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3.2 Court-annexed mediation and negotiationA common feature of commercial dispute resolution in Tanzania is court-annexed mediation which is meant to facilitate the court process and encourage the parties to settle the dispute amicably and sustain their ongoing business relationship (Makaramba, 2009). The basis of court-annexed mediation is contained in Rule 3(1) of Order VIIIA of the CPC:In every case assigned to a specific judge or magistrate, a first scheduling and settlement conference attended by the parties or their recognized agents or advocates shall be held and presided over by such judge or magistrate within a period of twenty-one days after conclusion of the pleadings for the purpose of ascertaining the speed track of the case, resolving the case through negotiation, mediation, arbitration or such other procedures not involving a trial.” As per Rule 3(2A) of Order VIIIA, “No alternative dispute resolution procedure shall be required in the Commercial division of the High Court, where prior attempts to settle the commercial case have been undertaken under a practice or mechanism established by law or approved by the Chief Justice by notice published in the Gazette.The above provision is a proof to support the argument that the existing legal framework for banking dispute resolution allows for amicable settlement of disputes which is generally recognized under Islamic law as sulh (good faith negotiation, mediation, conciliation or compromise of action) and tahkim (arbitration). These processes can generally be referred to as ADR processes (Oseni and Hassan, 2011). Tahkim is authorized in Islam as per the Qur’an:If you fear a breach between them (the man and his wife), appoint (two) arbitrators, one from his family and the other from her’s; if they both wish for peace, Allah will cause their reconciliation. Indeed Allah is Ever All Knower, Well Acquainted with all things (Qur’an 4: 35).
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