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.