The Arbitration Act 2001 Bangladesh is the primary legislation governing arbitration in Bangladesh. Modelled on the UNCITRAL Model Law on International Commercial Arbitration, the Act provides a comprehensive framework for both domestic and international arbitration — from the arbitration agreement to the enforcement and challenge of awards. Understanding the Arbitration Act 2001 is essential for any party involved in commercial arbitration in Bangladesh.
Key Provisions of the Arbitration Act 2001 Bangladesh
Section 7: Arbitration Agreement
Section 7 defines an arbitration agreement as an agreement by the parties to submit to arbitration all or certain disputes which have arisen or may arise between them. The agreement must be in writing. This section is the foundation of the entire Act — without a valid arbitration agreement, there can be no arbitration.
Section 11: Appointment of Arbitrators
Section 11 provides for the appointment of arbitrators. The parties are free to agree on the procedure for appointing arbitrators. If they cannot agree, either party may apply to the court to appoint an arbitrator. This section ensures that arbitration can proceed even if one party is uncooperative.
Section 21: Interim Measures
Section 21 empowers the arbitral tribunal to order interim measures — including orders to maintain the status quo, preserve assets, and provide security for costs — pending the final award. This section is important for protecting the claimant’s position during the arbitration proceedings.
Section 37: Setting Aside an Award
Section 37 provides the limited grounds on which a party may apply to the court to set aside an arbitral award. The grounds are narrowly defined and mirror the UNCITRAL Model Law grounds: incapacity, invalid agreement, lack of notice, excess of jurisdiction, improper composition, non-arbitrability, and public policy. The time limit for filing a setting-aside application is 60 days from receipt of the award.
Section 45: Enforcement of Domestic Awards
Section 45 provides that a domestic arbitral award shall be enforced as a court decree. The award creditor files an application in the competent court, attaching the award and the arbitration agreement. The court passes an enforcement order treating the award as a decree, which can then be executed against the award debtor’s assets.
Section 45A: Enforcement of Foreign Awards
Section 45A provides for the recognition and enforcement of foreign arbitral awards under the New York Convention. A foreign award is enforceable in Bangladesh unless the respondent establishes one of the limited grounds for refusal specified in the section.
The Arbitration Act 2001 and International Arbitration in Bangladesh
The Arbitration Act 2001 applies to both domestic and international arbitration conducted in Bangladesh. For international arbitrations, the Act provides additional protections — including the right to choose the governing law of the arbitration agreement and the substantive law of the dispute. Bangladesh’s accession to the New York Convention in 1992 ensures that awards made in Bangladesh are enforceable in over 170 countries.
TRW Law Firm: Arbitration Act 2001 Expertise in Bangladesh
TRW Law Firm has extensive expertise in the Arbitration Act 2001 Bangladesh, advising clients on all aspects of the Act — from drafting arbitration agreements to enforcing and challenging awards. Contact TRW at tahmidurrahman.com or visit tahmidur.com.
Frequently Asked Questions
Does the Arbitration Act 2001 apply to international arbitration in Bangladesh?
Yes. The Arbitration Act 2001 applies to all arbitrations conducted in Bangladesh, whether domestic or international. For international arbitrations, the Act provides additional protections and is consistent with the UNCITRAL Model Law.
Can the parties exclude the application of the Arbitration Act 2001 in Bangladesh?
The parties cannot exclude the mandatory provisions of the Arbitration Act 2001, such as the grounds for setting aside an award and the enforcement mechanism. However, they can agree to modify many of the non-mandatory provisions, such as the procedure for appointing arbitrators and the conduct of proceedings.
Is the Arbitration Act 2001 consistent with international arbitration standards?
Yes. The Arbitration Act 2001 is modelled on the UNCITRAL Model Law and is consistent with international arbitration standards. Bangladesh is also a party to the New York Convention, which ensures that Bangladeshi arbitral awards are enforceable internationally.
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