Before Commencing Arbitration in Bangladesh: Six Critical Questions, the Tribunal, the Courts and the London Seat

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

TRW Insight / Bangladesh

Most arbitrations are won or lost before the notice is served. The clause, limitation, urgent relief, the tribunal and the seat are fixed early, and under the Arbitration Act 2001 the courts will not let a party revisit them later.

Updated 20 October 2026Legal insightBangladesh22 min read

Before commencing arbitration: what must be settled first in 2026

The questions a party answers before commencing arbitration decide more cases than anything argued at the final hearing. Whether the clause binds the right counterparty, whether the claim is still in time, whether a guarantee can be frozen this week, who sits on the tribunal and which court will supervise it are all fixed, or lost, in the weeks before the notice of arbitration is served. Under the Arbitration Act 2001 most of those choices cannot be undone later: the award is final, objections not taken in time are waived and the courts will not revisit the merits.

This guide follows a Bangladeshi dispute through its lifecycle: the six questions to answer first, choosing an arbitrator, ad hoc arbitration or the Bangladesh International Arbitration Centre (BIAC), the hearing, Arbitration Miscellaneous Cases in the courts, the judgments that shape strategy in 2026, and why the English Arbitration Act 2025 matters to any Bangladeshi party with a London seat. The step-by-step mechanics of filing and pleading are covered in our separate guide to the arbitration process in Bangladesh.

Before commencing arbitration — counsel reviewing the contract and arbitration clause with a client
The clause, the parties and the deadlines are checked before any notice is served

Summary: Before commencing arbitration in Bangladesh, confirm that a written arbitration agreement binds the counterparty and covers the dispute, calculate limitation from the date the notice of arbitration will be received, comply with any negotiation or mediation tier, secure the evidence, decide whether section 7A interim relief is needed and available for your seat, and test whether an award can be enforced against real assets. Then choose the tribunal and the institution with the same care, because the Act gives the courts only a supportive and supervisory role.

Key point: The seat decides whether a Bangladeshi court can help you before the tribunal exists. For a Dhaka-seated arbitration, section 7A lets the District Judge or the High Court Division freeze property, restrain a guarantee call or appoint a receiver. For a Singapore or London seat, the High Court Division held on 12 July 2026 that it remains bound by the Larger Bench in Accom Travels and cannot grant section 7A relief.

At a glance

01

Six questions first

Agreement, limitation, pre-conditions, evidence, urgent relief and enforceability must be answered before any notice is served.

02

The tribunal

Section 12 lets parties agree how arbitrators are chosen; the District Judge or the Chief Justice appoints if they fail.

03

Ad hoc or BIAC

Ad hoc saves an administrative fee but loses the BIAC timetable, appointment committee and written independence declarations.

04

Court applications

Interim relief, appointment, challenges and enforcement run as Arbitration Miscellaneous Cases before one court under section 53.

05

London seat

Since 1 August 2025 the law of the seat governs the arbitration agreement under English law unless the parties expressly choose otherwise.

Table of Contents

Why the work done before commencing arbitration decides the outcome

An arbitral award under the Arbitration Act 2001 is final and binding, and the only recourse against it is an application to set aside on the closed list of grounds in section 43.[1] The High Court Division has consistently refused to set aside awards because of their substance.[2] There is no second trial: the evidence collected, the tribunal appointed and the objections recorded are the case.

That is why the period before commencing arbitration deserves the discipline of a transaction closing. A claimant that serves a defective notice, misses a contractual time bar or asks the wrong court for interim relief cannot cure the error by better advocacy later. A respondent that ignores a notice can find a tribunal appointed by the court without its input.

Three categories of arbitration

The Act applies in full only where the place of arbitration is in Bangladesh; for a foreign seat, only sections 45 to 47 on foreign awards apply.[1] A Bangladesh-seated arbitration with at least one foreign party is an international commercial arbitration under section 2(c); everything else is domestic. Our guide to arbitration law in Bangladesh explains the framework; this article concentrates on the decisions it forces.

Six critical questions to ask before commencing arbitration

Answering these six questions in writing before commencing arbitration separates a claim that runs to an award from one that collapses at the jurisdiction stage.

1. Is there a binding arbitration agreement that covers this dispute and these parties?

Section 9 requires an arbitration agreement in writing: a signed document, an exchange of letters or emails that records it, or an exchange of claim and defence in which one side alleges it and the other does not deny it. A written contract that incorporates a document containing an arbitration clause also qualifies.[1]

The clause must also reach the dispute as pleaded and bind the respondent. Section 18 treats the clause as separate from the main contract, as applied in Ferdous Alam v PVH Far East, 74 DLR (2022) 598, but older authority holds that a contract void from the outset under section 23 of the Contract Act takes the clause with it.[2] Drafting defects are analysed in our guide to the arbitration clause in Bangladesh.

2. Is the claim still in time?

Section 55 applies the Limitation Act 1908 to arbitrations as it applies to court proceedings, and for that purpose the arbitration commences on the date fixed by section 27.[1] Unless the parties agree otherwise, that is when a dispute has arisen and the respondent has received a notice requiring it to refer the dispute to arbitration, or to appoint or concur in appointing a tribunal.[1] Receipt, not dispatch, stops the clock, so serve by a method that proves delivery and leave a margin.

If the contract bars claims unless arbitration starts within a fixed period, section 55(3) lets the court extend that period on terms where justice requires.[1] That is not a reason to delay before commencing arbitration. Courts read the Act's own deadlines strictly: in Lily Begum Ahmed v Navana Real Estate the High Court Division called the sixty-day challenge period "plain and peremptory" and refused to apply section 5 of the Limitation Act to it.[6]

3. Have the contractual pre-conditions been met?

Many Bangladeshi contracts require negotiation between senior executives, an engineer's decision or mediation before arbitration. The Act does not regulate these tiers, so their effect depends on the wording. A tier with a fixed period and a clear trigger is usually treated as a condition; a vague promise to negotiate rarely blocks a claim, but ignoring it invites an early objection and a costs argument.

Comply, document compliance and protect limitation at the same time. If the tier will not finish before limitation expires, serve the notice of arbitration and ask the tribunal to pause while the tier runs. Our overview of mediation in Bangladesh covers the mediation step.

4. Is the evidence secured?

Arbitrations are won on contemporaneous documents. Before commencing arbitration, issue a written hold to everyone who handled the contract, collect emails, site diaries, invoices and bank records, and record the details of witnesses who may leave. Tribunals are not bound by the Evidence Act, but they still weigh documents by their provenance.[1]

Where the critical evidence is physical, or in the other side's hands, the court can help. Section 7A(1)(d) allows the District Judge or the High Court Division to authorise a person to seize, preserve, inspect, photograph, sample or take evidence of goods or property within the arbitration agreement, including by entering land or buildings in a party's possession.[1] That power is available before the arbitration begins, which makes it the natural tool for defective goods, construction works and disputed stock.

5. Do you need urgent protection, and where can you get it?

Section 7A allows the court, before or during the arbitration and until enforcement, to take property into interim custody, restrain transfers intended to defeat enforcement, issue an ad interim injunction, appoint a receiver or take any other reasonable protective measure, without notice if delay would frustrate the order. Once a tribunal rules on the same matter, the court's order becomes inoperative to that extent.[1]

The seat is decisive. In Accom Travels and Tours v Oman Air, 27 BLC (2022) 596, a Larger Bench held that section 7A cannot be used before or during a foreign-seated arbitration, only at the enforcement stage.[2] On 12 July 2026, in Legend World Tank v Multinational Shipping, a single judge said he was "unable to subscribe" to that reasoning but held himself bound by it, dismissed a section 7A application in a SIAC arbitration and recalled his own interim order over 107 tank containers.[5] For a foreign seat, plan on emergency arbitrator relief under the chosen rules; section 21 gives a Bangladesh-seated tribunal its own interim powers.[1] See also our guide to interim remedies in Bangladesh.

6. Will an award be worth anything?

The last question is commercial. Identify the respondent's assets, where they sit and whether they are likely to move. A Bangladesh-seated award is enforced as a decree of the court where it was made and signed once the challenge period has expired or a challenge has failed; a foreign award is enforced by the District Judge's court in Dhaka.[1] Weigh the claim against the likely spend, using our breakdown of the cost of arbitration in Bangladesh, before commencing arbitration rather than after the first deposit is called.

The notice itself

With the six answers on file, the notice of arbitration identifies the parties and the clause, describes the dispute and relief, and names the claimant's arbitrator or proposes a sole arbitrator. In a BIAC case the equivalent is the Request for Arbitration, and proceedings begin when BIAC receives it.[3]

Before commencing arbitration — evidence files and correspondence collected for a claim
Contemporaneous documents decide most arbitrations

How to choose an arbitrator in Bangladesh

Because the court will not review the merits, the tribunal is the only judge of the facts a party will ever have. Choosing an arbitrator deserves the same diligence as choosing trial counsel.

What the Act requires

The parties may fix the number of arbitrators; if they do not, the tribunal has three. Where they choose an even number, the appointees jointly appoint an additional arbitrator as chairman.[1] Section 12 leaves the parties free to agree the appointment procedure and allows an arbitrator of any nationality. Failing agreement, each side has thirty days to agree a sole arbitrator or appoint its own, and the two appointees have thirty days to agree the chairman.[1]

If a party defaults, the appointment is made by the District Judge in a domestic case and by the Chief Justice, or a Supreme Court judge he designates, in an international commercial arbitration. The appointment must be made within sixty days of the application, the appointing authority must have regard to any agreed qualifications and to securing an independent and impartial arbitrator, and the decision is final.[1] For a domestic case, the relevant District Judge is the one where the arbitration agreement was entered into, which may not be the project district.[1]

Disclosure and independence

Section 13 requires a prospective arbitrator to disclose any circumstances likely to give rise to justifiable doubts as to independence or impartiality, and to continue disclosing throughout the case. A challenge lies only on those grounds or for lack of agreed qualifications, and a party may challenge its own appointee only for reasons learned after the appointment.[1] Absent an agreed procedure, the challenge must be sent to the tribunal within thirty days of learning the facts, the tribunal decides within thirty days, an appeal lies to the High Court Division within thirty days and that court must decide within ninety.[1]

The courts enforce those limits. In Rupayan Housing Estate v Hazi Mohammad Mustafa Zaman, decided on 22 April 2025, the award debtor alleged after the award that the sole arbitrator had been the claimant's lawyer in an earlier land survey case. The High Court Division held the objection waived under section 6 because it was not raised during the arbitration.[7] Run conflict checks on every candidate, and on the other side's nominee, at the outset.

The IBA Guidelines as a working standard

The Act does not define a justifiable doubt. International practice tests disclosures against the IBA Guidelines on Conflicts of Interest in International Arbitration, revised on 25 May 2024, which sort situations into Non-Waivable Red, Waivable Red and Orange Lists. The 2024 edition treats third-party funders and insurers as bearing the identity of a party and adds social media advocacy to the Orange List.[13] The Guidelines are not law in Bangladesh, but adopting them in the first procedural order gives both sides a shared benchmark.

Criteria that matter in practice

  • Expertise: an engineer for a delay claim, a banker for trade finance, a retired judge for legal issues.
  • Availability: BIAC requires every appointee to confirm in writing sufficient availability to decide the case promptly, and parties should ask the same question in ad hoc cases.[3]
  • Language and nationality: in an international case, a sole arbitrator or chairman of a neutral nationality can be requested from the Chief Justice under section 12(10).[1]
  • Fees: agree the fee basis before appointment; the Law Minister cited high arbitrator fees in May 2026 as a reason ordinary businesses avoid arbitration.[9]

Finding an arbitrator in Bangladesh

The pool includes retired judges, senior advocates, accountants, engineers and foreign practitioners. BIAC maintains a panel and directory of arbitrators, and party-selected arbitrators outside it must agree in writing to observe the BIAC Rules and Code of Conduct.[3] Pre-appointment contact with a candidate should be confined to availability, expertise, fees and conflicts, never the merits.

Ad hoc arbitration in Bangladesh or an institution?

An ad hoc arbitration is run by the parties and the tribunal under the Act and whatever rules they adopt, often the UNCITRAL Arbitration Rules. An institutional arbitration adds a body that administers the case under its own rules. Bangladeshi parties also choose ICC, SIAC and other institutions abroad.[2] The choice is usually fixed by the clause, but where it is open, or where the parties can agree to change it, it should be made deliberately before commencing arbitration.

How ad hoc arbitration works

Without an institution, the tribunal decides the procedure wherever the parties have not agreed it, including time, place, language, pleadings and evidence.[1] The appointing authority is whoever the clause names; if it names none, the default under section 12 is the District Judge or the Chief Justice. The tribunal fixes the deposit for costs, payable in equal shares, and where fees were not fixed by written agreement and the tribunal withholds the award until it is paid, section 50 lets the court order delivery against payment into court and fix a reasonable sum.[1]

The practical risks of ad hoc proceedings

The risks are well known in Dhaka. A reluctant respondent can force the claimant into a court appointment, adding months before the tribunal exists. There is no secretariat to chase a slow tribunal, and the Act sets no time limit for the award, only a duty to deal with the dispute "as quickly as possible".[1] [2] Fees are negotiated with the tribunal itself, which places the parties in an awkward position. None of this makes ad hoc arbitration wrong; it makes a well-drafted procedural order essential.

What BIAC adds

The BIAC Arbitration Rules 2019 supply the missing structure. The Arbitration Committee appoints where a party defaults, every appointee signs an independence and availability declaration, oral hearings must begin within thirty days after written pleadings close and conclude within 180 days of the first hearing day, witness lists are due fifteen days before the hearing, and all hearings are private and confidential.[3] Our guide to BIAC arbitration in Bangladesh covers the Rules and fee schedule in detail.

Ad hoc arbitration, BIAC and a foreign institution compared
FeatureAd hoc (Dhaka seat)BIAC (Dhaka seat)Foreign institution and seat
Default appointmentDistrict Judge or Chief Justice under section 12BIAC Arbitration CommitteeInstitution under its rules
Independence declarationSection 13 disclosure onlyWritten declaration of independence, availability and qualificationsInstitutional declaration; statutory duty in London since 2025
Hearing timetableSet by tribunal; no statutory deadlineStart within 30 days of pleadings; conclude within 180 daysSet by tribunal under institutional rules
Section 7A relief in BangladeshAvailableAvailableNot available while Accom stands
Setting asideDistrict Judge or High Court DivisionDistrict Judge or High Court DivisionCourts of the seat only
Enforcement in BangladeshDecree of the court where award signedDecree of the court where award signedDistrict Judge, Dhaka, under section 45

On a phone, scroll the table sideways. For high-value cross-border disputes, a foreign institution may be the better fit, but the trade-off on court support in Bangladesh, discussed below, has to be priced in.

Inside the arbitration hearing

An arbitration hearing in Bangladesh is less formal than a civil trial and more demanding than most first-time parties expect. Section 24 releases the tribunal from the Code of Civil Procedure and the Evidence Act, but section 23 requires it to give each party a reasonable opportunity to present its case and to examine the other side's documents, and to act fairly and impartially throughout.[1]

Before the hearing

Either party may amend its claim or defence unless the tribunal considers it unfair or too late.[1] A BIAC tribunal may circulate a list of the issues it considers material before the hearing; use it to cut the bundle to what the tribunal needs.[3]

How the hearing runs

The tribunal decides whether to hold oral hearings, but must hold one if a party asks unless the parties agreed otherwise. Every hearing requires sufficient prior notice, and every document or expert report the tribunal may rely on must be shared.[1] A typical hearing runs from openings to the claimant's witnesses, the respondent's witnesses, the experts and closings.

Witnesses of fact

Evidence may be given orally, in writing or by affidavit, and the tribunal may administer an oath or affirmation with the witness's consent.[1] Under the BIAC Rules, written statements can stand as evidence-in-chief and each witness may be questioned by both sides under the tribunal's control.[3] Preparing a witness means explaining the process, never rehearsing answers. Where a witness refuses to attend, section 33 lets the tribunal, or a party with its approval, apply to the court for a summons, and default is punishable as in a civil suit.[1]

Expert evidence

Parties may call their own experts, and section 32 lets the tribunal appoint its own expert or assessor, who must, on request, attend a hearing for questioning where the parties may also present expert witnesses.[1] In construction cases, ask for a joint statement of agreed and disputed points from the experts; it narrows the hearing.

Default, delay and adverse inferences

If a party fails to attend after due notice, the tribunal may proceed on the evidence before it; it may dismiss a claim for inordinate and inexcusable delay, and where a party ignores an order it may exclude material, draw adverse inferences or order costs.[1] Boycotting the hearing rarely helps; the award will still be made.

Timelines

The Act sets no deadline for the award.[2] The BIAC 180-day hearing window is the closest thing to a fixed schedule, and an extension carries a further registration fee.[3] In May 2026 the Law Minister, Md Asaduzzaman, said files are kept pending so long that the Act's purpose of expeditious resolution is defeated.[9] Ask for a procedural timetable that fixes the hearing dates at the first case management conference.

After the hearing

The award must be written, signed, reasoned unless otherwise agreed and delivered to each party.[1] An award reached without every arbitrator's participation is vulnerable, as our guide to how to set aside an arbitral award in Bangladesh explains, together with the sixty-day challenge window.

Before commencing arbitration — courthouse where Arbitration Miscellaneous Cases are heard
The District Judge and the High Court Division support, but do not supervise the merits

Arbitration Miscellaneous Cases: the court's role in Bangladesh

Section 7 bars court proceedings on matters covered by an arbitration agreement except as the Act provides.[1] The applications the Act does provide for are filed in the District Judge's court as Arbitration Miscellaneous Cases, or in the High Court Division as Arbitration Applications in its statutory original jurisdiction where the arbitration is international.[4] [5] Knowing where each application lies matters before commencing arbitration, because the first one filed fixes the forum for the rest.

Which court hears what

"Court" in the Act means the District Judge's court, including an Additional District Judge's court appointed by gazette notification.[1] For international commercial arbitration, section 7A applications and setting-aside applications go to the High Court Division, and default appointments go to the Chief Justice or his designate.[1] Section 53 then provides that once any application under the Act has been made in a court in respect of an arbitration agreement, that court alone has jurisdiction over the arbitral proceedings and all later applications must be made there.[1]

The applications that matter

  • Interim measures, section 7A: protection of property, injunctions, receivers and preservation of evidence, before, during and after the arbitration until enforcement.[1]
  • Stay of a suit, section 10: made before the written statement is filed; the court must refer the parties to arbitration unless the agreement is void, inoperative or incapable of performance.[1]
  • Appointment, section 12: where a party or the agreed mechanism fails to produce a tribunal.[1]
  • Enforcing tribunal orders, section 21(4): the court may enforce an interim measure ordered by the tribunal, and doing so is not inconsistent with the arbitration agreement.[1]
  • Witness summons, section 33: compelling attendance or production of documents.[1]
  • Setting aside, section 42, and enforcement, sections 44 and 45: the post-award stage, covered in our guides to setting aside and to foreign arbitral award enforcement in Bangladesh.

One dispute, many miscellaneous cases: Pubali Traders

Pubali Traders v Ministry of Food, decided by the High Court Division on 9 December 2025, shows how these cases interlock. A 2010 wheat-import contract failed. The supplier filed a section 7A case before the District Judge, Dhaka, obtained protection of its USD 1,196,107.50 performance guarantee in civil revision until arbitrators were appointed, and then had the tribunal formed through a section 12 case. The award of 16 February 2025 rejected both sides' claims but ordered the guarantee encashed.[4]

The supplier filed a fresh section 7A case, Arbitration Miscellaneous Case 105 of 2025, and a section 42 challenge. The District Judge rejected the section 7A case summarily. In revision, the High Court Division restrained encashment until the challenge was decided and directed the District Judge to dispose of it within six months.[4] Section 7A survives the award, and revision is the route against a refusal.

Filing and conduct in practice

The petition should annex the arbitration agreement, the notice of arbitration or other evidence of intention to arbitrate, and the documents showing urgency. Before granting section 7A relief the court must be satisfied that a valid arbitration agreement exists and that the applicant genuinely intends to arbitrate, as the High Court Division held in Drilltec-Maxwell JV v Gas Transmission Co, 21 BLC (2016) 122.[2] Where an ex parte order is needed, explain in the petition why notice would defeat its purpose, as section 7A(3) requires.[1]

Appeals and revision

Section 48 allows appeals to the High Court Division only from orders on setting aside, refusing enforcement of a domestic award and refusing recognition of a foreign award; a challenge decision has its own thirty-day appeal under section 14(4).[1] Other orders, such as a refusal of section 7A relief, are taken to the High Court Division in civil revision, as Pubali Traders and Lily Begum both show.[4] [6]

Bangladesh arbitration cases that shape strategy

The leading Bangladesh arbitration cases are few but consistent enough to plan around.

The agreement and the stay

The Appellate Division in Maico Jute and Bag Corporation v Bangladesh Jute Mills Corporation, 8 MLR (2003) (AD) 4, upheld a stay of a suit in favour of arbitration. KA Latif v Olam International, 13 BLC (2008) (HCD) 457, lets the court examine all the circumstances to decide whether an agreement exists. In STX Corporation v Meghna Group, 64 DLR (2012) 550, it held that only Model Law provisions actually enacted in the Act bind Bangladeshi courts.[2]

Foreign seats

Southern Solar Power v Bangladesh Power Development Board (2019) treated an international commercial arbitration seated outside Bangladesh as a foreign arbitration. Accom Travels then held that, apart from sections 45 to 47, the Act does not apply to it, that section 10 does not apply to foreign arbitration clauses and that local suits should instead be stayed under section 151 of the Code of Civil Procedure.[2] Legend World Tank confirms that the point remains open for the Appellate Division to decide.[5]

In South Express v Madina Enterprise, decided on 9 July 2026, the High Court Division held that a District Judge had exceeded his jurisdiction by entertaining an application to set aside an award made in a London-seated arbitration, because annulment belongs to the courts of the seat.[8]

Awards and the limits of review

In Saudi Arabian Airlines v Saudi Bangladesh Services, 73 DLR (AD) (2021) 277, the Appellate Division held that an award offends public policy if it is patently illegal or so unfair and unreasonable that it shocks the conscience of the court. The High Court Division has otherwise refused to reopen the substance of awards, with Gas Transmission Co v Drilltec-Maxwell JV (2021) a reported exception.[2] Lily Begum shut the door on late challenges, and Rupayan on bias objections held back until after the award.[6] [7]

Saipem v Bangladesh: why the courts are cautious

The cautionary tale remains Saipem v Bangladesh. After Bangladeshi courts revoked the authority of a Dhaka-seated ICC tribunal under the old 1940 Act and later declared its award a nullity, an ICSID tribunal held in an award of 30 June 2009 that the courts' intervention amounted to expropriation under the Bangladesh–Italy bilateral investment treaty and breached the New York Convention, using the ICC award as the measure of compensation.[14]

What the cases teach

Read together, the cases favour the party that did the early work: clear agreements, timely notices and properly constituted tribunals produce awards that survive, while late, merits-based attacks fail.

Before commencing arbitration — London skyline representing a London-seated arbitration
The English Arbitration Act 2025 changes the rules for London-seated clauses

The English Arbitration Act 2025 and London-seated Bangladeshi contracts

London is a common seat in Bangladeshi shipping, commodity and finance contracts. The Arbitration Act 2025 received Royal Assent on 24 February 2025 and amends the Arbitration Act 1996.[10] The Arbitration Act 2025 (Commencement) Regulations 2025 brought it into force on 1 August 2025.[11] Its amendments do not apply to arbitral proceedings commenced before the relevant section came into force or to related court proceedings, but otherwise apply to arbitration agreements whenever made.[10] A London arbitration started now is governed by the new rules even if the contract was signed years ago.

Governing law of the arbitration agreement

New section 6A provides that the law applicable to an arbitration agreement is the law the parties expressly agree applies to it or, failing that, the law of the seat. A choice of law for the main contract does not count as an express choice for the arbitration agreement.[10] The rule reverses the approach of the UK Supreme Court in Enka v Chubb.[12]

For a Bangladeshi-law supply contract with a London seat, English law now decides the validity and scope of the arbitration clause unless the clause says otherwise. That matters at enforcement in Dhaka too, because section 46 lets the court refuse a foreign award if the agreement is invalid under the law to which the parties subjected it.[1] Draft deliberately: if Bangladeshi law should govern the clause, say so in terms.

A statutory duty of disclosure

New section 23A requires a prospective arbitrator, as soon as reasonably practicable, to disclose circumstances that might reasonably give rise to justifiable doubts as to impartiality, and treats the arbitrator as aware of what he or she ought reasonably to know. The duty is mandatory and continues throughout the proceedings.[10] That objective test goes further than section 13 of the Bangladeshi Act, so give a London nominee full information about group companies and funders.

Summary disposal

New section 39A allows the tribunal, unless the parties agree otherwise, to make an award on a summary basis on a claim or issue where a party has no real prospect of succeeding on it or defending it, after giving the parties a reasonable opportunity to make representations.[10] For a Bangladeshi exporter chasing an undisputed invoice, this is a material advantage of a London seat; for a respondent with a thin defence, it is a material risk.

The other changes

  • Emergency arbitrators: section 41A lets an emergency arbitrator appointed under institutional rules make peremptory orders, enforceable by the court.[10]
  • Third parties: section 44 now expressly allows court orders in support of arbitration against persons who are not parties, such as banks holding funds.[10]
  • Jurisdiction and immunity: section 67 challenges are streamlined, arbitrators are protected from liability for reasonable resignation, and tribunals may award costs even where they lack jurisdiction.[10]

Why it matters when choosing a London seat

The 2025 Act makes London more predictable, but it does not change the Bangladeshi side. A London seat still means no section 7A relief in Bangladesh while Accom stands, no power in a Bangladeshi court to set the award aside after South Express, and enforcement in the District Judge's court in Dhaka.[5] [8] [1] If the assets are in Bangladesh and urgent relief is likely, a Dhaka seat may still be the better commercial choice. Our guide to international commercial arbitration in Bangladesh compares the seats in detail.

A checklist before commencing arbitration

The sequence below is the one we follow for claimants. Each step produces a document for the file.

Step 01

Confirm the agreement

Check that the signed clause binds the respondent and covers the dispute; note seat, rules and tribunal size.

Step 02

Calculate limitation

Count back from the date the notice will be received, including any contractual time bar.

Step 03

Honour the tiers

Serve any required dispute notice, run the negotiation or mediation step and record it.

Step 04

Secure the evidence

Issue a document hold and identify witnesses and experts early.

Step 05

Decide on urgent relief

Prepare any section 7A application for a Dhaka seat, or emergency arbitrator relief for a foreign seat.

Step 06

Test enforceability

Map assets, the enforcement court and cost against the claim value.

Step 07

Shortlist arbitrators

Run conflict checks, confirm availability and fees, and plan the appointment route.

Step 08

Serve the notice

Serve the notice or BIAC Request by a method that proves receipt.

Respondents should run the same checklist the day a notice arrives: diarise the thirty-day appointment window, identify any jurisdiction objection to be raised no later than the statement of defence under section 19, and consider whether a counterclaim or a section 7A application of their own is needed.[1]

What to watch in 2026

Three developments will affect what parties must decide before commencing arbitration over the coming year. First, reform of the Arbitration Act 2001. At a BIAC seminar in May 2026 the Law Minister said the Act's limitations "can be fixed easily" and identified high fees and long pendency; the BIAC chairman described the proposed reforms as an important milestone alongside the Commercial Courts Act passed in April 2026.[9] No amending bill had been published at the time of writing.

Second, the status of Accom: a ruling by the Appellate Division or a larger bench accepting the reasoning in Legend World Tank would change seat strategy overnight.[5] Third, London case law on section 6A and summary disposal, which every Bangladeshi party with a London seat should track.

The cheapest point at which to win an arbitration is before commencing arbitration at all. TRW advises claimants and respondents on pre-commencement strategy, tribunal selection, Arbitration Miscellaneous Cases and London, Singapore and Dhaka-seated proceedings. Our international arbitration practice, alternative dispute resolution team and construction and project disputes practice can review a file within days, or you can contact TRW directly.

Frequently asked questions

What should I check before commencing arbitration in Bangladesh?

Confirm a written arbitration agreement that binds the respondent and covers the dispute, calculate limitation to the date the notice will be received, comply with any negotiation or mediation tier, secure the evidence, decide whether section 7A interim relief is needed and available for your seat, and test whether an award can be enforced against assets.[1]

When does an arbitration start for limitation purposes?

Unless the parties agree otherwise, when the respondent receives a notice requiring it to refer the dispute to arbitration or to appoint or concur in appointing a tribunal. Section 55 applies the Limitation Act from that date.[1]

Can a Bangladeshi court grant interim relief before the tribunal is formed?

Yes, for a Bangladesh-seated arbitration. Section 7A allows the District Judge, or the High Court Division in an international commercial arbitration, to grant injunctions, preserve property and appoint a receiver before or during the arbitration and until enforcement.[1]

Is section 7A available for a Singapore or London seat?

Not at present. Under the Larger Bench decision in Accom Travels, section 7A cannot be used before or during a foreign-seated arbitration, and on 12 July 2026 the High Court Division held itself bound by that ruling.[2] [5]

Who appoints the arbitrator if the other side refuses?

The District Judge in a domestic arbitration, and the Chief Justice or a Supreme Court judge he designates in an international commercial arbitration. The appointment must be made within sixty days of the application and is final.[1]

How do I challenge an arbitrator for bias?

Absent an agreed procedure, send written reasons to the tribunal within thirty days of learning the facts; an appeal against its decision lies to the High Court Division within thirty days. An objection held back until after the award is likely to be treated as waived.[1] [7]

Is there a deadline for the arbitral award in Bangladesh?

The Act sets none; it requires the tribunal to deal with the dispute as quickly as possible. Under the BIAC Rules, hearings must conclude within 180 days of the first hearing day unless extended.[1] [3]

What is an Arbitration Miscellaneous Case?

It is the court file opened in the District Judge's court for an application under the Act, such as interim relief under section 7A, appointment under section 12 or setting aside under section 42. Once one is filed, section 53 requires later applications on the same agreement to go to that court.[1] [4]

When did the English Arbitration Act 2025 come into force?

On 1 August 2025. It applies to arbitrations commenced on or after that date, whenever the arbitration agreement was made.[10] [11]

Which law governs a London arbitration clause in a Bangladeshi-law contract?

Under new section 6A of the English Act, English law as the law of the seat, unless the parties expressly chose another law for the arbitration agreement itself. A governing-law clause for the main contract is not enough.[10]

Source register

Primary legal and regulatory sources

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

  1. Arbitration Act 2001 (Act No I of 2001), English text hosted by BIAC
  2. Chambers Global Practice Guides — International Arbitration 2026: Bangladesh
  3. Bangladesh International Arbitration Centre — BIAC Arbitration Rules 2019
  4. High Court Division, M/s Pubali Traders v Ministry of Food and Disaster Management, Civil Revision No 1042 of 2025 (9 December 2025)
  5. High Court Division, Legend World Tank Pte v Multinational Shipping Co Ltd, Arbitration Application No 30 of 2025 (12 July 2026)
  6. High Court Division, Lily Begum Ahmed v Navana Real Estate Ltd, Civil Revision No 4283 of 2024 (11 August 2025)
  7. High Court Division, Rupayan Housing Estate Ltd v Hazi Mohammad Mustafa Zaman, Arbitration Appeal No 16 of 2023 (22 April 2025)
  8. High Court Division, South Express Ltd v Madina Enterprise, Arbitration Appeal No 08 of 2025 (9 July 2026)
  9. The Daily Star, 22 May 2026 — Govt to address major gaps in Commercial Courts Act; Arbitration Act 2001 also needs reforms, says law minister
  10. Arbitration Act 2025 (c 4), as enacted — legislation.gov.uk
  11. The Arbitration Act 2025 (Commencement) Regulations 2025, SI 2025/905 — legislation.gov.uk
  12. Bird & Bird — The English Arbitration Act 2025: key changes in force from 1 August 2025
  13. Clyde & Co, July 2024 — Conflicts of interest in international arbitration: the 2024 IBA Guidelines
  14. Kluwer Arbitration Blog — When is court interference in arbitration proceedings expropriatory? (Saipem v Bangladesh)

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