Setting aside an international arbitral award in Bangladesh: the full journey, step by step
Applications for setting aside international arbitral award decisions made in Bangladesh go straight to the High Court Division under section 42(2) of the Arbitration Act 2001, and must be filed within sixty days of receiving the award. The court can annul the award only on the closed list of grounds in section 43, and it does not rehear the facts.
While the application is pending the award cannot be enforced, but the court can order the money to be deposited or secured, and the losing side goes to the Appellate Division only by leave.
- Where it starts
- High Court Division (statutory original jurisdiction), as an Arbitration Application under ss.42(2) and 43 Arbitration…
- Main law
- Arbitration Act 2001 (ss.2(c), 3, 7A, 38-44, 48, 55); Commercial Courts Act 2026 (s.2, exclusion of the High Court Division's…
- Typical duration
- about 1-3 years in the High Court Division; a further 1-3 years if leave is sought in the Appellate Division
- Who can file
- Any party to the arbitration who has received the award, usually the award-debtor; the award-holder appears as…
Setting aside international arbitral award: walk through every stage
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Step 1 · After the awardThe award is signed and delivered
The tribunal makes a written, signed award stating its date and the place of arbitration, and delivers a signed copy to each party under section 38. Receipt of that copy starts the sixty-day period in section 42(2). Section 39 makes the award final and binding, subject only to a challenge under the Act. Unless the parties agreed otherwise or the award directs otherwise, a money award carries interest from its date until payment at two per cent a year above the Bangladesh Bank rate.
Both sides should record exactly when and how the award arrived, by courier, by hand or by e-mail.
Where: Arbitral tribunal (seat in Bangladesh) · Time: Award date · Law: s.38(4)-(6) Arbitration Act 2001; s.39 Arbitration Act 2001; s.42(2) Arbitration Act 2001 · Documents: Signed award, Courier receipt, e-mail or acknowledgement showing the date of receipt
Tip: Write down the date the signed award was received and keep the envelope or e-mail. Every later deadline turns on it.
Step 2 · After the awardCorrection, interpretation or additional award
Within fourteen days of receiving the award, a party can ask the tribunal to correct computation, clerical or typographical errors, to interpret a specific point, or to make an additional award on a claim it left out. The tribunal decides a correction within fourteen days and an additional award within sixty days, and the result becomes part of the award. The Act does not clearly say whether such a request restarts the sixty days to set aside, so the safer course is to file any challenge within sixty days of receiving the original award.
Where: Arbitral tribunal (seat in Bangladesh) · Time: 14 days to request; up to 60 days for an additional award · Law: s.40 Arbitration Act 2001 · Documents: Request under s.40, Corrected or additional award
Step 3 · After the awardConfirm the award is international and seated here
Section 42(2) covers only awards in an international commercial arbitration held in Bangladesh. That means a commercial dispute where at least one party is a foreign national or resident, a company incorporated or managed abroad, or a foreign government, under section 2(c). A purely domestic award is challenged before the District Judge under section 42(1). An award made at a seat outside Bangladesh cannot be set aside here at all; the High Court Division confirmed in 2026 that a Bangladeshi court has no such power.
Setting aside international arbitral award cases in the wrong forum wastes the sixty days.
Where: Applicant's lawyer · Time: 1-5 days · Law: s.2(c) Arbitration Act 2001; s.3 Arbitration Act 2001; s.42(1) and (2) Arbitration Act 2001; Arbitration Appeal No. 08 of 2025 (HCD, 09.07.2026) · Documents: Arbitration agreement, Award showing the place of arbitration, Corporate documents of each party
Step 4 · After the awardTest the award against the section 43 grounds
Section 43 sets a closed list. The applicant must prove incapacity of a party, an invalid arbitration agreement, lack of proper notice or inability to present its case, an award beyond the submission, or a tribunal or procedure not in line with the agreement or the Act. Separately, the court may act if the dispute is not arbitrable, the award is prima facie opposed to Bangladeshi law, conflicts with public policy, or was induced or affected by fraud or corruption.
A complaint that the tribunal weighed the evidence wrongly is not a ground, and the lawyer should say so frankly.
Where: Applicant's lawyer · Time: 1-3 weeks · Law: s.43(1)(a)(i)-(v) Arbitration Act 2001; s.43(1)(b)(i)-(iv) Arbitration Act 2001 · Documents: Award, Arbitral record, Note of potential grounds
Step 5 · Filing within sixty daysPrepare the application and supporting record
The lawyer drafts an Arbitration Application under sections 42(2) and 43, verified by affidavit, setting out each ground with the parts of the record that prove it. Annexures include the award, the arbitration agreement, the pleadings and procedural orders, the transcripts and the key evidence. A foreign applicant needs a power of attorney or board authority executed and attested properly, and documents in a foreign language need certified translations. Where money is at stake, the applicant should be ready to offer security, because the award-holder will ask for a deposit.
Where: Applicant's lawyer · Time: 2-6 weeks, inside the 60 days · Law: s.42(2) Arbitration Act 2001; s.43 Arbitration Act 2001 · Documents: Arbitration Application, Affidavit, Award and arbitration agreement, Arbitral record, Power of attorney or board resolution, Certified translations
Step 6 · Filing within sixty daysFile in the High Court Division within sixty days
The application is filed in the High Court Division in its statutory original jurisdiction and listed before the single-judge bench the Chief Justice has assigned to arbitration matters. The sixty days run from receipt of the award. In Lily Begum Ahmed v Navana Real Estate (2025), the High Court Division held that the Act is a self-contained code and that section 5 of the Limitation Act cannot be used to extend the sixty days; the same reasoning applies to section 42(2).
The Commercial Courts Act 2026 does not move these applications, because it excludes matters within the High Court Division's original jurisdiction.
Where: High Court Division · Time: Within 60 days of receipt of the award · Law: s.42(2) Arbitration Act 2001; Civil Revision No. 4283 of 2024 (HCD, 11.08.2025); s.2(gha) Commercial Courts Act 2026; Article 107(3) Constitution of Bangladesh · Documents: Filed application, Court fee receipt, Vakalatnama
Tip: Aim to file well before day sixty. A late or misfiled application cannot be rescued.
Step 7 · Filing within sixty daysAdmission and notice to the award-holder
At the first hearing, the bench admits the application and directs notice to the award-holder, often fixing a date for its affidavit-in-opposition. Service on a foreign award-holder follows the court's directions, usually through its Bangladeshi lawyers in the arbitration, by courier and by e-mail. The court can also direct the parties to file the full arbitral record. An application that plainly shows no ground under section 43 can be summarily dismissed at this stage.
Where: High Court Division · Time: 2-8 weeks · Law: s.42(2) Arbitration Act 2001; s.43 Arbitration Act 2001 · Documents: Order of admission, Notice to the respondent, Affidavit of service
Step 8 · Protection pending the challengeEnforcement on hold, and the deposit question
Section 44 allows an award to be enforced only after the time for a challenge has expired or a challenge has been refused, so a pending application in effect holds up enforcement. To balance this, section 43(2) lets the High Court Division order that any money payable under the award be deposited in court or otherwise secured until the application is decided. The award-holder usually asks for this at the first opportunity. The court decides the amount and form, such as a bank guarantee, a fixed deposit under lien or cash.
Where: High Court Division · Time: 1-3 months · Law: s.43(2) Arbitration Act 2001; s.44 Arbitration Act 2001 · Documents: Application under s.43(2), Evidence of the award-debtor's financial position, Bank guarantee or deposit receipt
Tip: An award-debtor who offers security early is less likely to be ordered to deposit cash, and looks more credible on the merits.
Step 9 · Protection pending the challengeInterim measures to protect enforcement
Separately from a deposit, the award-holder can apply under section 7A, which lets the High Court Division in an international commercial arbitration make interim orders until the award is enforced. These include restraining the award-debtor from transferring property to defeat enforcement, appointing a receiver or issuing an ad interim injunction. Notice is normally required, unless the purpose would be defeated by delay. This matters most where the award-debtor's assets in Bangladesh are few or mobile.
Where: High Court Division · Time: 2-8 weeks · Law: s.7A(1) and (3) Arbitration Act 2001 · Documents: Application under s.7A, Affidavit on assets and risk
Step 10 · Hearing and judgmentAffidavit-in-opposition, reply and the record
The award-holder files an affidavit-in-opposition answering each ground, usually arguing that the challenge is an attempt to reargue facts. The applicant files a reply. The case is decided on affidavits and the arbitral record, not by fresh oral evidence, although the court can allow supplementary affidavits. Where fraud or corruption is alleged, the applicant must put clear documentary evidence before the court, because a bare allegation will not do. Each side should also file an agreed, indexed copy of the record to save hearing time.
Where: High Court Division · Time: 2-6 months · Law: s.43 Arbitration Act 2001 · Documents: Affidavit-in-opposition, Affidavit-in-reply, Indexed arbitral record, Supplementary affidavits
Step 11 · Hearing and judgmentHearing: supervision, not appeal
At the hearing, the court asks only whether a section 43 ground is made out. In Manikganj Power Generations v Yew Choon (August 2026), the High Court Division dismissed a challenge to an award of about USD 511,000. It held that its jurisdiction is supervisory, not appellate, and that it cannot reappraise evidence merely because another view is possible. It relied on Helm Dungemittel v BCIC (16 BLC 783) and on Bangladesh Railway v Pamkaya, which the Appellate Division affirmed.
In Saudi Arabian Airlines v Saudi Bangladesh Services (2021), the Appellate Division read 'public policy' narrowly, as patent illegality going to the root of the matter.
Where: High Court Division · Time: 1-5 hearing days, often 1-2 years after filing · Law: s.43(1) Arbitration Act 2001; Arbitration Application No. 14 of 2023 (HCD, 10.08.2026); Saudi Arabian Airlines Corporation v Saudi Bangladesh Services Company Ltd, 73 DLR (AD) 277 · Documents: Written submissions, Authorities, Extracts of the record
Step 12 · Hearing and judgmentThe law, public policy and fraud grounds
The grounds in section 43(1)(b) are the ones most often argued in setting aside international arbitral award cases. 'Prima facie opposed to the law' does not turn every legal error into a ground: the High Court Division held in 2026 that reading it that widely would erase the difference between an appeal and a challenge. Public policy is read narrowly, as patent illegality going to the root of the matter. Fraud or corruption must be proved, and must have induced or affected the award.
Arbitrability asks whether Bangladeshi law allows that kind of dispute to be arbitrated at all.
Where: High Court Division · Time: Within the hearing · Law: s.43(1)(b)(i)-(iv) Arbitration Act 2001; Arbitration Application No. 14 of 2023 (HCD, 10.08.2026); Saudi Arabian Airlines Corporation v Saudi Bangladesh Services Company Ltd, 73 DLR (AD) 277 · Documents: Legal submissions, Evidence of fraud, if alleged
Step 13 · Hearing and judgmentJudgment: award upheld, set aside or partly set aside
The court either dismisses the application, leaving the award fully enforceable, or sets the award aside. Where decisions on matters within the submission can be separated from those outside it, only the excess part is set aside, under the proviso to section 43(1)(a)(iv). The court does not rewrite the award or substitute its own decision; the Act gives it no power to send the award back to the tribunal. Any deposit or security is released or kept in line with the result, and costs are at the court's discretion.
Where: High Court Division · Time: Judgment day; certified copy 1-4 weeks · Law: s.43(1)(a)(iv) proviso Arbitration Act 2001; s.43(2) Arbitration Act 2001 · Documents: Judgment and order, Certified copy
Step 14 · After the judgmentIf the challenge fails: enforcement as a decree
Once the application is refused, section 44 lets the award be enforced under the Code of Civil Procedure as if it were a decree. The enforcing court is the court within whose local limits the award was finally made and signed, which is the District Judge's Court, or a Commercial Court where one has been set up. The award-holder files an execution case under Order XXI with the award and the High Court Division's order. A pending leave petition does not stop execution unless the Appellate Division grants a stay.
Where: District Judge's Court (or Commercial Court) for later enforcement · Time: 1-18 months · Law: s.44 Arbitration Act 2001; Order XXI rules 10-11 Code of Civil Procedure 1908 · Documents: Execution application under Order XXI rule 11, Award, Certified copy of the High Court Division's order
Step 15 · After the judgmentIf the award is set aside: start again
Setting an award aside annuls it but does not decide the dispute. The claimant can begin a fresh arbitration under the same agreement, unless the ground was that the agreement was invalid or the dispute not arbitrable, in which case a suit may be the only route. Section 55(4) excludes the time between the start of the arbitration and the court's order when computing limitation, so the claim is not lost by the delay. Fresh arbitration produces a new award, which can again be challenged within sixty days.
Where: Arbitral tribunal (seat in Bangladesh) · Time: Months to years · Law: s.55(4) Arbitration Act 2001; s.12 Arbitration Act 2001 · Documents: Fresh notice of arbitration, Certified copy of the setting-aside order
What if…? How the setting aside international arbitral award can change course
Choose a scenario. The map animates the route up the hierarchy and, where a case is sent back, down to the lower court and up again.
What if the losing side wants to go further?
- 1Chamber Judge, Appellate Division
Leave petition and stay before the Chamber Judge
Section 48 gives appeals only from orders of a District Judge, so there is no appeal within the High Court Division against its own section 42(2) decision. The losing side files a civil petition for leave to appeal in the Appellate Division under Article 103 within sixty days of the judgment. An award-debtor who wants to stop execution meanwhile applies for a stay, which the Chamber Judge hears and may grant on terms such as security.
60 days to file; stay hearing within weekss.48 Arbitration Act 2001Article 103(3) Constitution of BangladeshOrder XIII rule 1 Supreme Court of Bangladesh (Appellate Division) Rules 1988 - 2Appellate Division of the Supreme Court
Leave, civil appeal and final judgment
Leave is granted only where the petition raises a substantial question of law, for example on the meaning of public policy or 'prima facie opposed to the law'. The Appellate Division then hears the civil appeal and affirms, reverses or varies the High Court Division's decision. Its judgment binds all courts under Article 111, and enforcement then proceeds or ends accordingly.
1-3 yearsArticle 103 Constitution of BangladeshArticle 111 Constitution of Bangladesh
Where it ends up: The Appellate Division's decision is final, and the award is then enforced through the District Judge's Court or stays annulled.
Is a civil revision available?
- 1High Court Division
No revision against the High Court Division
Civil revision under section 115 of the Code lies to the High Court Division against subordinate courts, so it cannot be used against the High Court Division's own order on a section 42(2) application. Revision matters only later, during enforcement. Orders in execution that are not appealable, such as on a claim by a third party or an application to set aside a sale, can then be taken to the High Court Division by revision; where a Commercial Court is executing the award, section 6 of the 2026 Act sets a sixty-day limit.
Revision in execution: 6-18 monthss.115(1) Code of Civil Procedure 1908s.44 Arbitration Act 2001s.6 Commercial Courts Act 2026
Where it ends up: The set-aside decision itself goes only to the Appellate Division by leave; revision is used only for later execution orders.
Can the decision be reviewed?
- 1High Court Division
Review in the High Court Division is uncertain
The Arbitration Act provides no review of a decision on a setting-aside application, and the High Court Division treats the Act as a self-contained code. Whether a review under Order XLVII of the Code lies against a section 42(2) judgment is not settled. A party with a genuine error apparent on the record should therefore file the leave petition within sixty days rather than rely on a review alone.
Uncertain; do not let the 60 days for leave lapseOrder XLVII rule 1 Code of Civil Procedure 1908Civil Revision No. 4283 of 2024 (HCD, 11.08.2025) - 2Appellate Division of the Supreme Court
Review of the Appellate Division's judgment
After the Appellate Division decides, a review petition under Article 105 can be filed within thirty days. In a civil matter the grounds are similar to Order XLVII of the Code. The petition is not a rehearing of the appeal and is rarely granted, so it should be used only for a clear error apparent on the face of the record.
30 days to file; 3-12 monthsArticle 105 Constitution of BangladeshOrder XXVI rules 1-2 Appellate Division Rules 1988
Where it ends up: The judgment stands or is corrected, and the matter closes.
What if High Court Division decisions conflict?
- 1High Court Division
Reference to a Larger Bench
A section 113 reference is made by a subordinate court to the High Court Division, so it does not apply here. Where a single judge doubts an earlier decision on the scope of section 43, the judge can place the matter before the Chief Justice, who may constitute a Larger Bench, as happened with the scope of section 7A in Accom Travels and Tours v Oman Air. The Larger Bench's answer binds single benches until the Appellate Division decides otherwise.
6-24 monthsArticle 107(3) Constitution of Bangladeshs.113 Code of Civil Procedure 1908Accom Travels and Tours v Oman Air SAOC, 27 BLC 596
Where it ends up: The point of law is settled by a Larger Bench or, finally, by the Appellate Division.
What if the Appellate Division sends the case back?
- 1Appellate Division of the Supreme Court
Judgment set aside and application remitted
Where the High Court Division dismissed the application on a preliminary point, such as limitation or forum, without deciding the grounds, or failed to deal with a ground properly argued, the Appellate Division can set the judgment aside and send the application back for hearing on the merits. It may keep the deposit or security in place meanwhile, and it usually tells the High Court Division which issues remain open.
On judgmentArticle 103 Constitution of BangladeshArticle 104 Constitution of Bangladeshs.43(2) Arbitration Act 2001 - 2High Court Division
Rehearing in the High Court Division
The Arbitration Application is restored to its original number and heard again in line with the Appellate Division's directions. The court decides the section 43 grounds it had not reached and gives a fresh judgment, which either upholds or sets aside the award. Any deposit ordered under section 43(2) is dealt with in the fresh judgment.
6-18 monthss.42(2) Arbitration Act 2001s.43 Arbitration Act 2001 - 3Appellate Division of the Supreme Court
Fresh leave petition if needed
The fresh judgment can again be taken to the Appellate Division by civil petition for leave within sixty days, with a fresh stay application if needed. Because the remand narrows the issues, a second trip is unusual, and setting aside international arbitral award disputes usually end, with the award enforced or annulled, after the rehearing.
60 days to fileArticle 103 Constitution of BangladeshOrder XIII rule 1 Appellate Division Rules 1988
Where it ends up: The High Court Division decides the grounds on rehearing, subject to one more leave petition.
What if the award was made abroad?
- 1District Judge's Court (or Commercial Court) for later enforcement
Resist enforcement instead of seeking annulment
A foreign award, made at a seat outside Bangladesh, cannot be set aside here: sections 42 and 43 apply only to Bangladesh-seated arbitrations. In South Express v Madina Enterprise (July 2026), the High Court Division held that the District Judge, Dhaka exceeded his jurisdiction by purporting to set aside a London award. The award-debtor can only challenge the award at the seat, or resist enforcement before the District Judge in Dhaka, or a Commercial Court there, on the section 46 grounds.
Within the enforcement cases.3 Arbitration Act 2001ss.45-46 Arbitration Act 2001Arbitration Appeal No. 08 of 2025 (HCD, 09.07.2026) - 2High Court Division
Appeal from a refusal to enforce
If the District Judge refuses to recognise or enforce the foreign award, the award-holder can appeal to the High Court Division under section 48(c). An order allowing enforcement is challenged by revision. The High Court Division applies the same narrow section 46 standard and does not review the merits of the award.
1-3 yearss.48(c) Arbitration Act 2001s.115(1) Code of Civil Procedure 1908
Where it ends up: A foreign award is never annulled in Bangladesh; it is either enforced here or refused enforcement on section 46 grounds.
How the setting aside international arbitral award moves up the court hierarchy
Setting aside international arbitral award cases skip the lower courts. For an international commercial arbitration seated in Bangladesh, section 42(2) gives the challenge directly to the High Court Division, which hears it in its statutory original jurisdiction before a single judge. A domestic award goes instead to the District Judge under section 42(1), and a foreign award cannot be set aside here at all. There is no value threshold: the type of arbitration decides the forum.
The Commercial Courts Act 2026 does not take over these applications, because it excludes matters within the High Court Division's original jurisdiction. The High Court Division exercises a supervisory, not an appellate, jurisdiction: it tests the award against section 43 and does not rehear facts. Section 48 gives no appeal from its decision, and revision does not lie against it. The route upwards is a civil petition for leave to the Appellate Division under Article 103, which decides questions of law.
If the challenge fails, enforcement drops down to the District Judge's Court where the award was signed.
- Appellate DivisionChamber Judge, Appellate Division · Appellate Division of the Supreme Court
- High Court DivisionHigh Court Division
- Appellate levelDistrict Judge's Court (or Commercial Court) for later enforcement
- Start · outside courtArbitral tribunal (seat in Bangladesh) · Applicant's lawyer
Where your case is heard
Addresses are for Dhaka. Every district has equivalent courts at its own district judgeship.
Supreme Court of Bangladesh (Appellate Division and High Court Division)
Supreme Court of Bangladesh, Shahbag, Ramna, Dhaka-1000Hears appeals, revisions, references, writ petitions under Article 102, company matters and death references (High Court Division), and appeals by leave from the High Court Division (Appellate Division).
Both Divisions sit in the Supreme Court complex; many High Court Division benches sit in the Annex Building. Check the daily cause list for the bench and court room. Postal contact is the Registrar General, Supreme Court of Bangladesh, Ramna, Dhaka-1000.
Court of the District and Sessions Judge, Dhaka (Dhaka Judge Court)
Dhaka Judge Court premises, 16 Johnson Road, Sadarghat, DhakaSeat of the Dhaka District Judge and Additional District Judges (civil appeals, probate, district-level civil and sessions work outside the metropolitan area) and the civil courts of first instance (Joint District Judge, Senior Civil/Assistant Judge courts).
Official judiciary portal gives '16 Johnson Road, Sadarghat, Dhaka'. Many civil courts (Additional District Judge courts, Joint District Judge and Senior Assistant Judge courts, Artha Rin Adalat No.1, insolvency court) are in the new 8-storey District Judge Court building in the same premises. The 2026 judgeship list names the first-instance civil courts 'Senior Civil Judge' / 'Civil Judge' (formerly Senior Assistant Judge / Assistant Judge); some pages still use the old names. Every district has an equivalent court at its district judgeship.
Arbitral tribunal (seat in Bangladesh)
Where this happens depends on your district or the office concerned. Ask us for the exact courtroom and address.
Applicant's lawyer
Where this happens depends on your district or the office concerned. Ask us for the exact courtroom and address.
How long each stage takes
These are indicative ranges based on typical Dhaka practice. Adjournments, case backlogs and appeals can stretch them.
Documents checklist and key terms
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- International commercial arbitration
- A commercial arbitration in which at least one party is foreign, as defined in s.2(c) of the Arbitration Act 2001.
- Seat
- The legal place of the arbitration. Only awards seated in Bangladesh can be set aside by Bangladeshi courts.
- Setting aside
- Annulment of an award by the court on one of the grounds in s.43; it removes the award but does not decide the dispute.
- Award-holder
- The party in whose favour the award was made.
- Award-debtor
- The party ordered by the award to pay or perform, usually the applicant to set it aside.
- Public policy
- A narrow ground for setting aside, read by the courts as patent illegality going to the root of the matter.
- Statutory original jurisdiction
- Cases that a statute sends straight to the High Court Division as the first court, such as s.42(2) applications.
- Civil petition for leave to appeal
- The application to the Appellate Division for permission to appeal a High Court Division judgment, filed within sixty days.
Setting aside international arbitral award: common questions
Which court hears an application for setting aside international arbitral award decisions?
How long do I have to file?
Can the court look again at the evidence?
Does filing the application stop the award-holder from enforcing?
Can the court set aside only part of the award?
What happens if the award is set aside?
Can I appeal the High Court Division's decision?
How long does setting aside international arbitral award proceedings take?
Law and sources
- Arbitration Act 2001, Laws of Bangladesh
- Arbitration Act 2001, Bangla text with amendments (mirror)
- Manikganj Power Generations Ltd v Yew Choon Pvt Ltd, Arbitration Application No. 14 of 2023 (HCD, 10.08.2026)
- Lily Begum Ahmed v Navana Real Estate Ltd, Civil Revision No. 4283 of 2024 (HCD, 11.08.2025)
- South Express Ltd v Madina Enterprise, Arbitration Appeal No. 08 of 2025 (HCD, 09.07.2026)
- Legend World Tank PTE v Multinational Shipping Co Ltd, Arbitration Application No. 30 of 2025 (HCD, 12.07.2026)
- Commercial Courts Act 2026 (Act 23 of 2026), Bangla text (mirror)
- Constitution of the People's Republic of Bangladesh, Laws of Bangladesh
- Code of Civil Procedure 1908, Laws of Bangladesh
This Case Journey is a general guide to procedure in Bangladesh as of October 2026. It is not legal advice. Procedure, fees and time limits change, and every case turns on its own facts. Timelines are indicative. Speak to a lawyer about your own matter.
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