Alternative Dispute Resolution in Bangladesh has become a cornerstone of the country’s legal system, offering businesses, individuals, and families effective alternatives to court litigation. Governed primarily by the Arbitration Act 2001, Section 89A of the Code of Civil Procedure 1908 (CPC), and the Family Courts Ordinance 1985, Alternative Dispute Resolution in Bangladesh encompasses arbitration, mediation, and conciliation — each suited to different types of disputes.
What Is Alternative Dispute Resolution in Bangladesh?
Alternative Dispute Resolution (ADR) refers to any method of resolving disputes outside the traditional court system. In Bangladesh, ADR has three main forms: arbitration (where a neutral arbitrator issues a binding award), mediation (where a neutral mediator facilitates a voluntary settlement), and conciliation (where a conciliator actively proposes solutions). Each mechanism is governed by specific legislation and is appropriate for different types of disputes.
Legal Framework for Alternative Dispute Resolution in Bangladesh
The Arbitration Act 2001
The Arbitration Act 2001 is the primary legislation governing arbitration in Bangladesh. It is modelled on the UNCITRAL Model Law and provides a comprehensive framework for both domestic and international arbitration. The Act governs arbitration agreements, the appointment of arbitrators, the conduct of proceedings, the making of awards, and the enforcement and challenge of awards. It also contains provisions for conciliation in Chapter VII (Sections 63-81).
Section 89A of the Code of Civil Procedure 1908
Section 89A CPC (inserted by the Code of Civil Procedure (Amendment) Act 2003) empowers civil courts to refer pending suits to mediation with the consent of the parties. This court-annexed mediation mechanism has significantly reduced the backlog of civil cases in Bangladesh’s courts.
The Family Courts Ordinance 1985
The Family Courts Ordinance 1985 provides for mediation in family suits, requiring the court to attempt to reconcile the parties before proceeding to trial. This provision has been effective in resolving many family disputes without the need for adversarial litigation.
The Labour Act 2006
The Labour Act 2006 establishes conciliation as the first step in resolving collective labour disputes, followed by arbitration if conciliation fails.
Types of Alternative Dispute Resolution in Bangladesh
Arbitration
Arbitration is the most formal ADR mechanism in Bangladesh. The parties agree to submit their dispute to one or more arbitrators, whose decision (the award) is binding and enforceable as a court decree under Section 45 of the Arbitration Act 2001. Arbitration is administered by institutions such as the Bangladesh International Arbitration Centre (BIAC) and the Bangladesh Institute of Arbitration (BIArb), or conducted on an ad hoc basis. It is the preferred mechanism for commercial disputes, particularly those involving significant sums of money or complex technical issues.
Mediation
Mediation is a facilitated negotiation process in which a neutral mediator assists the parties in reaching a mutually acceptable settlement. Unlike arbitration, the mediator does not impose a decision — the parties must agree voluntarily. Mediation is governed by Section 89A CPC (for civil suits), the Family Courts Ordinance 1985 (for family disputes), and the Artha Rin Adalat Ain 2003 (for financial loan recovery cases). BIAC and BIArb also administer private commercial mediations.
Conciliation
Conciliation is similar to mediation but the conciliator plays a more active role in proposing solutions. It is governed by Chapter VII of the Arbitration Act 2001 and the Labour Act 2006. Conciliation settlements under the Arbitration Act 2001 have the same effect as arbitral awards and are enforceable as such.
Advantages of Alternative Dispute Resolution in Bangladesh
Alternative Dispute Resolution in Bangladesh offers several significant advantages over court litigation. Speed is a major benefit — BIAC arbitrations typically conclude within 6 to 18 months, compared to years of court proceedings. Confidentiality protects the parties’ business reputations. The ability to choose a decision-maker with relevant technical expertise ensures that complex disputes are resolved by someone who understands the industry. And the international enforceability of arbitral awards under the New York Convention is critical for cross-border disputes.
Growth of Alternative Dispute Resolution in Bangladesh
ADR in Bangladesh has grown significantly over the past two decades. The introduction of court-annexed mediation under Section 89A CPC in 2003 brought mediation into the mainstream of civil dispute resolution. The establishment of BIAC in 2011 provided a credible institutional framework for commercial arbitration. And the growing recognition by businesses and individuals of the advantages of ADR over court litigation has driven demand for ADR services across all sectors.
TRW Law Firm: Alternative Dispute Resolution Services in Bangladesh
TRW Law Firm is one of Bangladesh’s leading ADR law firms, providing comprehensive Alternative Dispute Resolution services including arbitration, mediation, conciliation, and settlement agreement drafting. Barrister Tahmidur Remura Wahid and Barrister Remura Meheruba Mahbub lead the firm’s ADR practice, bringing extensive experience in BIAC, BIArb, and international arbitrations, court-annexed mediations, and High Court enforcement proceedings.
Frequently Asked Questions
Is Alternative Dispute Resolution legally recognised in Bangladesh?
Yes. ADR in Bangladesh is fully legally recognised. Arbitral awards are enforceable as court decrees under Section 45 of the Arbitration Act 2001. Mediated settlement agreements are binding contracts and can be recorded as compromise decrees by the court. Conciliation settlements under the Arbitration Act 2001 are enforceable as arbitral awards.
Which type of ADR is best for commercial disputes in Bangladesh?
For commercial disputes, arbitration is generally the preferred ADR mechanism because it produces a binding, enforceable award. Mediation is preferable where the parties want to preserve their business relationship and are willing to compromise. Conciliation is suitable for disputes where the parties need more active assistance in reaching a settlement.
How do I start ADR proceedings in Bangladesh?
To start arbitration, file a request for arbitration with BIAC or BIArb, or serve a notice of arbitration on the other party for ad hoc arbitration. To start mediation, either apply to the court under Section 89A CPC or file a request for mediation with BIAC or BIArb. To start conciliation, send a written invitation to the other party to conciliate under Chapter VII of the Arbitration Act 2001.
Related articles: Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh | BIAC Arbitration 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 meheruba.com to speak with a specialist today.
