Arbitration is increasingly the preferred method for resolving commercial disputes involving Bangladeshi parties or contracts with Bangladesh connections — offering privacy, flexibility, and — with appropriate structuring — the possibility of more efficient resolution than court litigation. LegalBD advises on arbitration agreement drafting, institutional and ad hoc arbitration proceedings, and enforcement of domestic and international awards.
The Arbitration Act 2001
Bangladesh's Arbitration Act 2001 governs both domestic and international commercial arbitration. Modelled on the UNCITRAL Model Law, the Act provides for: party autonomy in agreeing arbitral procedures; appointment and challenge of arbitrators; interim measures by arbitral tribunals and supporting courts; a narrow set of grounds for setting aside awards (limited to procedural irregularity and public policy violations); and enforcement of awards as decrees of court. Bangladesh courts have generally adopted a pro-arbitration approach in interpreting the Act.
International Arbitration
For cross-border transactions, the parties typically agree to arbitration outside Bangladesh — most commonly in Singapore (SIAC), London (LCIA), or Hong Kong (HKIAC). Foreign arbitral awards are enforceable in Bangladesh under the New York Convention, to which Bangladesh acceded in 1992. Grounds for refusing enforcement under the Convention are narrow. Bangladesh courts have shown a willingness to enforce foreign awards even in contested cases, though enforcement proceedings require experienced local counsel.
Domestic Arbitration — BIAC
The Bangladesh International Arbitration Centre (BIAC) provides institutional arbitration services under its own procedural rules with a panel of experienced arbitrators. BIAC arbitration is increasingly popular for domestic commercial disputes in infrastructure, construction, banking, and commercial contracts. LegalBD has experience representing clients in BIAC proceedings and in ad hoc arbitrations.
Arbitration Agreement Drafting
A well-drafted arbitration clause specifying seat, institutional rules, number of arbitrators, and governing law of the arbitration agreement prevents jurisdictional disputes and satellite litigation. Poorly drafted clauses — or no arbitration clause at all — significantly complicate enforcement options. LegalBD drafts arbitration provisions as an integral part of every major commercial contract.