TRW Insight / Bangladesh
A practical 2026 guide to enforceable arbitration agreements in Bangladesh, including court referral, awards and foreign enforcement.
Arbitration agreements: a 2026 commercial framework
An effective arbitration clause aligns the dispute scope, seat, tribunal, procedure and evidence trail before the commercial relationship is under strain.

A dispute clause is often negotiated late and read only when a deal fails. In Bangladesh, that is risky. A well-built arbitration agreement can determine whether a commercial dispute moves into arbitration, who appoints the tribunal, whether urgent assets can be protected, and how an eventual award may be enforced. A vague, incompatible or poorly evidenced clause can instead create a preliminary dispute about process.
The starting point is the Arbitration Act, 2001 (the Act). For an arbitration seated in Bangladesh, the Act supplies the core procedural framework. It recognises arbitration clauses in contracts and standalone agreements, requires the agreement to be in writing, expressly includes email and other exchanges, and provides a route for a court to refer a covered dispute to arbitration. The official consolidated legislation also records the 2004 insertion of section 7A, which concerns interim measures. [1] [2]
This Insight explains the current statutory structure as at 19 October 2026, what parties should put in an arbitration agreement, and where commercial uncertainty remains. It is designed for businesses negotiating Bangladesh-related contracts, in-house teams, project managers and overseas counterparties.
Summary
- An arbitration agreement may be a clause in the principal contract or a separate agreement. It must be in writing. Section 9 recognises signed documents, exchanges including email, an unchallenged assertion in statements of claim and defence, and effective incorporation by reference. [2]
- A party sued on a matter agreed for arbitration may apply for referral before filing its written statement. If the court finds an arbitration agreement and does not find it void, inoperative or incapable of settlement by arbitration, section 10 requires referral and a stay. [2]
- The agreement should say more than “arbitration in Bangladesh”. It should identify the disputes covered, the seat, tribunal size and appointment mechanism, procedure or institutional rules, language, governing law and notice details.
- Arbitration does not remove every court interaction. The Act provides for appointment support, interim measures, limited award challenges and enforcement. The available court and forum can differ between international commercial arbitration and other arbitrations. [1] [3] [7]
- An award is not self-executing. Timely challenge, the applicable enforcement route, documents, translations and the location of assets all matter. For foreign awards, sections 45–47 set out an application route and defined refusal grounds; the relevant Gazette status and enforcement facts need current, matter-specific checking. [8]
Table of Contents
The legal framework and its limits
The Act is statutory law enacted by Parliament. Its stated subject matter includes international commercial arbitration, recognition and enforcement of foreign arbitral awards, and other arbitration-related provisions. Section 3 makes the Act applicable where the place of arbitration is Bangladesh. It also provides that, where the place is outside Bangladesh, sections 45, 46 and 47 apply. The same section preserves the position where another law does not permit a dispute to be referred to arbitration. [1]
That distinction has practical value. A contractual choice of seat is not a decorative label or simply the city of a hearing. Under the Act, the place of arbitration is the link that determines whether the full Bangladesh statutory framework applies. Section 26 permits parties to agree the place; if they do not, the tribunal determines it with regard to the circumstances and the parties’ convenience. It can still meet elsewhere for deliberation, hearings, witness examination or inspection unless the parties agree otherwise. [5]
The Act defines an arbitration agreement broadly as an agreement by parties to a specified contractual or non-contractual legal relationship to submit all or some existing or future disputes to arbitration. It defines arbitration to include both administered and non-administered proceedings. [1] This allows parties to choose an institution and its rules, or to construct an ad hoc process. It does not mean that every disagreement, statutory claim or non-party is automatically within a clause.
A useful way to read the framework is to distinguish statutory rules from drafting guidance:
- The statutory rules include form, court referral, tribunal powers, challenge grounds and enforcement mechanisms.
- Drafting guidance is a commercial response to those rules. A statute may validate an email exchange, for example, but a business should still preserve an intelligible execution record, identify the version agreed and make authority clear.
- Court decisions apply law to their facts. They are important context, but they do not eliminate the need to assess the wording, transaction, parties and current procedural position in a particular dispute.
The published Act itself identifies the court as the District Judge’s Court, including an Additional District Judge appointed by Gazette notification to perform the District Judge’s functions under the Act. It defines the High Court Division separately. [1] Those definitions should not be replaced by generic references in a contract to “the courts of Bangladesh” without considering what assistance, challenge or enforcement step may be needed.
The Bangladesh Supreme Court’s published materials illustrate the Act’s policy of respecting an agreed arbitration route. In Energy Prima Ltd v Bangladesh and others, the High Court Division recorded that section 7 restricted judicial intervention in matters covered by an arbitration agreement and treated a contractual arbitration remedy as material in the circumstances before it. [11] A separate Supreme Court judgment listing notes that parties should normally abide by the terms of an agreement providing for a named arbitrator. [12] These are not substitutes for the statutory text, but they reinforce a practical drafting point: specify a process the parties can and will actually follow.
What makes an arbitration agreement enforceable
Writing, consent and incorporation
Section 9 contains the central form rule. An agreement may appear as an arbitration clause in a contract or as a separate agreement, but it must be written. The Act treats it as written where it is in a document signed by the parties; in an exchange of letters, telex, telegram, fax, email or another means of communication; or in statements of claim and defence where one party alleges an agreement and the other does not deny it. A written contract’s reference to another document containing an arbitration clause can also qualify where the reference makes that clause part of the contract. [2]
The practical message is not that any exchange mentioning arbitration is safe. The exchange must show a concluded agreement between the right legal parties about a defined legal relationship. In a multi-document procurement, supply or finance transaction, parties should therefore be able to answer four questions from the record:
- Which version is binding? Keep the final contract and all incorporated terms together, with a clear order-of-precedence clause where documents conflict.
- Who agreed? Check company name, capacity, signatory authority and any required internal or regulatory approvals. A named group company is not automatically bound merely because it performs part of the contract.
- What is incorporated? Do not rely on an unexplained hyperlink, old standard terms or a reference that could point to several rulebooks. Identify the document, edition and clause.
- What was exchanged? Retain the email chain, attachments, acceptance notices and delivery records. Preserve them in a format that can be authenticated if needed later.
The legal relationship should be identifiable and the submission to arbitration should be real. A clause that says the parties “may consider arbitration” after a dispute arises is less useful than a present agreement that disputes “shall” be referred to arbitration. Similarly, a clause that sends “disputes” to arbitration but gives a court exclusive jurisdiction over the same matters without explaining the relationship creates avoidable friction.
A requirement for a written arbitration agreement is not the same as a requirement that every signature use one technology. However, proof can become difficult where approval occurred by email, a platform click-through or a digital signature. The current Evidence Act, as amended in 2022, includes digital records within “document”, recognises a broad range of electronic records, and contains rules for proving computer outputs. It also creates a presumption for a digital record purporting to be an agreement with the parties’ digital signatures. The Act does not make every electronic file self-proving: outside the specified secure-record or secure-signature positions, the statutory presumptions are qualified, and section 65B conditions apply to computer-output evidence. [13] [14]
Scope, arbitrability and separability
Scope is the second foundation. The Act’s definition contemplates all or any disputes arising from a specified legal relationship. A robust clause normally covers disputes “arising out of or in connection with” the agreement, including its existence, validity, interpretation, performance, breach, termination and non-contractual obligations where appropriate. The appropriate wording depends on the deal. A construction contract may need to coordinate technical determinations, payment disputes and multi-party interfaces. A shareholders’ agreement may need to preserve carefully defined statutory remedies.
The Act itself preserves statutory restrictions on referral to arbitration. Section 3(3) provides that it does not override another law that gives no opportunity to refer a dispute to arbitration. In award challenges, section 43 also permits the court to set aside an award if the subject matter is not capable of settlement by arbitration under Bangladesh law. [1] [7] Arbitrability is therefore a live legal question, not a box checked by broad language. Parties should identify at the contracting stage whether mandatory legislation, a regulatory regime, insolvency, public-law remedies or a specialised dispute mechanism affects the proposed clause.
The tribunal has a preliminary role too. Unless the parties agree otherwise, section 17 permits it to rule on matters including the existence of a valid arbitration agreement, proper constitution of the tribunal, public-policy concerns, capability of performance and whether a matter falls within the reference. Section 18 treats an arbitration agreement embedded in another contract as a separate agreement for jurisdictional purposes. [4] In plain English, a challenge to the main contract does not automatically destroy the arbitration clause; the clause can be assessed on its own footing. That is helpful, but it is not a cure for no consent, an unclear scope or a non-arbitrable dispute.
Domestic and international commercial arbitration
The Act’s definition of “international commercial arbitration” does not merely track the parties’ label. It concerns a commercial dispute from an explicit contractual or non-contractual legal relationship and requires at least one specified international feature. These include a party who is not a Bangladeshi national or habitual resident, an entity incorporated outside Bangladesh, an organisation whose central management and control is exercised outside Bangladesh, or a foreign government. [1]
Why should a commercial team care? The classification can affect the statutory route for appointment, interim measures and setting aside. For example, the Act assigns specified appointment functions to the Chief Justice or a nominated Supreme Court judge in international commercial arbitration, while the District Judge has the corresponding role in other arbitration under the statutory fallbacks. [3] A Bangladesh-incorporated special-purpose company might still require close analysis rather than an assumption that the clause is purely domestic.
Parties should avoid a casual statement that a dispute is “international” merely because goods are imported or payment is in a foreign currency. Those facts may be commercially significant, but the statutory definition needs to be tested against the parties and relationship. Conversely, an overseas counterparty should not assume that a foreign governing law or non-Bangladesh hearing venue alone removes every Bangladesh legal question, especially if the seat or enforcement is in Bangladesh.

When litigation has already started
A valid clause is most valuable when the other side commences court proceedings despite it. Sections 7 and 10 are the principal statutory provisions to check promptly.
Section 7 states that, where a party to an arbitration agreement starts legal proceedings against another party concerning a matter agreed to be referred to arbitration, the court does not have jurisdiction to hear it otherwise than under the Act. Section 10 then gives a party to such court proceedings the ability to apply for referral before submitting its written statement. If the court sees that an arbitration agreement exists and is not void, inoperative or incapable of settlement by arbitration, it is to refer the matter to arbitration and stay the proceedings. Arbitration may be started, continued and an award made while that application and the litigation are pending. [1] [2]
The timing point is commercially decisive. A party that wants referral should preserve the point from the first response to a claim. It should obtain the executed agreement, assess the precise pleaded issues against the clause, and consider the procedural deadline before filing a substantive written statement. Delay can change leverage and produce an expensive forum dispute.
The statutory test also explains why drafting precision matters. Referral is not simply a question of whether the contract contains the word “arbitration”. The applicant needs to establish an agreement and address arguments that it is void, inoperative or incapable of being performed. Common sources of argument include competing dispute clauses, unclear incorporation, a missing appointment mechanism, a non-signatory issue, a claim outside scope and a remedy reserved by mandatory law.
Court engagement is not necessarily inconsistent with arbitration. The Code of Civil Procedure, 1908 separately allows parties in an existing suit to apply to withdraw it so that their disputes can be referred to arbitration. The court must permit withdrawal, subject to the proviso that the suit may be reinstituted if the arbitration does not take place or no award is made; that application is deemed an arbitration agreement under section 9 of the Act. [15] This is a different statutory route from a pre-dispute contractual clause. It should not be confused with a contractual arbitration agreement or used to infer that a court will rewrite an incomplete clause.
Drafting a commercially usable clause
The decisions to make deliberately
An enforceable arbitration agreement is a process design decision. The right answer is fact-sensitive, but the following choices should be made expressly rather than left to chance.
1. Covered disputes and parties. Define the contract or relationship and the disputes captured. If multiple contracts, affiliates, contractors, guarantors or project entities are involved, identify who is a party to which agreement. Consider whether separate contracts should use compatible clauses, and whether consolidation or concurrent hearings need express agreement. Under section 28, consolidation or joint hearings require party agreement unless the parties confer that authority on the tribunal. [5]
2. Seat and hearing logistics. State the legal seat, not only a hearing venue. State any preferred hearing location, language and ability to conduct remote or hybrid hearings where that suits the transaction. The Act leaves procedure to party agreement subject to the Act and allows the tribunal to determine it in the absence of agreement. [5]
3. Number and method of appointment. Decide whether one arbitrator or three is proportionate to the likely claim value and complexity. Name a clear appointment method, deadlines, any appointing authority and qualifications that are objective and achievable. If the parties say nothing about number, the Act defaults to three arbitrators. Statutory fallbacks exist, but relying on them can add time and court involvement. [3]
4. Rules and administering institution. If institutional arbitration is chosen, identify the institution and a recognisable current ruleset. Check that its appointment, emergency, fee and multi-party provisions fit the deal. If the arbitration will be ad hoc, include enough operational detail to avoid deadlock. The Act expressly allows parties to entrust a determination to another person and treats arbitration rules referred to by the agreement as part of it in the relevant contexts. [1]
5. Governing law, language and notices. Separate the law governing the contract from the law governing the arbitration agreement if the deal requires that distinction. State the working language and translation allocation. Maintain notice addresses and a mechanism for updating them. Section 5 has default rules for written communications, but a contract-specific notice clause should be aligned with the dispute clause, not drafted in isolation. [1]
6. Interim relief, confidentiality and remedies. Do not promise absolute confidentiality solely because the proceeding is called arbitration. Assess the contract, institutional rules, law and disclosure obligations. Consider whether the tribunal may grant particular relief, whether court applications for urgent preservation are contemplated, and how that should be described without contradicting the Act.
7. Award and enforcement planning. Ensure the clause produces an award that can be shown to be within scope and issued using the agreed process. Decide early where the counterparty’s assets are likely to be and what documentation and translation may be required there. An excellent merits case may still face avoidable enforcement work if the record is incomplete.
A drafting blueprint, not a one-size-fits-all clause
The following is a checklist of elements, not model language and not a substitute for a transaction-specific review:
- an unequivocal agreement to refer defined disputes to arbitration;
- the contracting parties and the relevant agreement or defined legal relationship;
- the legal seat of arbitration;
- the number of arbitrators, qualifications where needed, and an appointment and replacement mechanism;
- the administering institution and version of rules, or a workable ad hoc procedure;
- the language, governing law of the merits, and any intended law governing the arbitration agreement;
- notice addresses and reliable methods of service;
- a compatible provision for interim protection and for dealings with court proceedings;
- treatment of consolidated proceedings only where all relevant parties have actually agreed; and
- a severability or survival formulation that is consistent with the commercial contract and statutory separability.
A clause can be technically elaborate and still be poor commercial drafting. Over-prescription may produce disputes about whether a procedural step was followed perfectly. For example, designating an individual as arbitrator without a substitute route can become unworkable if that person is unavailable or conflicted. Requiring a particular foreign-language certified translation at every procedural stage may inflate cost unnecessarily. Declaring an unrealistic timetable may simply lead to extensions.
Equally, brevity is not always clarity. A bare reference to “arbitration under Bangladesh law” leaves open the seat, appointment, number of arbitrators, rules, language and dispute scope. It may be saved in part by statutory defaults, but it gives the parties less control over the process when control matters most.
Digital contracting and the evidence trail
Electronic contracting deserves its own workflow. Section 9’s inclusion of email means that the statutory writing rule can be satisfied without wet-ink signatures in appropriate circumstances. [2] Yet proof questions may remain: was the attachment complete, did an authorised person send the acceptance, which terms were available at the time, and were messages altered or superseded?
The 2022 Evidence (Amendment) Act is relevant to evidence, not a shortcut around contract formation. It covers digital records and supplies a presumption for a digital record that purports to be an agreement with the parties’ digital signatures. It separately sets conditions for admission of computer-output evidence and may require a supporting certificate from a person in a responsible position in relation to the relevant device or activity. [14]
A proportionate records protocol helps. Keep the signed PDF or platform audit trail, the governing terms as accepted, a dated copy of incorporated rules, authority evidence, email headers where material, and a controlled archive. Record system changes and renewals. If the contract uses a digital-signature platform, preserve the certificate and audit log rather than relying only on a screenshot. These are practical safeguards, not statutory promises that a tribunal or court will accept every item without scrutiny.

How an arbitration proceeds under the Act
Appointments, jurisdiction and procedure
The Act gives parties significant procedural autonomy but backs it with defaults. Parties may determine the number of arbitrators; absent agreement, the default is three. If an even number is selected and the parties have not agreed otherwise, those arbitrators jointly appoint an additional arbitrator as chair. [3]
Parties may agree an appointment procedure. Where the statutory fallback applies, the Act uses 30-day triggers in certain single- and three-arbitrator situations, and requires the designated appointing decision under section 12 to be made within 60 days of the application. The applicable decision-maker differs: for international commercial arbitration, it is the Chief Justice or a nominated Supreme Court judge; otherwise it is the District Judge. The Act asks the decision-maker to consider agreed qualifications, impartiality and independence. [3]
Those defaults are useful but should not disguise a structural problem. A clause that depends on unilateral appointment, incompatible corporate roles or an unavailable named person is likely to generate a threshold dispute. Parties should also plan for disclosures. A proposed arbitrator must disclose circumstances likely to create justifiable doubts about impartiality or independence, and the duty continues during the proceedings. [3]
The tribunal’s procedural duties are equally important. Section 23 requires fair and impartial resolution, a reasonable opportunity for each party to present its case and inspect the other side’s materials, and a prompt approach. Section 24 says the tribunal is not bound by the Code of Civil Procedure or the Evidence Act. This is flexibility, not permission for arbitrary procedure. [5] The tribunal can settle procedure and evidence where parties have not done so; the Act specifically contemplates matters such as hearing time and place, language and translations, pleadings, document production, witness questions and the relevance or weight of evidence. [5]
A party that believes the tribunal lacks jurisdiction should not wait for the final award. The Act provides a mechanism for jurisdictional objections, with objections ordinarily to be raised before a statement of defence and excess-of-authority objections when the issue arises. The tribunal may rule on them. The High Court Division may decide a jurisdiction issue on an application by a party if statutory conditions, including promptness and potential cost saving, are met. [4]
Interim protection and urgent relief
Arbitration is not necessarily a reason to wait while assets or evidence disappear. Section 21 authorises a tribunal, unless parties agree otherwise, to order a party to take interim protective measures regarding the subject matter of the dispute and to require appropriate security. A court can enforce a tribunal interim-measure order on an application. [4]
Section 7A is a separate statutory bridge to the courts. Subject to different agreement by the parties, it permits the High Court Division in international commercial arbitration and the court in other arbitration to grant listed interim measures before or during arbitration and, in the statutory terms, until an award is enforced under sections 44 or 45. The list includes preservation or sale of property, restraints on asset transfers intended to frustrate enforcement, inspection and evidence-related measures, injunctions and receiver appointments. The section also sets conditions for court intervention where the tribunal lacks the relevant power or has failed to act under section 21. [1]
The commercial lesson is to build an urgent-relief protocol before there is a dispute. Identify likely assets, key project records, signatories, notice channels, security requirements and who may make a decision overnight. A clause should not purport to solve every court question, but it should avoid language that looks like a waiver of necessary statutory relief. Any application will depend on the statutory tests, evidence and circumstances at the time.
Awards, challenges and enforcement
Bangladesh-seated awards
For a Bangladesh-seated arbitration, an award must be in writing and signed. In a multi-arbitrator tribunal, majority signatures can suffice if the reason for a missing signature is stated. Reasons are required unless the parties agree otherwise or the award records settlement terms. The award must state the date and place of arbitration, and a signed copy must be delivered to each party. [6]
An award made under an arbitration agreement is final and binding on the parties and persons claiming through or under them, subject to statutory rights of objection. [6] “Final” should not be read as “immune from any scrutiny”. The Act contains a prescribed challenge path rather than a general merits appeal.
Section 42 gives a 60-day period from receipt of the award to apply to set aside. The competent forum differs: for an award other than an international commercial arbitration award, the application is to the court; for an international commercial arbitration seated in Bangladesh, it is to the High Court Division. [7] Section 43 lists the grounds. They include incapacity, invalidity of the arbitration agreement under the governing law, lack of proper notice or inability to present a case, excess of scope, improper tribunal composition or procedure, non-arbitrability, conflict with Bangladesh law or public policy, and fraud or corruption. [7]
The challenge grounds are a drafting and case-management checklist. A party seeking to enforce should be able to show authority, a valid agreement, timely notice, a procedure consistent with the agreed clause, equal opportunity to present a case, and an award that stays within the reference. A respondent should raise genuine procedural concerns promptly rather than retain them as a tactical afterthought. Section 6 provides that a party aware of non-compliance with a waivable Act provision or the agreement that proceeds without undue delay may be treated as having waived the objection. [1]
Once the time for a setting-aside application has expired, or such an application has been rejected, section 44 provides for enforcement as if the award were a decree of the court. [7] Enforcement is a separate implementation stage. Asset tracing, the identity of the judgment debtor, interest, security, insolvency risk and parallel proceedings may all require careful planning.
Foreign awards and the New York Convention context
Bangladesh acceded to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 (the New York Convention) on 6 May 1992; the UN status material records entry into force for Bangladesh on 4 August 1992. [10] The Convention remains important commercial context for cross-border arbitration. Article II requires contracting states to recognise an agreement in writing concerning a defined legal relationship and calls for court referral at a party’s request unless the agreement is null and void, inoperative or incapable of performance. Articles III to V address recognition and enforcement, documentary requirements and defined grounds for refusal. [9]
The domestic statute remains essential. Under sections 45 and 46 of the Act, a foreign award is binding on the persons against whom it is made and may, on application, be enforced as a court decree. An application must include the original award or properly authenticated copy, the original arbitration agreement or certified copy, and evidence necessary to establish that the award is a foreign award. If the award or agreement is not in English or Bangla, an English translation with the required authentication must be included. Section 45 identifies the District Judge’s Court exercising jurisdiction over the Dhaka district as the court for those purposes. [8]
Section 46 sets out the limited grounds on which enforcement may be refused. They substantially track familiar treaty concepts: party incapacity or invalid agreement; lack of proper notice or inability to present a case; a decision outside the submission; non-compliant composition or procedure; a non-binding, set-aside or suspended award; non-arbitrability; and public policy. It allows the court, where a setting-aside or suspension application is pending before the competent authority, to adjourn enforcement and may permit security to be ordered. [8]
There is a statutory point that needs explicit care. The Act defines a “foreign arbitral award” as an award made outside Bangladesh under an arbitration agreement, excluding an award made in a “specified state”. A specified state is one declared by the Government under section 47 by Official Gazette notification. [1] [8] The text therefore makes the relevant Gazette designation and the current procedural route a verification question, not an assumption. Before choosing a foreign seat because of expected Bangladesh enforcement, parties should obtain up-to-date legal review of the seat, award, applicable treaty position, any Gazette notification, asset location, translation and authentication plan. This is an area where a generic clause cannot provide a definitive enforcement opinion.
For a cross-border deal, preserve the signed arbitration agreement, the appointment and notice record, the procedural orders, proof of delivery, the executed award and certified translations from the outset. Article IV of the Convention likewise identifies the authenticated original or certified award copy and the original or certified arbitration agreement as enforcement documents. [9]

Commercial implications for Bangladesh-related contracts
An arbitration agreement should be evaluated against the economics and operating risk of the deal, not treated as boilerplate.
For an infrastructure, construction or EPC project, the clause needs to coexist with technical experts, subcontractors, variation mechanisms, delay claims, project records and urgent site or equipment issues. A three-person tribunal may be sensible for a high-value technical dispute, but it will cost more and may take longer to appoint. Consider whether compatible clauses across the contract chain are needed, and remember that consolidation under the Act is not automatic. [5]
For a supply, distribution or services agreement, a sole arbitrator and focused documentary procedure may be proportionate. The scope should reach payment, quality, warranty, termination and indemnity disputes if that is intended. Keep purchase orders, standard terms and amendments aligned. The commercial team should not issue a purchase order containing a different dispute clause after the master agreement is signed without understanding the conflict it creates.
For a joint venture, shareholders’ or investment agreement, map the clause against governance rights, transfer restrictions, deadlock provisions, valuation processes and any statutory or court-based remedies. A carefully drafted expert-determination provision may sit alongside arbitration, but the contract should say what each process decides and whether the determination is final. Do not assume that labelling a dispute “commercial” answers arbitrability or relief questions.
For cross-border finance, trade or technology arrangements, the seat, language, governing law, tribunal constitution, service method and enforcement plan deserve early attention. Where key assets are in Bangladesh, foreign-award enforcement evidence should be planned while the transaction is documented, not reconstructed years later. Where data, trade secrets or regulated information are involved, assess confidentiality, disclosure and data-handling obligations separately.
Across all deal types, the operational benefit of arbitration can be lost through an unworkable clause. A short legal-and-commercial review at signature, renewal and dispute onset can be less costly than litigating first principles about forum, appointment or scope.
Practical next steps
- Audit the live contract pack. Collect the signed principal agreement, schedules, amendments, purchase orders, standard terms, notices and incorporated documents. Identify every competing dispute provision.
- Test the section 9 record. Confirm the clause is written, the correct parties accepted it, incorporation is effective and the archive shows the final agreed text. For electronic contracting, preserve audit logs and authority evidence.
- Map scope against the deal. List likely dispute categories, third-party interfaces and mandatory statutory processes. Resolve known exclusions rather than relying on a broad label.
- Choose process settings. Confirm seat, number of arbitrators, appointments, rules or ad hoc mechanics, language, governing law, notices and approach to interim measures.
- Plan the enforcement file. Identify likely assets and keep the agreement, notices, tribunal constitution, procedural record, award and any translation or authentication materials in a retrievable format.
- Act quickly if a dispute begins. Check notice requirements, limitation, any contractual escalation step and the section 10 timing point before filing a written statement in court. Preserve documents and assess whether urgent protective relief may be necessary.
For a discussion of a Bangladesh-related dispute clause or arbitration process, see TRW’s practices or contact TRW. Please do not send confidential, privileged or time-sensitive information through an initial website enquiry.
Frequently asked questions
1. Does an arbitration agreement in Bangladesh have to be signed?
A signed document is one way to satisfy section 9, but it is not the only route. The Act also recognises qualifying exchanges of letters, telex, telegram, fax, email or other communications, an unchallenged allegation in exchanged claim and defence statements, and effective incorporation by reference. The facts must still establish a concluded written agreement between the relevant parties. [2]
2. Can an arbitration clause be added to an existing contract?
Yes, parties may make a separate arbitration agreement or amend the contract, provided the agreement meets the writing requirement and normal formation requirements. The amendment should identify the principal contract, state whether it supersedes earlier dispute provisions, be accepted by all necessary parties and be preserved with the contract record. [2]
3. Is an email exchange enough for an arbitration agreement?
It can be. Section 9 expressly includes email among the written communication methods. Whether a particular exchange proves agreement will depend on content, authority, attachments, acceptance, the contracting parties and the evidence trail. The Evidence Act’s digital-record provisions are relevant to proof; they do not replace the need for actual consent. [2] [13]
4. What happens if someone sues despite an arbitration clause?
A party may apply to the court to refer the dispute to arbitration before submitting its written statement. If the statutory conditions are satisfied, section 10 requires referral and a stay. Arbitration may nonetheless be started or continued while the application and court proceedings are pending. Time and the precise wording of the clause matter. [2]
5. Can the court grant urgent relief even though the contract requires arbitration?
The Act provides tribunal interim-measure powers in section 21 and court interim-measure powers in section 7A, subject to its terms and any different party agreement. The proper forum, available measure and evidence needed depend on whether the arbitration is international commercial and on the particular facts. [1] [4]
6. How many arbitrators will there be if the clause says nothing?
The Act’s default is three arbitrators if the parties have not determined a number. For many lower-value disputes, that may be more costly than the parties intended, which is why the clause should state the number and appointment mechanism. [3]
7. Can a Bangladesh-seated award be challenged?
Yes, but only through the statutory route. Section 42 provides a 60-day window from receipt of the award for an application to set it aside, with a different forum for a Bangladesh-seated international commercial arbitration. Section 43 contains specified grounds, including invalid agreement, lack of proper notice, excess of scope, procedural non-compliance, non-arbitrability, public policy, fraud or corruption. [7]
8. Are foreign arbitral awards enforceable in Bangladesh?
Sections 45 and 46 provide for recognition and enforcement of foreign awards, subject to documentary requirements and defined refusal grounds. Bangladesh is also a New York Convention state. However, the Act’s treatment of “specified states” under section 47, the Gazette record, the seat, asset location, award status, language and authentication should be checked on current facts before relying on an enforcement strategy. [8] [9] [10]
9. Is arbitration automatically confidential in Bangladesh?
Do not assume so. The provisions discussed above address the agreement, tribunal, procedure, awards and court interaction; a blanket confidentiality rule should not be inferred from the label “arbitration”. Parties should assess the contract, any agreed rules, governing law, regulatory duties and the disclosure risks of any court application before drafting a confidentiality provision.
Source register
Primary legal and regulatory sources
Source materials were checked on 19 October 2026. Statutory interpretation should be confirmed against current official texts and the facts of the matter.
- Bangladesh Arbitration Act 2001 official consolidated text
- Bangladesh Arbitration Act 2001 sections 9 and 10
- Bangladesh Arbitration Act 2001 tribunal constitution provisions
- Bangladesh Arbitration Act 2001 jurisdiction and interim measures
- Bangladesh Arbitration Act 2001 conduct of proceedings
- Bangladesh Arbitration Act 2001 awards and termination
- Bangladesh Arbitration Act 2001 award challenges
- Bangladesh Arbitration Act 2001 foreign awards
- Convention on the Recognition and Enforcement of Foreign Arbitral Awards official text
- UNCITRAL New York Convention status
- Supreme Court of Bangladesh bulletin Energy Prima case
- Supreme Court of Bangladesh judgments listing arbitration procedure observation
- Bangladesh Evidence Act 1872 current digital-record provisions
- Bangladesh Evidence Amendment Act 2022 official text
- Bangladesh Code of Civil Procedure 1908 section 89B
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