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BIAC-a center for alternative dispute resolution

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farzanamili:
facebook page: https://www.facebook.com/pages/Bangladesh-International-Arbitration-Centre-BIAC/251731951529106?sk=info

farzanamili:
1. What is arbitration? What are its advantages?

Arbitration is a consensual method of dispute resolution outside the court system by one or more (usually three) independent and neutral arbitrators which the parties agreed voluntarily. The arbitral award is final and binding and is enforceable as a court’s decree. If the country where the award is given is a contracting state of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 (also known as the New York Arbitration Convention), it may be enforced in any of the 148 countries that are members.

Advantages of Arbitration:

a. When subject matter of a dispute is highly technical, a party may choose an arbitrator with appropriate degree of specialization – this choice is not available in the court system.
b. Arbitral proceedings and awards are generally private and confidential.
c. Arbitration has greater degree of flexibility and ensures parties’ independence.
d. Arbitration generally leads to faster resolution of a dispute, than is available in a court.
e. Arbitral award is enforceable beyond the boundary of the state where the hearing is held – i.e., within any of the 148 New York Arbitration Convention countries.

farzanamili:
2. Can I arbitrate a dispute when there is no arbitration clause in the relevant agreement?

Yes, if all parties to the dispute sign an agreement to arbitrate. It is advisable to have the arbitration agreement signed before the dispute has arisen, preferable in a suitable clause in the original contract.
Secondly, the dispute must be an arbitrable one.
According to section 9(2) of Arbitration Act of 2001, an arbitration agreement shall be in writing. An arbitration agreement shall be deemed to be in writing if it is contained in- (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams, fax, e-mail or other means of telecommunication which provide a record of the agreement; or (c) an exchange of statement of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.

source: BIAC

farzanamili:
3. What is the difference between arbitration and litigation?

Litigation is a lawsuit, heard and adjudicated in court by judge(s). Arbitration, on the other hand, is the outcome of an agreement between two or more parties to a contract to resolve a dispute through a specific process outside of the courts. In arbitration, the disputant parties nominate one (or, three) neutral and independent arbitrator(s). It is responsibility of arbitrator/ arbitrators to examine claims and counter claims, to hear witnesses, to peruse evidence and to arrive at a decision known as an arbitral award. Unlike in litigation, the rights of appeal are limited in arbitration. Arbitral award is enforceable as a decree of court if the time for making an application to set aside the arbitral award under section 42 of the Arbitration Act 2001 has expired, or such application having been made has been refused (section 44 of the Arbitration Act 2001). The basic purpose of arbitration is to resolve certain types of disputes speedily, with confidentiality and by the parties’ chosen arbitrator(s).

source: BIAC

farzanamili:
4. How do I know if I can choose arbitration instead of going to court?

As a first step, look at the contract. For example, a partnership contract may have an arbitration clause, which describes the scope of arbitration in the event of a dispute arising out of or in connection with the contract. In theory, even without such a clause in the agreement, the parties (not one party alone) may agree to opt for arbitration to resolve the dispute. In practice, however, once a dispute has arisen, it usually becomes difficult for parties to agree on any issue; hence, it is always advisable to conclude such agreement prior to any dispute.

source:BIAC

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