Terming alternative dispute resolution (ADR) a more business-friendly channel for resolving disputes, discussants at a roundtable have stressed the need for setting up commercial courts in divisional level to address issues of enforcing agreement.
They also emphasised on a wider buy-in from the stakeholders to strengthen the outside court dispute settlement mechanism.
Business Initiative Leading Development (BUILD), a public private policy reforms body, organised the roundtable at DBI Conference Room in the capital recently, says a statement.
An action research on Enforcing Contracts for Addressing Trade Barriers was presented at the roundtable. BUILD in collaboration with PROKAS, British Council, conducted the research.
BUILD Chief Executive Officer (CEO) Ferdaus Ara Begum delivered welcome speech at the roundtable, chaired by Samir Sattar.
Mentioning that Bangladesh has slipped in the Ease of Doing Business ranking going down to 177th position out of 190 countries in Doing Business Report 2018, Ferdaus Ara Begum said the country needs 1,442 days or about four years on an average to get a contract enforced while it takes 66.8 per cent of the claimed value.
India is almost in the same position taking on an average 1,445 days to get a contract enforced but the cost of claimed value to resolve a case there is 31.0pc she said, adding "much less" (than Bangladesh.
Samir Sattar, in his speech, said enforcing contracts is required for building confidence (among business and stakeholders) and attracting foreign investors to get agreement enforced within a shortest possible time. He said it can ensure predictability in the policy issues.
Despite Bangladesh is doing good (in many areas) except Doing Business Index, he said the country slipped consecutively in different indicators. The country will need to go for detailed studies to find out strategies on how to address these issues, he added.
The study identified gaps and problems in the existing system of enforcing contracts, called for assessing the feasibility of recommendations, completed stakeholders' analysis and developed an advocacy strategy engaging relevant stakeholders.
Besides, Fowzul Azim, Chief Research Officer, Law Commission, Md Sanowar Hossain, Registrar, DPDT, M Jalalul Hai, CEO, HAISON International, Barrister Khondoker MS Kawsar of Supreme Court and Dr Simon Foot, International Consultant, PROKAS, British Council took part in panel discussion as panelists and stressed on the need for a separate policy for enforcing contracts.
The discussants said pre-action mediation and consultation should be encouraged by legal provisions. The rules for ADR as prepared by BIAC need wider recognition and the proposed studies on special law and institutions for commercial laws will be a major step forward. Among the additional stakeholders to be included are Registrar of Joint Stock Companies (RJSC), National Board of Revenue (NBR), Federation of Bangladesh Chambers of Commerce and Industries (FBCCI), trade associations, the World Bank, and educational institutions, they added.
Representatives from the Ministry of Law, Justice and Parliamentary Affairs, representatives of Ministry of Industries, Ministry of Commerce, Law Commission, Bangladesh Investment Development Authority (BIDA), Department of Patents, Designs and Trademarks (DPDT), along with a number of lawyers, private sector representatives, academia, professionals also attended the programme.