How to Resolve Disputes in Bangladesh (2026): Courts, ADR and Your Legal Rights

How to resolve disputes in Bangladesh: the 2026 roadmap

Knowing how to resolve disputes in Bangladesh in 2026 starts with one uncomfortable fact: the default route, a contested court case, is the slowest option available. More than 4.6 million cases were pending across the country's courts at the end of March 2026.[9] Parliament has responded by building compulsory settlement stages in front of the courts, creating dedicated Commercial Courts with fixed timetables and leaving arbitration, writ jurisdiction and specialist tribunals to handle the disputes ordinary civil courts cannot deal with well.

This article is a roadmap rather than a deep dive. It maps every route open to a business, family, landlord, lender, employee or foreign investor: direct negotiation, the legal notice, mandatory pre-case mediation under the Legal Aid Services (Amendment) Act 2026, court-annexed mediation, arbitration, the civil courts, the new Commercial Courts, criminal proceedings, statutory tribunals and the High Court Division's writ jurisdiction. For each one it sets out when the route is right, what the law makes compulsory and where to read the detail, then gives a decision framework for choosing between them.

Summary: Most disputes in Bangladesh can be resolved through one of nine routes. The law now dictates the first step for many of them: pre-case mediation at the district legal aid office for scheduled family, rent, partition, pre-emption, parental maintenance, dowry and smaller cheque disputes in notified districts; a written demand before any cheque dishonour complaint; two months' notice before suing the government; and the Commercial Courts for listed business disputes. Choosing the wrong door costs time, money and sometimes the claim itself.

Key point: Before deciding how to resolve disputes in Bangladesh, answer five questions in order: is there an arbitration clause, is the dispute on the legal aid schedule in a notified district, is it a listed commercial dispute, is a public authority involved, and is there genuinely criminal conduct? The answers usually identify the correct forum before a single document is filed.

At a glance

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Table of Contents

How to resolve disputes in Bangladesh: why the first decision matters most

Every dispute has a correct forum, and the system punishes litigants who guess. A family claim filed in a notified district without pre-case mediation will not get the hearing its filer expects; a commercial civil suit may be transferred to a Commercial Court; a claim brought despite an arbitration clause can be stayed; and a premature writ petition will usually be dismissed. Each mistake costs months.

The scale of the backlog explains why the correct first move is so valuable. On 7 July 2026 the Law Minister, Md Asaduzzaman, told Parliament that 4,639,476 cases were pending as at 31 March 2026, of which 4,078,432 were in the lower courts, 522,331 in the High Court Division and 38,713 in the Appellate Division.[9] A route that bypasses that queue legitimately is worth more than almost any argument on the merits.

Three questions that frame every dispute

Before choosing a route, fix three facts. First, what is the legal category: contract, property, family, employment, loan, consumer, regulatory or criminal? Second, what outcome do you actually need: payment, possession, a declaration, an injunction, reinstatement or punishment? Third, what deadlines are running? The Limitation Act 1908 bars most stale civil claims outright, and specialist statutes impose much shorter windows of their own. Those three answers drive everything that follows.

Your legal rights in a dispute in Bangladesh

Whatever route you choose, a set of baseline rights travels with you. The Constitution guarantees equality before the law and equal protection of the law, the right to be dealt with only in accordance with law, and, in criminal matters, protections including a speedy and public trial by an independent and impartial court. The right to move the High Court Division to enforce fundamental rights is itself a fundamental right.[12] Our overview of fundamental rights in Bangladesh explains how these guarantees are enforced in practice.

Practical rights that matter day to day

• The right to be heard: no court, tribunal or mediator may decide against you without notice and a fair opportunity to respond.
• The right to legal representation: you may appoint an advocate in any court, and parties who cannot afford one may qualify for state-funded help through the government legal aid system.
• The right to an appeal or revision: almost every first-instance decision can be reviewed by a higher court, though the time limits are strict. See our guides to civil appeals and civil revision.
• The right not to be harassed through the criminal process: where a civil dispute is dressed up as a criminal case, the accused can seek bail and, in appropriate cases, quashing. Our analysis of false accusations in Bangladesh covers the remedies.

Route 1: negotiation and the legal notice

Most disputes that end well end early, through direct negotiation backed by a clear written record. A formal letter of demand, usually called a legal notice, sets out the facts, the legal basis of the claim, the remedy demanded and a deadline. It often produces payment on its own, and when it does not, it fixes the record for whatever comes next. Our detailed guide to the legal notice in Bangladesh covers drafting, service and the common mistakes.

When a notice is legally compulsory

In most private disputes a notice is good practice rather than a legal precondition, but there are important exceptions. Section 80 of the Code of Civil Procedure 1908 requires written notice to be delivered to the government or a public officer two months before a suit is filed against them, stating the cause of action, the plaintiff's details and the relief claimed.[1] Under section 138 of the Negotiable Instruments Act 1881, a cheque dishonour becomes an offence only if the payee makes a written demand within thirty days of learning of the dishonour and the drawer fails to pay within thirty days of receiving it.[11]

Our cheque dishonour legal notice guide sets out that timeline step by step. Many commercial contracts also require notice of breach, a cure period or senior-management negotiation before formal proceedings.

Making negotiation productive

Mark settlement correspondence without prejudice, involve someone with authority to settle and record every agreed term. Negotiation does not stop limitation running. A negotiated settlement is only a contract, so where enforcement matters, convert it into a mediation agreement, compromise decree or consent award.

Route 2: mandatory pre-case mediation under the Legal Aid Services (Amendment) Act 2026

The biggest structural change in how to resolve disputes in Bangladesh is that, for a defined list of disputes, court is no longer the first stop. The Legal Aid Services (Amendment) Act 2026 (Act No. 45 of 2026), dated 10 April 2026, inserted sections 21B to 21E into the Legal Aid Services Act 2000 and added a schedule of covered disputes.[3] It replaced the 2025 ordinance under which the scheme was first piloted.

What section 21B requires

Section 21B has effect notwithstanding any other law. For a scheduled dispute, the aggrieved party must first apply to the legal aid office for mediation, and only if mediation fails may a party file in the appropriate court, attaching a report on the failed mediation. The time spent in mediation is excluded from limitation. Mediation is conducted by the Chief Legal Aid Officer, a legal aid officer or a special mediator, with jurisdiction across the district.[2] By S.R.O. No. 288 of 30 July 2026, section 21B took effect from 31 July 2026 in 30 listed districts.[2]

Which disputes are covered

Official reporting for National Legal Aid Day 2026 listed nine categories: restitution of conjugal rights, dower, maintenance, guardianship and custody of children, house rent disputes, partition disputes in civil judge courts, maintenance of parents, cheque dishonour complaints of up to Tk 3 lakh and complaints of violence against women over dowry.[4] Pre-emption claims under the land tenancy laws are also within the scheme.[5] When the programme was extended to Bogura, Thakurgaon, Patuakhali, Bhola, Natore, Jashore, Shariatpur, Cox's Bazar, Panchagarh and Tangail on 21 July 2026, the minister reported that filings in the 20 pilot districts had fallen by an average of about 62 per cent between February and May 2026 compared with a year earlier.[5]

For the full mechanics, including who mediates, what a certified agreement means and how to prepare, read our guides to mediation in Bangladesh and legal aid in Bangladesh. The point for this roadmap is simpler: if your dispute is on the schedule and your district is notified, pre-case mediation is your first legal step, whatever your means.

Route 3: court-annexed mediation and other settlement stages

Mediation does not end once a civil suit is filed. Under section 89A of the Code of Civil Procedure, after the written statement is filed and the contesting parties attend, the court shall mediate or refer the dispute for mediation, Artha Rin suits excepted. Where the dispute settles, the court issues a certificate directing a refund of the court fees paid, payable within sixty days.[1] Appellate courts have a parallel power, and parties may jointly withdraw a suit to arbitration. Our guide to court-annexed mediation in Bangladesh explains how to use these stages tactically.

Specialist forums have their own settlement stages. Money-loan suits in the Artha Rin Adalat include settlement conferences and mediation; family courts run reconciliation; labour disputes pass through grievance and conciliation; and the Commercial Courts can refer a pending suit to mediation by consent. Our hub on alternative dispute resolution in Bangladesh compares all of these processes side by side.

Route 4: arbitration for commercial and cross-border disputes

Where a contract contains a valid arbitration clause, arbitration is not merely an option; it is the agreed forum, and a court will generally stay proceedings brought in breach of it. Arbitration in Bangladesh is governed by the Arbitration Act 2001, which is based on the UNCITRAL Model Law, and the resulting award is enforced as a decree of the court.[10] A domestic award can be challenged only on limited grounds and generally within sixty days of receipt.[10]

When arbitration is the right answer

Arbitration suits high-value commercial, construction, energy, joint-venture and cross-border disputes where confidentiality, a specialist tribunal, a neutral seat or international enforceability matter. Bangladesh is a party to the New York Convention, so a Bangladesh award can travel and a foreign award can be enforced here.[10] Arbitration is less attractive for small claims, where tribunal and institutional fees can outweigh the amount in dispute; the Law Minister himself has flagged high arbitrator fees as a deterrent to ordinary businesspeople.[8]

Where to read the detail

TRW has published a full arbitration library, and this roadmap does not repeat it. Start with arbitration law in Bangladesh and the arbitration process step by step. For drafting, see arbitration clauses; for institutions, BIAC arbitration, SIAC and ICC; for budgeting, the cost of arbitration; and for the end game, enforcing awards, foreign award enforcement and setting aside an award. If you are still choosing between forums, our comparison of arbitration and litigation is the place to begin.

Route 5: civil suits in the ordinary courts

The civil courts remain the default forum for property, title, possession, partition, declaration, injunction, inheritance and most money claims that are not commercial within the 2026 definition or covered by an arbitration clause. Civil litigation runs under the Code of Civil Procedure 1908, with court fees, limitation and pecuniary jurisdiction each shaping where and whether a suit can be filed. Our step-by-step guide to filing a civil suit in Bangladesh covers the plaint, valuation, court fees and service.

Urgent protection

Courts are often the only route that can stop something happening tomorrow. A temporary injunction can restrain a sale, construction or dispossession while the suit is pending, and a stay order can freeze a decree or proceeding pending appeal or revision. Where urgent interim relief is needed, the court is usually the right first stop even if mediation or arbitration follows.

Land and property disputes

Property disputes are the largest single category in the lower courts and have their own toolkit: partition, pre-emption, recovery of possession, deed cancellation, record correction and protection against land crime. Our roadmap on how to resolve land disputes in Bangladesh covers that territory in depth, together with our guides to partition suits, pre-emption and recovery of possession.

Winning is not the same as being paid

A decree is only paper until it is executed, and execution frequently attracts fresh objections. Identify assets before you file and read our guide to the execution case in Bangladesh.

Route 6: the Commercial Courts Act 2026

For business disputes, the most important 2026 development in how to resolve disputes in Bangladesh is the Commercial Courts Act 2026 (Act No. 23 of 2026), dated 10 April 2026 and deemed to have taken effect on 1 January 2026, which repealed and replaced the Commercial Courts Ordinance 2026.[6] On 3 February 2026 the government notified 75 Commercial Courts nationwide, including three in Dhaka Metropolitan City and a separate court for Dhaka district.[7]

What counts as a commercial dispute

Section 2 defines a commercial dispute by reference to 24 categories, including trade dealings, import and export of goods or services, carriage of goods, construction contracts, franchising, insurance and arbitration-related matters, with power for the government to add more by notification. Matters within the original jurisdiction of the High Court Division and the Artha Rin courts are excluded, and a dispute does not stop being commercial merely because the government is a party.[6] Suitable pending civil suits are transferred to the Commercial Courts.[6]

Mediation and timetable

Section 7(1) requires a plaintiff who does not seek urgent interim relief to go through pre-suit mediation in the manner prescribed by rules, if such rules exist when the suit is filed. Section 7(2) allows the court to refer a pending suit to mediation with both parties' consent, to be completed within thirty days, extendable by a further thirty, and a settlement that does not harm a third party's interest is treated as a decree.[6]

The Act then imposes discipline unusual in Bangladeshi litigation: a case management hearing, a maximum of three adjournment requests before the final hearing, a final hearing to be concluded within ninety days, summary judgment, and an appeal to the High Court Division within sixty days, with interlocutory orders not appealable.[6]

Known gaps

The Act is new and imperfect. At a May 2026 seminar the Law Minister acknowledged that it had been passed in haste, that regulatory, tax, labour and criminal aspects of business disputes remain outside it, and that amendments would follow.[8] Businesses should therefore check, for each dispute, whether it falls inside the 24 categories, whether pre-suit mediation rules are in force, and whether an arbitration clause takes the matter out of court altogether. Related reading: breach of contract in Bangladesh and shareholder disputes in Bangladesh.

Route 7: criminal proceedings, used correctly

Some disputes involve genuine criminal conduct, such as fraud, forgery, criminal breach of trust or dishonoured cheques. The criminal process can be started by a first information report at a police station or by a complaint petition before a Magistrate. The choice matters, and our guides to how to file a criminal case in Bangladesh and GD versus FIR explain both paths.

The cheque dishonour route

Cheque dishonour under section 138 of the Negotiable Instruments Act 1881 is the most heavily used criminal route in commercial life, because it combines a criminal sanction with recovery of the cheque amount. It is strictly time-barred: the demand, the payment window and the complaint each run to fixed periods, and a complaint must be made within one month of the cause of action.[11] In notified districts, complaints of up to Tk 3 lakh now pass through legal aid mediation first.[4] See our main guide to cheque dishonour in Bangladesh.

The limits of criminal leverage

Filing a criminal case to pressure the other side in what is really a contract or property dispute is a common mistake. It invites counter-cases and quashing applications and rarely produces payment. Where you are on the receiving end, early advice on anticipatory bail and on quashing under section 561A of the Code of Criminal Procedure through our criminal quashment practice can contain the damage.

Route 8: tribunals and specialist forums

Many disputes belong to a specialist forum whose jurisdiction is often exclusive.

• Bank and financial institution loans: recovery suits by financial institutions go to the Artha Rin Adalat, which is excluded from Commercial Court jurisdiction.[6] See our Artha Rin Adalat guide.
• Employment: individual and collective disputes under the Bangladesh Labour Act 2006 go through the statutory grievance procedure and then to the Labour Court. See our guides to the Labour Court and wrongful dismissal.
• Family: divorce, dower, maintenance, restitution and guardianship go to the family courts, now preceded by legal aid mediation in notified districts. See maintenance cases and child custody and guardianship.
• Public service: disputes over the terms of service of people in the service of the Republic belong to the administrative tribunals established under article 117 of the Constitution, and once such a tribunal exists no other court may entertain matters within its jurisdiction.[13]
• Consumers: a consumer can complain to the Directorate of National Consumer Rights Protection within thirty days of the cause of action under section 60 of the Consumer Rights Protection Act 2009, and a complainant whose complaint is proved receives 25 per cent of any fine realised.[14]
• Shipping: maritime claims go to the Admiralty Court. See admiralty suits.
• Tax: income tax, VAT and customs disputes follow their own appeal ladders to appellate tribunals before reaching the High Court Division. Our tax disputes practice handles these.

Route 9: writ petitions against public authorities

When the other side is the state, a statutory body or someone performing a public function, the dispute may belong in the High Court Division's writ jurisdiction under article 102 of the Constitution. The court can enforce fundamental rights, direct a public authority to do what the law requires or refrain from what it forbids, declare an act to have been done without lawful authority, and test a detention or a claim to public office.[12]

The efficacious remedy rule

For the public-law remedies under article 102(2), the court must be satisfied that no other equally efficacious remedy is provided by law, so a petitioner who skips a statutory appeal will usually be turned away. Article 102(5) also excludes tribunals to which article 117 applies.[12] Contractual claims against public bodies are generally pursued through civil suits or arbitration rather than writ. Our guide to the writ petition in Bangladesh covers grounds, procedure and interim relief, and our constitutional and writ litigation practice acts in these cases.

A decision framework for how to resolve disputes in Bangladesh

Knowing how to resolve disputes in Bangladesh is ultimately a triage exercise, because the routes overlap. The framework below is the sequence we use for a new matter. Ask the questions in order; the first one that produces a yes usually decides the starting point.

Question 1: is there an arbitration agreement?

If the contract contains a valid arbitration clause, arbitration is the presumptive forum for disputes within its scope. Court involvement is then limited to support, such as interim measures, and supervision, such as challenges and enforcement. Check the clause for any negotiation or mediation step that must come first.

Question 2: is the dispute on the legal aid schedule in a notified district?

If yes, pre-case mediation at the district legal aid office is the first step. Filing directly in court risks the case not being entertained. Remember that mediation time is excluded from limitation, so the scheme does not cost you your claim.[2]

Question 3: is it a listed commercial dispute?

If the dispute falls within the 24 categories and is not a bank-loan or High Court Division original-jurisdiction matter, it belongs in a Commercial Court, with pre-suit mediation where rules require it and urgent interim relief available without waiting.[6]

Question 4: is a public authority on the other side?

If you plan a civil suit against the government or a public officer, serve the two-month notice under section 80.[1] If the complaint is about the lawfulness of a public decision, consider writ, but exhaust any adequate statutory appeal first. Public service disputes go to the administrative tribunals.

Question 5: is there genuinely criminal conduct, or a specialist forum?

If there is real fraud, forgery or a dishonoured cheque, a criminal route may run alongside the civil one. If the dispute is a loan, employment, family, consumer, tax or maritime matter, go to the specialist forum. Only when every answer is no does an ordinary civil suit become the default.

The decision table

The table applies the framework to the situations we see most often. On a phone, scroll it sideways.

In every row, calendar limitation before talks begin: settlement discussions outside the statutory mediation scheme do not stop the clock.

Step by step: from first dispute to final outcome

Whatever route the framework points to, preparation for how to resolve disputes in Bangladesh follows the same sequence.

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On cost, the cheapest route on paper is not always the cheapest overall: a well-run arbitration can cost less than five years of trial and appeal, and legal aid mediation is low cost or free.

Common mistakes in how to resolve disputes in Bangladesh

• Filing before checking the forum: a civil suit in the wrong court, or in court despite an arbitration clause or the legal aid schedule, can lose a year before the merits are heard.
• Letting limitation run during talks: negotiation does not stop the clock; only specific statutory exclusions, such as section 21B mediation time, do.[2]
• Missing a strict statutory window: cheque dishonour, consumer complaints and award challenges all have short, unforgiving deadlines.[11] [14]
• Vague settlements: a mediation agreement or compromise without precise amounts, dates and default clauses is hard to enforce.
• Ignoring execution: without a plan to locate and attach assets, a decree or award may never be satisfied.

Litigation and dispute resolution with TRW

TRW acts across every route mapped above, which matters because the right answer is often a combination: a legal notice and a protective injunction, then mediation, then arbitration or a Commercial Court suit if settlement fails. Our teams handle alternative dispute resolution and mediation, international arbitration, real estate disputes, banking and finance litigation, employment litigation, corporate and shareholder disputes, construction claims and family mediation and settlement, as well as writ and criminal work.

What to watch in 2026 and beyond

Three developments will shape how to resolve disputes in Bangladesh over the next year. First, the government plans to extend mandatory pre-case mediation nationwide in phases, so the 30-district map will keep changing.[4] Second, the Law Minister has promised amendments to the Commercial Courts Act 2026 and reform of the Arbitration Act 2001, with business groups pressing for faster, cheaper commercial justice.[8] Third, pre-suit mediation rules under section 7 of the Commercial Courts Act will determine whether that mediation step becomes real in practice.[6]

If a dispute is emerging, the cheapest moment to get the strategy right is now. Contact TRW for an early view of the forum, the deadlines and the realistic outcomes.

Frequently asked questions

What is the first step to resolve a dispute in Bangladesh?

Identify the correct forum before taking any formal step. Check for an arbitration clause, whether the dispute is on the legal aid schedule in a notified district, and whether a statutory notice is required. In most private disputes a documented demand or legal notice is the practical first move.

Is mediation compulsory before filing a case in Bangladesh?

For scheduled disputes in notified districts, yes. Section 21B of the Legal Aid Services Act 2000, inserted by Act No. 45 of 2026, requires an application to the legal aid office first, and took effect in 30 districts from 31 July 2026.[2] [3]

Which disputes must go to legal aid mediation first?

Restitution of conjugal rights, dower, maintenance, child guardianship and custody, house rent, partition in civil judge courts, parents' maintenance, cheque dishonour up to Tk 3 lakh and dowry-related violence complaints, together with pre-emption claims.[4] [5]

Is a legal notice mandatory before filing a suit?

Not generally, but it is mandatory before suing the government or a public officer, where two months' notice is required under section 80 of the Code of Civil Procedure, and before a cheque dishonour complaint under section 138 of the Negotiable Instruments Act.[1] [11]

What are the Commercial Courts in Bangladesh?

Dedicated courts created under the Commercial Courts Act 2026 (Act No. 23 of 2026) to hear 24 listed categories of commercial dispute, with case management, limited adjournments, a 90-day final hearing rule and appeals to the High Court Division within 60 days. 75 were notified in February 2026.[6] [7]

Should I choose arbitration or litigation?

If your contract has a valid arbitration clause, arbitration is usually the agreed forum. Without one, arbitration needs both parties' agreement. It suits high-value, technical or cross-border disputes; courts suit urgent injunctions, property and smaller claims.[10]

Can I file a criminal case in a business dispute?

Only where there is genuinely criminal conduct, such as fraud, forgery or a dishonoured cheque. Using a criminal complaint to pressure the other side in a purely civil dispute often leads to counter-cases and quashing applications.

When can I file a writ petition?

A writ under article 102 of the Constitution lies against public authorities and persons performing public functions. For most public-law remedies, the High Court Division must be satisfied that no other equally efficacious remedy exists.[12]

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

Yes. Where a suit settles through mediation under section 89A of the Code of Civil Procedure, the court issues a certificate directing a refund of the court fees paid, payable within sixty days.[1]

How many cases are pending in Bangladesh's courts?

The Law Minister told Parliament on 7 July 2026 that 4,639,476 cases were pending as at 31 March 2026, including more than 4 million in the lower courts.[9]