Bangladesh International Arbitration Centre (BIAC) signed a Memorandum of Understanding (MoU) with The Dhaka Bank Limited (DBL) to assist resolution of commercial and money loan disputes through alternative dispute resolution (ADR).
Chief Executive Officer of BIAC Mr. Muhammad A. (Rumee) Ali and Managing Director of DBL, Syed Mahbubur Rahman signed the MoU on behalf of their respective institutions. Senior officials from both the institutions were present during the signing ceremony at DBL Office at Dhaka.
Mr. Muhammad A. (Rumee) Ali emphasized the need and importance of ADR for the banking sector and how it can contribute to the expeditious resolution of money loan disputes. Syed Mahbubur Rahman encouraged the use of ADR for the banking sector and welcomed the collaboration between the two institutions.
Financial institutions require efficient and effective resolution methods for such disputes that will allow parties to keep matters confidential and preserve their relationship. In this regard, Bangladesh Bank, the central Bank of Bangladesh issued a letter on 19th April 2016 to all schedule banks with an urge to include BIAC ADR Clause in their loan and commercial contracts. Further, the Bangladesh Bank has also suggested that in resolution of disputes through ADR methods the banks may seek assistance from the Bangladesh International Arbitration Centre (BIAC), the country’s first and only alternative dispute resolution (ADR) institution. In addition to this, earlier this year the Government of Bangladesh has given effect to a mandatory mediation provision in the Code of Civil Procedure 1908- requiring all civil cases to try mediation.
