Notice of Arbitration in Bangladesh: How to Commence an Arbitration, with Templates

Summary: In an ad hoc arbitration seated in Bangladesh, proceedings commence when the respondent receives a written notice requiring it to refer the dispute to arbitration or to appoint or concur in appointing a tribunal, and section 55 applies the Limitation Act 1908 from that date. At BIAC the case starts when BIAC receives the Request for Arbitration; at BIArb, Article 3.3 points to the date BIArb first receives the Notice of Arbitration. If the respondent does not appoint within thirty days, the District Judge or, in an international commercial arbitration, the Chief Justice appoints.

Key point: Receipt, not dispatch, is what counts. Section 27 treats an ad hoc arbitration as commenced only when the respondent has received the notice, and section 5 deems receipt on the day of delivery. Serve early, by a method that leaves a dated record, and keep the proof: lack of proper notice is a ground for setting aside the award.

At a glance

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Table of Contents

What commencement means under section 27

Commencement is the moment an arbitration exists in law. Before it, the claimant has a grievance and a clause; after it, there are proceedings with their own clock and default rules. Unless the parties have agreed otherwise, section 27 deems proceedings commenced when a dispute has arisen to which the arbitration agreement applies and a party has received from another a notice requiring it to refer, or concur in referring, the dispute to arbitration, or to appoint, join in, concur in or approve the appointment of a tribunal.[1] [2]

Three points follow. The notice must be a demand, not a warning: a letter that threatens arbitration "if payment is not made" is weaker than one that requires the respondent to refer the dispute now. The dispute must already exist, so the notice should record the claim and the refusal or silence that crystallised it. And the trigger is the respondent's receipt, not the date on the letter.

Institutional rules move the trigger

Section 4(2) provides that where the Act refers to the parties' agreement, that agreement includes any arbitration rules it incorporates.[2] Choosing institutional rules therefore changes the commencement date. Under BIAC Rule 3(2) proceedings commence when BIAC receives the Request for Arbitration.[5] Under BIArb Article 3.3, a defective notice later cured counts as commenced when BIArb received the initial version.[7] Where limitation is close, make sure the respondent also receives its copy in time.

Why the date matters

The commencement date measures limitation under section 55, usually starts the respondent's thirty days under section 12, and anchors any contractual time bar. Under section 55(4), if an award is set aside, the time between commencement and the court's order is excluded when computing limitation for a fresh claim.[2] A precise, provable date is an asset from day one.

Limitation and contractual time bars

Section 55(1) applies the Limitation Act 1908 to arbitrations, subject to the Arbitration Act, as it applies to court proceedings, and section 55(2) fixes the commencement date by reference to section 27.[2] The test is simple: would a suit on the same claim, filed on the day the respondent receives the notice, be in time? Our limitation period calculator for Bangladesh gives a first answer.

The words "subject to the provisions of this Act" matter. In Lily Begum Ahmed v Navana Real Estate (11 August 2025) the High Court Division called the Act a self-contained code and held that sections 5 and 18 of the Limitation Act cannot extend the sixty-day period for setting aside an award.[11] Do not count on condonation to rescue a late step.

Common periods for commercial claims

The First Schedule to the Limitation Act sets the periods most often engaged:[4]

• Article 115: compensation for breach of a contract not in writing registered, three years from the breach, or from when a continuing breach ceases.
• Article 116: breach of a contract in writing registered, six years.
• Article 52: price of goods sold and delivered with no fixed credit period, three years from delivery.
• Article 56: price of work done at the defendant's request with no time fixed for payment, three years from when the work is done.
• Article 113: specific performance, one year from the date fixed for performance or, if none, from notice that performance is refused, shortened from three years by the Limitation (Amendment) Act 2004.

The one-year period for specific performance is the trap most often missed in real estate and joint venture disputes.

Acknowledgments, continuing breaches and lost time

Section 19 of the Limitation Act starts a fresh period from a signed written acknowledgment of liability made before the period expires; section 23 restarts time at every moment a continuing breach continues; and section 14 excludes time spent prosecuting a civil proceeding in good faith in a court that lacked jurisdiction.[3] Each depends on facts the respondent will contest. Treat them as fallbacks, not a plan.

Contractual time bars and section 55(3)

Construction, insurance and supply contracts often bar a claim unless arbitration starts within a fixed period after a decision or certificate. Section 55(3) lets the court extend that period, on terms, where justice requires.[2] That needs a separate, discretionary application. The safer course is to serve before the earlier of the contractual and statutory dates.

Preconditions: tiered clauses and pre-arbitration steps

Many contracts require senior-level negotiation, an engineer's decision or mediation before arbitration. The Act does not regulate these tiers, so their effect turns on the wording. A step with a clear trigger and fixed duration is more likely to be enforced 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 recite it in the notice. Where the tier cannot finish before limitation expires, serve anyway, say the notice is served to protect the claim, and propose a short stay while the remaining step runs. Our guide to what to check before commencing arbitration sets out the full pre-filing review.

Who to name as parties

An arbitration agreement binds its parties and those claiming through them, so naming the respondent is a legal question. Use each contracting entity's exact registered name and check for name changes, mergers or insolvency; section 52 deals with arbitration agreements where a party becomes insolvent.[2] Do not add parents, directors or guarantors who did not sign the agreement. In Md Kamal Sikder v Nagar Homes Ltd (3 July 2024) the High Court Division set aside an award made against seven landowners when only two were parties to the contract.[10]

On the claimant's side, have the notice signed by an authorised person and keep the board resolution or power of attorney ready. Under section 31 a party may be represented by a lawyer or any other person it chooses, unless otherwise agreed.[2]

Contents of a notice of arbitration Bangladesh tribunals will accept

Section 27 says what the notice must do, not what it must contain. A bare demand may start the proceedings, but it leaves the scope of the dispute open to argument. A well-drafted notice of arbitration Bangladesh practitioners would recognise defines the dispute, starts the appointment process on the claimant's terms and creates a record that survives later scrutiny. The checklist shows what we include and what BIAC and BIArb make mandatory.[5] [7] On a phone, scroll it sideways.

Arbitrator nomination or a sole-arbitrator proposal

If the parties have not fixed the number, section 11 provides for three. Where there are three, name the claimant's arbitrator and require the respondent to appoint within thirty days, because section 12(4)(a) measures default from its receipt of that request. Where there is one, propose two or three names and invite agreement; section 12(3)(a) runs thirty days from receipt of the request.[1] [2] Clear availability, fees and conflicts first: section 13 requires a prospective arbitrator to disclose circumstances likely to give rise to justifiable doubts about independence or impartiality.[2]

Seat, language and rules

Restate what the clause provides; where it is silent, propose. Under section 26 the parties agree the place of arbitration, failing which the tribunal decides, and under section 25 language is a procedural matter for the tribunal absent agreement.[2] The BIAC Rules default to a Dhaka seat and English.[5] If the dispute is commercial and any party is a foreign national or habitual resident, a body incorporated or centrally managed abroad, or a foreign government, a Bangladesh-seated case is an international commercial arbitration under section 2(c), which changes the court that appoints and supervises.[2]

Relief and claim value

State the principal sum, interest and its basis, any declaration or specific performance, and costs. Section 29(3) allows later amendment unless the tribunal considers it unfair or late, but a claim left out of the notice invites a scope objection.[2] Valuation also drives cost: BIAC fees are scaled to the amount in dispute, claims and counterclaims are added together, and a dispute up to Tk 50 million may qualify for the fast track.[5] [6]

Serving the notice: how, on whom and proof of receipt

Unless otherwise agreed, section 5 deems a written communication received if delivered to the addressee personally or at its place of business, habitual residence or mailing address; if none can be found after reasonable inquiry, sending it by registered letter or another recorded means to the last known address suffices. Receipt is deemed on the day of delivery.[1] [2]

Because section 5 yields to agreement, follow the contract's notice clause exactly: the named officer, the stated address, the required method. Also deliver to a Bangladeshi company's registered office, and for a foreign respondent to its registered address abroad and any local office that handled the contract. Email is a useful parallel channel, and the BIAC Rules accept it with a record of transmission, but one email to a departed employee is weak proof.[5]

Service is the part of a notice of arbitration Bangladesh courts examine most closely after the award. Proof matters because section 43 allows an award to be set aside where a party was not given proper notice of the appointment of an arbitrator or of the proceedings.[2] Keep signed courier receipts, registered post acknowledgment cards, email delivery receipts and a note from anyone who delivered by hand. Under BIArb Article 3.5 the claimant must notify BIArb of the date the respondent received the notice, with documentary proof.[7]

Ad hoc, BIAC, BIArb or a foreign institution

Ad hoc arbitration

Nothing is filed except with the respondent. The notice commences the case on receipt, the Act's default appointment rules apply, and the tribunal later calls for deposits in equal shares under section 49.[2] The claimant carries the whole burden of service and proof.

BIAC: the Request for Arbitration

Under Rule 3 the claimant files the Request for Arbitration with BIAC, with a copy to the respondent; the case commences on BIAC's receipt and the Secretary General notifies the respondent. Rule 3(3) lists the contents, ending with payment of the registration fee, and the respondent has thirty days to file a Response under Rule 4(1). Communications may go by registered post, courier, fax or email with a record of transmission (Rule 5).[5] Our guide to BIAC arbitration in Bangladesh covers the rest of the Rules.

BIArb: the Notice of Arbitration

Under Article 3 of the BIArb Rules the claimant files the Notice of Arbitration with the Registrar and the respondent, including a copy of the arbitration agreement and, where possible, the contract, an initial claim amount where possible, funding details and confirmation of simultaneous service, with the filing fee. The respondent has thirty days to respond under Article 4.1, and under Article 2 time runs from the day after deemed receipt.[7] BIArb does not publish its fee schedule and asks parties to contact it directly.[8] Our guide to the Bangladesh Institute of Arbitration explains its Rules in full.

ICC and SIAC

Foreign institutions date commencement from their own receipt. Under SIAC Rule 6.2, the date the Registrar receives the Notice of Arbitration is the date of commencement, and Rule 6.3 requires the date and method of delivery to the respondent, a funding statement and the filing fee.[13] An ICC case starts with a Request for Arbitration filed with the ICC. See our guides to ICC arbitration and SIAC arbitration for Bangladeshi parties. Where the seat is abroad, only sections 45 to 47 of the Act apply in Bangladesh.[2]

If the respondent ignores the notice

Silence does not stop an arbitration. Absent an agreed procedure, section 12 lets either party apply for an appointment if the parties fail to agree a sole arbitrator within thirty days of a request, if a party fails to appoint within thirty days of receiving the other's request, or if the two appointees fail to agree a chairman within thirty days of their appointment. Section 12(7) covers a broken agreed procedure.[1] [2]

Which court, and how fast

In a domestic case the application goes to the District Judge within whose local jurisdiction the arbitration agreement was entered into, which may not be the project district. In an international commercial arbitration it goes to the Chief Justice or a Supreme Court judge he designates, who may appoint a neutral-nationality sole arbitrator or chairman. The appointment must be made within sixty days of the application and is final.[1] [2] Record in the notice where the contract was signed.

In Md Abdul Quddus v Purbachal Apparel Ltd (8 March 2026) the High Court Division held that a section 12 petition needs no admission hearing, stressed the sixty-day limit in section 12(8), approved notice to the respondent before appointment, and set aside an order appointing arbitrators for both sides: the court may appoint only for the party in default, not for a petitioner that has named its own.[9] Name the claimant's arbitrator clearly in the notice, and seek an appointment only for the defaulting side.

Under institutional rules

At BIAC the Arbitration Committee appoints where a party fails to nominate within thirty days of a request, and BIAC proceeds if the respondent does not respond.[5] At BIArb, the institution decides the number of arbitrators if the parties cannot agree within thirty days after the respondent receives the notice, and appoints a sole arbitrator if the parties fail to designate one in time.[7]

Urgent interim relief before and after the notice

For a Bangladesh-seated arbitration, section 7A lets the court, or the High Court Division in an international commercial arbitration, grant interim measures before or during the proceedings and until enforcement, including custody or sale of goods, restraints on transfers intended to defeat enforcement, preservation of evidence, ad interim injunctions and receivers, without notice where delay would frustrate the order.[2] Once formed, the tribunal can order interim measures under section 21, enforceable by the court.

Two cautions. Under section 53 the court that hears the first application under the Act keeps every later application, so choose it deliberately.[2] And for a foreign seat, current authority holds that section 7A cannot be invoked before or during the arbitration, only at enforcement.[12] Serve the notice with or immediately after any court application, so the court sees that arbitration is genuinely pursued.

The Act has no emergency arbitrator provisions, and the BIAC Rules 2019 provide none, though Rule 22(3) preserves the right to seek court measures.[12] [5] BIArb Article 44 does: an application may be made with or after the Notice of Arbitration and before the tribunal is formed, the President seeks to appoint within one day, the order is due within fourteen days of appointment, and it lapses if the tribunal is not formed within ninety days of the order.[7]

Costs of starting an arbitration

An ad hoc case has no filing fee, but the tribunal may call for deposits in equal shares; if the respondent does not pay, the claimant may pay its share, and if neither pays the tribunal may terminate the proceedings on that claim.[2] Expect to fund a boycotting respondent's share.

At BIAC the claimant pays a non-refundable registration fee of BDT 20,000 with the notice, or BDT 15,000 on the fast track, and BIAC will not proceed without it. Documents submitted for assessment attract BDT 5,000. On the standard scale the administrative fee runs from BDT 30,000 for claims up to Tk 50 lakh to a flat BDT 2,55,000 above Tk 100 crore (the fast track scale starts at BDT 10,000), plus 15 per cent VAT.[6] Our BIAC fee calculator estimates the total for a given claim. At BIArb, obtain the filing and fee basis in writing before filing.[8]

Common notice of arbitration Bangladesh mistakes

1. Serving late: treating posting as commencement when section 27 looks to receipt.
2. Wrong entity: naming a group company, director or guarantor who never signed the clause.
3. Ignoring the notice clause: emailing a project manager when the contract requires courier delivery to the registered office.
4. Threatening instead of requiring: a letter saying the claimant "may" refer the dispute requires nothing.
5. Skipping the tier: filing without recording compliance with negotiation or mediation steps.
6. Under-defining the dispute: omitting heads of claim that later look like new references.
7. No proof of receipt: losing the record that answers a lack-of-notice challenge.

A procedural error completes the list: applying for a default appointment before thirty days have run, or asking the court to appoint for both sides. After Quddus, neither helps.[9]

Prefer to start from your own facts? The builder below drafts a notice from the details you enter, for an ad hoc case or a BIAC or BIArb filing. The full annotated templates follow it.

Sample notice of arbitration Bangladesh template (ad hoc, Dhaka seat)

Adapt this template to the clause, delete the option that does not apply and check it against the contract's notice provisions before service. Square brackets mark information to insert.

[CLAIMANT'S LETTERHEAD]
Date: [date]
By courier, registered post (AD) and email

To: [Respondent's full registered name]
[Registered office] / [Notice address under clause [x]]
Attention: [officer named in the notice clause]

NOTICE OF ARBITRATION
under clause [x] of the [Contract] dated [date] and section 27 of the Arbitration Act 2001

1. Parties
1.1 Claimant: [name], incorporated in [country], registered office [address].
1.2 Respondent: [name], incorporated in [country], registered office [address].

2. Arbitration agreement
2.1 The parties entered into the [Contract] dated [date], signed at [place].
2.2 Clause [x] provides: "[quote the clause in full]". A copy is enclosed.

3. The dispute
3.1 [Obligation, breach and date of breach.]
3.2 By letter dated [date] the Claimant demanded [payment/performance]. The Respondent [refused on [date] / did not respond].
3.3 [Tiered clause:] Notice of dispute was given under clause [y] on [date]; the negotiation period expired on [date] without settlement.
3.4 A dispute has arisen to which the arbitration agreement applies (the "Dispute").

4. Relief claimed
The Claimant will seek an award that the Respondent:
(a) pay BDT [amount], being [description];
(b) pay interest at [rate] from [date] until payment;
(c) [declaration / specific performance];
(d) pay the costs of the arbitration; and
(e) such further relief as the tribunal considers appropriate.
The Claimant reserves the right to amend or supplement its claim.

5. Requirement to refer
TAKE NOTICE that the Claimant requires the Respondent to refer the Dispute to arbitration, and to concur in the appointment of the arbitral tribunal, under clause [x] and section 27 of the Arbitration Act 2001.

6. Tribunal
[Option A, three arbitrators: use where clause [x] provides for three or is silent on the number (section 11)] The Claimant appoints [name, qualifications, address, email], who has confirmed availability and independence. The Respondent is required to appoint its arbitrator within thirty (30) days of receipt of this notice, failing which the Claimant will apply to [the District Judge, [district] / the Chief Justice] under section 12.
[Option B, sole arbitrator: use only where clause [x] provides for one] The Claimant proposes any one of [name 1], [name 2], [name 3] (profiles enclosed) and requests the Respondent's agreement within thirty (30) days of receipt, failing which the Claimant will apply under section 12.

7. Seat, language and procedure
[Restate clause [x]; propose only where it is silent.] Seat: Dhaka, Bangladesh. Language: English. Rules: [UNCITRAL Arbitration Rules, if agreed / none: the Arbitration Act 2001 applies]. Governing law: [law].

8. Reservation of rights
This notice is given under section 27 of the Arbitration Act 2001; the arbitration commences on its receipt by the Respondent, including for the purposes of section 55. It is without prejudice to the Claimant's rights to seek interim measures under sections 7A and 21 of the Arbitration Act 2001 and to any other remedy.

9. Communications
[Claimant's representative, address, email]

Signed: ____________  [Name, title], for [Claimant]
[Authorised by board resolution dated [date]]

Enclosures: Contract; correspondence; arbitrator's statement of availability and independence; evidence of authority.

Keep the chronology short: the statement of claim comes later under section 29. Quote the clause in full, because the respondent's first objection is usually scope. Diarise thirty days from the date the proof of delivery shows receipt, not the date on the letter.[2]

Short template: Request for Arbitration to an institution

This skeleton follows BIAC Rule 3(3) and BIArb Article 3; check the current rules and fees on the day of filing.[5] [7]

To: The Secretary General, BIAC [or: The Registrar, BIArb]
Copy: [Respondent, registered name and address]
Date: [date]

REQUEST FOR ARBITRATION [BIArb: NOTICE OF ARBITRATION]
1. The Claimant requests that the dispute below be referred to arbitration under the [BIAC Arbitration Rules 2019 / BIArb Arbitration Rules].
2. Parties and representatives: names, addresses, telephones, emails.
3. Contract: [title, date]; arbitration agreement: clause [x], quoted; copies enclosed.
4. Claim: [summary]; relief: [list]; amount: BDT [amount].
5. Number of arbitrators: [agreed / proposed].
6. Arbitrator: [nomination / sole-arbitrator proposal / request for institutional appointment]; request that the Respondent nominate or agree.
7. Place, applicable law and language: [comments].
8. [BIArb] Matters already agreed on the conduct of the arbitration, or the Claimant's proposals; funding agreement and funder, if any; confirmation of simultaneous service on the Respondent, stating the means used.
9. Fee: [registration/filing] fee of [amount] paid on [date]; receipt enclosed.

Signed for the Claimant: ____________

Step by step: commencing an arbitration in Bangladesh

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Receiving a notice: the respondent's first thirty days

A respondent served with a notice of arbitration Bangladesh law treats as valid should diarise thirty days from receipt for its appointment, and for its Response at BIAC or BIArb.[5] [7] Appointing in time beats leaving the choice to a court. A jurisdiction objection must be raised no later than the statement of defence under section 19, and appointing an arbitrator does not waive it. If the claimant sues instead, section 10 allows an application to refer the dispute to arbitration before the written statement is filed, and section 6 treats unvoiced objections as waived.[2]

Starting well is the cheapest advantage in any arbitration. TRW's arbitration practice in Bangladesh drafts and serves notices, files institutional requests, runs section 7A and section 12 applications, and advises respondents in the first thirty days.

Frequently asked questions