Introduction: Arbitration is an agreement between two or more parties to try to resolve a dispute outside the courts.

Arbitration in Bangladesh is governed by the Arbitration Act 2001. Arbitration is an increasingly popular way to resolve disputes, especially in business transactions both domestic and aboard. In practice, there are difficulties in enforcing arbitration award in Bangladesh. The difficulty is greater if it is a foreign party seeking to enforce an award against a local party. Arbitration Feature: There are substantial advantages to commercial arbitration is resolving disputes a matter can be resolved quicker, cheaper and with more finality then litigation, not to mention the flexibility and confidentiality that arbitration affords. It is party driven neutral and confidential process that has money advantages over dragging a party to court due to its confidentiality, taking case to arbitration can also avoid negative media attention and can even help salvage a counting relationship with the party that are disputing with. But one should not put an arbitration clause in merely based on the blind assumption that arbitration is going to be cheaper or faster, because in many cases arbitration can be equally expensive, if not more expensive. Choosing of arbitration over court: Arbitration is a fast way to get a decision when you are in a dispute. Arbitration is more flexible and less formal than court. Usually, arbitration can be scheduled faster than a trial. Sometimes, if the parties want, arbitrators can decide things that judges are not allowed to decide. Arbitration is like a trial but less formal. In arbitration, two sides present their evidence to an arbitrator. The arbitrator decides who wins and who loses. An arbitrator does the job that a judge or jury would normally do in court. Advantage and Disadvantage of Civil Court: ADVANTAGES 1. A legally qualified judge will decide the case. 2. The doctrine of judicial precedent will be applied by the judge, which leads to a reasoned decision. 3. There is an appeal system if a party is unhappy with the decision of the trial judge. 4. Legal aid is available for those on a low income.

DISADVANTAGES 1. The civil courts are expensive. Many cases cost more than is being claimed.

2. There are delays in waiting for the trial, for example: 12 months for the county court and 3 years for the High Court. Plus a delay in appeals: 19 months for the Court of Appeal 3. The procedures are complex. 1. The above were the most important criticisms prior to the civil justice reforms of 26 April 1999. 4. The courts are open to the public and press, which could lead to adverse publicity. 5. The judge will not have technical expertise. 6. The court service chooses the trial date.

Advantage Disadvantage of Arbitration: Advantage: 1. 2. 3. 4. 5. 6. 7. 8. 9. Efficiency Flexibility Ability to select venue, seat and language of the arbitration. Uniformity of the law Enforcement to the award Costs Expertise & Knowledge Privacy & confidentiality

Diadvantage: 1. 2. 3. 4. Subject matter not capable of statement Award not necessity based on Rules of law Lack of precedents Non adherence to court Rules of evidence

Act 2001 for Arbitration: The arbitration Act 2001 has failed due to some drawbacks under the section 3, 7(A), 10, 11,12 and some others section in arbitration Act 2001. Under the section 3 in subsection 1, it has mention that if the place of arbitration is in Bangladesh then this Act 2001 will be applied.

In subsection 2, if the place of arbitration is outside of Bangladesh then go to sections 45, 46, 47. For instance, when one case is enrolling at the same time in two countries like arbitration in US and Bangladesh court and give award that are contradict to each other. Then the implementation of getting award may be difficult. Getting the certain arbitral awards section 45, 46 and 47 shall be applied for the recognition and enforcement. Under section 7A, it has stated about the power of court and High court division to make interim orders. For example, a dispute may arise about the painting of Monolecha, some times is need for appointing arbitrators but within that time the painting may sell. In this vacuum time, the court has power to injunction for the painting. Under Section 11, the parties are free to determine the number of arbitrators. The appointed arbitrator shall jointly appointed the third arbitrator which the chairman of the arbitrator. In case of disagreement of two arbitrators for appointing the chairmen then under the section 12 the appointment shall be made upon the request of a party by the district Judge except intentional commercial arbitration and by the Chief Justice or by any other Judge of the Supreme Court designated by the Chief Justice in case of international commercial arbitration. Conclusion: The activities of the research have tried to find out the answer of the assignment in two parts. The first part has explained the definition of the arbitration, it advantages and disadvantages, the reason of use the arbitration process. This part also has discussed about court advantages and disadvantages. On the other hand, the second part has tried to find the reasons of the failure of the arbitration act 2001 in Bangladesh. The arbitration act is used to resolve the dispute within short time period and keeping the confidentially of the parties. But the some of the section of the arbitration act 2001 of Bangladesh has hampering the outcome of the proceeding. Some of the section of the act is so complex that the outcome of the process has become uncertain. Some of the disputes resolving largely depend on the venue of the arbitrators. In arbitration act 2001 section 45 gives the suggestion that some of the outcome of the process immensely related to venue of the arbitration. When the arbitrations stay in two different venues then the process may face some complexity. Like two arbitrators may give two suggestions from two venues. In this situation, the outcome of the arbitration has become pending. So some of the parties may become so much frustrated after investing good amount of money to the arbitrators. This sort of inconsistency of the process is causing bad impact of the outcome.

Reference: http://www.lawteacher.net/english-legal-system/resources/civil-courts-adv-disadvantages.php http://courts.oregon.gov/OJD/programs/adr/pages/whatisarbitration.aspx

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