Mediation offers a confidential, cost-effective, and — crucially — relationship-preserving alternative to litigation and arbitration for many commercial and personal disputes. LegalBD advises parties on mediation strategy and provides representation and support throughout mediation proceedings.
Mediation in the Bangladesh Legal Framework
Mediation has been progressively integrated into Bangladesh's dispute resolution framework. The Code of Civil Procedure (Amendment) Act 2012 introduced provisions for court-referred mediation in civil cases. The Artha Rin Adalat Ain 2003 provides for mediation in money loan dispute proceedings. The Family Courts Ordinance 1985 requires courts to attempt reconciliation between parties before trial. The Bangladesh International Arbitration Centre (BIAC) offers institutional mediation services under its Mediation Rules.
When Mediation Is Most Effective
Mediation delivers the best outcomes where: the parties have an ongoing commercial or personal relationship they wish to preserve; the dispute has both legal and commercial dimensions that a court cannot fully address; confidentiality of the settlement terms is important; or the parties recognise that the cost, time, and management burden of litigation outweighs the benefit of the optimal litigation outcome. Commercial lease disputes, partnership and shareholder disagreements, construction and infrastructure disputes, and family financial settlements are all common and well-suited candidates for mediation.
The Mediation Process
The parties jointly appoint a neutral mediator with relevant subject-matter expertise. The mediator facilitates structured discussions — typically including joint sessions and private caucuses — to identify the parties' underlying interests, help them evaluate their alternatives to settlement, and assist them in developing creative solutions. The mediator has no power to impose a settlement. LegalBD prepares clients thoroughly for mediation: developing negotiation strategy, preparing position papers, and coaching on effective mediation participation to maximise the probability of a durable settlement.
Settlement Agreement
A mediated settlement is a binding contractual agreement. We draft settlement agreements that clearly document agreed terms, address implementation mechanics, deal with costs and confidentiality, and where relevant, handle regulatory or third-party notification requirements. A carefully drafted settlement agreement prevents re-emergence of the dispute on the same or related facts.