How to resolve B2B Disputes?

The Department of Economic Development (DED) of Dubai has recently instituted Business Protection Department (BPD) solely for reconciling commercial disputes between businesses and will act as a local commercial dispute-resolution authority.

As opposed to the present scenario, the Commercial Control and Consumer
Protection Department (CCCPD) was responsible for settling consumer disputes. However, the business to business disputes
remained unsettled and undetermined. As an outcome, even trifle matters became
controversial and adversarial thus, the need for a convenient and amicable
means to resolve the dispute raised, hence the establishment of BPD.

The BPD is responsible for providing
a “National Dispute Settlement Service” in the Emirate which
accommodates complaints raised by the parties Licensed in Dubai. Apart from
being an exclusive settlement committee,
the BPD act as an educational authority ensuring the traders in Dubai
understand the rules and regulations to facilitate a healthy business
environment. Organizing workshops,
conventions and distributing books to entities licensed within Dubai to
escalate awareness among the business enterprises. Lawyers in UAE will assist
you in understanding the roles and responsibilities of BPD and their
jurisdiction in corporate matters.

BPD’s Jurisdiction

BPD is an Informal Dispute Resolution
Body with limited jurisdiction and sole
objective of assisting the Dubai Courts. As a sub-department of CCCPD, BPD only
undertakes Business to Business disputes which extend only to businesses
licenses in Dubai with a minimum capital of AED 200,000. However, it is not
mandatory for the parties to present in Dubai at the time of the Mediation Conference.

On the Contrary, BPD is not authorized to act as a mediator for
International traders not having a license
from DED essentially because BPD will not be
considered as a resourceful authority to coerce the other party to
resolve the matter prior to reaching
courts. Likewise, the dispute between the
individuals not licensed with DED is
beyond the jurisdiction of BPD.

BPD is strictly restricted to act as
a mediator or to hold mediation conference in disputes commercial, whereas, dispute about
insurance, banking, real estate, labour does not fall under the jurisdiction of
BPD. It is considered as an alternative to resolve the dispute amicably and does not act as a tribunal.

Procedure for Filing Complaint

Companies or individuals representing
the entities registered with DED can register their complaint either via email
or through telephonic call or manually at DED branch of CCCPD along with the
relevant documents evidencing the claim with a non-refundable fee of AED 2,020.

Upon receiving the complaint, BPD
arbitrators review the case file and comprehend if the matter falls within
their jurisdiction and determine if they are apt for acting as a mediator or
should the matter be referred to another
competent authority. In the event the matter
is accepted by the BPD arbitrators, they contact the respondents for the initial conference either by phone calls or
personal meeting in accordance with the
convenience of the parties. BPD has ensured to resolve the dispute with ten business working days. However, it may extend depending upon the
merits of the case.

Judgments
and Appeals

The dispute resolution mechanism
undertaken by BPD is discretionary and is not binding. The basis of BPD’s
determination is their expertise and familiarity with the dispute. Thus, an ad
hoc approach rather than having formal procedures. The decisions passed by BPD
does not involve precedents although they have successfully resolved numerous
case from the time of establishments.

The decision passed by BPD is a final
decision, and there is no scope to file
an appeal against the same decision. Yet,the parties are not bound by the judgment and will also have an opportunity to
refer the matters before relevant courts. Thus, neither the process nor the
decision of BPD restricts either party to
file the case before an appropriate
judicial authority.

Department of Economic Development is
the principal licensing authority in the Emirate of Dubai for companies
undertaking commercial activities wherein BPD is a sub-department possessing the
authority to block or provisionally
suspend the license of the companies registered with DED. Subsequently, the
authority can impose penalties including fines for instances where either party
fails to attend the hearing when summoned, not adhering to BPD’s decisions post
accepting the mediation process.