ADR can help resolve real estate disputes: Experts

Legal and real estate sector experts on Wednesday said Alternative Dispute Resolution (ADR) can help resolve commercial disputes in both sectors in the most pragmatic, expeditious and cost-effective manner.

They made the suggestion at a webinar on “Challenges of Application of Institutional ADR in Real Estate and Construction Disputes in Bangladesh,” organised by the Bangladesh International Arbitration Centre (BIAC) and its partner organisation Singapore International Arbitration Centre (SIAC).

Speaking at the event, BIAC CEO Muhammad A Rumee Ali stressed on the need for facilitating a neutral process of dispute resolution and opined that Covid-19 has pointed out the significance of availing institutional ADR.

He said that owing to the absence of any dispute resolution clause in real estate and construction contracts, parties cannot reach a settlement unless all stakeholders cooperate with one another, thereby multiplying costs as disputes cannot be resolved early.

FR Khan, managing director of Building Technology & Ideas (BTI) Ltd, emphasised adhering to ADR tools like negotiation, mediation and arbitration before going to court for resolving disputes.

Taking part in the discussion, Anis A Khan, vice president of the Metropolitan Chamber of Commerce and Industry, said that unregistered tripartite agreement leads to disputes, adding that mediation and arbitration are the most effective means of resolving such disputes for which specialised setup as established by BIAC is highly commendable.

Barrister Narita Navin Khan, head of Corporate and Finance Division at Rahman’s Chambers, explained provisions of ADR in Bangladeshi laws and maintained that ignorance of law prompts parties to move to lengthy court procedures.

Mahbuba Rahman, general Manager of BIAC, said that provision of pre-trial mediation between the parties by the Real Estate and Housing Association of Bangladesh (REHAB) is not pragmatic and she insisted on institutional ADR.

SIAC CEO Lim Seok Hui, Tejas Karia, member of the SIAC Court of Arbitration and partner and head of Arbitration of Shardul Amarchand Mangaldas & Co, Shwetha Bidhuri, head of South Asia of SIAC, and Piyush Prasad, counsel of SIAC, also spoke at the webinar.

The webinar was moderated by Barrister Ali Asif Khan, an advocate of the Bangladesh Supreme Court and partner of Hossain & Khan Associates.