At the outset of this study, conflict is an inevitable part of all human relationships, present at every level of society-from personal to global. Disputes arise when parties have opposing interests over resources, power, or status. Alternative Dispute Resolution (ADR) refers to methods of resolving such conflicts outside of traditional court proceedings. Sometimes, the “A” in ADR stands for “appropriate,” highlighting the goal of finding the most suitable way to resolve disputes. ADR expands the range of available options for conflict resolution, emphasizing flexibility and efficiency (Lexibal Legal Platform, 2022).

Definition of ADR

The phrase “alternative dispute resolution” or “ADR” is frequently used to refer to a broad range of conflict resolution procedures that are either an alternative to or a substitute for formal court procedures. The phrase may be used to describe anything from arbitration systems that closely resemble courtroom procedures to assisted settlement negotiations, where parties are urged to engage in direct conversations before undergoing another legal procedure. The ADR rubric can also apply to procedures intended to foster community development or manage conflict within the community (Law Insider Legal Dictionary: 2024). “ADR” refers to a variety of out-of-court conflict resolution techniques, including as mediation, conciliation, negotiation, and the many forms of arbitration, according to the GLOSSARY Law Dictionary. All of the methods used in alternative dispute resolution (ADR) are united by the fact that it is often less adversarial, less formal, less costly, and faster than a court trial (Nolo Legal Dictionary, Nolo.com, 2025). According to the declaration made in the case of Hillmond Investments Ltd. v. Canadian Imperial Bank of Commerce, (1996) 135 DLR (4th) 471 (ONT Court of Appeal) 887574, “ADR” is the process of settling legal conflicts and disputes outside of the public court system, typically by means of mediation or arbitration. 

Therefore, the aforementioned rationale leads one to the conclusion that alternative dispute resolution refers to techniques for settling disputes outside of the legal system. While ADR may be used in a variety of official and informal methods to resolve disputes, local community activities are the main emphasis here. 

The Background of ADR in Bangladesh

Despite mediations centuries-long history, alternative conflict resolution has grown rapidly in the United States since the 1960s political and social fights. More individuals are filing lawsuits to settle conflicts as a result of new laws protecting individual rights and a lower tolerance for unfairness and prejudice. For instance, the Civil Rights Act of 1964 barred “discrimination in employment or public accommodations on the basis of race, sex, or national origin.” Laws like these gave citizens more options for seeking reparation for abuse. A number of court cases were also initiated as a result of the development of the environmental and womens movements. 

The number of cases filed in US courts skyrocketed as a result of all these developments. Eventually, the system became overloaded with cases, leading to protracted delays and occasionally procedural mistakes (“The Role of ADR in Reducing Court Backlogs,” The Just Laws: 2024). Because they eased the burden on the overburdened court system, mediation and arbitration swiftly gained popularity as means of settling a variety of disputes.

The Objectives of Alternative Dispute Resolution

The ADR method can support not only legal but also economic and social development objectives by speeding the resolution of disagreements that impede progress toward these goals:

1.  Cost-effective or free of charge; 
2.  Time-saving; 
3. Win-win result 
4. Indigenous approach; 
5.  Social bonding; 
6.  Dispute resolution between disputants;
7. Positive results that boost community confidence; and 
8. Positive results that inspire others to settle conflicts within the socio-community

The ADR Process Overview

ADR is used in American institutions such as courts, government agencies, companies, churches, schools, and families to settle a variety of disputes. Alternative dispute resolution (ADR) is rarely used in conflicts until they seem ready (some say “ripe”) to be resolved. This happens sometimes when the conflict comes to a grinding halt, when it is clear that neither side can win but that they are both seriously hurting from continuing the conflict. ADR has been used when it is suitable, and successful ADR processes rely on ripeness. For example:

1. Arbitration and negotiation are commonly used to resolve international business disputes.
2. Labor-management conflicts that were previously unresolvable are also resolved through mediation and arbitration.
3. International mediation has been employed, with differing degrees of success, to settle challenging international and ethnic disputes. 
4. Developing consensus has grown in popularity.

The Mechanisms of ADR

Arbitration, mediation, and negotiation are the most often used alternative dispute resolution (ADR) methods in Bangladesh. Lets discuss the three basic dispute resolution processes:

Negotiation 

Negotiation refers to the process by which conflicting parties seek to negotiate or resolve their disputes. The negotiation process allows the disputants or parties to communicate ideas, identify grounds of disagreement that bother them, devise a solution, and win each others commitment to reaching an agreement. Bargaining is a normal part of the negotiating process. This feature distinguishes it from arbitration and mediation (Lexibal, Justice Canada, ABA). A third party may or may not participate in the negotiating process. When no third party is present, someone usually begins the conversation, gets the participants to the negotiating table, and then exits the process ("Negotiation." Wikipedia: The Free Encyclopedia, Wikimedia Foundation: 12 July 2025).

Mediation 

Mediation is an extension of negotiation, where a neutral third party helps disputing sides reaches a mutually acceptable solution. It is widely used to settle interpersonal, commercial, and national conflicts (American Bar Association, 2023). In Bangladesh, the traditional form of mediation known as Shalish blends negotiation and mediation practices and has existed for centuries in rural areas (Mahmud, 2018). Shalish is trusted especially by women and the poor due to its accessibility, no-cost process, and cultural familiarity (UNDP Bangladesh, 2017). Since local leaders are often aware of the real context, issues are less likely to be exaggerated. Studies show 60-70% of local disputes is resolved through Shalish (Hoque & Zarif, 2019).

Arbitration 

In addition to mediation and negotiation, arbitration is another way to resolve disputes. In arbitration systems, the court authorizes a third party or an unbiased person to resolve the dispute immediately. The Arbitration Act of 1940 was passed in order to settle disputes in this way. But few people employ the courts arbitration process (Chowdhury, 2025).

The Role of ADR in Statutory Laws of Bangladesh

ADR has drawn a lot of interest as a means of reducing the monetary and psychological expenses associated with litigation. Just moving the matter out of the courts and away from the adversarial process seems to be enough to expedite and improve the parties satisfaction in certain circumstances. Consequently, a number of Bangladeshi statutes and laws now include alternative dispute resolution. Below is a list of the laws that support ADR:

The Code of Civil procedure, 1908 

Alternative dispute settlement is described in Sections 89A, 89B, and 89C of the Code of Civil Procedure, 1908. The Third Amendment of the CPC included these sections in 2003. It declares that the court may postpone the hearing in order to mediate the resolution of the suits dispute or disputes if all contesting parties show up in person or through their respective pleaders. A mediator from the panel that the district judge may assemble under sub-section (10), the parties engaged pleaders, or the party or parties in the absence of a pleader or pleaders may be sent by the court to try to settle the disagreement or disputes through mediation. [Code of Civil Procedure, 1908, Section 89A(1)].

Furthermore, sections 89B and 89C of the CPC cover arbitration and mediation in appeals, whereas section 89A describes alternative mediation methods. The Code of Civil Procedure has appropriately addressed the fundamental ADR procedure of negotiation, mediation, and arbitration.

The Code of Criminal procedure, 1898 

The Code of Criminal Procedure, 1898, contains no provisions for ADR. However, it contains the method of resolving conflicts between the parties described in Section 345 of the Code. Actually, criminal offences cannot be resolved. This is why the CrPC remains mute on the provisions of ADR. However, a significant adjustment will be made in this regard, with ADR rules being incorporated into the Code of Criminal Procedure, 1898.

The Artha Rin Adalat Ain, 2003 

The Artha Rin Adalat (Money Loan Court) was established in 1990 to handle debt recovery cases from financial institutions, which were previously under civil courts. To strengthen this system, the Artha Rin Adalat Ain, 2003 was enacted, setting up special tribunals under the District Judges Court for resolving lender-borrower disputes. These courts, led by Joint District Judges, have overriding authority over other laws in such matters. Only these courts can try cases related to loan recovery by banks, leasing companies, and financial institutions under the Financial Institutions Act 1993. The Money Loan Courts operate with powers equivalent to those of civil courts, and their judges are appointed in coordination with the Supreme Court.

The Arbitration Act of 2001 

The Arbitration Act, 2001 of Bangladesh replaced the outdated Arbitration Acts of 1937 and 1940, which dated back to British colonial rule. Effective from April 10, 2001, and later amended in 2004, the Act was introduced in response to increased foreign investment and international trade, especially in sectors like power and natural gas. The Act consolidates laws on both domestic and international arbitration, creating a unified legal framework. This reform aligns Bangladesh with international standards, enhancing its appeal as a hub for dispute resolution in global trade and investment. Although largely based on the UNCITRAL Model Law, the Act incorporates features from both the Indian Arbitration and Conciliation Act 1996 and the English Arbitration Act 1996, making it a hybrid of global arbitration practices.

The Bankruptcy Act of 1997 

Bangladesh replaced the Insolvency (Dacca) Act, 1909 and the Insolvency Act, 1920 with the Bankruptcy Act, 1997, which came into effect on August 1, 1997. This law uses the term "bankruptcy" instead of "insolvency" and largely follows the structure of the earlier laws. Under the Act, a person cannot be called bankrupt until declared so by a competent court. The Act defines a bankrupt as a debtor adjudicated under Sections 10, 45, or 46(13). Any adult who is not a lunatic and has committed an act of bankruptcy may be declared bankrupt, except for government bodies, religious institutions, or statutory and autonomous non-financial organizations (Section 11[2]). The District Court acts as the Bankruptcy Court, with the District Judge presiding. The court can enforce its orders and even imprison a defaulting party (Section 7). Proceedings follow the Code of Civil Procedure, excluding Section 11 (Section 8).

According to Section 31, once a person is declared bankrupt, the debtor must assist in selling assets and repaying creditors. All non-exempt assets become part of “the Estate” and are distributed accordingly (Section 32 outlines exemptions). The Act also introduces elements of Alternative Dispute Resolution (ADR), aiming for a more efficient and inclusive system for resolving financial distress, including that of companies and partnerships. Bangladesh is aligning with international practices in strengthening creditors rights and insolvency frameworks.

The Muslim Family Court Ordinance, 1985 

To address family disputes more efficiently, Family Courts were established in 1985, covering matters like divorce, dower, maintenance, guardianship, and child custody. Previously handled by civil and magistrate courts, such cases faced delays due to overwhelming caseloads, high costs, and procedural complexity-leading to loss of public confidence. The Family Courts Ordinance, 1985 introduced simplified procedures, such as a 30-day limit for defendant appearance and case dismissal for non-appearance. Although the same assistant judges now serve as family court judges without specialized training, the key distinction lies in the emphasis on mediation. Sections 10 and 13 of the Ordinance require courts to attempt mediation during both pre-trial and post-evidence stages. If reconciliation fails, the court proceeds to judgment. This makes Family Courts the first formal judicial platform in Bangladesh to institutionalize mediation.

However, many lawyers resist mediation due to fears of reduced income from shorter trials. To ensure mediations success, lawyers need to be convinced that mediation offers financial opportunities (e.g., lump-sum fees) and can attract more clients by delivering faster resolutions.

The Muslim Family Law Ordinance, 1961 

The Muslim Family Laws Ordinance, 1961 provides limited rights to Muslim women in cases of marriage and divorce. It regulates polygamy, requiring a husband to obtain written permission from the Arbitration Council before marrying again (Section 6). Marriages without such approval cannot be legally registered. The application must detail reasons and indicate whether the existing wife/wives consent. If the Council finds the marriage just and necessary, it may grant permission with conditions. Unauthorized second marriages result in penalties, including payment of full dower, up to one year of imprisonment, or a fine of Tk. 10,000. For divorce (talaq), Section 7 requires the husband to notify the Chairman in writing, with a copy to the wife. The talaq takes effect after 90 days unless reconciliation occurs through an Arbitration Council formed by the Chairman. If the wife is pregnant, the talaq becomes effective only after the pregnancy ends. This Ordinance introduces an effective ADR mechanism for resolving marital disputes among Muslims in Bangladesh.

The Gram Adalat Ain of 2006 

The Village Court Act, 2006 was enacted to address minor civil and criminal disputes in rural Bangladesh, significantly contributing to the development of ADR. Key definitions under Section 2 include Union Parishad, Assistant Judge within jurisdiction, and Party. The Act allows Village Courts to try cases where the claim does not exceed Tk. 25,000 (Section 3). Under Section 4, a party may apply to the Union Parishad Chairman to form a Village Court, and if rejected, may appeal to the Assistant Judge. As per Section 5, the Village Court consists of one chairman and four members (two nominated by each party, including one Union Parishad member each). Section 6 provides the court jurisdiction based on the location of the dispute. According to Section 7, Village Courts can order compensation up to Tk. 25,000, property return, or transfer of ownership for listed offences. The Act enhances local dispute resolution, reducing pressure on formal courts.

The Conciliation of Disputes (Municipal Areas) Board Act of 2004  

The Settlement of Disputes (Paura Area) Board Act, 2004, establishes several methods for settling disputes in the Paura Area. It contains a revolutionary dispute resolution technique that improves Bangladeshs ADR system. Section 3 of the Conciliation of Disputes (Municipal Areas) Board Act of 2004 refers to the Board of Conciliation of Disputes. The Boards trials are frequently held in the municipal offices. Sections 5-9 of the 

Conciliation of Disputes (Municipal Areas) Board Act, 2004 

Outline the powers and procedures of the Board. Section 5 lists the offences the Board may try. Under Section 6, the Board has jurisdiction over disputes or offences committed within the concerned municipal area, regardless of whether any party resides outside that area. As per Section 7(1), the Board consists of five members: the municipal chairman (as ex officio chairman), two members nominated by the plaintiff and two by the defendant-one from each party must be a municipal commissioner. Section 8(1) requires the applicant to submit a written application in Bangla, containing party details and nominee information. Sections 9(1) and 9(2) empower the Board to award compensation or restitution for disputes listed in the second part of the schedule. This mechanism contributes to effective ADR in municipal (Paura) areas of Bangladesh.

The Bangladesh Labor Act of 2006 

Labor law serves to control and monitor the continuous process by which management and workers decide on the terms and circumstances of employment (Schantz William T. et al., 1977).   Laws passed by the parliament during the last 70 years make up the majority of its basis. Labor law regulates trade unions, labor-management relations, wages, working conditions, and labor employment. Included are the rules and regulations pertaining to workers rights to join a trade union, namely those pertaining to social security for workers, benefits, and leave conditions, including maternity leave for female employees. However, labor law is the study of a particular industrial relationship between an employer, trade union, and employee. This includes the freedom to strike and the regulation of collective bargaining. Individual employment law covers rights at work, like minimum pay or health and safety. The Labour Act of 2006s Section 210 addresses the procedure for resolving labor disputes. 

Employers or collective bargaining representatives are required to communicate their opinions to the other party in writing if they think that an industrial dispute between the employer and the workers is likely to arise. According to the constitution, the party receiving a communication under sub-section (1) must set up a meeting with the other party for collective bargaining on the matter raised in the communication within fifteen days of receiving it. The meeting may also be held between representatives of the two parties authorized in this regard. The purpose of the discussion is to establish an agreement. If the parties are able to achieve an agreement, they must write a memorandum of settlement, sign it, and offer it to the government, director of labor, and conciliations. After receiving such a request, the conciliator has ten days to start the conciliation process and call a meeting of the disputing parties in order to come to a consensus. On the day and time he designates, the disputing parties must come before the conciliator, either in person or through agents they have designated and who are permitted to negotiate and reach a mutually enforceable agreement. If a resolution is achieved during the conciliation process, the conciliator will report to the government and deliver a memorandum of settlement signed by the disputing parties. If no solution is achieved within thirty days of the Conciliator receiving a request, the conciliation will either fail or be extended for an agreed-upon period of time. If the conciliation procedure fails, the conciliator will try to persuade the parties to send the dispute to an arbitrator for settlement. If an agreement is achieved during the conciliation process, the conciliator will submit a report to the government along with a memorandum of settlement that has been signed by the parties involved. If no resolution can be achieved within 30 days of the Conciliator receiving a request, the conciliation will either fail or be prolonged for a further period of time agreed upon by the parties. If conciliation fails, the conciliator will try to persuade the parties to consent to sending the matter to an arbitrator for settlement. 

Impact of ADRs Inclusion in Statutory Laws

ADR has had a significant impact on our society since it was implemented in Bangladesh. It has various advantages as well as disadvantages. Although a lawsuit may take a year or longer to go to trial, alternative dispute resolution (ADR) may resolve an issue considerably more quickly-usually within a few months or even weeks. When disputes are resolved early on through alternative dispute resolution (ADR), the parties may save money on expert fees, court costs, and legal fees. The outcome of ADR is generally more within the parties control. The majority of alternative dispute resolution (ADR) processes provide parties more chances to present their position than a trial does. The parties can create innovative resolutions through certain ADR procedures, like mediation, that arent possible during a trial. The parties can select a subject-matter expert to resolve the disagreement in other ADR procedures, like arbitration. ADR can settle a disagreement in a less aggressive and combative manner. For instance, a skilled mediator can assist the parties in properly communicating their requirements and viewpoints to the opposing party. This might be a big advantage when there is a relationship between the parties that has to be preserved. There is often a winner and a loser in a trial.  The outcome may not be entirely satisfactory to the winner, and the loser is unlikely to be content. The parties can accomplish their true objectives and discover win-win solutions with the aid of ADR. Together with all of ADRs other possible benefits, this could raise the parties general level of satisfaction with the dispute resolution procedure and its result. Another benefit of ADR is that it allows attorneys to be perceived as problem solvers rather than combatants. Fast, affordable, and gratifying solutions are likely to result in happier customers, which will encourage repeat business and recommendations from friends and colleagues. These possible benefits make early use of ADR worthwhile. This system has certain drawbacks as well. In some cases when one party has authority over the other, such as divorce and employment, the courts are a preferable alternative for the weaker party. A mediator or arbitrator is unlikely to have the same level of legal expertise and understanding as a judge when a case involves complicated legal problems. Because there is no precedent system, predicting the outcome of an ADR-resolved disagreement is impossible. Since the majority of ADR procedures are not legally enforceable, it is challenging to enforce any awards made. Court action can still be required if ADR is unable to settle the parties disagreement. This raises costs and delays as compared to bringing a case to court in the first place. A settlement is not guaranteed. Except for arbitration, alternative dispute resolution techniques seldom result in a settlement. 

Therefore, a party may invest the time and resources necessary to try to resolve the dispute out of court while still being required to appear in court. In any countrys legal system, Alternative Dispute Resolution (ADR) is the quickest and easiest trial process available, despite a number of disadvantages. The popularity of it is growing daily.

Finally, there are, nevertheless, some reasons for and against the idea of ADR. It is alleged that shifting conflict resolution from the public to the private sphere impedes the development of the law to adapt to changing circumstances. Limiting access to settlement details could lead to an increase in challenged claims and make it more difficult to use them as a comparator. The broader ramifications of the conflict might also be overlooked in private agreements. Most importantly, ADR is criticized for promoting compromise. While compromise might be a useful strategy for resolving certain conflicts, it is inappropriate in other situations. In addition to these, compromise is simply not an option in cases of serious moral disagreements and significant justice conflicts because the issues are too essential to the persons involved. Therefore, concerns are further raised by the fact that Alternative Dispute Resolution agreements are private and neither openly accessible nor open to public scrutiny.

In Bangladesh, ADRs inception and development are very recent. It is, nevertheless, a novel concept in Bangladeshi law. The new approach is highly favored by the plaintiffs. However, the ADR is only mentioned in eight laws in Bangladesh. Most importantly, Alternative Dispute Resolution should be incorporated in the majority of legislation, both civil and criminal. There should be certain ADR provisions in the Criminal Procedure Code of 1898 in particular. The Code of Civil Procedure, 1908, contains a few ADR provisions, however this is insufficient. More clauses ought to be added to the CPC. ADR should only be used sparingly and under the supervision of an expert, which is another issue. 

M.N.I.: Conceptualization and composing the manuscripts initial draft, Investigation, reviewing, abstract writing, supervision, editing, developing the concluding remarks, & corresponding of the manuscript,  M.L.H.: Developed the methodological notes and M.A.H.: Conceived the idea with data collections, findings presented in this paper. 

First and foremost, the authors would like to thank the Almighty for granting them the strength, knowledge, ability, and opportunity to conduct this research study. Without His blessings, this work would not have been completed satisfactorily. The authors would like to express their heartfelt appreciation to their mentors, Professor Dr. M. Anisur Rahman and Professor Dr. M. Ahsan Kabir, Department of Law, University of Rajshahi, Bangladesh, for their proper supervision and enthusiastic encouragement. Finally, the authors thank anonymous reviewers and the journal editor for their insightful suggestions and comments that helped to improve the manuscript too.

There are no conflicts of interest from the authors end with respect to the research work.