Arbitration in Bangladesh offers a faster, private way to settle disputes under the Arbitration Act, 2001. Arbitrators, often lawyers, judges, or experts, are appointed by agreement of the parties or by court order if talks fail. The process follows set steps: agreement, appointment, hearings, and a binding award.
What are the required qualifications for an Arbitrator in Bangladesh?
In Bangladesh, the required qualifications for an arbitrator depend largely on the specific agreement between the parties. However, certain core qualifications and attributes are consistently emphasized under the Arbitration Act, particularly in Sections 12 and 13, which outline the qualifications and appointment criteria for arbitrators.
For more complex cases requiring multi-disciplinary experience, parties often seek guidance from a seasoned lawyer in Bangladesh who understands both statutory interpretation and arbitration procedure.
Who is qualified to be an arbitrator under the Arbitration Act, 2001?
Under the Arbitration Act, 2001, a qualified arbitrator is an independent, impartial, and competent person appointed by the parties or the arbitral tribunal who shows honesty, integrity, legal or technical experience, and a strong professional reputation.
The appointment perspective: parties may authorize or designate an arbitrator; if they don’t, an arbitrator is determined with regard to the arbitral tribunal’s rules and the Act. The third arbitrator, if chosen by two arbitrators or by the competent court, presides over the arbitral tribunal.
Are arbitrators lawyers, and what professional expertise is valued?
Many arbitrators are lawyers or retired judges, but arbitrators can also be business professionals or technical experts; valued professional expertise includes legal knowledge, technical subject-matter skill, impartiality, analytical and communication abilities, dispute-resolution and case-management experience.
Are arbitrators lawyers? Yes, many arbitrators are lawyers or ex-judges who bring courtroom experience and legal reasoning to arbitration. Still, the Act and parties often accept non-lawyer professionals when their specialty fits the dispute.
What are the considerations for the quorum of an Arbitrator in Bangladesh?
Quorum considerations for an Arbitrator in Bangladesh include the number of arbitrators, party agreement, appointment of a chair/presiding arbitrator, the validity of decisions, and the arbitrator’s impartiality, independence, and competence under the Arbitration Act, 2001.
Party autonomy perspective: Parties decide the quorum and procedural rules, so you can set one arbitrator or a three-member arbitral tribunal by agreement. I recommend writing the quorum rule into the arbitration clause to avoid later disputes.
History Of Arbitration in Bangladesh:
The United States and Great Britain were pioneers in the use of arbitration to resolve their differences.
The Hague Peace Conference of 1899 saw the major world powers agree to a system of arbitration and the creation of a Permanent Court of Arbitration. Both nations realized that a mechanism was desirable to avoid possible future conflicts. The Olney-Pauncefote Treaty of 1897 was a proposed treaty between the United States and Britain in 1897 that required the arbitration of major disputes. The Senate never went into effect.
How is an Arbitrator appointed under Bangladesh’s Arbitration Act, 2001?
Under Bangladesh’s Arbitration Act, 2001, the appointment of an arbitrator is guided by party agreement and statutory provisions. The parties are free to agree on an appointment procedure, including the number of arbitrators, the method of selection, and the role of a presiding arbitrator.
When parties cannot agree on appointment procedures, engaging an established law firm in Bangladesh ensures that the selection complies with statutory and procedural standards.
If the parties do not reach an agreement, the Act provides a default process typically involving either a single arbitrator or each party appointing one arbitrator, after which a third arbitrator is chosen to preside. When the parties fail to appoint an arbitrator within a set timeframe (commonly 30 days), they may apply to the District Court for domestic arbitration or to the High Court Division for international commercial arbitration to make the appointment.
What is the standard procedure for the appointment of arbitrators by the parties?
Parties follow a standard procedure: the parties appoint arbitrators by agreement, choosing a sole arbitrator or each naming one for a three-member tribunal, ensuring impartiality, independence, and using an appointing authority if they cannot agree.
Selection-by-parties perspective: Parties select their preferred arbitrator(s) under the arbitration agreement or institutional rules. You pick people based on agreed criteria, legal skill, technical expertise, or case-management ability, and then formally appoint them by written notice.
What happens if the parties fail to agree on the appointment of an arbitrator?
If the parties fail to agree on the appointment of an arbitrator, a court or arbitral institution will appoint one, often after 30 days or if the two arbitrators fail to agree on a third.
Usually, the law or the chosen rules let a party ask the court or the administering institution to make the appointment when a party misses a 30-day deadline or when two party-appointed arbitrators can’t pick the presiding arbitrator.
Practically speaking, the forum (superior court, High Court, arbitral institution) follows its procedures, sometimes picking from nominees or directly naming an arbitrator so that the arbitration can move forward.
How to apply for an arbitrator’s appointment to a designated authority?
To apply for an arbitrator’s appointment to a designated authority, submit a formal request with the arbitration agreement, notice of arbitration, party details, and pay the non-refundable fee; follow the ICSID, HKIAC, PCA/Secretary-General, and UNCITRAL rules.
What is the complete process of Commercial Arbitration in Bangladesh?
The commercial arbitration process in Bangladesh starts with the execution of a written arbitration agreement between the disputing parties. Once the agreement to arbitrate is in place, the appointment of arbitrator(s) or the constitution of the arbitral tribunal follows, usually through mutual consent of the parties or, failing that, by an appointing authority under Bangladeshi law.
Next, the arbitral tribunal conducts preliminary hearings to establish procedural rules, define timelines, and manage submission of claims and defenses. This leads to the exchange of information and evidence, where both parties disclose documents, witness statements, and expert reports relevant to their dispute.
How is the initial Arbitration Agreement established?
An initial arbitration agreement is established when the parties execute a written arbitration agreement by an arbitration clause, a separate arbitration agreement, or a post-dispute agreement expressly agreeing to resolve disputes by arbitration, waiving court trial rights, and naming rules.
Formation method: The arbitration clause sits inside a larger contract, and the separate arbitration agreement stands alone; a post-dispute agreement can be made later. Each method requires the parties to clearly agree and execute the document in writing.
What is the typical Arbitration Process Flow, from commencement to hearing?
Typical arbitration processes flow from commencement to hearing: request for arbitration/notice, appointment of arbitrators, preliminary hearings, exchange of information and evidence, pre-hearing steps, and final hearing leading to an award; institutional rules, seven stages, and timelines (≈12-16 months) govern.
Commencement: A claimant starts the process by serving a request for arbitration or notice to arbitrate on the opponent and the chosen institution. This document quotes the arbitration clause and sets out the claim, relief sought, and parties’ details.
What are the key sections of the Arbitration Act, 2001 that govern proceedings?
Key sections of the Arbitration Act, 2001 include Part 2 Section 4 (arbitration agreement), Part 4 Section 9 (commencement), Part 5 Sections 12-21 (appointment, challenge, tribunal jurisdiction), Sections 22-29 (procedure), and Sections 6-7 and 48 (court intervention).
Part 2 / Section 4-arbitration agreement: This section governs how the arbitration agreement is formed and recognized. It fixes the starting point for proceedings by requiring a written commitment that parties will resolve disputes by arbitration.
What are the key advantages of Arbitration over court litigation in Bangladesh?
The key advantages of arbitration over court litigation in Bangladesh include speed, cost-effectiveness, confidentiality, expertise, and procedural flexibility. Arbitration proceedings are generally faster and less expensive than traditional court litigation, allowing parties to resolve disputes efficiently without the delays often seen in the public court system. It offers privacy and confidentiality, ensuring that sensitive business or personal matters remain undisclosed.
For disputes that may later reach appellate review, parties may also consult a Supreme Court lawyer in Bangladesh to ensure enforceability and compliance with court procedures.
Is arbitration better than going to court for commercial disputes?
Arbitration is often better than going to court for commercial disputes because it’s typically faster, more confidential, less expensive, and offers greater procedural flexibility, but it may be less suitable where parties need appeal rights or legal precedent from litigation.
Efficiency and cost perspective: Arbitration usually moves quickly than court litigation because it avoids congested court calendars and heavy procedural requirements. Its streamlined procedures cut down on filings, hearings, and delays, making it generally less expensive overall. Still, complex commercial cases with multiple arbitrators or long evidence phases can raise costs close to or above court levels.
How does arbitration ensure confidentiality and speedier resolution?
Arbitration ensures confidentiality and speedier resolution by private proceedings, contractual confidentiality clauses, party-chosen rules, and streamlined procedures that cut formal steps and court backlog.
Confidentiality: hearings and documents are held behind closed doors and kept private when the parties agree or include a confidentiality clause in the arbitration agreement. You and the tribunal control who sees evidence, and institutions often respect secrecy, protecting trade secrets and reputations.
What are the advantages of hiring an Arbitrator in Bangladesh for dispute resolution?
Hiring an arbitrator in Bangladesh for dispute resolution provides major advantages such as speed and efficiency, cost-effectiveness, confidentiality, and procedural flexibility, along with the ability to choose an expert arbitrator who understands the specific subject matter of the dispute.
Speed and efficiency perspective: Arbitration in Bangladesh typically moves faster than court litigation. Arbitrators can schedule hearings quickly and simplify procedures, cutting down months or even years of delay often seen in the formal court system. Streamlined rules and direct scheduling help parties resolve sooner.
In certain commercial cases involving financial institutions, the assistance of a banking lawyer in Bangladesh can be crucial to interpret regulatory clauses during arbitration
How is a final Arbitral Award enforced or challenged in Bangladesh?
A final arbitral award in Bangladesh is enforced or challenged through formal court procedures governed by the Arbitration Act, 2001 and the Code of Civil Procedure, 1908. The award is treated as a civil court decree, meaning the successful party can apply to the appropriate court for enforcement using the court’s execution powers, such as attachment and sale of property, or, in certain cases, arrest and detention of the debtor.
What is the procedure for setting aside an Arbitral Award?
To set aside an arbitral award, a party files an application under Section 34 in the relevant court, pleading legal grounds (breach of the arbitration agreement, biased arbitrator, procedural irregularities, public-policy/illegality), with supporting documents, within three months; court review is limited.
Procedure & timing: You must serve notice and file the application under Section 34(3), annexing affidavits and the award; the usual deadline is three months from receipt (extendable by 30 days for sufficient cause). The court follows pleadings, admits evidence on jurisdictional/threshold points, and frames issues before hearing.
What is the legal status of an Arbitral Award, and how is it enforced?
An arbitral award is a legally binding, enforceable decision that courts confirm/recognize as a judgment, enabling enforcement (asset seizure, garnishment) under local law; U.S. awards must be in writing and foreign awards be confirmed within three years (9 U.S.C. §207).
The legal status: an award is final between the parties and carries the force of an adjudication once a court confirms it; courts treat arbitration as a chosen forum and limit re-examination to statutory or treaty grounds.
What is Section 44 of the Arbitration Act, and what does it relate to?
Section 44 of the Arbitration Act 1996 gives English courts power to make orders in support of arbitral proceedings, including taking or preserving evidence/property, granting interim injunctions, appointing receivers, and providing urgent assistance when a tribunal cannot act.
What Section 44 is: Section 44 is a statutory bridge between arbitration and the courts. It lets the court step in to help an arbitration by making orders that the arbitration tribunal either cannot make or cannot make quickly. You can think of it as emergency back-up power for arbitration.
How does the legal service of an Arbitrator compare to litigation in Bangladesh?
The legal service of an Arbitrator in Bangladesh differs from litigation mainly in speed, privacy, cost structure, and enforceability. Arbitration is generally faster, more private, and offers a more confidential, efficient, and enforceable process, particularly suited to commercial disputes. In contrast, litigation is often slower, public, and procedurally complex, though arbitration may involve higher upfront expenses due to arbitrator fees and administrative charges.
Should you hire an Arbitrator or an Arbitration Lawyer in Bangladesh?
Hire an Arbitration Lawyer in Bangladesh to represent your interests and advocate; an Arbitrator is a neutral third party who issues a binding decision, picking lawyers for advocacy, arbitrators for legal or technical decision-making.
Role distinction: An Arbitration Lawyer pleads, strategizes, and enforces; an Arbitrator remains neutral, assesses evidence, and issues a final award. You hire the lawyer to fight your corner; you appoint the arbitrator for expertise and impartial judgment.
What is an arbitration, and how does an Arbitrator in Bangladesh function to resolve disputes?
Arbitration is an alternative dispute resolution process where a neutral arbitrator in Bangladesh conducts a private hearing, reviews evidence and arguments, and issues a final, legally binding award under the Arbitration Act 2001, enforceable through the Bangladeshi courts.
Nature and purpose of arbitration: Arbitration serves as a substitute for traditional court litigation. It allows parties to resolve disputes more quickly, confidentially, and efficiently. The arbitrator or panel, usually an experienced lawyer, retired judge, or technical expert, acts as a private judge, maintaining impartiality while ensuring fair hearing and due process.
What are the different types of arbitration (Domestic, International, Ad-Hoc)?
Domestic arbitration, International arbitration, and Ad-Hoc arbitration are the three main types: Domestic stays within one country and follows local law; International crosses borders with seat, choice-of-law, and New York Convention enforcement; Ad-Hoc is party-run without institutional rules.
Domestic arbitration: Parties and disputes are all inside a single country. The tribunal applies national law, the arbitration follows the local arbitration act, courts supervise confirmation and enforcement, and procedures mirror domestic practice, usually faster and more private than full court litigation.
Where can an Arbitral Tribunal be formed in Dhaka, Bangladesh?
An Arbitral Tribunal can be formed in Dhaka, Bangladesh, through institutional or ad hoc mechanisms. The primary institutional venues for forming an arbitral tribunal include the Bangladesh International Arbitration Center (BIAC) and the Bangladesh Institute of Arbitration (BIArb). These institutions provide structured environments for arbitration and dispute resolution.
What is the arbitral tribunal, and where do they typically convene?
An arbitral tribunal is a panel of one or more arbitrators who resolve disputes outside court; they convene at institutional venues (BIAC-DCCI-sponsored, state-of-the-art; BIArb), at an ad hoc agreed seat/venue in Dhaka, Bangladesh, or remotely.
An arbitral tribunal (also called an arbitration tribunal, arbitration commission, arbitration committee, or arbitration council) is a panel of adjudicators assembled to hear a dispute. Once the file is transmitted to it, the Arbitral Tribunal runs the proceeding and decides on the merits, applying the parties’ agreement and the law of the seat.
What is the role of the Bangladesh International Arbitration Center (BIAC)?
The role of the Bangladesh International Arbitration Center (BIAC) is to provide a neutral, efficient, reliable venue, DCCI-sponsored, not-for-profit, state-of-the-art, for domestic and international arbitration and mediation, offering case administration, training, research, and ADR promotion.
The role of the Bangladesh International Arbitration Center (BIAC) is to serve as an impartial venue and case administrator for arbitration and mediation proceedings; it runs the process, supports arbitrators, and enforces procedural rules.
Conclusion
Arbitration in Bangladesh gives. Whether your case involves corporate, commercial, or criminal elements, working with a skilled civil & criminal lawyer in Bangladesh ensures that arbitration outcomes align with broader legal strategies. parties a fair, faster, and more private way to resolve disputes under the Arbitration Act, 2001. Arbitrators act with honesty, skill, and independence, while courts step in only when needed. Institutions like BIArb keep the process smooth and reliable. If you face a business or legal dispute, consider arbitration; it saves time, protects confidentiality, and puts control back in your hands.