Mediation and Alternative Dispute Resolution in Bangladesh | Advocacy Legal BD

Mediation and Alternative Dispute Resolution in Bangladesh

Mediation and Alternative Dispute Resolution in Bangladesh :

Courts in Bangladesh are overloaded and people lose time, money and peace of mind trying to get justice. Mediation and alternative dispute resolution (ADR) aren’t just trendy ideas—they’re practical solutions for a system that often can’t deliver results fast enough.

Advocacy Legal, recognized among top lawyers in Bangladesh, provides expert ADR services to help you resolve disputes efficiently without lengthy court battles.

Understanding Mediation and Alternative Dispute Resolution in Bangladesh

Alternative Dispute Resolution (ADR) is an umbrella term for non-litigious processes that resolve disputes outside traditional court litigation. In Bangladesh, ADR has become increasingly important as courts struggle with massive case backlogs.

What ADR Covers – The Basics

ADR includes:

  • Mediation – Neutral third party facilitates settlement
  • Arbitration – Binding decision by arbitrator(s)
  • Conciliation – Conciliator proposes settlement terms
  • Negotiation – Direct party-to-party discussion
  • Community-based settlement (Shalish) – Traditional dispute resolution
  • Online Dispute Resolution (ODR) – Digital mediation platforms

Legal Framework in Bangladesh

Primary Legislation:

1. Arbitration Act, 2001

  • Governs arbitration proceedings in Bangladesh
  • Modernized earlier colonial-era rules
  • Aligns domestic procedures with international norms
  • Provides framework for enforcement of awards
  • Based on UNCITRAL Model Law principles

2. Court-Annexed Mediation Programs

  • Implemented through judicial circulars
  • Family Court mediation provisions
  • Civil court mediation referrals
  • Statutory mediation frameworks

3. Local Government (Union Parishad) Act, 2009

  • Provides for Village Courts and Shalish
  • Community-based dispute resolution
  • Traditional dispute settlement mechanisms

Official Resources:

Types of Mediation and Alternative Dispute Resolution in Bangladesh

1. Mediation

What is Mediation? A voluntary process where a neutral mediator helps parties reach a mutually acceptable settlement without imposing a decision.

Types of Mediation in Bangladesh:

a) Statutory and Institutional Mediation

  • Mediation Board framework
  • Court-annexed mediation programs
  • Formal pathways for specific disputes
  • Family matters and civil disputes
  • Court referrals at early stages

b) Court-Annexed Mediation

  • Courts refer cases to mediation
  • Pre-trial settlement attempts
  • Mediation before family courts
  • Reduces trial burden

c) Community and NGO-Led Mediation

  • NGO-run mediation programs
  • Community mediation centers
  • Hybrid models with traditional Shalish
  • Trained mediators with ethical standards
  • Rural area accessibility

When Mediation Works Best:

  • Family disputes (divorce, custody, maintenance)
  • Neighbor disputes
  • Property boundary issues
  • Business partnership conflicts
  • Employment disputes
  • Consumer complaints

2. Arbitration (Binding ADR)

What is Arbitration? Parties agree to submit dispute to one or more arbitrators who make a binding decision enforceable in courts.

Governed by: Arbitration Act, 2001

Types:

  • Domestic Arbitration – Between Bangladeshi parties
  • International Arbitration – Cross-border disputes
  • Institutional Arbitration – Conducted by arbitration centers
  • Ad-hoc Arbitration – Parties create their own procedures

Arbitration Process:

  1. Arbitration agreement/clause in contract
  2. Selection of arbitrator(s)
  3. Statement of claim and defense
  4. Evidence and hearings
  5. Arbitral award (final decision)
  6. Court enforcement if needed

Best For:

  • Commercial disputes
  • Construction contracts
  • International business
  • Complex technical matters
  • Parties seeking finality

Enforcement:

  • Awards are final and binding
  • Enforceable under Arbitration Act, 2001
  • Limited grounds for challenge
  • Court enforcement mechanisms

3. Conciliation

What is Conciliation? Similar to mediation but the conciliator takes a more active role in proposing settlement terms.

Features:

  • More interventionist than mediation
  • Conciliator suggests solutions
  • Still voluntary process
  • Common in labor disputes

4. Negotiation

Direct Party Discussion:

  • No third party involvement
  • Parties negotiate directly
  • Informal and flexible
  • Cost-free approach
  • Requires good faith

Lawyer-Assisted Negotiation: Advocacy Legal assists clients in structured negotiations to reach favorable settlements before litigation.

5. Traditional Shalish (Village Courts)

Community-Based Resolution:

  • Traditional dispute settlement in Bangladesh
  • Local community elders mediate
  • Social and cultural context considered
  • Maintains community harmony
  • Modernized through Village Courts Act

Modern Shalish:

  • NGO programs introduce standards
  • Trained mediators
  • Confidentiality protocols
  • Fair process safeguards
  • Women’s participation

6. Online Dispute Resolution (ODR)

Digital Mediation:

  • Emerging in Bangladesh
  • Online platforms for dispute resolution
  • Video conferencing mediation
  • Document exchange digitally
  • Reduces geographic barriers

Future of ADR: ODR represents the next step but requires:

  • Legal framework development
  • Technical infrastructure
  • Trust in digital platforms
  • Cybersecurity measures

Why ADR Matters in Bangladesh

The Justice Crisis

Two Simple Facts Explain the Interest:

1. Massive Case Backlog

  • Courts in Bangladesh carry enormous caseloads
  • Cases delayed for years (often 5-10+ years)
  • High Court and lower courts overwhelmed
  • Pending cases number in millions
  • Justice delayed is justice denied

2. Access to Justice Problems

  • Court costs prohibitive for many
  • Geographic distance to courts
  • Complex legal procedures
  • Language barriers
  • Time consumption

ADR offers: Faster, cheaper, private and party-driven outcomes.

Social and Cultural Fit

Traditional Dispute Resolution Culture:

  • Established tradition of informal settlement (Shalish)
  • Community mediation valued
  • Relationship preservation important
  • Face-saving mechanisms needed

ADR programs can:

  • Modernize traditional practices
  • Regulate informal processes
  • Introduce fairness standards
  • Preserve cultural strengths

Economic Benefits

For Individuals:

  • Lower costs than litigation
  • Faster resolution
  • Less time away from work
  • Reduced stress

For Businesses:

  • Preserve business relationships
  • Confidential resolution
  • Industry-specific expertise
  • International enforceability (arbitration)

For Society:

  • Reduce court burden
  • Free judicial resources for serious crimes
  • Increase access to justice
  • Economic efficiency

How Mediation Works in Bangladesh

The Mediation Process

Step 1: Agreement to Mediate

  • Parties agree to try mediation
  • May be court-referred or voluntary
  • Select mediator or mediation center
  • Sign mediation agreement

Step 2: Initial Meeting

  • Mediator explains process
  • Establishes ground rules
  • Each party presents their view
  • Identifies issues to resolve

Step 3: Joint and Private Sessions

  • Joint discussions between parties
  • Private caucuses with mediator
  • Explore interests and concerns
  • Generate settlement options

Step 4: Negotiation and Agreement

  • Parties negotiate terms
  • Mediator facilitates communication
  • Creative solutions explored
  • Agreement drafted if reached

Step 5: Formalization

  • Settlement agreement signed
  • May be converted to consent decree
  • Enforceable document created
  • Case resolved

Timeline: Typically 1-3 sessions over 2-8 weeks (vs. years in court)

Court-Annexed Mediation

How Courts Refer Cases:

  • Judge identifies suitable cases
  • Issues mediation referral order
  • Parties attend mediation center
  • Mediator assigned from panel
  • Time-bound mediation attempt
  • Report back to court

After Mediation:

  • If settled: Consent decree entered, case closed
  • If not settled: Case proceeds to trial

Advantages of ADR

1. Speed and Efficiency

Time Comparison:

  • Litigation: 3-10+ years average
  • Arbitration: 6-18 months
  • Mediation: 2-8 weeks

ADR typically resolves disputes faster – sometimes in just a few sessions compared to years of court proceedings.

2. Cost Savings

Court Litigation Costs:

  • Court fees
  • Lawyer fees over years
  • Expert witness costs
  • Travel and time costs
  • Lost work income

ADR Costs:

  • One-time mediation/arbitration fees
  • Shorter lawyer involvement
  • Minimal procedural costs
  • Quick resolution

Studies in Bangladesh repeatedly report significant cost savings compared with full court proceedings.

3. Party Control and Flexibility

In Court:

  • Judge decides outcome
  • Rigid legal procedures
  • Win-lose result
  • Public proceedings

In ADR:

  • Parties retain control over outcomes and process
  • Solutions can be creative and context-sensitive
  • Win-win possibilities
  • Flexible procedures
  • Confidential process

Example: In a business dispute, parties might agree to restructure partnership rather than dissolve it – an option unavailable in court.

4. Relationship Preservation

For family and community disputes, mediation preserves relationships that litigation would damage.

Critical For:

  • Family disputes (divorce, custody)
  • Business partnerships
  • Employer-employee relations
  • Neighbor conflicts
  • Community harmony

Social Harmony: Parties can continue relationships after ADR resolution.

5. Confidentiality

Court proceedings are public – anyone can attend, records are public.

ADR is private:

  • Confidential discussions
  • No public record
  • Protect reputation
  • Business secrets safe
  • Privacy maintained

6. Expertise

Arbitration allows:

  • Selection of arbitrator with industry expertise
  • Technical knowledge in complex matters
  • Specialized understanding

Better than: Judge without specific industry background

7. Enforceability

Arbitration awards:

  • Final and binding
  • Enforceable under Arbitration Act, 2001
  • International recognition (New York Convention)
  • Limited appeal grounds

Mediated settlements:

  • Can be converted to consent decrees
  • Enforceable as court orders
  • Voluntary compliance high

Challenges and Limitations in Bangladesh

ADR in Bangladesh is promising but inconsistent. Several challenges must be addressed:

1. Uneven Quality and Standards

Problems:

  • Training for mediators is patchy
  • No uniform certification system
  • Ethical rules inconsistently applied
  • Quality varies widely

Result: Where mediators are untrained or biased, settlements may be unfair or later challenged.

Solutions Needed:

  • National mediator certification program
  • Mandatory training standards
  • Code of ethics enforcement
  • Quality assurance mechanisms

2. Limited Enforcement and Integration

Arbitration:

  • Awards enforceable under Arbitration Act
  • Clear legal framework

Mediation:

  • Settlements lack clear enforcement mechanisms unless converted to consent decrees
  • Reduces predictability
  • Parties may not comply
  • Court enforcement unclear

Solutions:

  • Strengthen legal framework for mediation
  • Streamline consent decree process
  • Clear enforcement procedures
  • Penalties for non-compliance

3. Slow Institutional Adoption

Reality: Even though some courts have started using mediation, it hasn’t spread widely.

Reasons:

  • Judges lack training in ADR benefits
  • Lawyers fear reduced fees
  • Cultural resistance to change
  • Limited success stories publicized
  • No clear incentives to refer cases

What’s Needed:

  • Judicial education on ADR
  • Lawyer training programs
  • Success story documentation
  • Incentives for early settlement
  • Public awareness campaigns

4. Limited Awareness

Public doesn’t know:

  • ADR options exist
  • How to access ADR
  • Benefits over litigation
  • Rights in ADR process

Legal professionals:

  • Many judges and lawyers still don’t have enough motivation
  • Lack clear reasons to choose mediation
  • Prefer familiar court procedures

Solution: Widespread public education and legal profession training

5. Digital Readiness Gap

ODR is an obvious next step, but:

  • Legal frameworks for ODR incomplete
  • Technical infrastructure limited
  • Digital literacy challenges
  • Trust in digital platforms lacking
  • Cybersecurity concerns
  • E-signature legal validity issues

Development Needed:

  • ODR legislation
  • Secure digital platforms
  • Public trust-building
  • Technology training

6. Power Imbalances

Risk in ADR:

  • Stronger party may dominate weaker party
  • Particularly in family/labor disputes
  • Women may face pressure in mediation
  • Economic disparities affect bargaining

Safeguards Needed:

  • Trained mediators to identify imbalances
  • Legal advice availability
  • Protection of vulnerable parties
  • Option to withdraw and litigate

Our ADR Services – Advocacy Legal

Advocacy Legal, recognized as one of the best law firms in Dhaka, provides comprehensive alternative dispute resolution services.

Mediation Services

Family Mediation:

  • Divorce and separation
  • Child custody arrangements
  • Dower and maintenance disputes
  • Property division
  • Family business conflicts

Commercial Mediation:

  • Business partnership disputes
  • Contract disagreements
  • Supplier-customer conflicts
  • Employment disputes
  • Debt recovery

Property Mediation:

  • Land boundary disputes
  • Co-ownership conflicts
  • Landlord-tenant issues
  • Property damage claims

Arbitration Services

Domestic Arbitration:

  • Commercial contract disputes
  • Construction disputes
  • Partnership dissolution
  • Business valuation conflicts

International Arbitration:

  • Cross-border commercial disputes
  • Foreign investment conflicts
  • International trade issues
  • Multi-jurisdictional matters

Arbitration Support:

Negotiation Assistance

Structured Negotiations:

  • Pre-litigation settlement discussions
  • Contract renegotiation
  • Business restructuring
  • Debt settlement
  • Strategic negotiation planning

ADR Legal Advisory

Strategic Advice:

  • Choose appropriate ADR method
  • Draft ADR clauses in contracts
  • Assess suitability for ADR
  • Risk-benefit analysis
  • Hybrid ADR strategies

Why Choose Advocacy Legal for ADR?

Led by Advocate Md. Noushad Parvez:

  • Trained in mediation and ADR techniques
  • 10+ years dispute resolution experience
  • Successful mediator and arbitrator
  • Strategic negotiation expertise

Our Approach:

  • Client-centered resolution
  • Cost-effective solutions
  • Preserve relationships where possible
  • Creative settlement options
  • Confidential process
  • Fast resolution

Track Record:

  • 100+ disputes resolved through ADR
  • High settlement success rate
  • Satisfied clients across industries
  • Reduced litigation costs for clients

Contact Us:

Phone: +88 02 41090957 (For appointment) +88 01977125595 (For appointment) +88 01795762000 (WhatsApp Business) +88 01677125595 (WhatsApp)

Email: info@advocacylegalbd.com
Website: www.advocacylegalbd.com
Office: Address: 3rd Floor, House-37, Road-7, Sector-3, Uttara, Dhaka-1230, Bangladesh.

Frequently Asked Questions

1. What is the difference between mediation and arbitration?

Mediation:

  • Mediator facilitates discussion
  • Parties control outcome
  • Non-binding (unless agreed)
  • Flexible and informal
  • Can withdraw anytime

Arbitration:

  • Arbitrator makes decision
  • Binding decision imposed
  • Formal process with rules
  • Final (limited appeal)
  • Enforceable in courts

Choose mediation for relationship preservation; arbitration for binding resolution.

2. How much does ADR cost in Bangladesh?

Mediation Costs:

  • Session fees: BDT 5,000 – 25,000 per session
  • Typical cases: 1-3 sessions needed
  • Total: BDT 10,000 – 75,000

Arbitration Costs:

  • Arbitrator fees: BDT 50,000 – 500,000+ (depends on claim amount)
  • Administrative costs: BDT 25,000 – 100,000
  • Lawyer fees: Varies

Court Litigation Costs:

  • Total costs: BDT 200,000 – Several million
  • Time span: 5-10 years

ADR saves 50-80% compared to litigation.

3. Is ADR legally binding in Bangladesh?

Arbitration:

  • YES – Awards are final and binding under Arbitration Act, 2001
  • Enforceable like court judgments
  • Limited grounds to challenge

Mediation:

  • Depends – Settlement agreement is contractually binding
  • Can be converted to consent decree for court enforcement
  • Voluntary compliance is high

4. How long does mediation take?

Typical Timeline:

  • Simple disputes: 1-2 sessions (2-4 weeks)
  • Moderate complexity: 2-4 sessions (1-2 months)
  • Complex disputes: 4-6 sessions (2-3 months)

Compare to:

  • Court litigation: 3-10+ years on average

80-90% faster than court proceedings.

5. Can any dispute go to ADR?

Suitable for ADR:

  • Commercial disputes
  • Family matters (divorce, custody)
  • Property disputes
  • Employment conflicts
  • Consumer complaints
  • Neighbor disputes
  • Partnership dissolution

NOT suitable:

  • Criminal cases
  • Cases requiring precedent
  • Constitutional matters
  • Where public interest involved
  • Fraud requiring investigation

Consult Advocacy Legal to assess your case.

6. What happens if mediation fails?

If parties don’t reach agreement:

  • No settlement is forced
  • Parties free to litigate
  • Can still negotiate later
  • Mediation discussions confidential
  • Cannot be used in court

No harm in trying – if mediation fails, you haven’t lost anything significant.

7. Are arbitration awards enforceable internationally?

Yes, if Bangladesh is party to relevant conventions:

New York Convention (1958):

  • Bangladesh is signatory
  • Arbitral awards enforceable in 170+ countries
  • Important for international business

International arbitration awards recognized and enforceable in Bangladesh and vice versa.

8. How do I start the ADR process?

Steps:

1. Contact Advocacy Legal

  • Free initial consultation
  • Case assessment
  • ADR suitability evaluation

2. Choose ADR Method

  • Mediation, arbitration, or negotiation
  • Based on dispute type and goals

3. Agreement to ADR

  • Both parties agree to participate
  • Select mediator/arbitrator
  • Sign ADR agreement

4. Process Begins

  • Schedule sessions
  • Exchange information
  • Facilitated resolution

Contact us today to explore ADR options for your dispute.

Conclusion: The Future of Dispute Resolution in Bangladesh

ADR isn’t a way to avoid the law—it’s simply a faster and smoother way to reach legal solutions. In Bangladesh’s overburdened justice system, alternative dispute resolution offers practical relief for individuals and businesses seeking timely justice.

The Path Forward:

  • Keep the good parts of traditional dispute methods (Shalish)
  • Make mediation more professional and consistent
  • Expand arbitration infrastructure
  • Use technology to make ADR easier to access (ODR)
  • Strengthen legal frameworks and enforcement
  • Increase public awareness and adoption

If we can do that, justice will become quicker, fairer and more affordable without losing its legal strength.

Get Expert ADR Services Today

Don’t let your dispute drag on for years in court. Explore faster, cost-effective resolution through mediation, arbitration, or negotiation.

Call for Free ADR Consultation
Email Your Dispute Details
Visit: www.advocacylegalbd.com

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