Admiralty and Maritime Dispute Resolution in Bangladesh

A comprehensive guide by TRW Law Firm

Welcome

This comprehensive guide provides detailed insights into admiralty and maritime dispute resolution in Bangladesh, covering the legal framework, court jurisdiction, types of maritime claims, and effective resolution strategies.

With Bangladesh's strategic location along major shipping routes and its growing maritime industry, understanding the legal aspects of maritime disputes is essential for shipowners, charterers, cargo interests, and other maritime stakeholders.

TRW Law Firm brings decades of experience in handling complex maritime disputes in Bangladesh, offering expert legal guidance and representation to both local and international clients.

Key Benefits of Our Maritime Legal Services

  • Specialized expertise in admiralty and maritime law
  • Proven track record in ship arrest and release procedures
  • Comprehensive representation in all types of maritime claims
  • Strategic approach to dispute resolution
  • Strong network with international P&I Clubs and maritime organizations
  • Efficient and cost-effective legal solutions

Admiralty Court Jurisdiction

The Admiralty Court in Bangladesh has exclusive jurisdiction over maritime disputes. This section explains the scope and extent of this jurisdiction.

Admiralty Court Structure

The High Court Division of the Supreme Court of Bangladesh functions as the Admiralty Court. It has original jurisdiction to hear and determine admiralty cases, with appeals lying to the Appellate Division of the Supreme Court.

The Admiralty Court is presided over by judges with specialized knowledge of maritime law, ensuring expert handling of complex admiralty matters.

Scope of Jurisdiction

The Admiralty Court has jurisdiction over the following matters:

  • Claims to possession or ownership of a vessel
  • Questions arising between co-owners of a vessel
  • Claims in respect of a mortgage or charge on a vessel
  • Claims for damage done by or to a vessel
  • Claims for loss of life or personal injury due to vessel defects
  • Claims for loss of or damage to goods carried by a vessel
  • Claims arising out of agreements for the carriage of goods
  • Claims for salvage, towage, and pilotage
  • Claims for goods, materials, or services supplied to a vessel
  • Claims for construction, repair, or equipment of a vessel
  • Claims by master or crew for wages
  • Claims arising out of general average acts
  • Claims arising out of bottomry (loans secured against ships)

Territorial Jurisdiction

The Admiralty Court's jurisdiction extends to:

  • Vessels within Bangladesh's territorial waters
  • Foreign vessels calling at Bangladeshi ports
  • Vessels owned by Bangladeshi nationals or companies
  • Maritime claims with a substantial connection to Bangladesh

Maritime Claims

Maritime claims encompass a wide range of disputes in the shipping and maritime industry. This section details the various types of maritime claims recognized in Bangladesh and the procedures for pursuing them.

Ship Arrest and Release

Ship arrest is a powerful legal remedy in maritime disputes, allowing claimants to secure their claims by detaining a vessel. In Bangladesh, the procedure involves:

  1. Filing an admiralty suit in the High Court Division
  2. Submitting an application for arrest with supporting affidavits
  3. Providing security for costs and potential damages
  4. Obtaining and executing the arrest warrant

Vessels can be released upon providing adequate security, typically in the form of a bank guarantee or P&I Club letter of undertaking.

Cargo Claims

Claims for loss of or damage to cargo are common in maritime disputes. These claims typically involve:

  • Damage during loading, carriage, or discharge
  • Shortfall in delivered quantity
  • Delay in delivery
  • Improper stowage or handling

Cargo claims in Bangladesh are governed by the Carriage of Goods by Sea Act, 1925, which incorporates the Hague Rules. Time limitation for cargo claims is typically one year from delivery or the date when delivery should have occurred.

Collision and Salvage Claims

Collision claims arise from accidents between vessels, while salvage claims involve compensation for saving vessels or cargo in peril. Both types of claims require specialized legal expertise due to their technical nature and the complex liability issues involved.

Bangladesh courts follow international principles in determining liability in collision cases and salvage awards, with reference to the International Regulations for Preventing Collisions at Sea (COLREGS) and the International Convention on Salvage.

Mortgage and Financing Claims

Ship mortgage claims involve the enforcement of security interests in vessels. Bangladesh law recognizes the priority of properly registered mortgages in the distribution of proceeds from vessel sales.

Mortgagees can enforce their rights through admiralty proceedings, including the arrest and judicial sale of vessels. The Admiralty Court ensures that the proceeds are distributed according to the established order of priorities.

Dispute Resolution Process

Maritime disputes can be resolved through various methods, including litigation, arbitration, and alternative dispute resolution. This section outlines the different approaches to resolving maritime disputes in Bangladesh.

Court Litigation

The traditional approach to resolving maritime disputes in Bangladesh is through litigation in the Admiralty Court. The process typically involves:

  1. Filing an admiralty suit with the High Court Division
  2. Service of process on the defendants
  3. Exchange of pleadings (plaint, written statement, reply)
  4. Discovery and inspection of documents
  5. Examination of witnesses
  6. Final hearing and judgment
  7. Enforcement of judgment

Court litigation provides a formal and structured process with the advantage of judicial authority and enforceability of judgments.

Arbitration

Arbitration is increasingly popular for resolving maritime disputes due to its flexibility, confidentiality, and potential for faster resolution. Maritime contracts often include arbitration clauses specifying venues such as:

  • London Maritime Arbitrators Association (LMAA)
  • Singapore Chamber of Maritime Arbitration (SCMA)
  • Hong Kong Maritime Arbitration Group (HKMAG)
  • Maritime Arbitration Association of Bangladesh (MAAB)

The Arbitration Act, 2001 governs arbitration proceedings in Bangladesh and provides for the recognition and enforcement of foreign arbitral awards.

Mediation and Negotiation

Mediation and direct negotiation offer less formal approaches to dispute resolution, allowing parties to maintain commercial relationships while finding mutually acceptable solutions.

These methods are particularly effective for disputes where:

  • Parties have ongoing business relationships
  • The legal issues are not precedent-setting
  • Confidentiality is a priority
  • Time and cost efficiency are important

TRW Law Firm facilitates mediation and negotiation processes, helping parties reach amicable settlements without protracted litigation.

Enforcement of Judgments and Awards

The enforcement of maritime judgments and arbitral awards in Bangladesh follows established legal procedures:

  • Domestic judgments are directly enforceable through court execution proceedings
  • Foreign judgments may be enforced under the Civil Procedure Code if reciprocity exists
  • Foreign arbitral awards are enforceable under the Arbitration Act, 2001, which incorporates the New York Convention principles

Enforcement may involve the attachment and sale of assets, including vessels present in Bangladeshi waters.

Case Studies

TRW Law Firm has successfully handled numerous maritime disputes across various categories. The following case studies highlight our expertise and approach to resolving complex admiralty matters.

Ship Arrest for Bunker Claims

MV Ocean Navigator (2024)

Challenge: Our client, a leading bunker supplier, was owed USD 245,000 for bunker supplied to MV Ocean Navigator. The vessel's charterer had defaulted on payment, and the vessel was scheduled to depart Bangladesh within 24 hours.

Solution: TRW Law Firm filed an urgent admiralty suit and arrest application, obtaining an arrest order within 6 hours. The vessel was detained at Chattogram port, and we negotiated with the P&I Club for security.

Outcome: The shipowner provided a bank guarantee for the full claim amount plus interest. The vessel was released, and our client received full payment following an expedited hearing.

Cargo Damage Dispute

Bulk Carrier MV Eastern Star (2023)

Challenge: A consignment of 30,000 MT of wheat arrived in Bangladesh with significant moisture damage. The cargo receivers claimed USD 1.2 million in damages against the vessel owner and charterer.

Solution: Representing the vessel owner, TRW Law Firm conducted a thorough investigation, obtaining weather reports, survey records, and loading documentation. We established that the damage occurred primarily due to inherent vice in the cargo and pre-shipment conditions.

Outcome: Through strategic negotiation and presentation of technical evidence, we secured a settlement at 15% of the claimed amount, avoiding protracted litigation and vessel detention.

Collision Case

MV Seagull and MT Prosperity (2022)

Challenge: A collision between a container vessel (MV Seagull) and an oil tanker (MT Prosperity) in Chattogram outer anchorage resulted in significant damage to both vessels and oil spillage. Multiple claims and counterclaims were filed.

Solution: Representing the owners of MV Seagull, TRW Law Firm coordinated with maritime experts, analyzed VDR data, and engaged with environmental authorities. We developed a comprehensive legal strategy addressing liability, limitation, and environmental compliance.

Outcome: The matter was resolved through a combination of court proceedings and negotiated settlement, with liability apportioned 70:30 between the vessels. Our client's exposure was significantly reduced from the initial claim.

Crew Wage Recovery

MV Global Mariner (2023)

Challenge: Twelve Bangladeshi seafarers had not received wages for over four months following the financial difficulties of their employer. The vessel was arrested by other creditors in Mongla port.

Solution: TRW Law Firm filed intervention applications on behalf of the seafarers, asserting the priority of their wage claims. We coordinated with the Bangladesh Merchant Marine Officers' Association and international seafarer welfare organizations.

Outcome: The court recognized the priority of the seafarers' claims, and they received full payment of their outstanding wages from the proceeds of the vessel's judicial sale.

Our Team

TRW Law Firm's admiralty and maritime practice is led by a team of experienced lawyers with specialized expertise in maritime law. Our team combines academic excellence with practical industry knowledge to provide exceptional legal services.

TR

Barrister Tahmidur Rahman

Name Partner

Barrister Tahmidur Rahman leads our admiralty and maritime practice with extensive experience in complex maritime disputes. He has successfully represented clients in numerous ship arrest cases and international maritime arbitrations.

Barrister-at-Law (Lincoln's Inn)

RM

Barrister Remura Mahbub

Name Partner

Barrister Remura Mahbub specializes in maritime claims, international trade, and shipping disputes. She has represented major shipping lines, P&I Clubs, and cargo interests in high-value maritime litigation.

Barrister-at-Law (Lincoln's Inn)

SW

Adv Syed Wahid

Name & Managing Partner

Adv Syed Wahid oversees the firm's maritime practice operations and specializes in admiralty litigation. He has extensive experience in ship arrest procedures, maritime liens, and enforcement of maritime judgments.

LL.M. in Maritime Law

RH

Adv Rafy Hossain

Partner

Adv Rafy Hossain focuses on maritime arbitration and alternative dispute resolution. He has represented clients in arbitration proceedings under LMAA, SCMA, and ICC rules.

LL.M. in International Commercial Law

Our Approach

Our maritime team works collaboratively, combining specialized expertise to address all aspects of complex admiralty matters. We prioritize:

  • Prompt response to urgent maritime situations
  • Strategic planning based on client objectives
  • Clear communication throughout the legal process
  • Cost-effective solutions to maritime disputes
  • Industry-specific knowledge and technical understanding

Client Testimonials

"TRW Law Firm's maritime team provided exceptional service in a complex ship arrest case. Their quick action and strategic approach secured our claim when time was of the essence."

— Operations Director, International Bunker Supplier

"The admiralty expertise at TRW Law Firm is outstanding. They successfully navigated our cargo claim through Bangladesh's maritime legal system with professionalism and efficiency."

— Claims Manager, European P&I Club

Contact & Resources

For assistance with admiralty and maritime matters in Bangladesh, please contact our specialized team. We also provide various resources to help you understand and navigate maritime legal issues.

Contact Information

Dhaka Office

House 410, Road 29, Mohakhali DOHS

Dhaka, Bangladesh

Phone: +8801708000660, +8801847220062, +8801708080817

Email: info@trfirm.com, info@trwbd.com, info@tahmidur.com

Dubai Office

Rolex Building, L-12 Sheikh Zayed Road

Dubai, UAE

Phone: +8801708000660

Email: info@trwbd.com

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