International Arbitration in Bangladesh: A Practical, Business-Focused Guide for Cross-Border Disputes

By Tahmidur Remura Wahid (TRW) Law Firm — Bangladesh’s global, technology-driven law firm

Why this guide matters

For cross-border businesses, the right arbitration strategy is less about abstract doctrine and more about cash flow, timeline, and enforceability. A good clause and a disciplined procedure can be the difference between a fast, bankable result and years of drift while working capital remains frozen. As a truly international Bangladeshi law firm with multi-jurisdictional capability, Tahmidur Remura Wahid (TRW) Law Firm helps clients design enforceable contracts, prosecute and defend arbitrations around the world, secure interim relief on assets, and—critically—convert awards into money.

This guide explains how arbitration actually works in practice, where businesses in and around Bangladesh typically get stuck, and what TRW does to de-risk the journey from dispute to recovery.

What is international arbitration—and when should you use it?

International arbitration is a private, neutral dispute-resolution process governed by the law of the seat (place) of arbitration and conducted under institutional rules (e.g., ICC, SIAC, LCIA, HKIAC, BIAC) or ad hoc under procedural rules like UNCITRAL. Parties choose the forum, rules, language, governing law, and even the arbitrators, and the final award is generally enforceable in 170+ jurisdictions under the New York Convention (subject to limited defences).

When arbitration is the right tool

• ■ Cross-border counterparties need neutrality and enforceability beyond home courts.
• ■ Confidentiality is important (e.g., pricing formulas, tech, sensitive contracts).
• ■ Technical issues (construction, energy, shipping, telecom) benefit from expert arbitrators.
• ■ Speed and case management (expedited procedures, documents-only) are possible when timelines matter.
• ■ Multi-jurisdiction enforcement against assets may be required.

When court litigation might be better

• ■ You need injunctive relief against third parties frequently (though tribunals and many courts can give interim relief).
• ■ The counterparty has no assets in Convention jurisdictions (enforcement would be challenging anywhere).
• ■ You want precedent or public vindication (arbitration is private).

Two worlds: commercial arbitration vs. investor–state

• Commercial arbitration: B2B disputes under contracts (supply, EPC, SPA/SHAs, franchise, distribution, software licences, shipbuilding, trade finance, etc.).
• Investor–state arbitration (ISDS): Brought by foreign investors against states or SOEs under investment treaties, investment laws, or contracts with arbitration clauses (often ICSID or UNCITRAL). ISDS introduces immunity, public policy, and treaty interpretation issues that require a distinct strategy.

TRW handles both spaces, but this article focuses on commercial arbitration while flagging public-sector specifics where relevant.

The legal architecture in plain English

1. The arbitration agreement (usually a clause) is the “gateway.” If it’s valid, broad, and clear, most disputes will be referred to arbitration.
2. The seat (place) of arbitration supplies the lex arbitri (arbitration law), court supervision, and the courts that can set aside the award.
3. Institutional rules supply the procedure: how to appoint arbitrators, timelines, submissions, evidence, discovery, hearings, and the award.
4. Governing law of the contract decides the merits. This is different from the seat’s law.
5. Enforcement happens where the assets live—very often outside the seat.

Think of it as a layered stack: Contract law (merits) → Institutional rules (process) → Seat law (supervision) → New York Convention (enforcement).

Institutional options (and when to choose them)

• ICC (Paris): robust scrutiny of awards, global prestige; excellent for complex, high-value matters.
• SIAC (Singapore): fast and modern with Emergency Arbitrator (EA) and Expedited Procedure; favored in Asia trade and tech.
• LCIA (London): efficiency and cost control with tight case management.
• HKIAC (Hong Kong): strong for China-facing supply chains; sophisticated case administration.
• UNCITRAL (ad hoc): flexible, often used for state contracts and treaty disputes; requires a strong administrative plan.
• BIAC (Dhaka): domestic and cross-border capability; useful for Bangladesh-facing deals, including tiered clauses with mediation followed by arbitration.

TRW’s tip: Choose the seat and rules for the world you trade in, not just where you are incorporated. If counterparties are in Singapore/UAE/EU, a Singapore or London seat under SIAC/LCIA/ICC usually cuts friction.

Drafting the perfect clause (the single cheapest risk control)

A world-class clause is short, specific, and bankable. Here’s the anatomy:

1. Institution and rules: “Any dispute… shall be referred to and finally resolved by arbitration under the [ICC/SIAC/LCIA/HKIAC/BIAC] Rules.”
2. Seat: “The seat of arbitration shall be [Singapore/London/Dhaka/Paris/Hong Kong].”
3. Tribunal: “The tribunal shall consist of three arbitrators” (or one for smaller matters).
4. Language: “The language of the arbitration shall be English.”
5. Governing law: “This contract shall be governed by the laws of [X].”
6. Consolidation/joinder (optional but valuable in multi-contract projects).
7. Interim relief: Acknowledge tribunal and courts’ power to order urgent measures.
8. Service & notices: Permit email (and courier) to pre-agreed addresses.
9. Evidence & confidentiality: Refer to IBA Rules on Evidence (if desired) and a simple confidentiality promise.
10. Mediation window (optional but powerful): “30-day mediation before arbitration; costs consequences for refusal.”

Model (commercial, three-arbitrator, high value)

Any dispute arising out of or in connection with this Contract shall be referred to and finally resolved by arbitration under the [SIAC/ICC/LCIA/HKIAC/BIAC] Rules, which Rules are deemed incorporated by reference. The seat of arbitration shall be [Singapore/London/Dhaka]. The tribunal shall consist of three arbitrators. The governing law of this Contract shall be the substantive laws of [X]. The language of the arbitration shall be English. The parties consent to service of process and all notices by email to the addresses stated in this Contract and agree that delivery receipts shall constitute proof of service. The tribunal may grant any interim or conservatory measures it deems appropriate. The parties shall maintain the confidentiality of the proceedings and award, save as required for enforcement or by law.

Model (SME/expedited, single arbitrator)

Disputes shall be finally resolved by arbitration under the [SIAC Expedited Procedure/ICC Expedited Rules/BIAC Rules] by a sole arbitrator seated in [Singapore/Dhaka]. The governing law is [X]. Language: English. Service by email is valid. The tribunal may decide on documents-only unless it considers an oral hearing necessary.

TRW’s clause clinic: We routinely “stress-test” arbitration clauses for enforceability, joinder, consolidation across related contracts, and LC/guarantee implications in trade finance.

The life cycle of a case (what actually happens)

1. Notice of Arbitration (and response).
2. Constitution of tribunal (sole or three): nominations, challenges, appointment by the institution if needed.
3. Procedural order no. 1: timetable, submissions, document production cycle, evidence, hearing date, and logistics (virtual/hybrid).
4. Pleadings: Statement of Claim/Defence/Counterclaim/Reply/Reply on Jurisdiction if necessary.
5. Document production: Often the IBA Rules are used—targeted disclosure (“Redfern Schedules”), not U.S.-style discovery.
6. Witnesses & experts: Written statements, cross-examination, hot-tubbing for experts.
7. Hearing: In person or virtual; time-boxed via chess-clock.
8. Post-hearing briefs and cost submissions.
9. Award: Final, reasoned, and enforceable (subject to narrow challenges).
10. Corrections/interpretations if needed.

Timelines: “Normal” proceedings ~12–18 months from constitution to award; expedited matters can conclude in 6–9 months; emergency arbitrator relief is often available within days.

Interim measures: protecting cash and assets

• Emergency Arbitrator (EA): Before the tribunal forms, institutions allow urgent relief—e.g., freezing movements of assets, compelling security, preserving evidence, or preventing destructive steps.
• Tribunal-ordered interim relief: Once constituted, the tribunal can issue interim orders (status quo, escrow, bank guarantees, etc.).
• Court support: Courts at the seat—or where assets are located—can grant freezing or disclosure orders, appoint receivers, or assist with evidence.

TRW playbook: For high-risk receivables, we pair arbitration with rapid on-shore asset protective measures where the counterparty banks or holds inventory.

Multi-party, multi-contract, and consolidation

Large projects generate multiple related contracts (EPC, O\&M, guarantees, supply, financing). Without careful drafting, you risk parallel arbitrations with inconsistent outcomes.

• Consolidation: Allow consolidation of related disputes under compatible clauses/rules.
• Joinder: Permit joining additional parties (e.g., parent guarantor) when the dispute overlaps.
• Mirror clauses: Ensure aligned seat/rules across the contract suite.

TRW’s fix: We use a “portfolio clause package” for major projects to keep the dispute in one coherent track.

Evidence in the digital economy

Arbitration must be comfortable with e-signatures, log files, metadata, blockchain records, and platform audit trails. The IBA Rules and institutional practice already accept digital evidence, but projects often fail on chain-of-custody and hash integrity.

What we do: Implement an e-evidence protocol at contract signing: how records are generated, stored, hashed, and presented if there’s a dispute—so you never argue about authenticity later.

Costs, funding, and recovery

• Fees: Institutions use either ad valorem schedules (ICC/SIAC) or time charges; tribunals typically award costs to the prevailing party (discretionary).
• Third-party funding: Available in many seats; funders finance claims for a share of proceeds. Good for cash-constrained claimants with strong cases.
• Security for costs: Respondents may seek it if the claimant looks judgment-proof.
• Interest: Often awarded compound/simple; draft your contract to control the rate.

Business reality: A beautiful award is only useful if the assets are reachable. We plan enforcement at the start—asset mapping, banking relationships, shipping routes, and related-party guarantees.

Enforcement under the New York Convention (strategy first)

To enforce you will: (1) identify the jurisdiction with assets, (2) file for recognition/enforcement of the award in its courts, and (3) execute against assets. Defences are limited (e.g., incapacity, invalid agreement, due process violations, excess of mandate, improper tribunal composition, award set aside at the seat, or public policy).

TRW’s approach:

• Map asset locations early (banks, receivables, cargoes, IP licences, affiliates).
• File protective measures (where available) to prevent asset flight during enforcement.
• Anticipate public policy arguments (e.g., penalty interest, illegality, sanctions) and tailor relief.

Public sector and SOEs (sovereign risk without drama)

• Immunity: Many states and SOEs claim immunity from suit or execution. Clauses should include express waivers of sovereign immunity to the extent permitted by law, especially for commercial assets.
• Tribunal appointments: Avoid clauses that depend on government committees. Use institutions with default appointment powers.
• Governing law & seat: Pick a stable, arbitration-friendly seat (London, Singapore, Paris, Geneva) if state entities are involved, unless there is a compelling policy reason otherwise.

TRW’s stance: We de-politicise the contract—clear waivers, neutral seats, and bankable security packages (escrows, standby LCs, guarantees) so cash doesn’t hinge on policy cycles.

Bangladesh-facing realities—and how TRW solves them

Businesses operating with Bangladeshi counterparties (or assets) face particular, practical frictions:

1. Injunctions over LCs/guarantees can disrupt trade flows.
   TRW fix: Draft no-injunction covenants; require specific fraud pleading; push for undertakings/security and tight return dates.
2. Service of process can be slow.
   TRW fix: Bake email service into the clause; identify responsible addresses and authorised signatories up front.
3. Contract formalities (stamping, authority, bilingual inconsistencies).
   TRW fix: Pre-closing execution hygiene checklist; bilingual clause hierarchy; board resolution/POA templates.
4. Digital evidence discomfort (wet-ink bias).
   TRW fix: E-evidence protocol; hash verification; documented chain-of-custody.
5. Award to money gap (recognition vs. execution vs. cross-border payout).
   TRW fix: A time-boxed enforcement roadmap linked to banking SOPs; parallel proceedings where assets sit; early security on receivables.
6. SOE/Government timelines (committee appointments, audit anxiety).
   TRW fix: Government Dispute Cells in contracts; pre-agreed arbitrator panels; settlement authority escalation ladders.

Case-style illustrations (anonymised)

• Rahman Steel Ltd. v. EuroMach GmbH (supply of lines): Tribunal seated in Singapore under SIAC. We secured EA relief compelling escrow of receivables and a final award with interest. Enforcement executed in two EU states where the respondent licensed IP and collected platform revenue.
• Delta Build Consortium v. Central Authority (infrastructure): Multi-contract EPC suite with divergent clauses. We created a consolidation strategy under ICC, converted interim milestones into DRB-style findings, and negotiated a structured settlement backed by a standby LC.
• Nadia Telecom v. Alpha Networks BV (SaaS/telecom): Dispute on service levels and data. Panel accepted platform logs and audit trails under an agreed digital-evidence protocol; award issued on documents-only within nine months.

(Names are generic for confidentiality.)

Sector-specific guidance

Construction & projects

• FIDIC-aligned adjudication boards (DRBs) keep progress payments moving.
• Consolidation/joinder across EPC, O\&M, supply, and guarantees.
• Expert tribunals with scheduling discipline; as-built data and delay analysis methodology specified in advance.

Trade & commodities

• LC/guarantee language aligned with UCP/URDG; carve-outs for genuine fraud only.
• Rapid interim relief tied to shipment windows; freight/warehouse asset mapping for enforcement leverage.

Energy & infrastructure

• Tariff/rebalancing disputes; long-term offtake; change-in-law.
• State counterparties: waiver of immunity, neutral seat, and hard security (escrows, SLCs).

Tech/SaaS & licensing

• Digital evidence (SLAs, uptime logs), IP valuation experts, privacy/security undertakings.
• ODR or expedited tracks for sub-USD 250k disputes.

Frequently asked questions (business answers)

How long will it take?
Expedited: 6–9 months; standard: 12–18 months to award; enforcement depends on asset location and local court calendars.

Can we get urgent relief?
Yes—Emergency Arbitrator relief often in days; many courts at the seat or asset location can also grant urgent measures.

What about confidentiality?
Most rules protect it; we add contractual confidentiality and information-barrier protocols, with carve-outs for enforcement.

Can the award be appealed?
Arbitration awards are not appealed on merits; they can be set aside on narrow grounds at the seat. Strategy reduces that risk.

How much will it cost?
We budget by phases (jurisdiction/merits/interim/enforcement) with decision gates. Where appropriate, we explore third-party funding or hybrid fee models.

Virtual hearings?
Yes—now common. Saves travel and allows global expert participation.

TRW’s delivery model

1. Front-loaded case theory: We map the legal and factual route to the remedy—and where the money will ultimately come from.
2. Clause diagnostics: For ongoing clients, we fix clauses across their contract portfolio to prevent repeat risk.
3. Seat and institution strategy: We advise on seat/rules fit for industry and counterparty profile.
4. Evidence engineering: We design data capture and preservation early to avoid later authenticity fights.
5. Interim relief & asset strategy: Security, escrow, or freezing orders when appropriate.
6. Enforcement choreography: Parallel recognition where assets lie; cooperative bank SOPs; settlement leverage.
7. Digital & multilingual capability: English and Bangla proceedings; virtual hearing management; document automation.

If you want a deeper dive into how arbitration fits into your trade and investment structure, see our internal resource on TRW’s International Trade page.

Arbitration clause “quick kit” (copy, adapt, deploy)

A. Service & notice

Parties agree that all notices and service of process in relation to any arbitration may validly be given by email to the addresses specified in Schedule [●], with delivery/read receipts constituting proof of service.

B. Digital evidence

Electronic records, logs, metadata, and machine-generated reports are admissible. The parties shall preserve and exchange such records with hash values and chain-of-custody statements.

C. Mediation window

Before commencing arbitration, the parties shall participate in a 30-day mediation administered by [BIAC/ICC/SIAC]. Unreasonable refusal to mediate may be taken into account on costs.

D. Consolidation/joinder

The tribunal or [institution] may consolidate related arbitrations and/or join additional parties where disputes arise from the same transaction or series of transactions.

E. Interim measures

The tribunal may order any interim or conservatory measure it deems appropriate. Either party may seek interim measures from competent courts without waiver of the arbitration agreement.

F. Sovereign counterparties (add-on)

Each party that is a state or state entity irrevocably waives, to the fullest extent permitted by law, any immunity from jurisdiction and enforcement in respect of its commercial assets.

Common pitfalls—and how to avoid them

• Vague or pathological clauses (“arbitration somewhere under rules to be agreed”). → Use standard, institution-approved language.
• Misaligned multi-contract suites (different seats/rules across EPC and guarantees). → Mirror the clause pack.
• No plan for assets (award without a recovery path). → Start with asset mapping and security.
• Ignoring evidence architecture until a dispute erupts. → Agree digital evidence protocols at contracting.
• Injunction culture over trade instruments. → Draft no-injunction covenants and specify the fraud standard.
• Bilingual inconsistencies. → Adopt a clause hierarchy (“English prevails” or “Bangla prevails”) and certified translations.

Engagement roadmap with TRW (what happens if you call us today)

1. Triage (Week 0–1): Clause and merits audit; asset snapshot; institution/seat options; relief map.
2. Action (Week 1–3): File Notice/EA if needed; secure evidence; negotiate standstill/escrow; propose mediation window.
3. Merits (Month 1–6): Tribunal formation; PO1; pleadings; targeted document production; expert/witness prep.
4. Hearing to Award (Month 6–15): Hearing (virtual/hybrid), post-hearing briefs, costs submissions; award issuance.
5. Enforcement (Month 12+): Recognition in asset jurisdictions, execution, settlement optimisation.

We keep you in control with monthly case dashboards, budget tracking, and “settlement windows” to monetise outcomes earlier where sensible.

Conclusion

International arbitration works best when you engineer enforceability from the day you sign the contract. With the right seat, rules, and clause design—backed by disciplined interim relief and a proactive enforcement plan—you can turn complex cross-border disputes into predictable, bankable outcomes. TRW Law Firm blends global arbitration experience with deep knowledge of Bangladesh-facing realities to help you win time, protect cash, and recover value.

Summary Table — International Arbitration at a Glance

Contact TRW Law Firm

Tahmidur Remura Wahid (TRW) Law Firm
Contact Numbers: +8801708000660, +8801847220062, +8801708080817
Emails: info@trfirm.com, info@trwbd.com, info@tahmidur.com

Global Law Firm Locations:

• Dhaka: House 410, Road 29, Mohakhali DOHS
• Dubai: Rolex Building, L-12 Sheikh Zayed Road.

Ready to stress-test your arbitration clauses or plan an enforcement strategy? Write to us and we’ll share a tailored clause pack and a 30-minute seat/rules assessment for your sector.