Alternative Dispute Resolution and Mediation in Bangladesh

by Barrister Tahmidur Rahman | Sep 8, 2026

Disputes & ArbitrationResolve disputes without delay9 min read

Alternative Dispute Resolution and Mediation in Bangladesh

We represent businesses, investors and individuals in alternative dispute resolution in Bangladesh, including negotiated settlement, private and court-annexed mediation, the new pre-case mediation regime, arbitration, expert determination and dispute boards, so that disputes are resolved faster, more privately and at proportionate cost. Our team also drafts clauses for new contracts.

Overview

Alternative dispute resolution in Bangladesh: our approach

Alternative dispute resolution in Bangladesh has moved from an optional extra to a central part of how disputes are handled. Court backlogs mean that a civil suit can take years to reach judgment, and appeals can add years more. Mediation, arbitration and structured negotiation offer a way to reach an outcome sooner, keep commercial relationships intact and protect confidential information. TRW & Co advises clients on when and how to use these tools as part of our dispute resolution practice, and we represent clients in mediations and arbitrations as well as in the courts.

The legal framework supports settlement at several stages. The Code of Civil Procedure allows courts to refer pending suits to mediation, and to similar processes at the appellate stage, and settlements reached this way can be recorded by the court. The Artha Rin Adalat Ain 2003 provides for settlement conferences and mediation in bank recovery cases. Family courts have pre-trial reconciliation procedures, and labour law provides for conciliation of industrial disputes. Each mechanism has its own rules on timing, confidentiality and enforcement, which shape how alternative dispute resolution should be used in a particular case.

2026 has brought significant change. The Legal Aid Services (Amendment) Act 2026 introduces mandatory pre-case mediation for certain categories of dispute, administered through the legal aid framework and rolling out district by district. Parties in covered cases need to attempt mediation before filing suit, so claimants must plan for this step and respondents must prepare to engage. The Commercial Courts Act 2026 is also reshaping how commercial disputes are heard. We track how these reforms are being implemented in each district and advise clients on what alternative dispute resolution steps are required before their claim can proceed.

Arbitration remains the main binding alternative to court. The Arbitration Act 2001 governs arbitrations seated in Bangladesh and the enforcement of foreign arbitral awards, and the Bangladesh International Arbitration Centre (BIAC) administers domestic and international cases. Many commercial contracts with foreign parties provide for arbitration in Singapore, London or another seat, with enforcement later sought in Bangladesh. Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub advise on arbitration strategy, clause drafting and enforcement, and The Legal 500 Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.

Choosing the right process is as important as running it well. Some disputes need a quick, confidential mediated settlement; others need a binding arbitral award, an expert's technical decision or urgent relief from a court. Alternative dispute resolution works best when the process fits the dispute, the relationship and the enforcement needs. We help clients draft dispute resolution clauses that anticipate these choices, and we represent them once a dispute arises, working with counsel in the UK, US, UAE, China, India and Singapore where needed. You can contact our Dhaka office to discuss a dispute or a clause.

01 · What we handle

Core workstreams

  • Mediation advocacy
  • Pre-case mediation compliance
  • Arbitration proceedings
  • Expert determination and dispute boards
02 · How it runs

Four clear stages

  1. 01Assess the dispute
  2. 02Choose the process
  3. 03Prepare and represent
  4. 04Record and enforce
03 · Start here

Talk to a partner

Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.

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How we help

How we use mediation, arbitration and negotiation

Workstream 01Disputes & Arbitration

Mediation advocacy

  • Assess the dispute
  • Choose the process
  • Prepare and represent
  • Record and enforce
Workstream 02Disputes & Arbitration

Pre-case mediation compliance

  • Assess the dispute
  • Choose the process
  • Prepare and represent
  • Record and enforce
Workstream 03Disputes & Arbitration

Arbitration proceedings

  • Assess the dispute
  • Choose the process
  • Prepare and represent
  • Record and enforce
Workstream 04Disputes & Arbitration

Expert determination and dispute boards

  • Assess the dispute
  • Choose the process
  • Prepare and represent
  • Record and enforce
Workstream 05Disputes & Arbitration

Structured negotiation

  • Assess the dispute
  • Choose the process
  • Prepare and represent
  • Record and enforce
Workstream 06Disputes & Arbitration

Dispute resolution clause drafting

  • Assess the dispute
  • Choose the process
  • Prepare and represent
  • Record and enforce
01

Mediation advocacy

We prepare clients for private, court-annexed and pre-case mediation, including position papers, settlement ranges, evidence bundles and negotiation strategy. In the session, we present the client's case persuasively while keeping settlement within reach. We also draft settlement agreements that are clear, complete and enforceable, because a poorly drafted settlement can create a second dispute. Mediation is often the most cost-effective form of alternative dispute resolution for commercial and family matters alike. We also prepare clients for difficult conversations.

02

Pre-case mediation compliance

With the Legal Aid Services (Amendment) Act 2026 rolling out mandatory pre-case mediation in stages, we advise whether a dispute falls within the regime in the relevant district, what notices and steps are required, and how to preserve limitation and urgent remedies while mediation takes place. We represent claimants and respondents in these sessions and advise on next steps if mediation does not lead to settlement within the available period. Our aim is genuine engagement, not a formality.

03

Arbitration proceedings

We act in domestic and international arbitrations under the Arbitration Act 2001, the BIAC rules and the rules of international institutions. Our work covers notices of arbitration, tribunal appointments, pleadings, evidence, hearings and post-award steps, including enforcement and challenges before the courts in Bangladesh. Arbitration is the form of alternative dispute resolution that produces a binding, enforceable result, so we prepare every case with eventual enforcement firmly in view. We plan for enforcement from day one.

04

Expert determination and dispute boards

Technical disputes over construction quality, valuations, accounts, price adjustments or performance tests are often best decided by an independent expert or a standing dispute board. We draft expert determination and dispute board provisions, prepare submissions and evidence, and advise on whether a determination is binding, final or open to arbitration. These processes are common in infrastructure, energy and share purchase agreements and can resolve issues quickly during a project. Decisions are reviewed for errors.

05

Structured negotiation

Many disputes settle through direct negotiation when it is handled with discipline. We prepare without-prejudice correspondence, assess the strengths and weaknesses of each side's position, model settlement options and lead or support negotiations between senior management. Negotiation remains the simplest form of alternative dispute resolution, and a well-timed legal notice or settlement proposal can resolve a claim before costs escalate and positions harden. We also advise on when a negotiated deal should be recorded formally.

06

Dispute resolution clause drafting

The best time to plan for a dispute is when the contract is signed. We draft escalation, mediation, expert determination and arbitration clauses that fit the transaction, the counterparties and enforcement needs, including tiered clauses that require negotiation and mediation before arbitration. We also review existing clauses for defects, such as unclear seats or institutions, which can lead to costly preliminary disputes about where and how a claim should be heard.

RecognitionThe Legal 500Asia Pacific ranks Tahmidur Remura Wahid (TRW) Law Firm for dispute resolution in Bangladesh.
Cross-border reach6 jurisdictionsMatters coordinated with counsel in the UK, US, UAE, China, India and Singapore.
Bar and admissionsDhaka and LondonBarristers and advocates in Bangladesh, with a solicitor of England and Wales (non-practising).
HeadquartersDhakaHouse 410, Road 29, Mohakhali DOHS. Consultations in person or by video.
Who leads this work

Partner-led, on every matter.

Disputes & Arbitration matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.

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01

What forms of alternative dispute resolution are available in Bangladesh?

The main forms are negotiation, mediation, conciliation, arbitration and expert determination, together with statutory processes such as court-referred mediation under the Code of Civil Procedure, settlement conferences in bank recovery cases, family court reconciliation, labour conciliation and village courts. The Legal Aid Services (Amendment) Act 2026 adds mandatory pre-case mediation for certain disputes. Each process differs in formality, cost, confidentiality and whether the outcome is binding. We help clients choose the form that matches the dispute, the relationship with the other side and the need to enforce the result. Early advice keeps every option open.

02

Is mediation now compulsory before filing a case?

For certain categories of dispute, yes. The Legal Aid Services (Amendment) Act 2026 introduces mandatory pre-case mediation that is being rolled out by district, so whether it applies depends on the type of dispute and where the case would be filed. Courts can also refer pending suits to mediation under the Code of Civil Procedure. Commercial parties should check the position before issuing proceedings, because skipping a required step can delay or derail a claim. We confirm current requirements in the relevant district and plan alternative dispute resolution steps alongside any urgent applications that cannot wait.

03

Is a mediated settlement legally binding in Bangladesh?

A settlement reached in mediation is binding when it is recorded in a signed agreement that meets ordinary contract requirements. Where mediation takes place within court proceedings, the settlement can be recorded by the court and given effect as a decree, which makes enforcement more straightforward. Settlements reached in pre-case mediation have their own recording procedure. The quality of drafting is critical: vague obligations, missing payment schedules or unclear release terms invite later disputes. We draft settlement terms that are specific, enforceable and consistent with the process used, so the benefit of alternative dispute resolution is not lost.

04

When is arbitration better than mediation?

Arbitration is better when a party needs a binding decision that can be enforced, when the other side is unwilling to negotiate in good faith, or when the dispute turns on legal or factual questions that only an adjudicator can resolve. Mediation is better when both sides want to preserve the relationship, when the dispute is largely commercial and when flexibility and speed matter more than a formal ruling. Many contracts combine the two, requiring mediation first and arbitration if it fails. We advise on which approach to alternative dispute resolution best suits the commercial goals.

05

Can a foreign arbitral award from alternative dispute resolution be enforced in Bangladesh?

Yes. Bangladesh is a party to the New York Convention, and the Arbitration Act 2001 allows foreign awards to be enforced through the courts on application, subject to limited grounds for refusal, such as incapacity, invalidity of the arbitration agreement, lack of proper notice, excess of jurisdiction and public policy. Domestic awards can be challenged on limited grounds and enforced as decrees. We advise award creditors on preparing enforcement applications and identifying assets, and we act for award debtors resisting enforcement where there are genuine grounds. Timing and evidence matter greatly.

06

How confidential is alternative dispute resolution?

Private mediation and arbitration are generally conducted in confidence, and parties can strengthen that protection by signing a confidentiality agreement and choosing institutional rules with confidentiality provisions. Without-prejudice negotiations are also protected from being used as evidence in later proceedings, subject to exceptions. Court-referred processes are confidential in many respects, but court records and any subsequent litigation may be public. Confidentiality is one of the main advantages of alternative dispute resolution for businesses concerned about reputation, trade secrets or regulator attention, so we build appropriate protections into each process. Agreements should say so expressly.

07

Can banks and borrowers use mediation in loan recovery cases?

Yes. The Artha Rin Adalat Ain 2003 provides for settlement conferences and mediation in money loan court cases, and many recovery disputes are resolved through rescheduling, partial settlement or negotiated sale of security. Borrowers can present a realistic repayment plan, while banks can recover funds faster than through litigation and execution. Bangladesh Bank policies on rescheduling and classification affect what a bank can agree. We advise both lenders and borrowers on using these alternative dispute resolution procedures effectively. A settlement should record payment dates, release of security and default terms, so that it can be enforced.

08

What does mediation cost compared with litigation?

Costs depend on the mediator, the complexity of the dispute and the preparation required, but mediation is usually far cheaper than litigation because it takes days rather than years. Court-annexed and legal-aid mediation can involve modest fees, while private commercial mediation costs more but often still saves money. The larger saving is management time and the avoided cost of a long dispute. We give clients a realistic budget for alternative dispute resolution and compare it with the likely cost and duration of court proceedings or arbitration. Settling before expert reports are commissioned avoids the heaviest costs.

How a matter runs

From first call to resolution.

  1. 01

    Assess the dispute

    We review the contract, the facts, the documents and any dispute resolution clause, identify required steps such as pre-case mediation, and advise on the strengths, risks and likely value of the claim. This first review sets the alternative dispute resolution strategy and the likely budget.

  2. 02

    Choose the process

    We recommend negotiation, mediation, expert determination, arbitration or court action, or a combination, based on the client's goals, urgency, the relationship and how any outcome will be enforced. Each option is costed and explained clearly.

  3. 03

    Prepare and represent

    We prepare position papers, evidence and settlement strategy, and represent the client in negotiations, mediation sessions, expert processes or arbitration hearings, keeping costs and timetable under control throughout. We keep the client informed at every stage.

  4. 04

    Record and enforce

    We draft settlement agreements or consent decrees, obtain and enforce arbitral awards, and monitor compliance, taking further action promptly if the other side fails to perform the agreed terms. Our alternative dispute resolution work ends only when the outcome is secured.

“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”

The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback

FAQ

Questions, answered.

Still unsure? Email info@trw.co with a short outline of the matter.

Does alternative dispute resolution prevent us from going to court later?
Not necessarily. If mediation or negotiation fails, the parties can usually continue to court or arbitration, and without-prejudice discussions generally cannot be used against them. An arbitration agreement, however, usually means the dispute must be decided by arbitration rather than in court. Limitation periods continue to run unless protected, so we advise on preserving rights while settlement efforts take place. We also check whether the contract requires mediation or negotiation before proceedings can start, because ignoring a tiered clause can lead to a stay of the case.
Who can act as a mediator in Bangladesh?
Mediators may be judges, lawyers, retired officials or trained professional mediators, depending on the process. Court-annexed mediation may be conducted by the judge or a mediator selected from a panel, while private mediation allows the parties to choose someone with relevant commercial or technical experience. The mediator's skill, neutrality and understanding of the subject matter have a major influence on the chances of settlement, so selection deserves care. We help clients identify suitable mediators and prepare them to work effectively with the chosen mediator from the first session.
Can we seek urgent court relief during mediation?
In appropriate cases, yes. Mediation does not always prevent a party from seeking urgent interim relief, such as an injunction to stop the sale of assets or the encashment of a guarantee, particularly where delay would cause irreparable harm. The position depends on the process and any applicable rules. We plan urgent applications alongside alternative dispute resolution so that clients are protected while settlement discussions continue. Coordinating both tracks also strengthens the client's position at the negotiating table. Evidence of urgency should be gathered early, before alternative dispute resolution begins.
Is BIAC suitable for international disputes?
BIAC administers both domestic and international arbitrations and mediations under its own rules, with arbitrators from Bangladesh and abroad. It can be a practical choice where the parties, assets and evidence are mainly in Bangladesh. For high-value cross-border contracts, parties may still prefer an international seat and institution. We advise on the advantages and disadvantages of each option for the specific transaction and enforcement plan. The choice should be made when drafting the contract, with enforcement and cost in mind, rather than after a dispute has arisen.
How long does alternative dispute resolution take?
A negotiated settlement or private mediation can conclude within days or weeks once both parties are engaged. Court-annexed and pre-case mediation follow statutory timeframes that limit how long the process can run. Arbitration takes longer, often many months, but is usually faster than litigation with appeals. Preparation and the willingness of both sides to engage are the main factors affecting duration in practice. We set a realistic timetable for alternative dispute resolution at the outset and update it as matters progress.
Can government bodies take part in mediation?
Government agencies and state-owned enterprises can and do participate in negotiation, mediation and arbitration, although internal approvals and audit requirements can slow decision-making and limit flexibility. Settlement proposals may need sign-off at ministry level. We help private parties plan for these constraints, prepare proposals that public officials can justify, and select processes suited to disputes with public counterparties. Clear authority and documented reasons for settlement help officials approve an agreement and reduce the risk of later audit objections.
Should every contract include an alternative dispute resolution clause?
Most commercial contracts benefit from a clear clause, but it must fit the deal. A small domestic supply contract may need only negotiation and local courts, while a cross-border joint venture may need tiered negotiation, mediation and international arbitration. A badly drafted clause can be worse than none, because it invites arguments about jurisdiction. We tailor clauses to the transaction, the counterparties and the expected enforcement route. We review existing clauses too, and recommend amendments when contracts are renewed.
How can TRW help with alternative dispute resolution?
We advise and represent clients in negotiation, mediation, pre-case mediation, expert determination, domestic and international arbitration, and related court applications, and we draft dispute resolution clauses for new contracts. Our team combines arbitration, transactional and litigation experience. To discuss a dispute or review a clause, call +880 1708 000660, email info@trw.co or visit us at House 410, Road 29, Mohakhali DOHS, Dhaka 1206. We are happy to begin with a short, confidential discussion of the issues and your objectives.

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