by Tahmidur Remura Wahid | May 14, 2026 | Uncategorized
BIAC arbitration in Bangladesh is the most widely used form of institutional arbitration in the country, administered by the Bangladesh International Arbitration Centre (BIAC) under the BIAC Arbitration Rules. BIAC arbitration provides a structured, professionally administered framework for resolving commercial disputes, with a panel of experienced arbitrators, modern facilities in Dhaka, and procedural rules consistent with international best practice.
About BIAC: Bangladesh International Arbitration Centre
BIAC was established in 2011 as a joint initiative of the International Chamber of Commerce Bangladesh, the Metropolitan Chamber of Commerce and Industry Dhaka, and the Chittagong Chamber of Commerce and Industry. It is a non-profit, non-governmental organisation dedicated to promoting and facilitating the use of arbitration and mediation as alternatives to court litigation in Bangladesh. BIAC is a member of the Asia Pacific Regional Arbitration Group (APRAG) and has established relationships with ICC, SIAC, and other international arbitration institutions.
The BIAC Arbitration Rules: Key Provisions
Commencement
BIAC arbitration commences when the claimant files a request for arbitration with BIAC, attaching the arbitration agreement, a description of the dispute, and the registration fee. BIAC notifies the respondent, who must file a response within 30 days.
Appointment of Arbitrators
The parties may agree on the appointment of a sole arbitrator or a three-member tribunal. If they cannot agree, BIAC appoints the arbitrator(s) from its panel. The arbitrators must be independent and impartial and must disclose any potential conflicts of interest.
Pleadings
The claimant files a statement of claim and the respondent files a statement of defence. The claimant may file a reply. The pleadings define the issues in dispute and the evidence that will be presented at the hearing.
Document Disclosure
The parties exchange relevant documents. The arbitral tribunal may order specific document production if a party fails to disclose relevant documents voluntarily.
The Hearing
The arbitral tribunal holds a hearing at which the parties present their cases, examine witnesses, and make oral submissions. The hearing is conducted in private and is confidential.
The Award
The arbitral tribunal issues its award, which is binding on the parties. The award is enforceable as a court decree under Section 45 of the Arbitration Act 2001.
Strategic Considerations for BIAC Arbitration in Bangladesh
Strategic considerations for BIAC arbitration in Bangladesh include: the choice of arbitrator (selecting an arbitrator with relevant technical expertise and a reputation for efficiency), the framing of the pleadings (presenting the case clearly and persuasively from the outset), the management of document disclosure (ensuring that relevant documents are disclosed while limiting the scope of disclosure requests), the use of expert witnesses (particularly for technical disputes), and the enforcement strategy (planning for enforcement before the award is made).
TRW Law Firm: BIAC Arbitration Services in Bangladesh
TRW Law Firm has extensive experience in BIAC arbitration in Bangladesh, representing clients in all stages of BIAC proceedings. Contact TRW at tahmidurrahman.com or visit meheruba.com.
Frequently Asked Questions
How do I file a case with BIAC in Bangladesh?
To file a case with BIAC, submit a request for arbitration to BIAC, attaching the relevant contract, a description of the dispute, and the registration fee. BIAC will then notify the other party and the proceedings will commence.
How long does BIAC arbitration take in Bangladesh?
BIAC arbitrations typically conclude within 6 to 18 months, depending on the complexity of the dispute and the availability of the parties and the arbitrator.
Is BIAC arbitration confidential in Bangladesh?
Yes. BIAC arbitration proceedings are confidential. The parties, their lawyers, and the arbitrators are all bound by confidentiality obligations under the BIAC Arbitration Rules.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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by Tahmidur Remura Wahid | May 14, 2026 | Uncategorized
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.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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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 tahmidur.com to speak with a specialist today.
by Tahmidur Remura Wahid | May 14, 2026 | Uncategorized
A well-drafted arbitration clause in Bangladesh is the foundation of effective commercial dispute resolution. The arbitration clause in a contract determines how disputes will be resolved — through BIAC, BIArb, ICC, or ad hoc arbitration — and sets the framework for the entire arbitration process. A poorly drafted clause can lead to costly disputes about the dispute resolution process itself, sometimes called “pathological clauses.”
Legal Requirements for an Arbitration Clause in Bangladesh
Under Section 7 of the Arbitration Act 2001, an arbitration clause must be in writing and must clearly express the parties’ intention to submit their disputes to arbitration. The clause must be signed by the parties or contained in an exchange of letters, telexes, telegrams, or other means of telecommunication that provide a record of the agreement. An oral arbitration clause is not valid under Bangladesh law.
Key Elements of an Effective Arbitration Clause in Bangladesh
Scope of Disputes
The arbitration clause should clearly define the scope of disputes covered — either all disputes arising from the contract (“any dispute, controversy or claim arising out of or relating to this agreement”) or specific categories of disputes. A broad scope clause is generally preferable to avoid arguments about whether a particular dispute falls within the clause.
Arbitral Institution and Rules
The clause should specify the arbitral institution (BIAC, BIArb, ICC, SIAC, or LCIA) and the applicable rules. Using an institutional clause ensures that the arbitration is professionally administered and that there is a clear framework for the conduct of proceedings.
Seat of Arbitration
The seat of arbitration determines the procedural law governing the arbitration and the court that has supervisory jurisdiction. For domestic disputes, the seat should be Dhaka, Bangladesh. For international disputes, a neutral seat such as Singapore or London may be preferable.
Number of Arbitrators
The clause should specify whether the dispute will be decided by a sole arbitrator or a three-member tribunal. A sole arbitrator is faster and cheaper; a three-member tribunal provides greater procedural safeguards for complex, high-value disputes.
Language
The clause should specify the language of the arbitration — English or Bengali. For international disputes, English is generally preferable.
Sample BIAC Arbitration Clause for Bangladesh Contracts
The following is a recommended BIAC arbitration clause for commercial contracts in Bangladesh:
“Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity thereof, shall be finally settled by arbitration in accordance with the Arbitration Rules of the Bangladesh International Arbitration Centre (BIAC). The seat of arbitration shall be Dhaka, Bangladesh. The number of arbitrators shall be [one/three]. The language of the arbitration shall be English.”
TRW Law Firm: Arbitration Clause Drafting in Bangladesh
TRW Law Firm advises clients on drafting and reviewing arbitration clauses for all types of commercial contracts in Bangladesh. Contact TRW at tahmidurrahman.com or visit lawfirm.com.bd.
Frequently Asked Questions
Is an oral arbitration clause valid in Bangladesh?
No. Under Section 7 of the Arbitration Act 2001, an arbitration clause must be in writing. An oral agreement to arbitrate is not enforceable in Bangladesh.
What is a pathological arbitration clause in Bangladesh?
A pathological arbitration clause is one that is defective or ambiguous — for example, a clause that provides for arbitration but fails to specify the institution or rules, or a clause that contradicts itself by providing for both arbitration and court litigation. Pathological clauses can lead to costly disputes about the dispute resolution process itself.
Can I add an arbitration clause to an existing contract in Bangladesh?
Yes. The parties can enter into a separate arbitration agreement (a submission agreement) after a dispute arises, even if the original contract did not contain an arbitration clause.
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 meheruba.com to speak with a specialist today.
by Tahmidur Remura Wahid | May 14, 2026 | Uncategorized
Construction arbitration in Bangladesh is the preferred mechanism for resolving disputes arising from construction contracts — including payment disputes, variation claims, delay claims, and defects claims. Given the complexity of construction disputes and the technical expertise required to resolve them, arbitration — with its ability to appoint specialist arbitrators, its confidentiality, and its binding awards — is significantly more suitable than court litigation for construction disputes in Bangladesh.
Why Construction Disputes Are Suited to Arbitration in Bangladesh
Construction disputes in Bangladesh often involve complex technical and commercial issues: disputed variations to the contract scope, delays caused by multiple parties, defects in completed works, and disagreements over the valuation of claims. These issues require a decision-maker with both legal expertise and technical knowledge of the construction industry — precisely the kind of specialist arbitrator that BIAC and BIArb can appoint. Construction arbitration in Bangladesh also offers confidentiality, which is important for protecting the commercial reputations of contractors and employers.
Legal Framework for Construction Arbitration in Bangladesh
Construction arbitration in Bangladesh is governed by the Arbitration Act 2001. Most standard form construction contracts used in Bangladesh — including FIDIC contracts and government procurement contracts — contain arbitration clauses that specify BIAC or ad hoc arbitration as the dispute resolution mechanism. The Contract Act 1872 provides the substantive legal framework for construction contracts in Bangladesh.
Common Construction Disputes in Bangladesh Suitable for Arbitration
Payment Disputes
Payment disputes — including disputes over the valuation of work done, the deduction of liquidated damages, and the withholding of retention money — are the most common construction disputes in Bangladesh. Arbitration provides a faster and more efficient route to recovery than court litigation.
Variation Claims
Disputes over the valuation of variations to the contract scope are common in construction projects. An arbitrator with technical expertise can assess the value of variations more accurately than a court judge.
Delay Claims
Disputes over the causes and consequences of construction delays — including claims for extension of time and loss and expense — require detailed analysis of the construction programme and records. A specialist construction arbitrator is better placed to assess these claims than a court judge.
Defects Claims
Disputes over the quality of construction work — including structural defects, finishing defects, and disputes over the standard of materials used — require technical expertise and are best resolved by a specialist arbitrator.
The Construction Arbitration Process in Bangladesh
Construction arbitration in Bangladesh under BIAC rules follows these steps: notice of arbitration, appointment of the arbitral tribunal (typically a sole arbitrator or three-member tribunal with construction expertise), exchange of pleadings (statement of claim and statement of defence), document disclosure (including construction programmes, site records, and correspondence), expert evidence (from quantity surveyors, engineers, and other technical experts), the hearing, and the award. BIAC provides administrative support at each stage.
TRW Law Firm: Construction Arbitration Services in Bangladesh
TRW Law Firm has extensive experience in construction arbitration in Bangladesh, representing contractors, subcontractors, employers, and engineers in BIAC and ad hoc arbitrations. Contact TRW at tahmidurrahman.com or visit meheruba.com.
Frequently Asked Questions
What types of construction disputes can be arbitrated in Bangladesh?
All types of construction disputes can be arbitrated in Bangladesh, including payment disputes, variation claims, delay claims, defects claims, termination disputes, and disputes over the interpretation of contract terms.
How long does construction arbitration take in Bangladesh?
Construction arbitrations in Bangladesh typically take 6 to 18 months, depending on the complexity of the dispute and the availability of the parties and the arbitrator.
Can I get an interim payment order in construction arbitration in Bangladesh?
Yes. Under Section 21 of the Arbitration Act 2001, the arbitral tribunal may order interim relief, including an interim payment order, pending the final award.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
For expert legal advice, visit tahmidurrahman.com | lawfirm.com.bd
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.
by Tahmidur Remura Wahid | May 14, 2026 | Uncategorized
An out-of-court settlement in Bangladesh is a legally binding agreement between disputing parties to resolve their dispute without proceeding to court litigation or arbitration. Out-of-court settlements are common in commercial, civil, and family disputes in Bangladesh and offer significant advantages over adversarial proceedings — including speed, cost-effectiveness, confidentiality, and the preservation of business relationships.
Legal Basis for Out-of-Court Settlements in Bangladesh
An out-of-court settlement in Bangladesh is governed by the Contract Act 1872. A settlement agreement is a binding contract — it must satisfy the requirements of a valid contract (offer, acceptance, consideration, and the capacity of the parties). Once signed, the settlement agreement is enforceable through a suit for breach of contract if one party fails to comply. If the settlement is recorded as a compromise decree by the court under Order XXIII, Rule 3 of the CPC, it is enforceable as a court order through the court’s execution process.
Types of Out-of-Court Settlements in Bangladesh
Direct Negotiation Settlement
The simplest form of out-of-court settlement in Bangladesh is a direct negotiation between the parties (or their lawyers), resulting in a written settlement agreement. This is appropriate for straightforward disputes where the parties have a good relationship and are willing to compromise.
Mediated Settlement
A mediated settlement is reached through the assistance of a neutral mediator — either through BIAC or BIArb mediation, or through court-annexed mediation under Section 89A CPC. The mediator facilitates negotiations and helps the parties craft a mutually acceptable settlement.
Compromise Decree
If a civil suit is pending before the court, the parties may reach an out-of-court settlement and record it as a compromise decree under Order XXIII, Rule 3 of the CPC. A compromise decree is enforceable as a court order, providing stronger enforcement rights than a private settlement agreement.
Key Elements of a Valid Out-of-Court Settlement Agreement in Bangladesh
A valid out-of-court settlement agreement in Bangladesh should include: the names and addresses of the parties, a clear description of the dispute being settled, the specific terms of the settlement (including payment amounts, timelines, and any other obligations), a release of all claims arising from the dispute, a confidentiality clause (if appropriate), and the signatures of all parties. The agreement should be drafted by a lawyer to ensure that it is comprehensive, clear, and enforceable.
TRW Law Firm: Out-of-Court Settlement Services in Bangladesh
TRW Law Firm provides expert legal advice and representation in out-of-court settlements across Bangladesh, from negotiating settlement terms to drafting binding settlement agreements. Contact TRW at tahmidurrahman.com or visit tahmidur.com.
Frequently Asked Questions
Is an out-of-court settlement legally binding in Bangladesh?
Yes. An out-of-court settlement agreement is a binding contract under the Contract Act 1872. If one party fails to comply, the other party may file a suit for breach of contract.
Can an out-of-court settlement be challenged in Bangladesh?
A settlement agreement can be challenged on the same grounds as any contract — fraud, duress, misrepresentation, or mistake. If the settlement has been recorded as a compromise decree, it can only be challenged on the ground that the compromise was not lawful.
Should I use a lawyer for an out-of-court settlement in Bangladesh?
Yes. A lawyer can assess your legal position objectively, negotiate effectively on your behalf, and ensure that the settlement agreement is comprehensive, clear, and enforceable. This is particularly important for significant commercial disputes.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
For expert legal advice, visit tahmidurrahman.com | tahmidur.com
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 tahmidur.com to speak with a specialist today.
