Court-Annexed Mediation in Bangladesh: Sections 89A to 89C CPC Explained

Court-annexed mediation Bangladesh: the 2026 framework

The court-annexed mediation Bangladesh civil courts must now order in every contested suit is the most underused cost-saving tool in domestic litigation. Once a defendant files a written statement and the contesting parties are before the court, section 89A of the Code of Civil Procedure 1908 requires the court to adjourn the hearing and attempt settlement through mediation, either by mediating itself or by referring the dispute to a legal aid officer, the parties' lawyers, the parties or a panel mediator.[1] The process runs to a statutory clock, is protected by confidentiality, ends in a decree that cannot be appealed and returns the court fee to the parties if it succeeds.

This guide is TRW's in-depth treatment of sections 89A, 89B and 89C. It traces the 2003, 2006, 2012 and 2017 amendments, sets out the current text and time limits, explains who may mediate, walks through the procedure step by step, and covers confidentiality, the court-fee refund, outcomes and appellate mediation. It then explains how the regime sits alongside the 2025 pre-case mediation scheme and the 2026 commercial courts, and closes with practical tips. For a shorter overview of every dispute resolution route, see our guide to alternative dispute resolution in Bangladesh.

Summary: Section 89A of the Code of Civil Procedure makes mediation a mandatory step in contested civil suits after the written statement is filed. Parties have 10 days to name a mediator, mediation must finish within 60 days (extendable by 30), a settlement is recorded as an unappealable decree within 7 days of the mediator's report, and the court certifies a refund of the court fees paid on the plaint or written statement. Section 89C applies the same model to first appeals, and section 89B lets parties withdraw a suit to arbitration.

Key point: Since the Code of Civil Procedure (Amendment) Act 2012 replaced "may" with "shall", court-annexed mediation is no longer a discretionary courtesy. A party that treats the referral as a formality loses the cheapest exit from the suit, and a settlement reached outside the process will generally not attract the statutory court-fee refund.

At a glance

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Table of Contents

What court-annexed mediation Bangladesh law provides

Court-annexed mediation takes place inside a pending case, at the court's direction and under statutory rules, unlike private mediation or pre-case mediation before filing. In Bangladesh the core rules sit in Part V of the Code of Civil Procedure 1908, in sections 89A to 89E.[2]

The Code defines mediation in an Explanation to section 89A as a flexible, informal, non-binding, confidential, non-adversarial and consensual process in which the mediator facilitates a compromise without dictating its terms. A compromise may resolve the whole dispute or only part of it.[1] The mediator decides nothing, and a partial agreement that narrows the issues for trial is a legitimate outcome.

The four provisions that make up the scheme

• Section 89A: mandatory mediation in original civil suits at the trial stage.
• Section 89B: withdrawal of a pending suit so that the dispute can go to arbitration.
• Section 89C: mandatory mediation in first appeals from original decrees.
• Sections 89D and 89E: transitional rules for older cases and the government's power to fix the areas and dates on which sections 89A and 89C apply.[2]

Court-annexed mediation Bangladesh history: 2003 to 2017

The current regime is the product of four amending statutes, each moving further from voluntary settlement towards a structured, compulsory stage.

2003: sections 89A and 89B introduced

The Code of Civil Procedure (Amendment) Act 2003 (Act No. IV of 2003) inserted sections 89A and 89B.[1] As first enacted, mediation was optional: the court "may" refer a dispute after the written statement, and the reform was presented as a pre-trial ADR option aimed at reducing the backlog in the lower civil courts.[4]

2006: mediation on appeal

Section 89C, which extended mediation to appeals from original decrees, was inserted by the Code of Civil Procedure (Amendment) Act 2006 (Act No. VIII of 2006).[2] [4] Like section 89A at the time, the appellate power was discretionary.

2012: from "may" to "shall"

The decisive change came through the Code of Civil Procedure (Amendment) Act 2012 (Act No. XXXVI of 2012), published in the Bangladesh Gazette on 24 September 2012 and effective immediately.[3] It made five changes to the mediation scheme:

• replaced "the Court may" with "the Court shall" in section 89A(1), and "may" with "shall" in section 89C(1), making referral mandatory at both trial and appellate stages;
• updated the exclusion for money-loan suits to refer to the Artha Rin Adalat Ain 2003;
• substituted new sub-sections (3), (4) and (5) of section 89A on fees, time limits and reporting;
• substituted section 89C(2), applying section 89A to appeals with necessary changes; and
• inserted sections 89D and 89E.[3]

2017: the legal aid officer

The Code of Civil Procedure (Amendment) Act 2017 added references to the legal aid officer appointed under the Legal Aid Services Act 2000, so that a court can refer a suit to that officer and the officer can conduct the mediation free of charge.[1] [8]

The section 89E question

Section 89E(1) states that sections 89A and 89C apply in such areas, and from such dates, as the government fixes by notification in the official Gazette.[3] A 2015 commentary in The Daily Star reported that no such notification had then been issued and argued that the mandatory provisions had therefore not taken effect.[5] Whatever view is taken of that argument, courts across the country refer suits to mediation in practice, and the government now actively urges judges to do so.[6] [10] Where the point matters, check the current Gazette position.

Section 89A today: the current text and time limits

Section 89A has thirteen sub-sections and an Explanation. The provisions that govern day-to-day practice in court-annexed mediation Bangladesh lawyers run in the district courts are set out below, as they appear on the official Laws of Bangladesh database.[1]

When the duty arises: section 89A(1)

The duty is triggered once the written statement has been filed, provided all contesting parties are in attendance, in person or through their pleaders. At that point the court "shall", by adjourning the hearing, mediate in order to settle the dispute, or refer it for mediation to a legal aid officer, to the parties' pleaders, to the parties themselves where they have no pleader, or to a mediator from the district panel.[1] Suits under the Artha Rin Adalat Ain 2003 are excluded, because money-loan courts operate their own mediation and settlement scheme under that Act.[1] [7]

Fees and procedure: section 89A(3)

Where the dispute is referred to pleaders or a mediator, the pleaders, their clients and the mediator agree the mediator's fees and the procedure. If they cannot agree on fees, the court fixes them and the court's figure binds the parties. Where the court itself mediates, or the reference is to a legal aid officer, the court sets the procedure and no fee is charged for the mediation.[1] [3]

The statutory clock: section 89A(4)

The time limits are short and deliberately so:[1] [3]

• 10 days from the date of reference for the parties to inform the court in writing whom they have appointed as mediator;
• 7 days for the court to appoint a mediator from the panel if the parties fail to do so;
• 60 days to conclude the mediation, running from the day the court is informed of the appointment, or the mediator is appointed by the court, or the reference is made to a legal aid officer, as the case may be; and
• up to 30 further days by extension, which the court may grant of its own motion or on a joint prayer of the parties.

The maximum life of a court-annexed mediation Bangladesh courts allow is therefore about three months from reference. There is no second extension, so parties close to agreement near the deadline should record what they have, including a partial compromise.

Reporting and decree: section 89A(5) to (7)

The mediator reports the result to the court without breaching the parties' confidentiality. If the result is a compromise, its terms are reduced to a written agreement signed, or thumb-printed, by the parties as executants, with the pleaders and mediator signing as witnesses. The court must then, within seven days of receiving the report, pass an order or decree under Order XXIII of the Code.[1] [3] If the court mediated itself, it prepares the report and passes the order in the same way. If no compromise is reached, the suit resumes from the stage it had reached before the reference, as if no mediation had taken place.[1]

Who mediates in court-annexed mediation Bangladesh cases

Section 89A offers a range of neutrals, from the trial judge to a private professional chosen by the lawyers. The choice affects cost, candour and the likelihood of settlement.

The court itself

The judge may mediate personally. Two safeguards follow. No fee is charged, and if the court-led mediation fails, the same judge may not try the suit: it must be heard by another court of competent jurisdiction.[1]

The legal aid officer

Since 2017, the court may refer the dispute to the district legal aid officer, who mediates free of charge.[1]

Lawyer-chosen mediators

Where the reference is to the pleaders, they must, after consulting their clients, jointly appoint a mediator. The mediator may be a pleader not engaged in the suit, a retired judge, a person on the district panel or any other person the parties consider suitable, and more than one mediator may be appointed.[1] This route gives the parties most control and suits high-value commercial and property disputes.

The district panel

The District Judge, in consultation with the President of the District Bar Association, prepares and periodically updates a panel of mediators, which may include pleaders, retired judges, persons trained in dispute resolution and other suitable persons, and notifies it to the civil courts in the district.[1]

Who cannot mediate

A person holding an office of profit in the service of the Republic is ineligible, and a panel mediator who has at any time been engaged as a pleader by either party in any suit cannot mediate between those parties.[1]

Step-by-step procedure under section 89A

In a typical district court suit, court-annexed mediation Bangladesh practitioners handle proceeds through the following sequence. The time limits come from section 89A(4) and (5); the preparation points reflect how we run mediations for clients.

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The reference does not suspend deadlines that run outside the suit, so protect related claims and notices separately. And because the mediator's report must not reveal what was said, never assume the court will learn who was reasonable.

Preparing the mediation brief

The Code says nothing about written submissions, but a short, candid brief to the mediator is the most useful document in the process: the history, the real issues, the key documents, earlier offers and the interests behind the pleaded case. In property suits, attach the land schedule, title chain and survey or mutation records. Our guide to partition suits in Bangladesh explains the records that usually decide those disputes.

Drafting the settlement

Because the agreement becomes an unappealable decree, draft it to be executed: describe property by mouza, khatian and dag numbers; fix payment amounts, dates and method; allocate costs, taxes and registration fees; provide for possession, documents and withdrawal of related cases; and state default consequences.

Confidentiality and without-prejudice protection

Section 89A(8) provides that all communications made, evidence given, admissions made and statements given in the course of mediation are privileged and confidential, and cannot be used in any subsequent hearing or proceeding.[1] Section 89A(5) separately requires the mediator to report without violating the parties' confidentiality.[1]

That protection lets parties make concessions and test figures without fear of having them read back at trial. It attaches to what is said and produced in mediation, not to pre-existing documents merely shown to the mediator, so mark proposals as made in mediation and keep a record of which documents were created for it.

The recusal rule in section 89A(9) reinforces this where the court mediates: a judge who has heard the parties' private positions will not decide the suit.[1]

Court-fee refund and other financial consequences

The court-fee refund is the most tangible incentive in court-annexed mediation Bangladesh law offers. Under section 89A(11), where a dispute is settled on compromise under the section, the court issues a certificate directing refund of the court fees paid by the parties in respect of the plaint or written statement, and the parties are entitled to the refund within 60 days of the certificate.[1]

In high-value money and property suits the court fee on the plaint can be significant, and its return can bridge the gap between the parties. Three practical points follow:

• The refund follows a section 89A settlement. A compromise reached privately and filed under Order XXIII outside the mediation does not carry the statutory certificate, so where settlement is in sight it is usually worth recording it through the mediation.[1]
• The settlement should say who receives the refund. If the parties intend the plaintiff's refunded fee to form part of the consideration, write that into the agreement.
• Follow up the certificate. The statute gives a 60-day entitlement, but payment depends on administrative processing, so diarise the date and chase it.

Mediator fees

Against the refund sits the mediator's fee, where a pleader or private mediator is used. The parties agree it; failing agreement, the court fixes it and the figure binds the parties.[1] Critics have pointed to the absence of any fee guideline or accreditation standard as a reason some litigants regard mediation as an additional cost rather than a saving.[7] The answer is to agree the fee, and its allocation between the parties, at the outset.

Outcomes: settlement, partial settlement or return to trial

Court-annexed mediation produces one of three outcomes, and each has defined legal consequences.[1]

Full settlement

The court passes an order or decree under Order XXIII within seven days of the mediator's report. Under section 89A(12), no appeal or revision lies against an order or decree passed on a settlement under the section.[1] The decree is executed like any other, and the court-fee refund certificate follows.

Partial settlement

Because the Explanation defines compromise to include a partial compromise, the parties can resolve some issues and leave the rest for trial.[1]

No settlement

The suit returns to the stage it had reached and proceeds as if no mediation had taken place, and nothing said in the mediation can be used.[1] Section 89A(13) preserves the parties' ordinary right to withdraw, adjust or compromise the suit under Order XXIII at any later point.[1]

What the numbers show

Comprehensive national data on court-annexed mediation Bangladesh outcomes is not published. A 2019 academic study reported that 290 cases went to mediation in 2014 with 58 per cent resolved, rising to 705 cases at 75 per cent in 2015 and 2,609 cases at 81 per cent in 2016.[6] Practitioners also report that many referrals are treated as a formality and return to court, adding delay.[7] Preparation makes the difference.

Section 89C: mediation in appeals

Section 89C(1) provides that an appellate court "shall" mediate in an appeal, or refer the appeal for mediation, to settle the dispute in the appeal. It applies where the appeal is from an original decree under Order XLI and is between the same parties who contested the suit, or parties substituted for them.[2] Section 89C(2) applies the section 89A provisions with necessary changes.[2] [3]

That imports the same toolkit: the choice of mediators, the 10, 7, 60 and 30-day clock, confidentiality, an unappealable settlement decree and a return to the appeal hearing if mediation fails. Section 89C does not itself mention the court fee paid on the memorandum of appeal, so whether a refund certificate extends to that fee depends on how the court applies section 89A(11) with the necessary changes; raise the point expressly when recording an appellate settlement.

Why appellate mediation works

Positions shift after judgment. The winner faces delay before it can execute; the loser faces an appeal with findings against it. A well-run appellate mediation can turn a contested decree into an agreed payment schedule or handover of possession, locked in against further challenge.

Pending older cases: section 89D

Section 89D allows the contesting parties to a suit or appeal that was pending before the 2012 amendment to apply, stating their willingness to mediate, so that the case is disposed of under section 89A or 89C.[3]

Section 89B: withdrawing a suit to arbitration

Section 89B(1) provides that if the parties to a suit, at any stage, apply to withdraw it on the basis that they will refer the dispute to arbitration, the court shall allow the application and permit the withdrawal. The dispute is then resolved under the Arbitration Act 2001 (the Salish Ain) so far as applicable. Section 89B(2) treats the application as an arbitration agreement under section 9 of that Act.[2]

A proviso protects the parties if the arbitration does not happen or no award is made: the withdrawn suit can be brought back.[2] It suits parties who decide mid-suit that they want a specialist, confidential decision-maker. Because the joint application itself becomes the arbitration agreement, draft it with the care of an arbitration clause: seat, number of arbitrators, appointment method, rules, language and time frame. Our analysis of arbitration agreement enforceability in Bangladesh covers the drafting points.

How court-annexed mediation interacts with the 2025 pre-case regime

The Legal Aid Services (Amendment) Ordinance 2025, in force from 1 July 2025, introduced mandatory pre-case mediation through district legal aid offices for scheduled categories of dispute.[8] It began in twelve districts on 18 September 2025, covering family disputes, house rent disputes, property-distribution disputes within Assistant Judge courts, pre-emption, parents' maintenance, dowry complaints and certain complaints under the Women and Children Repression Prevention Act 2000; a case may be filed only if mediation fails, and a certified settlement is enforceable as a court order.[9] On 21 July 2026 the Law, Justice and Parliamentary Affairs Minister, Md Asaduzzaman, extended the scheme to ten more districts.[11]

Two stages, not alternatives

The two regimes operate at different points. Pre-case mediation is a gateway to filing; section 89A is a stage inside a suit that has already been filed. Nothing in section 89A excludes suits that went through a failed pre-case mediation, so in a covered district a partition or rent dispute may pass through mediation twice: once at the legal aid office before filing and again after the written statement. The second attempt is not a formality: the parties now have pleadings, defined issues and the cost of trial in view.

Encouraging early referral

Announcing the July 2026 expansion, the Law Minister reported an average fall of about 62 per cent in new filings in the pilot districts between February and May 2026 compared with the same period in 2025, and urged judges to refer cases with settlement potential early to district legal aid offices or accredited mediators.[10] Expect trial courts to apply section 89A with more energy. For disputes over land, our land dispute litigation guide explains where mediation fits within the wider strategy.

Mediation in the 2026 commercial courts

The Commercial Courts Ordinance 2026 (Ordinance No. 1 of 2026), dated 1 January 2026, created dedicated commercial courts at district level for a defined list of commercial disputes. It excludes matters within the High Court Division's original jurisdiction and the jurisdiction of the money-loan courts.[12] On 3 February 2026 the government notified 75 commercial courts nationwide, including three in Dhaka metropolitan area.[14] The Ordinance has since been replaced by the Commercial Courts Act 2026, passed by Parliament in April 2026, and the Law Minister has said the government will re-examine the Act and may bring amendments.[12] [13]

The commercial mediation model

Section 7 of the Ordinance contained a separate mediation code. Pre-suit mediation was mandatory where no urgent interim relief was sought, subject to rules prescribing the procedure. Once a suit was pending, the parties could agree to mediate at any stage before judgment, before a panel mediator or another suitable mediator approved by the court, within 30 days extendable by a further 30. A settlement signed by the parties and the mediator, once presented to the court and found not to prejudice third parties, was treated as a decree enforceable by the commercial court.[12]

What this means for section 89A

The commercial regime is faster and more consensual than section 89A. The Ordinance applied the Code of Civil Procedure in several respects but did not refer to section 89A.[12] Parties to commercial suits should therefore check the mediation provisions of the Commercial Courts Act 2026 and any rules made under it, rather than assume the section 89A clock and refund apply. Ordinary civil suits outside the commercial list remain squarely within section 89A. For contract claims generally, see our guide to breach of contract in Bangladesh.

Comparing the mediation routes

The table below compares court-annexed mediation under the Code with the other mediation stages a civil or commercial dispute may meet. On a phone, scroll it sideways.

Practical tips and mistakes to avoid

Most failed court-annexed mediation Bangladesh litigants experience fails for avoidable reasons. These are the points we press on clients.

• Prepare before the written statement. The reference follows the written statement, and the ten-day window is short. Shortlist mediators and agree authority to settle before the hearing.
• Send someone with authority. A company representative who must refer every proposal to a board will run out the 60 days. Obtain a board resolution or written mandate with a settlement range in advance.
• Choose the neutral deliberately. Use the court or legal aid officer where cost is decisive and a specialist where the issues are technical.
• Do not treat the referral as a formality. The government is pressing judges to make referrals work.[10]
• Use the extension wisely. Ask for the 30-day extension jointly and early, with a concrete plan for what will be achieved in that time.
• Draft for execution. The decree cannot be appealed, so precision in property descriptions, payment terms and defaults is essential.
• Claim the refund. Ensure the settlement is recorded under section 89A, the certificate is issued and payment is pursued within the 60-day period.

Case law

Reported appellate authority on sections 89A to 89C remains thin, and we have not cited any decision we could not verify against an authoritative report. Arguments about referral, time limits, confidentiality and refund should be built from the statutory text.

Getting value from court-annexed mediation Bangladesh offers

Court-annexed mediation is a three-month statutory window in which parties can end a suit with an unappealable decree, recover their court fees and keep their positions confidential. Treated seriously, it is the cheapest exit from civil litigation available.

Prepare early, choose the right neutral, send decision-makers, draft for execution and claim the refund. TRW's alternative dispute resolution practice and dispute resolution team represent clients in court-referred, legal aid and commercial mediations. If a suit of yours is approaching the written statement stage, contact TRW to plan the mediation before the clock starts.

Frequently asked questions

Is mediation compulsory in civil suits in Bangladesh?

Yes. Since the 2012 amendment, section 89A(1) of the Code of Civil Procedure requires the court, after the written statement is filed and the contesting parties attend, to mediate or refer the dispute for mediation. Settlement itself is never compulsory.[1] [3]

Which suits are excluded from section 89A mediation?

Suits under the Artha Rin Adalat Ain 2003 are excluded, because money-loan courts have their own mediation scheme.[1]

How long does court-annexed mediation take?

Parties have 10 days to name a mediator, the court has 7 days to appoint one if they do not, and mediation must finish within 60 days, extendable once by up to 30 days.[1]

Who can act as a mediator under section 89A?

The court itself, a legal aid officer, a pleader not engaged in the suit, a retired judge, a panel mediator or another suitable person. Government office-holders and panel members who have acted as a pleader for either party are excluded.[1]

Do I get my court fee back if the suit settles in mediation?

Yes. On a compromise under section 89A, the court certifies a refund of the court fees paid on the plaint or written statement, payable within 60 days of the certificate.[1]

Can a mediated settlement decree be appealed?

No. Section 89A(12) bars any appeal or revision against an order or decree passed on a settlement under the section.[1]

Can what I say in mediation be used against me at trial?

No. Communications, evidence, admissions and statements made in the mediation are privileged and confidential and cannot be used in later hearings or proceedings.[1]

Does mediation apply to appeals?

Yes. Section 89C requires an appellate court hearing a first appeal from an original decree to mediate or refer the appeal for mediation, applying section 89A with necessary changes.[2]

Can parties move a pending suit to arbitration?

Yes. Under section 89B the court must allow a joint application to withdraw the suit for arbitration under the Arbitration Act 2001, and the application is treated as an arbitration agreement.[2]

Does section 89A apply in the new commercial courts?

The commercial courts regime has its own mediation provisions, including pre-suit mediation and a 30-day in-suit mediation window under the 2026 Ordinance, so check the Commercial Courts Act 2026 and its rules before assuming section 89A applies.[12]