The right to set aside an arbitral award in Bangladesh is a limited but important safeguard against procedural injustice in arbitration. Under Section 37 of the Arbitration Act 2001, a party may apply to the court to set aside an arbitral award on specific, narrowly defined grounds within 60 days of receiving the award. Courts in Bangladesh approach setting-aside applications with caution, reflecting the principle that arbitral awards should be final and binding.
Grounds to Set Aside an Arbitral Award in Bangladesh
Incapacity of a Party
If one of the parties to the arbitration agreement was under some incapacity at the time of making the agreement, the award may be set aside. This ground covers minors, persons of unsound mind, and companies acting beyond their legal capacity.
Invalid Arbitration Agreement
If the arbitration agreement is invalid under the applicable law — for example, because it was not in writing or because it was obtained by fraud — the award may be set aside.
Lack of Notice
If a party was not given proper notice of the appointment of an arbitrator or of the arbitration proceedings, or was otherwise unable to present its case, the award may be set aside.
Excess of Jurisdiction
If the arbitral tribunal decided matters beyond the scope of the submission to arbitration — that is, matters not covered by the arbitration agreement — the award may be set aside to the extent of the excess.
Improper Composition or Procedure
If the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the parties’ agreement or the Arbitration Act 2001, the award may be set aside.
Non-Arbitrability
If the subject matter of the dispute is not capable of settlement by arbitration under Bangladesh law — for example, criminal matters or matters reserved for the exclusive jurisdiction of the courts — the award may be set aside.
Public Policy
If the award is in conflict with the public policy of Bangladesh — including awards obtained by fraud or corruption, or awards that violate fundamental principles of justice — the award may be set aside.
TRW Law Firm: Award Setting-Aside Services in Bangladesh
TRW Law Firm advises clients on whether to apply to set aside arbitral awards and, where appropriate, represents them in setting-aside proceedings. Contact TRW at tahmidurrahman.com or visit lawfirm.com.bd.
Frequently Asked Questions
Can I set aside an arbitral award on the merits in Bangladesh?
No. The grounds for setting aside an award under Section 37 do not include an error of fact or law by the arbitrator. The grounds are limited to procedural and jurisdictional defects and violations of public policy.
What is the time limit to apply to set aside an award in Bangladesh?
The application must be filed within 60 days of receiving the award. This time limit is strict and courts have very limited discretion to extend it.
Does filing a setting-aside application stop enforcement in Bangladesh?
Filing the setting-aside application does not automatically stay enforcement. The applicant must separately apply for a stay, and the court has discretion to grant or refuse it.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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Contact TRW Law Firm
If you need expert legal advice on this matter, contact TRW Law Firm — one of Bangladesh’s leading law firms specialising in ADR, arbitration, and commercial litigation. Visit tahmidurrahman.com or lawfirm.com.bd to speak with a specialist today.
