Contract Enforcement in Bangladesh: Money Suits and Contract Dispute Claims in 2026

by Barrister Tahmidur Rahman | Oct 20, 2026 | Disputes & Public Law, Insights | 0 comments

TRW Insight / Bangladesh

Enforcing a contract in Bangladesh used to mean a four-year wait. The Commercial Courts Act 2026 brings summary judgment, fixed timetables and costs that follow the event, but limitation, forum choice and asset protection still decide whether a claim is actually paid.

Updated 20 October 2026Legal insightBangladesh23 min read

Contract enforcement Bangladesh: the 2026 framework for getting paid

Contract enforcement Bangladesh businesses can rely on has long been the weakest link in the country's commercial law. The rules in the Contract Act 1872 and the Specific Relief Act 1877 are clear enough; the difficulty has always been turning a breach into money in the bank. In 2026 that changed in structure, if not yet fully in practice. A dedicated Commercial Court system now hears most business contract disputes, with built-in mediation, a suit management hearing, summary judgment, a ninety-day final hearing and costs that follow the event, while the ordinary civil courts and arbitration remain available for the claims that fall outside it.

This guide is written for the creditor, the supplier, the contractor and the investor who has a contract claim and wants it paid. It follows the claim from the first decision to the last: securing evidence and limitation, the legal notice and negotiation, choosing between the Commercial Court, the civil court and arbitration, the remedies available, the money suit and its procedure, summary routes, interim attachment, execution and the enforcement of foreign judgments. Where TRW has already published a detailed analysis of a sub-topic, we link to it rather than repeat it.

Contract enforcement Bangladesh — business people reviewing a signed commercial contract
Enforcement starts with the contract file and the evidence behind it

Summary: A contract claim in Bangladesh is enforced through a demand and negotiation stage, then a money suit in the Commercial Court (for the twenty-four listed commercial categories), the ordinary civil court (for everything else) or arbitration (where the contract says so), and finally execution of the decree or award. Limitation, the forum and early protection of assets decide most outcomes before any hearing takes place.

Key point: Under the Commercial Courts Act 2026 there is no monetary threshold: jurisdiction depends on subject matter. A Commercial Court can grant summary judgment where a claim or defence has no real prospect of success, must complete the final hearing within ninety days of fixing it, and normally orders the losing party to pay the winner's costs, including lawyers' fees.

At a glance

01

Three forums

Commercial Courts for listed business disputes, ordinary civil courts for other contracts, and arbitration where the parties agreed to it.

02

Three years

The general limitation period for compensation for breach of an unregistered contract; one year for specific performance.

03

Summary judgment

Commercial Courts list a summary judgment application for hearing within fifteen days of filing.

04

Ninety days

The Commercial Court must finish the final hearing within ninety days of the date it fixes for it.

05

Foreign judgments

Money decrees from notified reciprocating territories are executed directly; others need a fresh suit.

Table of Contents

Why contract enforcement Bangladesh outcomes are decided early

The single most useful fact in contract enforcement Bangladesh practice is how long the traditional court route has taken. The World Bank's Doing Business 2020 study, based on a standard sale-of-goods dispute before a Joint District Judge in Dhaka, recorded 1,442 days from filing to enforcement: 30 days for filing and service, 1,047 days for trial and judgment and 365 days to enforce the judgment.[12] The cost was 66.8 per cent of the claim value, made up of attorney fees of 40 per cent, court fees of 8.3 per cent and enforcement fees of 18.5 per cent. Bangladesh ranked 189th of 190 economies on the indicator.[12]

What the benchmark actually measured

The same study scored Bangladesh 7.5 out of 18 on the quality of judicial processes, with low marks for case management and court automation, and recorded that there was then no court or division dedicated solely to commercial cases.[12] The figure has stuck. In May 2026 a former president of the Dhaka Chamber of Commerce and Industry cited the 1,442-day average and said performance had barely improved in five years.[11] At a September 2025 Dhaka Chamber seminar on contract enforcement, speakers cited a dispute resolution score of 44.4 out of 100 for Bangladesh in the World Bank's B-READY 2024 assessment.[13]

What the 2026 reforms target

The Commercial Courts Act 2026 (Act No. 23 of 2026), dated 10 April 2026 and deemed in force from 1 January 2026, replaced the Commercial Court Ordinance 2026 and was enacted expressly to resolve commercial disputes quickly and effectively in support of investment.[3] Under the ordinance, the Law and Justice Division notified 75 Commercial Courts on 3 February 2026, including three for the Dhaka metropolitan area, two for Chattogram metropolitan area and one for each of the other districts.[10]

For a creditor, this means the practical questions have shifted: which forum, how fast the claim can be put in a position for summary disposal, and how quickly assets can be identified. Our hub on contract law in Bangladesh covers formation and validity; this guide starts where the contract has already been broken.

Step one: secure the claim before demanding payment

Most contract claims are won or lost on documents gathered in the first weeks. Before any demand is sent, a creditor should know what was promised, what was delivered, what is owed, who owes it and how much time is left to sue.

Build the evidence file

Assemble the signed contract and every variation, purchase orders, delivery challans, invoices, inspection or completion certificates, bank statements showing part payments, and the full trail of emails and messages. Commercial Courts can decide a case on affidavits and documents alone, without oral evidence, where the documents make that possible, so a clean documentary record is now worth more than ever.[3] Keep originals safe and record who can prove each document.

Identify the defendant and its assets

Sue the entity that actually contracted, check its registration and directors, and note any guarantor or parent company that gave security. At the same time, identify bank accounts, receivables, stock, vehicles and land. Asset intelligence decides whether a decree is worth having, and it justifies applications for attachment before judgment if the defendant starts moving property.

Read the dispute resolution clause

If the contract contains an arbitration agreement, the other side can ask a court to refer the matter to arbitration and stay the suit, provided it applies before filing its written statement.[9] Clauses that try to restrict a party absolutely from suing, or that shorten the statutory time to sue, are void to that extent under section 28 of the Contract Act, although arbitration agreements are expressly saved.[1]

Calendar limitation immediately

Section 3 of the Limitation Act 1908 requires the court to dismiss a suit filed out of time even if the defendant never raises the point.[6] The periods that matter most for contract enforcement are set out in the First Schedule:[7]

  • Compensation for breach of an unregistered contract (article 115): three years from the breach, or from when a continuing breach ceases.
  • Compensation for breach of a registered written contract (article 116): six years.
  • Price of goods sold and delivered (article 52): three years from delivery, where no fixed credit period applies.
  • Price of work done (article 56): three years from when the work is done.
  • Money lent (article 57): three years from the date of the loan.
  • Specific performance (article 113) and rescission (article 114): one year each, cut from three years by a 2004 amendment.

Two rules can save a claim that is running out of time. A written, signed acknowledgement of liability made before the period expires starts a fresh period under section 19, and a part payment on account of the debt does the same under section 20 if it is acknowledged in writing by the payer.[6] Settlement talks do not stop the clock, so a creditor negotiating close to the deadline should file and negotiate in parallel.

Contract enforcement Bangladesh — calendar marking limitation deadlines for a contract claim
Limitation runs from the breach, and negotiation does not stop the clock

A properly drafted demand is the cheapest enforcement tool available. It fixes the amount claimed, puts the debtor on formal notice, sets a deadline and frames the record a court or tribunal will later read. Our guide to the legal notice in Bangladesh explains content, service and the cases in which a notice is compulsory, and our analysis of cheque dishonour notices covers the separate statutory notice that applies when a payment cheque bounces.

Using the notice to shape the case

For contract enforcement purposes, the notice should do four things. It should identify the contract and the breach precisely; claim a specific sum with a breakdown of principal, interest and any liquidated damages; state the contractual interest rate, because Commercial Court plaints must now set out interest claims in detail; and invite a response within a short, fixed period.[3] A reply that admits the debt in writing may itself be an acknowledgement that restarts limitation.[6]

Negotiating from strength

Negotiation works best when the debtor knows that the creditor is ready to file. Mark settlement correspondence without prejudice, agree any instalment plan in writing with an acceleration clause on default, and take security, such as a post-dated cheque, a guarantee or a charge, where the debtor's position is weak. A settlement that cannot itself be enforced simply restarts the dispute. Our guide on how to resolve disputes in Bangladesh maps the wider settlement routes.

Choosing the forum for contract enforcement Bangladesh claims

The forum decision is now the most important strategic choice in a contract claim. Three routes are realistic: the Commercial Court, the ordinary civil court and arbitration. Specialist forums, such as the Artha Rin Adalat for bank loan recovery, sit outside this choice.

When the Commercial Courts have jurisdiction

A commercial dispute under the Act is a dispute arising from one or more of twenty-four listed categories, excluding matters within the High Court Division's original jurisdiction and those of the Artha Rin Adalat.[3] The list begins with ordinary transactions of merchants, bankers, financial institutions and traders, including the enforcement and interpretation of mercantile documents, and continues through import and export, carriage of goods, construction and infrastructure contracts and tenders, contracts on immovable property used for business, franchising, distribution and licensing, management and consultancy, joint venture and shareholder agreements, commercial agency, partnership, technology development, intellectual property, sale of goods and services, natural resources, insurance, shipbuilding, arbitration matters, payment systems transactions and any further category the government notifies.[3]

Three features of the definition matter for creditors. First, the Act contains no pecuniary threshold, so a small supply claim and a large construction claim go to the same court if the subject matter qualifies.[3] Second, a dispute does not lose its commercial character merely because immovable property was given as security or because one party is the government, a government body or a private body performing public services.[3] Third, judges are drawn from District Judges and Additional District Judges, with preference for those with commercial law training or experience.[3]

Transferred cases and objections to jurisdiction

Pending commercial suits in the ordinary civil courts were transferred to the Commercial Courts, but where an appeal or revision against an interim order is pending in a higher court, transfer waits until that challenge is decided. A party that believes a transferred suit is not a commercial dispute must object within thirty working days after the first date fixed in the Commercial Court, and the court must decide the objection within a further thirty working days.[3]

When the ordinary civil courts remain the forum

Contract claims outside the twenty-four categories, such as many private, non-business agreements, remain with the ordinary civil courts under the Code of Civil Procedure 1908. The plaint goes to the lowest-grade court competent by value with local jurisdiction, and the process, including affidavit pleadings, summons by electronic means and the 2026 adjournment limits, is explained in our guide to filing a civil suit in Bangladesh.

When arbitration displaces the courts

Where the contract contains a valid arbitration agreement, the court must refer the parties to arbitration and stay the suit on a timely application, unless the agreement is void, inoperative or incapable of being performed.[9] The court may still grant interim measures, including orders restraining transfer of property intended to defeat enforcement of the award.[9] Once the period to challenge has expired, the award is enforced under the Code of Civil Procedure as a decree.[9] Arbitration matters are themselves a listed Commercial Court category, so court applications connected with an arbitration may now be heard there.[3] For the trade-offs, see arbitration versus litigation in Bangladesh and our walk-through of the arbitration process.

The table below compares the three routes. On a phone, scroll it sideways.

Comparing the main routes for contract enforcement in Bangladesh
RouteLegal basisWho it suitsSpeed toolsChallenge
Commercial CourtCommercial Courts Act 2026Disputes in the 24 listed commercial categories, at any valueSuit management hearing, summary judgment, 90-day final hearingAppeal or revision to the High Court Division within 60 days; only final judgments appealable
Ordinary civil courtCode of Civil Procedure 1908Contract claims outside the commercial categoriesSection 89A mediation, adjournment limits, Order XXXVII for negotiable instrumentsAppeal under the general rules to the District Judge or High Court Division
ArbitrationArbitration Act 2001Contracts with an arbitration clause, especially cross-borderParty-chosen tribunal, court interim measuresLimited setting-aside grounds; award enforced as a decree
Foreign judgmentCode of Civil Procedure, sections 13 and 44ACreditors holding a money judgment from abroadDirect execution if from a notified reciprocating territorySection 13 exceptions, including fraud and natural justice

Remedies: what a contract claim can recover

Choosing the remedy shapes the plaint, the court fee and the limitation period. The substantive law is set out in our analysis of breach of contract in Bangladesh; what follows is the enforcement view of each remedy.

Compensation under sections 73 and 75

Section 73 of the Contract Act entitles the injured party to compensation for loss that naturally arose in the usual course of things from the breach, or that the parties knew, when they made the contract, would be likely to result. Remote and indirect loss is excluded, and the means available to remedy the inconvenience caused by non-performance must be taken into account, which is the statutory root of the duty to mitigate.[1]

A party who rightly rescinds a contract may also claim compensation for the damage sustained through its non-fulfilment under section 75.[1] In enforcement terms, a debt claim for a fixed price is easier to prove and better suited to summary judgment than a damages claim that needs evidence of loss.

Liquidated damages and penalties under section 74

Where the contract names a sum payable on breach, or contains any other stipulation by way of penalty, the injured party is entitled to reasonable compensation not exceeding the amount named, whether or not actual loss is proved.[1] The section does not distinguish between genuine pre-estimates and penalties in the way English law does: the named sum is a ceiling, and the court awards what is reasonable within it. A stipulation for increased interest from the date of default may itself be treated as a penalty.[1] Delay-damages clauses in construction and supply contracts should therefore be supported by evidence of why the rate is reasonable.

Specific performance and its limits

Under section 12 of the Specific Relief Act 1877, specific performance is discretionary and is available mainly where money compensation would be inadequate or impossible to measure. The court presumes that breach of a contract to transfer immovable property cannot be adequately compensated in money, and that breach of a contract to transfer movable property can.[2] Section 21 bars specific performance of contracts where compensation is adequate, contracts too detailed or personal for the court to supervise, uncertain or revocable contracts and contracts involving a continuous duty lasting more than three years.[2]

For sale of immovable property, section 21A requires the contract to be in writing and registered, and the balance of the price to be deposited in court when the suit is filed.[2] Compensation may be claimed in addition to or instead of performance under section 19, in the same suit.[2]

Injunctions to hold the position

A perpetual injunction may be granted to prevent breach of a contractual obligation, guided by the rules on specific performance, and an injunction cannot be granted to prevent breach of a contract that would not be specifically enforced.[2] Section 57 provides the key exception: a negative covenant, such as a promise not to deal with a competitor, can be enforced by injunction even where the positive obligation cannot.[2] Interim protection while the suit is pending is governed by Order XXXIX of the Code, explained in our guides to the temporary injunction and the permanent injunction suit.

Interest on the claim

In an ordinary civil money decree, section 34 of the Code lets the court award interest at a reasonable rate from the date of the suit to the decree and further interest from the decree to payment; if the decree is silent on post-decree interest, it is treated as refused and no separate suit lies.[4] The Commercial Courts Act is more creditor-friendly. Unless the parties agree otherwise, the court may add interest from the date the dispute arose to judgment at the contract rate or a rate it fixes, and the judgment sum carries interest at two per cent above the Bangladesh Bank rate from judgment to payment unless the judgment orders otherwise.[3] Always plead interest expressly.

The money suit: filing a contract claim in court

A money suit is the workhorse of contract enforcement Bangladesh creditors rely on. Whether it is filed in a Commercial Court or an ordinary civil court, the Code of Civil Procedure governs the pleadings and procedure except where the Commercial Courts Act provides otherwise.[3]

The plaint and valuation

The plaint must state the parties, the cause of action and when it arose, the facts giving the court jurisdiction, the relief claimed and the valuation for jurisdiction and court fees.[5] In a Commercial Court, a plaintiff claiming interest must also give full particulars of the interest claim in the plaint.[3] The court can reject the plaint at any time if satisfied the suit is not maintainable, after hearing the parties, so maintainability points, such as limitation, arbitration clauses and the correct defendant, should be tested before filing.[3]

Court fees

Court fees on a plaint in a money suit are ad valorem under Schedule I of the Court-fees Act 1870, calculated on a sliding scale on the amount claimed. The proviso caps the maximum fee on a plaint or memorandum of appeal at Tk 35,000, which makes the fee a modest cost in large commercial claims.[8] Under the Commercial Courts Act, court fees are part of the recoverable costs a successful party can claim from the loser.[3]

Attachment and arrest before judgment

Order XXXVIII of the Code gives creditors two protective tools. Where the court is satisfied, by affidavit or otherwise, that the defendant intends to obstruct or delay execution and is about to dispose of or remove property from the court's local limits, it may direct the defendant to furnish security or face attachment of property.[5] Where the defendant has absconded, is about to leave the jurisdiction or is about to leave Bangladesh in circumstances that may obstruct execution, the court may require security for appearance, and a defendant who fails to comply may be detained in civil prison for up to six months.[5] In a money suit, these applications need hard evidence of the risk, not just an unpaid debt.

Summary procedure on negotiable instruments

Order XXXVII provides a summary procedure for suits on bills of exchange, hundis and promissory notes, but only in the High Court Division and the District Court.[5] If the plaintiff uses the prescribed forms, the defendant cannot defend without leave of the court; in default, the allegations are deemed admitted and the plaintiff is entitled to a decree for principal, interest and costs, which may be executed at once.

Leave to defend is granted on affidavits disclosing facts that would require the holder to prove consideration or otherwise support a defence, and may be conditional on payment into court or security.[5] The time limit for suing on a bill of exchange or promissory note is generally three years.[7] For most commercial creditors, however, the Commercial Court's own summary judgment procedure is now the broader and more useful tool.

Contract enforcement Bangladesh — courtroom where a money suit is heard
Commercial Courts now hear most business contract claims

Inside the Commercial Court: mediation, timetable and summary judgment

The Commercial Courts Act changes how a contract claim is run from the inside. Its key procedural provisions are short, and each has practical consequences for creditors and defendants alike.

Pre-suit mediation

Where a suit does not involve urgent interim relief, section 7(1) requires the plaintiff to follow the pre-suit mediation procedure prescribed by government rules, if such rules exist when the suit is filed.[3] The obligation therefore depends on rules, and a creditor who needs an injunction or attachment should say so expressly in the plaint. This is separate from the compulsory pre-case mediation run by district legal aid offices, which covers family, rent, partition, pre-emption, parental maintenance, dowry and certain women and children repression disputes rather than commercial contract claims.[14]

Mediation during the suit

At any stage before judgment, with the consent of both parties, the court may allow the dispute to be settled through a panel mediator or another suitable mediator. Mediation must finish within thirty days, extendable by a further thirty. A settlement must be in writing and signed by the parties and the mediator; once the court is satisfied that no third party's interest is harmed, it is treated as a decree and enforced by the court.[3] Our guide to court-annexed mediation in Bangladesh explains how mediation works in the ordinary civil courts.

The suit management hearing

On the first hearing after the written statement, the court holds a suit management hearing. It identifies the main issues, separates issues of fact from issues of law, decides whether the case can be resolved on documents alone, decides which issues need oral evidence, sets the initial number of witnesses for each side and fixes the stages of the case and the time for each.[3] A party absent from that hearing risks orders under Order IX. Preparation for this hearing, not the trial, is now where most commercial cases are shaped.

Summary judgment

After summons is served on the defendant, any party may apply for summary judgment. If the court considers the application admissible, it must fix a hearing within fifteen days of filing. It may give judgment on the pleadings and documents if the plaintiff has no prospect of obtaining relief or the defendant has no prospect of proving its defence, and no oral evidence is needed.[3] For a creditor holding signed invoices, delivery records and an admitted balance, this is the fastest route to a decree the Bangladeshi courts have offered.

Adjournments, the ninety-day hearing and costs

Each party may seek an adjournment before the final hearing no more than three times, on cause shown and on payment of reasonable costs. The final hearing must be completed within ninety days of the date the court fixes it, without exception, and a party whose deliberate conduct causes delay can be ordered to pay costs and barred from participating until it pays.[3] As a general rule the unsuccessful party pays the successful party's costs, which expressly include court fees, lawyers' fees and witness expenses, although the court may reduce or refuse costs where that would be unfair.[3] Cost exposure is now a real lever in settlement negotiations.

Appeals and revision

No appeal lies from any Commercial Court order other than the final judgment, although revision and review are available following the principles of the Code. An appeal or revision lies to the High Court Division within sixty days of the judgment or order, and the Chief Justice is to constitute Commercial Appeal Benches to hear them.[3] Appeals from ordinary civil court decrees follow the general rules explained in our guide to the civil appeal in Bangladesh.

From decree to payment: executing the judgment

A decree is only the midpoint of contract enforcement. The Doing Business data allotted a full year to the enforcement stage alone, and enforcement fees were the second largest cost item after lawyers' fees.[12] The mechanics of attachment, sale, arrest and objections are covered in our guide to the execution case in Bangladesh.

The Commercial Courts Act adds a significant tool for creditors. In executing a decree, the court may order the judgment debtor to provide the information needed to identify its property, and may give directions to any public or private person or authority for that purpose.[3] In practice, that allows a decree-holder to seek disclosure from banks, registries and counterparties, rather than relying on its own intelligence. A creditor that tracked assets before filing will be able to use this power far more precisely.

Enforcing foreign judgments and awards in Bangladesh

Cross-border enforcement depends on how the claim was decided abroad. Bangladesh treats foreign court judgments and foreign arbitral awards under different regimes.

Judgments from reciprocating territories

Under section 44A of the Code, a certified copy of a money decree of a superior court of a reciprocating territory may be filed in a District Court and executed as if that court had passed it. The decree-holder must also file a certificate from the foreign court stating how far the decree has been satisfied.[4] A reciprocating territory is any country or territory the government declares by gazette notification. A specific reference to the United Kingdom was removed in 2003, so the current notification must be checked in every case.[4] The route covers only decrees for a sum of money, not taxes, fines or penalties, and never arbitral awards.[4]

Judgments from other countries

A judgment from a non-reciprocating country cannot be executed directly. The creditor must sue on the judgment in Bangladesh. Under section 13, a foreign judgment is conclusive on matters directly decided between the same parties unless it was given by a court without competent jurisdiction, was not on the merits, rests on an incorrect view of international law or refuses to recognise Bangladeshi law where applicable, was obtained in proceedings contrary to natural justice, was obtained by fraud, or sustains a claim founded on a breach of Bangladeshi law.[4]

The court presumes that a certified copy of a foreign judgment was given by a competent court unless the contrary appears.[4] The same section 13 exceptions also allow a District Court to refuse execution under section 44A.[4]

Foreign arbitral awards

A foreign arbitral award is binding and is enforced by the court on application as if it were a decree, on production of the award, the arbitration agreement and evidence that the award is foreign, with certified English translations where needed.[9] For cross-border contracts, a well-drafted arbitration clause is usually the more reliable path to enforcement in Bangladesh than a foreign court judgment. Our guide to foreign arbitral award enforcement in Bangladesh covers the grounds for refusal and the practicalities.

Step by step: how to file and resolve a contract dispute

The sequence below reflects how TRW runs contract enforcement Bangladesh mandates for clients, from the first sign of non-payment to recovery.

Step 01

Fix the deadlines

Identify the date of breach and the limitation article that applies, and note any contractual notice, mediation or arbitration time limits.

Step 02

Assemble the evidence

Collect the contract, variations, invoices, delivery and acceptance records, payments and correspondence, and identify who can prove each document.

Step 03

Trace the debtor and assets

Confirm the correct contracting entity and any guarantor, and map bank accounts, receivables, stock and property.

Step 04

Serve a legal notice

Demand a specific sum with a breakdown of principal, interest and agreed damages, and set a short, fixed deadline for payment.

Step 05

Negotiate with a fallback

Discuss settlement without prejudice, document any instalment deal with default terms, and file in parallel if limitation is close.

Step 06

Choose the forum

File a money suit in the Commercial Court for a listed commercial dispute or the civil court for other contracts, or start arbitration if the clause requires it.

Step 07

Press for early disposal

Seek interim protection where assets are at risk, prepare for the suit management hearing and apply for summary judgment where the defence is weak.

Step 08

Execute and collect

Enforce the decree or award promptly, using asset disclosure orders, attachment and sale to convert the judgment into payment.

At each step, keep the time-bar date and any arbitration or mediation deadlines in view, and do not let a settlement discussion run past them without protective filings in place.

Mistakes that weaken contract enforcement Bangladesh claims

The same errors recur across contract enforcement Bangladesh practice, and almost all of them are avoidable.

  • Waiting too long. Specific performance and rescission claims have one-year limits, and the court must dismiss a late suit on its own motion.[6] [7]
  • Choosing the wrong forum. Filing a listed commercial dispute in an ordinary civil court, or suing despite an arbitration clause, invites transfer, stay and delay.[3] [9]
  • Pleading interest loosely. A Commercial Court plaint must give interest particulars, and a civil decree silent on post-decree interest is treated as refusing it.[3] [4]
  • Overstating liquidated damages. Section 74 awards only reasonable compensation up to the named sum, so an inflated figure invites challenge.[1]
  • Ignoring the suit management hearing. The issues, witnesses and timetable fixed at that hearing govern the rest of the case.[3]
  • Treating the decree as the finish line. Without asset tracing and early protective orders, a decree can remain unpaid for years.[12]

Advice on contract enforcement Bangladesh claims is most valuable before the first letter is sent, when the claim can still be framed around the strongest remedy, the right forum and the available evidence. A good contract disputes lawyer in Bangladesh will check limitation and the dispute clause on day one, identify assets and the right defendant, assess whether the claim suits summary judgment, explain the realistic costs exposure under the Commercial Courts Act and advise on settlement value. Ask for a written scope, a fee basis and a timetable keyed to the statutory deadlines.

TRW's corporate and commercial advisory practice drafts contracts with enforcement in mind, our alternative dispute resolution practice handles mediation and domestic arbitration, and our international arbitration practice acts on cross-border claims and award enforcement.

Contract enforcement Bangladesh — lawyer advising a client on a contract dispute strategy
Early advice shapes the remedy, the forum and the route to payment

What to watch in 2026 and beyond

Three developments will shape contract enforcement Bangladesh practice over the coming year.

First, the government has signalled that the Commercial Courts Act will be revisited: in May 2026 the Law Minister, Md Asaduzzaman, said the Act had been passed in haste, that regulatory, tax, labour and criminal matters troubling investors were largely absent from it, and that the government wanted to bring certain amendments.[11]

Second, the pre-suit mediation obligation in section 7(1) will bite only once rules are made, and the Supreme Court may issue practice directions on Commercial Court procedure and on fast-tracking appeals.[3] Third, the Act requires Commercial Courts and the High Court Division to publish monthly case statistics on the Supreme Court website, which should finally give creditors hard data on how quickly the new courts dispose of claims.[3] The same May 2026 seminar heard that reform of the Arbitration Act 2001 is also on the agenda.[11]

For any business with a contract claim, the message is the same: secure the evidence, protect limitation, choose the forum deliberately and plan for execution from the outset. If you need a clear view of your options, contact TRW.

Frequently asked questions

How do I enforce a contract in Bangladesh?

Send a legal notice and try to negotiate, then file a suit in the Commercial Court if the dispute falls within the twenty-four listed categories, in the ordinary civil court if it does not, or start arbitration if the contract requires it. A decree or award is then enforced through execution.[3] [9]

What is the limitation period for a breach of contract claim?

Generally three years from the breach for compensation under an unregistered contract, six years for a registered written contract, and one year for specific performance or rescission.[7]

Is there a minimum claim value for the Commercial Courts?

No. The Commercial Courts Act 2026 defines jurisdiction by subject matter, through twenty-four listed categories, and sets no monetary threshold. Bank loan recovery remains with the Artha Rin Adalat.[3]

Is mediation compulsory before filing a commercial suit?

Only once government rules prescribe a pre-suit mediation procedure, and not where the suit involves urgent interim relief. During the suit, mediation is voluntary, requires both parties' consent and must finish within thirty days, extendable by thirty.[3]

Can I get summary judgment on an unpaid invoice?

In a Commercial Court, yes, if the defendant has no real prospect of proving its defence and no oral evidence is needed. The court must fix a hearing within fifteen days of the application.[3]

Are liquidated damages clauses enforceable in Bangladesh?

Yes, but under section 74 of the Contract Act the court awards reasonable compensation up to the named sum, whether or not actual loss is proved, rather than automatically awarding the full figure.[1]

How much is the court fee on a money suit?

An ad valorem fee on a sliding scale under Schedule I of the Court-fees Act 1870, capped at Tk 35,000 on a plaint.[8]

Can I stop a debtor moving assets before judgment?

Yes. Under Order XXXVIII of the Code, the court may require security or attach property where the defendant is about to dispose of or remove assets to obstruct execution, on evidence of that intention.[5]

Can a foreign court judgment be enforced in Bangladesh?

A money decree of a superior court in a notified reciprocating territory can be executed directly in a District Court under section 44A. Other foreign judgments require a fresh suit, and all are subject to the section 13 exceptions.[4]

How long does contract enforcement Bangladesh litigation take?

The World Bank's Doing Business 2020 study recorded 1,442 days for a standard commercial case in Dhaka. The Commercial Courts Act now requires the final hearing to finish within ninety days of being fixed, but published statistics on actual disposal times are still awaited.[12] [3]

Source register

Primary legal and regulatory sources

Materials checked on 20 October 2026. Confirm the current official text before relying on any provision.

  1. Contract Act 1872 (sections 28, 73, 74 and 75) — Laws of Bangladesh
  2. Specific Relief Act 1877 (sections 12, 19, 21, 21A, 54, 56 and 57) — Laws of Bangladesh
  3. Commercial Courts Act 2026 (Act No. 23 of 2026) — Laws of Bangladesh
  4. Code of Civil Procedure 1908 (sections 13, 14, 34 and 44A) — Laws of Bangladesh
  5. Code of Civil Procedure 1908, First Schedule (Orders VII, XXXVII and XXXVIII), updated April 2026 — Laws of Bangladesh
  6. Limitation Act 1908 (sections 3, 19 and 20) — Laws of Bangladesh
  7. Limitation Act 1908, First Schedule (articles 52 to 57, 73, 113 to 116 and 120) — Laws of Bangladesh
  8. Court-fees Act 1870, Schedules I and II (as substituted by Act No. XLV of 2010) — Laws of Bangladesh
  9. Arbitration Act 2001 (Act No. I of 2001), English text hosted by BIAC
  10. RisingBD, 4 February 2026 — 75 commercial courts formed nationwide (Bangla)
  11. The Daily Star, 22 May 2026 — Govt to address major gaps in Commercial Courts Act
  12. World Bank, Doing Business 2020: Bangladesh economy profile (enforcing contracts)
  13. Dhaka Chamber of Commerce and Industry, 2 September 2025 — Seminar on advancing dispute settlement and contract enforcement
  14. Dhaka Tribune, 17 September 2025 — Pre-litigation mediation to begin in 12 districts

Related TRW assistance

Move from information to a defined next step

TRW acts for creditors and defendants in contract claims before the Commercial Courts, the civil courts and arbitral tribunals, from the legal notice to execution. Explore our corporate and commercial advisory practice and alternative dispute resolution practice, or contact TRW to discuss your claim.

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