The enforcement of a foreign arbitral award in Bangladesh is governed by Section 45A of the Arbitration Act 2001 and Bangladesh’s obligations under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Bangladesh acceded to the New York Convention in 1992, making foreign awards from over 170 countries enforceable in Bangladesh, and Bangladeshi awards enforceable in those countries.
Legal Framework for Foreign Arbitral Award Enforcement in Bangladesh
Section 45A of the Arbitration Act 2001 provides for the recognition and enforcement of foreign arbitral awards in Bangladesh. A foreign award is enforceable unless the respondent establishes one of the limited grounds for refusal specified in the New York Convention — including incapacity, invalid agreement, lack of notice, excess of jurisdiction, improper composition, non-arbitrability, and public policy. These grounds are interpreted narrowly by Bangladeshi courts, consistent with the pro-enforcement policy of the New York Convention.
Procedure for Enforcing a Foreign Arbitral Award in Bangladesh
Step 1: File the Enforcement Application
File an application under Section 45A of the Arbitration Act 2001 in the High Court Division of the Supreme Court of Bangladesh. The application must be accompanied by the original or certified copy of the foreign award and the arbitration agreement, and a certified translation if the documents are not in English.
Step 2: Service on the Respondent
The court serves notice of the application on the respondent, who has the opportunity to file an objection on the limited grounds specified in Section 45A.
Step 3: Court Hearing and Enforcement Order
The court hears arguments from both parties. If satisfied that the award is valid and enforceable, the court passes an enforcement order.
Step 4: Execution
Once the enforcement order is obtained, the award creditor may execute against the respondent’s assets in Bangladesh using the mechanisms available under Order XXI of the CPC.
TRW Law Firm: Foreign Award Enforcement Services in Bangladesh
TRW Law Firm provides expert advice and representation in the enforcement of foreign arbitral awards in Bangladesh. Contact TRW at tahmidurrahman.com or visit lawfirm.com.bd.
Frequently Asked Questions
Which countries’ arbitral awards are enforceable in Bangladesh?
Awards from all countries that are parties to the New York Convention are enforceable in Bangladesh. This includes the United Kingdom, the United States, Singapore, India, the UAE, and over 170 other countries.
Can a foreign arbitral award be refused enforcement in Bangladesh on public policy grounds?
Yes, but the public policy ground is interpreted narrowly. It covers awards that violate fundamental principles of justice, awards obtained by fraud or corruption, and awards that contravene mandatory provisions of Bangladesh law.
How long does foreign award enforcement take in Bangladesh?
Foreign award enforcement proceedings in the High Court Division typically take 6 to 18 months, depending on whether the respondent raises objections.
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Contact TRW Law Firm
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