerned that ADR programs will divert citizens from the traditional,
community-based dispute resolution systems. This study has found a number of instances in which
the ADR programs have been effectively designed to build upon, and in some cases, improve the
traditional informal systems. Secondly, while the ADR programs cannot efficiently handle disputes
between parties with greatly differing levels of power, they can be designed to mitigate class
differences; in particular and third parties may be chosen to balance out inequalities among the
disputants. Thirdly, there is no clear correlation between the national income distribution and the
ADR effectiveness. ADR programs are serving important social functions in economies as diverse
as of the Bangladesh. Finally, it is not clear from the evidence to date whether the ADR programs
are more suitable for civil or common law jurisdictions. However, the ADR programs are operating
effectively within both, but not enough data exists to compare the success rates under the two types
of legal systems.
This Study is a first step in understanding the strengths and limitations of introducing the ADR
within the rule of law programs. While past and present ADR projects have provided some
significant insights into the ADR entity, there is still much to be learnt. More pragmatic analyses are
needed on the range of possible strategies in using the ADR to support judicial reform, reduce
power imbalances, and overcome discriminatory norms among disputants. Another important issue
for study is how ADR programs may be replicated and expanded to the national level while
maintaining sufficient human and financial resources.
These and other questions on the ADR's effectiveness can only be well answered by analyzing the
evidences gathered from the ADR projects. Effective monitoring and evaluation of ADR systems
are hard to find in developing and developed countries alike. Present and future ADR projects
should have systematic monitoring and valuation processes in place to ensure not only effective
programs, but also continued learning.
This study mentions the ADR's ability to advance development objectives other than the rule of
law, such as facilitating economic, social and political change, reducing tension in a community,
and managing conflicts hindering development initiatives. Further exploration of non-rule of law
uses of the ADR is critical to complete the picture of the range of the ADR's applications. Before
extension of the frontiers of ADR in Bangladesh can be established, the article would propose
the following:
suit for application of Settlement Conference, although the ideal time to start this
process is after receiving the written statement.
e) The Government is the major litigant in this country, either as a plaintiff or as a
defendant. Under P.D. No. 142 of 1972, the Government is a necessary party in all
title suits, suits for specific performance of contract and so on. To make the ADR
successful, P.D. No. 142 of 1972 should be amended providing that the Government
does not enter appearance or after entering appearance do not file any written
statement, or after filing a written statement do not contest the case, as any resolution
of the dispute through the ADR or otherwise by the other parties to the dispute would
be binding on the Government.
f) Labour Courts and Small Causes Court are the two areas where mediation should be
introduced immediately on a priority basis, amending the two special legislations.
g) The Government should provide an adequate and sustainable fund for recruitment of
judges and staffs for technical training.
h) It needs an adequate political support including mobilization and involvement of
representatives/advocates for disadvantaged groups.
BIBLIOGRAPHY
Ameen, N. (2005). Dispending Justice to the Poor: The Village Court, Arbitration
Council Via-a-vis Mediation. Dhaka: Dhaka University Press.
Huq, N. (2004). ADR: Recent Changes in the Civil Process. Dhaka: Dhaka University
Press.
Khair, S. (2008). Legal Empowerment for the Poor and Disadvantaged: Strategies
Achievements and Challenges. Dhaka: Colorine Publisher.
References
1
Md Abdul Halim, ADR in Bangladesh: Issues and Challenges (Dhaka: CCB Foundation,
2011), pp. 1-31.
2
Ibid.
3
Ibid., pp. 14-30.
4
Mir Abdul Halim, The Legal System of Bangladesh after Separation (Dhaka: University
Publication, 2008), pp.185-193 and P. C. Rao, Alternative Dispute Resolution (New Delhi:
Universal Law Publishing Co Ltd., 2004), pp. 1-13.
5
Md. Akhtharuzzaman, Concept and Laws on Alternative Dispute Resolution and Legal Aid
(Dhaka: Shabdakoli Printers, 2007), pp. 129-147.
6
Naima Huq, ADR: Recent Changes in the Civil Process (Dhaka: Dhaka University Press,
2004), pp. 1-18 and supra note at 1 & 4.
7
Sumaiya Kahir, Legal Empowerment for the Poor and Disadvantaged: Strategies
Achievements and Challenges (Dhaka: Colorine Publisher, 2008) and M. Mamun, A Thesis
on the Practice of Alternative Dispute Resolution in the Family Courts of Bangladesh
(Dhaka: University of Dhaka, 2008).
8
Justice S.K.Sinha, Judicial Development in Bangladesh (Dhaka, 2010), p.3.
9
See, section 1-18 of the Arbitration Act 2001.
10
Ibid.
11
Section 4(1)) of the Village Courts Act 2006
12
Section 5(1) of the Village Courts Act 2006
13
Section 5(2) of the Village Courts Act 2006
14
Section 3(1) of the Village Courts Act 2006
15
Section 4(1) of the Conciliation of Disputes (Municipal Areas) Board Act, 2004
16
Section 4(2) (a) of the Conciliation of Disputes (Municipal Areas) Board Act, 2004
17
Section 5(1) of the Conciliation of Disputes (Municipal Areas) Board Act, 2004
18
Section 9(1) of the Conciliation of Disputes (Municipal Areas) Board Act, 2004
19
Supra, note at 8.
20
1997 (17) BLD 4,
21
Ibid.
22
Section 210(5) of the Bangladesh Labour Act, 2006 empowers the Government by
notification in the official Gazette to appoint such number of persons as it consider necessary
to be Conciliators for the purposes of the Act and shall specify in the notification the area
within which, or class of establishments or industries in relation to which, each of them shall
perform his function.
23
Section 210(4) (b) of the Bangladesh Labour Act, 2006.
24
Section 210(8) of the Bangladesh Labour Act, 2006.
25
Section 210(10) of the Bangladesh Labour Act, 2006.
26
Section 210(11) of the Bangladesh Labour Act, 2006.
27
Section 210(9) of the Bangladesh Labour Act, 2006.
28
Section 210(18) of the Bangladesh Labour Act, 2006.
29
Supra note at, 1, p. 186.
30
Section 210(10) of the Bangladesh Labour Act, 2006
31
Nirmalandu Dhar, Labour and Industrial Laws of Bangladesh, (Dhaka: ReMisi Publisher,
2004), pp. 1-19.
32
Supra, note at 1& 4.
33
Ibid.
34
Ibid
35
Ibid.
36
Ibid.
37
Ibid.
38
Ibid.
39
Ibid.
40
M. Mamun, A Thesis on the Practice of Alternative Dispute Resolution in the Family
Courts of Bangladesh (Dhaka: University of Dhaka, 2008), pp. 14-41.