Knowing how to enforce an arbitral award in Bangladesh is critical for any party that has obtained a favourable award in arbitration. Under Section 45 of the Arbitration Act 2001, a domestic arbitral award is enforceable as a court decree, and the award creditor may use the full range of execution mechanisms available under the Code of Civil Procedure 1908 to recover the amount awarded.
Legal Basis for Arbitral Award Enforcement in Bangladesh
The enforcement of domestic arbitral awards in Bangladesh is governed by Section 45 of the Arbitration Act 2001. Section 45 provides that an arbitral award shall be enforced in the same manner as if it were a decree of the court. The award creditor files an application in the competent court, attaching the original or certified copy of 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.
Step-by-Step Guide to Arbitral Award Enforcement in Bangladesh
Step 1: File the Enforcement Application
The award creditor files an application under Section 45 of the Arbitration Act 2001 in the competent court (the High Court Division for high-value awards, or the District Judge’s court for smaller awards). The application must be accompanied by the original or certified copy of the arbitral award and the arbitration agreement.
Step 2: Service on the Award Debtor
The court serves notice of the application on the award debtor, who has the opportunity to file an objection on the limited grounds specified in Section 37 of the Act.
Step 3: Court Hearing
The court hears arguments from both parties. If the court is satisfied that the award is valid and enforceable, it passes an enforcement order treating the award as a decree.
Step 4: Execution of the Decree
Once the enforcement order is obtained, the award creditor files an execution application under Order XXI of the CPC, specifying the mode of execution — attachment and sale of property, garnishment of bank accounts, or arrest of the judgment debtor.
Grounds for Resisting Arbitral Award Enforcement in Bangladesh
The grounds for resisting enforcement of a domestic arbitral award in Bangladesh under Section 37 are limited: incapacity of a party, invalid arbitration agreement, lack of notice, excess of jurisdiction, improper composition of the tribunal, non-arbitrability, and public policy. These grounds are interpreted narrowly by Bangladeshi courts, consistent with the pro-enforcement policy of the Arbitration Act 2001.
TRW Law Firm: Arbitral Award Enforcement Services in Bangladesh
TRW Law Firm provides expert advice and representation in the enforcement of arbitral awards in Bangladesh, from filing the enforcement application to executing against the award debtor’s assets. Contact TRW at tahmidurrahman.com or visit lawfirm.com.bd.
Frequently Asked Questions
How long does arbitral award enforcement take in Bangladesh?
Enforcement proceedings in the competent court typically take 3 to 12 months, depending on whether the award debtor raises objections. The High Court has been increasingly efficient in handling enforcement applications.
Can I enforce a foreign arbitral award in Bangladesh?
Yes. Foreign arbitral awards are enforceable in Bangladesh under Section 45A of the Arbitration Act 2001 and the New York Convention. The procedure is similar to domestic award enforcement, but the award creditor must also provide a certified translation of the award if it is not in English.
What assets can I execute against after obtaining an arbitral award in Bangladesh?
You can execute against any attachable assets of the award debtor in Bangladesh, including bank accounts, real property, movable assets, and shares in companies.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
For expert legal advice, visit tahmidurrahman.com | meheruba.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 meheruba.com to speak with a specialist today.
