Arbitration Act

2259 Words10 Pages
Courts are over bounded with a large number of cases and their disposal takes long time. Therefore a need was felt for a faster dispute resolving mechanism. That’s why “Arbitration Act” was provided with a view to give speedy justice to the people and also to avoid unnecessary court case expenses. It is an informal dispute settlement mechanism. Bangladesh has recently enacted a new arbitration law, known as “The Arbitration Act, 2001. The Act came into force on April 10, 2001. The Act has repealed The Arbitration (Protocol and Convention) Act, 1937 and The Arbitration Act, 1940. With this new enactment Bangladesh has kept pace with the recent trends in the field of international arbitration in the rest of the world.

According to the
…show more content…
• The finality of the arbitration award and the fact that normally there is no right of appeal to the courts to change the award.

So after the discussion we can say that, arbitration is a dispute resolution processes in which the disputing parties present their case to a third party intermediary (or a panel of arbitrators) that examine all the evidence and then make a decision for the parties. This decision is usually binding. Like court-based adjudication, arbitration is adversarial. The presentations are made to prove one side right, the other wrong. Thus the parties assume they are working against each other, not cooperatively. Arbitration is generally not as formal as court adjudication, however, and the rules can be altered to some extent to meet the parties’ needs.

Why arbitration as dispute settlement mechanism is not effective:

Now let’s discuss the about the chapters of arbitration which are making Arbitration less effective. Although settling dispute through arbitration is one of the most traditionally approved to methods for resolving disputes between individuals and parties, there are some lacking. Some disputes may not prove best resolved through arbitration either. Arbitration, itself, is a process of two parties mutually agreeing to allow a third, impartial party make a decision regarding an outstanding dispute. The decisions from an arbitrator are legally binding, and are enforceable in the court of law per the Arbitration
Get Access