MPs call for lowering claim threshold at Bahrain Chamber for Dispute Resolution to 100,000

TDT | Manama                                                      

The Daily Tribune – www.newsofbahrain.com

Email: mail@newsobahrain.com

Members of Parliament (MPs) are advocating for the Bahrain Chamber for Dispute Resolution to handle cases with a claim value as low as 100,000 dinars, significantly lowering the current threshold of 500,000 dinars.

However, the Chamber has voiced strong objections, warning that such a move could overstretch its resources and impact its revenue. The fees collected from higher-value cases play a crucial role in funding the Chamber’s operations.

Despite these concerns, the Legislative and Legal Affairs Committee has thrown its weight behind the proposal, urging its approval in the upcoming parliamentary session.

The committee believes that reducing the claim limit will expedite and simplify the dispute resolution process for businesses in Bahrain.

Supporters of the proposal argue that lowering the threshold will provide companies with a quicker avenue to resolve commercial disputes, enhancing the overall business environment in the Kingdom.

The bill, spearheaded by MP Dr. Ali Majid Al Nuaimi, is set to be discussed in Parliament this Tuesday.

Advocates contend that the current law restricts access to the Chamber's services and that this adjustment would broaden the scope for commercial claims.

Proponents also believe that facilitating easier dispute resolution will make Bahrain a more attractive destination for investment.

On the other hand, the Bahrain Chamber for Dispute Resolution remains cautious, asserting that the objectives of the proposed bill are already being met through existing processes.

The Chamber operates on a timeline similar to that of the courts, allowing an initial two-month period to manage cases, which can be extended if necessary.

Additionally, the Chamber emphasizes the need to maintain its financial stability. Lowering the threshold could lead to a significant reduction in revenue—estimated at 20 to 80 percent per case, depending on the claim value—which may ultimately hinder its capacity to sustain services and invest in new initiatives.

With the potential for a surge in cases under the new remit, the Chamber is concerned about being overwhelmed, jeopardizing its ability to uphold its regional and international reputation.