Ad hoc arbitration in Bangladesh is arbitration conducted without the administration of an arbitral institution such as BIAC or BIArb. The parties manage the arbitration process themselves, with the arbitral tribunal conducting the proceedings in accordance with the Arbitration Act 2001 and any procedural rules agreed by the parties. Ad hoc arbitration is a flexible and cost-effective option for parties who prefer to manage the process themselves, though it requires more active involvement from the parties and their lawyers.
Ad Hoc Versus Institutional Arbitration in Bangladesh
The key difference between ad hoc and institutional arbitration in Bangladesh is the role of the arbitral institution. In institutional arbitration (BIAC or BIArb), the institution administers the proceedings — handling the filing of documents, appointing arbitrators, and managing the process. In ad hoc arbitration, the parties manage the process themselves, without institutional support. Ad hoc arbitration is generally cheaper than institutional arbitration (because there are no institutional fees), but it requires more active involvement from the parties and their lawyers, and there is no institutional support if problems arise (such as a party refusing to cooperate in the appointment of arbitrators).
Practical Considerations for Ad Hoc Arbitration in Bangladesh
Arbitration Rules
For ad hoc arbitration in Bangladesh, the parties should agree on procedural rules — either the UNCITRAL Arbitration Rules or a set of rules drafted specifically for the arbitration. Without agreed rules, the arbitral tribunal has broad discretion to conduct the proceedings as it sees fit.
Appointment of Arbitrators
In ad hoc arbitration, the parties must agree on the appointment of the arbitrator(s). If they cannot agree, either party may apply to the court under Section 11 of the Arbitration Act 2001 to appoint an arbitrator.
Venue and Administration
In ad hoc arbitration, the parties must arrange the venue and administration of the proceedings themselves — including booking hearing rooms, managing document disclosure, and handling correspondence with the arbitral tribunal.
TRW Law Firm: Ad Hoc Arbitration Services in Bangladesh
TRW Law Firm provides expert advice and representation in ad hoc arbitrations in Bangladesh. Contact TRW at tahmidurrahman.com or visit meheruba.com.
Frequently Asked Questions
Is ad hoc arbitration cheaper than institutional arbitration in Bangladesh?
Ad hoc arbitration is generally cheaper than institutional arbitration because there are no institutional fees. However, the parties must manage the process themselves, which requires more time and effort from the parties and their lawyers.
Can I convert an ad hoc arbitration to institutional arbitration in Bangladesh?
Yes. The parties can agree at any time to submit their ad hoc arbitration to the administration of BIAC or BIArb.
What rules apply to ad hoc arbitration in Bangladesh?
The Arbitration Act 2001 applies to all arbitrations in Bangladesh, whether ad hoc or institutional. The parties may also agree on additional procedural rules — such as the UNCITRAL Arbitration Rules — to govern the conduct of the proceedings.
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.
