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Mediation in Bangladesh: Civil, Commercial and Family Dispute Resolution

May 14, 2026 4 min read by Tahmidur Remura Wahid

Mediation in Bangladesh is a structured, voluntary process in which a neutral mediator assists disputing parties in reaching a mutually acceptable settlement. Recognised and encouraged by Bangladesh’s legal system through Section 89A of the Code of Civil Procedure 1908, the Family Courts Ordinance 1985, and the Arbitration Act 2001, mediation in Bangladesh has become an important tool for resolving civil, commercial, and family disputes without the need for adversarial litigation.

Section 89A of the Code of Civil Procedure 1908

Section 89A CPC empowers civil courts to refer pending suits to mediation with the consent of the parties. If mediation results in a settlement, the court records it as a compromise decree under Order XXIII, Rule 3 of the CPC, which is enforceable as a court order. This court-annexed mediation mechanism has significantly reduced the backlog of civil cases in Bangladesh’s courts.

The Family Courts Ordinance 1985

The Family Courts Ordinance 1985 requires the Family Court to attempt to reconcile the parties in family suits before proceeding to trial. This mandatory mediation step has been effective in resolving many family disputes, particularly divorce and maintenance cases.

The Arbitration Act 2001

Chapter VII of the Arbitration Act 2001 (Sections 63-81) provides for conciliation — a form of facilitated settlement that is closely related to mediation. Conciliation settlements under the Act have the same effect as arbitral awards and are enforceable as such.

The Artha Rin Adalat Ain 2003

The Artha Rin Adalat Ain 2003 provides for mediation in financial loan recovery cases, requiring the court to refer the matter to mediation before proceeding to trial.

Types of Mediation in Bangladesh

Court-Annexed Mediation

Court-annexed mediation under Section 89A CPC is the most common form of mediation in Bangladesh. The court refers a pending civil suit to mediation with the consent of the parties. The mediator is appointed from the court’s panel or by agreement of the parties. If mediation succeeds, the settlement is recorded as a compromise decree.

Private Commercial Mediation

Private commercial mediation through BIAC or BIArb is used for commercial disputes where the parties want a structured, professionally administered mediation process outside the court framework. BIAC and BIArb maintain panels of accredited mediators and administer mediations under their own rules.

Family Mediation

Family mediation under the Family Courts Ordinance 1985 is used for divorce, maintenance, and child custody disputes. The Family Court attempts to reconcile the parties before proceeding to trial.

Advantages of Mediation in Bangladesh

Mediation in Bangladesh offers several significant advantages over court litigation: speed (most mediations conclude within one to three days), cost-effectiveness (mediation is significantly cheaper than litigation or arbitration), confidentiality (mediation proceedings are private and without prejudice), preservation of relationships (mediation encourages cooperative problem-solving rather than adversarial confrontation), and flexibility (the parties can craft creative settlement solutions that a court could not impose).

TRW Law Firm: Mediation Services in Bangladesh

TRW Law Firm provides expert mediation legal services across Bangladesh, representing clients in court-annexed mediations, BIAC and BIArb mediations, and family mediations. Contact TRW at tahmidurrahman.com or visit lawfirm.com.bd.

Frequently Asked Questions

Is mediation binding in Bangladesh?

The mediation process itself is not binding — the parties cannot be compelled to reach a settlement. However, once a settlement agreement is signed, it is a binding contract. If the settlement is recorded as a compromise decree by the court, it is enforceable as a court order.

Can I use mediation for a property dispute in Bangladesh?

Yes. Section 89A CPC applies to all civil suits, including property disputes. Courts in Bangladesh regularly refer property disputes to mediation.

What happens if mediation fails in Bangladesh?

If mediation fails, the dispute proceeds to the next stage — either litigation or arbitration, depending on the dispute resolution clause in the contract. Nothing said during mediation can be used as evidence in subsequent proceedings.

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.

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