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Statutory ADR Tribunal and Non-Statutory Comparison

The BCDR-AAA allocates cases to one of two categories; Statutory ADR Tribunal  or Non-Statutory ADR.  Each distinct category deals with different case circumstances as described below:

Statutory ADR Tribunal

1. Statutory ADR Tribunal case claims must be for the sum of BD 500,000 and above.

2. The nature of the dispute must be international and/or commercial.

3. One or both of the disputing parties must be a financial institution registered at the Central Bank of Bahrain.

4. Once the above three conditions are met, the cases become eligible for Statutory ADR Tribunal and are transferred directly from the courts to the BCDR-AAA.  In accordance with the Legislative Decree No. 30 for the Year 2009, and with the approval of the Supreme Judicial Council, The Minister of Justice and Islamic Affairs has issued a regulation detailing the procedures before the BCDR-AAA for these cases.

5. Statutory ADR Tribunal cases are managed in a different way to litigation cases.  The process provides one chance to present a case within a limited period of time.  At the end of the set time period the case will go directly to a higher court for a final verdict.  This process dispenses with loopholes and avoids the delays that can occur in the absence of professional case management.

Non-statutory Arbitration and Mediation

1. Alternative Dispute Resolution (ADR) operates through negotiation, conciliation, mediation and arbitration processes.

2. With arbitration being a method of resolving disputes whereby parties agree to select arbitration as opposed to litigation, the BCDR-AAA handles two types of arbitration cases:

  1. Institutional
  2. Ad hoc

3. The only requirement for arbitration is the agreement of the parties involved or a pre-written contractual clause stating a commitment to resolve disputes by arbitration where necessary.

4. The benefits for parties in choosing arbitration over litigation are: 

  1. Arbitration provides a streamlined process where parties can modify rules and procedures to suit their specific disputes. 
  2. With effective case management, a quick and binding decision is reached within a finite period of time thereby reducing overall costs.
  3. Arbitration cases are non-appealable.
  4. Arbitration offers a private process as opposed to the public nature of litigation cases in the courts.
  5. Arbitration is ideal for international disputes as it allows parties to choose the dispute location and governing law. The awards issued are enforceable in any country in the world, in line with the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, which allows for the enforcement of arbitral awards in other countries with relative ease.

5. BCDR-AAA is the administrative authority for cases filed under Section 2 of Legislative Decree No. 30 for the Year 2009: 

  1. The BCDR-AAA Arbitration laws outline the rules and regulations.
  2. The BCDR-AAA makes a preliminary decision regarding the appointment of arbitrators and challenges to their service, the locale, language used and deadlines.
  3. An extensive roster of reputed international arbitrators is available to clients.  Disputing parties may also choose arbitrators not affiliated with the BCDR-AAA if they wish. In all cases, the BCDR-AAA mediates between the disputing parties and the arbitrators.