Mediation in Bangladesh: Civil, Commercial and Family Disputes in 2026

Mediation in Bangladesh: a practical guide for 2026

Mediation in Bangladesh has moved from the margins of practice to the front door of the justice system. In 2026 it is compulsory before filing several family, property and tenancy claims in a growing list of districts, written into the new commercial courts regime, available through the Bangladesh International Arbitration Centre for business disputes, and built into family, civil and money-loan procedure. Parties who treat it as a box to tick before the real fight tend to come away with weak settlements. Parties who prepare for it as a negotiation with legal consequences tend to come away with an enforceable result in weeks rather than years.

This guide is about mediation itself: how a session actually runs, what the mediator can and cannot do, how to prepare, what changes between commercial, contract, family and legal aid mediation, and how to draft a settlement agreement that survives enforcement. For the wider map of negotiation, arbitration and other routes, read our overview of alternative dispute resolution in Bangladesh. Here we go one level deeper, into the room.

Summary: Mediation in Bangladesh now runs on four main tracks: compulsory pre-case mediation at district legal aid offices for listed family, property, rent and certain cheque disputes; court-referred mediation in civil, family and money-loan cases; pre-suit and in-suit mediation under the 2026 commercial courts law; and private commercial mediation under the BIAC Mediation Rules 2019. Each produces an enforceable outcome only if the settlement agreement is drafted and recorded correctly.

Key point: A mediator in Bangladesh has no power to decide your dispute. What gives mediation its force is the settlement agreement: under the legal aid regime, a certified settlement has the effect of a court decree, and under the commercial courts law a settlement filed with the court is treated as a decree once the court is satisfied that no third party is prejudiced. Drafting is where most of the value is won or lost.

At a glance

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Table of Contents

Why mediation in Bangladesh matters more in 2026

The pressure behind the shift is the court backlog. In July 2026 the Law, Justice and Parliamentary Affairs Minister, Md Asaduzzaman, put pending cases nationwide at about 4.5 million.[5] The legislative response has been to move settlement earlier and make it harder to avoid. The Legal Aid Services (Amendment) Ordinance 2025 inserted new sections 21B to 21E into the Legal Aid Services Act 2000, and that Ordinance has since been repealed and replaced by the Legal Aid Services (Amendment) Act 2026 (Act No 45 of 2026).[1] Mandatory pre-case mediation now runs under section 21B of the 2026 Act.[6]

Commercial disputes followed. The Commercial Courts Ordinance 2026 (Ordinance No 1 of 2026), issued on 1 January 2026, created specialised commercial courts and a dedicated mediation provision, and has itself been replaced by the Commercial Courts Act 2026 (Act No 23 of 2026).[10] The result is that mediation in Bangladesh is no longer only a voluntary courtesy. For a large share of everyday and business disputes it is a procedural stage with deadlines, certificates and enforceable outcomes.

What mediation is, and what it is not

Mediation is a confidential, consensual process in which a neutral helps the parties negotiate their own settlement. The BIAC Mediation Rules 2019 describe it as "a confidential, consensual, non-adversarial and private dispute resolution process", and require the mediator to tell the parties at the first session that the mediator is not a judge who imposes a settlement.[8] That is the central distinction from arbitration, where a tribunal decides. In mediation nobody loses unless they agree to the terms. The corollary is that nobody wins unless they come prepared to agree to something.

Where court-annexed mediation fits

Mediation of pending civil suits under section 89A of the Code of Civil Procedure 1908, and on appeal under section 89C, remains an important route. A settlement reached under section 89A is recorded as a compromise decree, and no appeal or revision lies against it.[14] TRW covers court-annexed mediation in a separate, dedicated analysis; this guide refers to it only where the practical steps overlap.

How a mediation session works, step by step

Whatever the forum, a well-run mediation in Bangladesh follows a recognisable sequence. The BIAC rules set it out most fully, and the legal aid and court-referred processes follow the same logic in a shorter form.

Starting the process

At BIAC, a party relying on a mediation clause files a written Request for Mediation identifying the subject, the issues, the value of the dispute and the clause, with a nominated mediator and the registration fee. Where there is no clause, a party may ask BIAC to invite the other side; if the other party agrees in writing within 14 days, the request proceeds. The responding party replies within 14 days of receiving the request from BIAC.[8] In legal aid mediation, the applicant files at the district legal aid office, which issues notice to the other party.[2]

The first meeting and the mediation agreement

At the first meeting the mediator and parties agree how the mediation will be run. Under the BIAC rules the mediator then prepares a mediation agreement, signed by the parties and the mediator, and the mediation formally commences on signature.[8] This is the moment to fix ground rules: who attends, who has authority to settle, confidentiality, the timetable and whether experts will be used. Every party with a representative must also designate one person with full authority to settle.[8]

Joint session and opening statements

Most mediations then open in a joint session. Each side, often through its lawyer, gives a short statement of its position and what it needs. The best openings are measured: they explain the legal strength of the case without attacking the other side, and they signal what a workable outcome might look like. An aggressive opening may feel satisfying, but it usually hardens the other party and lengthens the day.

Private sessions (caucuses)

The mediator may meet the parties together or separately, and any party may ask for a private meeting at any time.[8] Private sessions are where most of the real work happens. The mediator tests each side's assumptions, explores interests behind stated positions, and carries offers between rooms. Before a private session the mediator should explain its purpose and any limits on the confidentiality of what is said in it.[8] Ask the mediator directly what, if anything, they intend to pass on.

Offers, bargaining and closure

Settlement proposals may be made at any stage, on a "without prejudice" basis, through the mediator.[8] Once the elements of a deal are agreed, the BIAC rules require them to be initialled and then turned promptly into a written settlement agreement.[8] If no deal emerges, the mediation ends by declaration of the mediator, withdrawal of a party, expiry of the time limit or non-payment, and BIAC issues a certificate that the mediation has not succeeded.[8] The legal aid equivalent is a mediation failure certificate, which opens the door to court.[2]

Preparing for mediation: what separates good outcomes from bad

Preparation is the single biggest predictor of a good result. A mediator can only work with what the parties bring into the room.

Build the file before the first session

Assemble the contract, correspondence, invoices, title documents, accounts and any expert material. Mediators cannot compel disclosure, and under the BIAC rules the parties choose which documents to produce.[8] That makes your own selection strategic. Produce enough to show the strength of your position, keep privileged advice out of the bundle, and prepare a short, neutral chronology the mediator can absorb in fifteen minutes.

Know your alternatives and your numbers

Before the session, work out what happens if mediation fails: the likely forum, the time to judgment, the cost, the risk of losing and the difficulty of enforcing a decree. In Bangladesh the honest answer to that question often includes years of delay, which is precisely why a realistic settlement can be worth more than a strong claim. Fix three numbers internally: the target outcome, the realistic outcome and the walk-away point, together with any non-monetary terms that matter, such as an apology, a public statement, continued supply or a property boundary.

Bring the right people

The person in the room must have authority to settle. For companies, that means a director or officer with a board resolution or written mandate covering the likely range. For banks and financial institutions in money-loan mediation, the Artha Rin Adalat Ain 2003 adds a specific layer: where a claim exceeds Tk 5 crore, the mediation report must be approved by the institution's managing director, chief executive or equivalent.[14] Plan that approval step in advance or the settlement will stall.

Protect deadlines while you talk

Mediation does not freeze every clock. Limitation periods, contractual notice requirements and arbitration timetables can continue to run. Before agreeing to mediate, diarise every deadline and, where needed, agree a standstill in writing. In our practice, the most expensive mediation mistakes are rarely made in the room; they are missed dates outside it. Our guide to sending a legal notice in Bangladesh explains how pre-action notices interact with these timelines.

The mediator's role and duties

The mediator controls the process, not the outcome. Under the BIAC rules the mediator conducts the mediation in the manner they consider appropriate, taking account of the circumstances, the parties' wishes and the need for a speedy settlement, and must treat the parties fairly and impartially.[8]

Neutrality, disclosure and conflicts

Before accepting an appointment, a proposed BIAC mediator must disclose in writing any circumstance likely to create a presumption of bias, and a party may object within seven days. No person may mediate a dispute in which they have a financial or personal interest unless the parties consent in writing, and a party may challenge a mediator within seven days of appointment or of learning of justifiable doubts.[8] Raise any concern early; a late challenge can derail a session that was otherwise moving.

Self-determination: the mediator does not advise you

The BIAC Mediator's Code of Conduct is explicit that the mediator shall not advise any party to adopt a specific course on any issue in dispute, nor express an opinion on those issues, though the mediator may suggest consulting advisers or experts.[8] That is why independent legal advice matters. The mediator will help you understand the other side; only your own lawyer will tell you whether the offer on the table is good law and good business.

Confidentiality and what happens afterwards

Under the BIAC rules, information created or disclosed in mediation is confidential, subject to narrow exceptions such as written consent, a court order or a threat to life or property. Views, offers and admissions made in the mediation may not be relied on in later arbitration or litigation, the mediator cannot be called as a witness, and the mediator destroys mediation materials thirty days after the mediation concludes unless the parties agree otherwise. The parties also undertake that the mediator will not later act as arbitrator, counsel or witness in the same dispute.[8]

Commercial and contract mediation in Bangladesh

For business disputes, mediation in Bangladesh now has two strong institutional anchors: the BIAC Mediation Rules 2019 for private, administered mediation, and section 7 of the 2026 commercial courts law for disputes headed to, or already in, the commercial courts.

The BIAC Mediation Rules 2019

The rules apply where the parties have agreed in writing to BIAC mediation, where one party asks BIAC to invite the other and it agrees, or where a court directs mediation under the BIAC rules.[8] If the parties cannot agree a mediator, BIAC's chief executive sends a list of three names from its panel; each party may strike out names within seven days, and the appointment is made from those remaining. A mediator of any nationality may be appointed unless the parties agree otherwise, which matters for cross-border contracts.[8]

The default mandate is short. A mediator's appointment may not extend beyond 60 days without the parties' written consent and BIAC's approval, and the BIAC suggested med-arb clause sends the dispute to BIAC arbitration if no settlement is reached within 60 days of the mediator's appointment.[8] Once the parties sign a settlement, BIAC authenticates it and supplies copies after its dues are paid; in court-referred cases the authenticated settlement, or BIAC's certificate of failure, is filed with the court.[8]

Mediation under the commercial courts law

Section 7 of the Commercial Courts Ordinance 2026 contains a special mediation provision. Where a suit does not involve urgent interim relief, the plaintiff must first go through the pre-suit mediation process prescribed by government rules, provided those rules exist when the suit is filed. Before judgment, the commercial court may also send the dispute to mediation with both parties' consent, before a panel mediator or another suitable mediator approved by the court.[10]

That in-suit mediation must be completed within 30 days, extendable by a further 30 days. The settlement must be in writing and signed by all parties and the mediator, and once filed it is treated as a decree enforceable by the commercial court if the court is satisfied that no third party's interests are harmed.[10] Commercial courts were constituted by notification on 3 February 2026, 75 in all, including three in Dhaka metropolitan area.[12] Because the Ordinance has been replaced by the Commercial Courts Act 2026, confirm the Act's current text and whether the pre-suit mediation rules have been notified before filing.[10]

Contract disputes: when commercial mediation works best

Commercial mediation is most effective where the parties have a continuing relationship, where the dispute turns on quantum rather than liability, or where both sides face enforcement risk. Supply and distribution disputes, construction payment claims, joint venture deadlocks, licence and franchise disagreements, and shareholder exits all fit this pattern. Our analyses of breach of contract in Bangladesh and shareholder disputes in Bangladesh explain the remedies that frame what each side can realistically expect.

It works less well where one party needs an urgent injunction, where fraud is alleged and evidence must be preserved, or where a party is using delay as a strategy. Even then, a short mediation window after interim relief is secured can produce a commercial deal that litigation would take years to deliver.

Mediation inside arbitration

Mediation and arbitration are not mutually exclusive. Section 22 of the Arbitration Act 2001 allows an arbitral tribunal, with all parties' agreement, to use mediation, conciliation or other procedures at any time to encourage settlement, and to record any settlement as an arbitral award on agreed terms with the same status as any other award.[13] For cross-border deals this is often the safest form for a settlement, because an award is more readily enforceable abroad than a private contract.

Drafting the mediation clause

A good clause states the institution and rules, the time window, what happens if mediation fails and whether either party may seek urgent interim relief in the meantime. The BIAC model mediation clause refers disputes to BIAC mediation "before such dispute is submitted to court or arbitration", and its med-arb clause adds a 60-day window followed by BIAC arbitration.[8] Our guide to commercial agreements in Bangladesh covers the wider drafting.

Legal aid mediation in practice

For most individuals, the first encounter with mediation in Bangladesh is now the district legal aid office. The regime is designed to be quick and cheap, and in many cases it is.

Which disputes are covered in 2026

Reporting on National Legal Aid Day 2026 listed nine categories that must go to legal aid mediation before court under the Legal Aid Services (Amendment) Act 2026: restitution of conjugal rights, dower, maintenance, guardianship and custody of children, house rent disputes, partition disputes in civil judge courts, parents' maintenance, cheque dishonour up to Tk 3 lakh, and dowry-related violence against women.[4] Cheque dishonour claims had been excluded at the 2025 launch, so the 2026 list marks a change.[2] Pre-emption claims were also mediated in the pilot.[5]

Where it applies

Pre-case mediation began on 18 September 2025 in twelve districts: Sylhet, Moulvibazar, Sunamganj, Faridpur, Mymensingh, Rangpur, Dinajpur, Satkhira, Kushtia, Comilla, Noakhali and Rangamati.[3] By mid-2026 it had run in twenty pilot districts, and on 21 July 2026 it was extended to Bogura, Thakurgaon, Patuakhali, Bhola, Natore, Jashore, Shariatpur, Cox's Bazar, Panchagarh and Tangail.[5] Check the current notification for the district before filing.

Who mediates and how long it takes

Mediation is conducted by the chief legal aid officer, a legal aid officer or a special mediator, and under the rules issued in September 2025 it must be concluded within 21 working days.[2] Special mediators have been drawn from retired senior district judges and experienced lawyers.[3] [4] The service is government-funded.[6] If the mediation fails, the office issues a mediation failure certificate and the party may then file.[2]

What a legal aid settlement is worth

A settlement signed by the parties and certified by the chief legal aid officer is final, binding and enforceable, with the status of a court order.[3] Reporting on the 2026 Act describes certified settlements as having the effect of a decree.[4] Treat the document accordingly. A vague promise to "pay maintenance regularly" is far harder to execute than a fixed monthly sum, a payment date, a bank account and a default clause.

What the numbers show, and the limits

In the first two months, 5,916 applications were received and 3,041, about 51 per cent, were settled.[2] In the twelve original districts, filings in the relevant case types fell by 48.9 per cent over seven months compared with the previous seven.[4] Practitioners have also flagged capacity gaps and the need for more trained mediators, and one reported alimony settlement collapsed when the husband stopped paying soon after.[2] The lesson is practical: a settlement is only as good as its enforcement terms.

Mediation after a case is filed

Legal aid mediation is not confined to the pre-filing stage. In 2026 the Supreme Court administration authorised the Supreme Court Legal Aid Office to conduct post-case mediation in matters under seven laws, including the Family Courts Act 2023, the Negotiable Instruments Act 1881 (section 138) and compoundable Penal Code offences, while excluding serious offences such as murder and rape. The service is free, aims to resolve matters within one to two months, and reports the outcome to the court for disposal.[7] Cheque dishonour practice is covered in our guide to cheque dishonour in Bangladesh.

Family mediation in Bangladesh

Family mediation is where the process carries the highest personal stakes and the greatest risk of imbalance. Disputes under section 5 of the Family Courts Act 2023 over dissolution of marriage, restitution of conjugal rights, dower, maintenance, and guardianship and custody now typically pass through legal aid mediation first in covered districts.[2] Once a suit is filed, the family court itself may identify the issues and attempt a compromise at the pre-trial hearing under section 11(3) of the 2023 Act.[14]

What a family settlement should cover

A durable family settlement deals with every live issue at once: the amount and timing of dower, maintenance for the spouse and each child, custody and contact arrangements, school and medical costs, and the return of personal property. Children's arrangements should be framed around welfare and should be realistic for both parents. Our guides to divorce procedure in Bangladesh and child custody and guardianship in Bangladesh explain the substantive rights that should anchor any agreement.

Safeguards against pressure

Rights groups objected to compulsory mediation of dowry-related injury complaints, and the relevant women and children repression provision was dropped from the initial list.[2] Mediation is not appropriate where one party fears violence or cannot negotiate freely. A party in that position should take legal advice before any session, insist on separate meetings, and ask the legal aid officer about protective options. A settlement extracted under pressure is a poor foundation for anything.

Drafting and enforcing the settlement agreement

The settlement agreement is the product of the whole exercise. It should be drafted as if the other side will default, because sometimes they will.

Essential drafting points

• Parties and capacity: full names, addresses, national ID or registration numbers, and the authority of anyone signing for a company.
• Precise obligations: exact sums, currency, instalment dates, bank details, property descriptions by schedule, and dates for possession or transfer.
• Default and acceleration: what happens on a missed payment, including acceleration of the balance and any agreed interest.
• Scope of release: which claims are settled, and whether pending cases, complaints or notices will be withdrawn, and by when.
• Tax and regulatory checks: withholding, VAT, stamp duty, registration requirements for land, and any Bangladesh Bank approval for foreign-currency payments.
• Confidentiality and costs: who bears which costs, and what may be disclosed. Under the BIAC rules, confidentiality extends to the settlement agreement except where disclosure is needed to implement or enforce it.[8]

Choosing the right enforcement wrapper

How a settlement is enforced depends on where it was reached. A certified legal aid settlement carries the status of a court order.[3] A settlement in commercial court mediation is treated as a decree once filed and accepted by the court.[10] A settlement in court-annexed mediation becomes a compromise decree.[14] A settlement during arbitration can be recorded as an award on agreed terms.[13] A purely private BIAC settlement, by contrast, is a contract: authenticated by BIAC, but enforceable by suit for breach unless it is wrapped in a decree or award.[8]

Cross-border settlements

Bangladesh is not a signatory to the United Nations Convention on International Settlement Agreements Resulting from Mediation, the Singapore Convention, which had 25 parties at the time of checking.[9] A Bangladeshi mediated settlement therefore cannot rely on that treaty for direct enforcement abroad, and a foreign mediated settlement has no special status here. Where assets sit in another country, converting the settlement into an arbitral award on agreed terms is usually the more reliable route.

Choosing a mediator and a mediation lawyer

Choosing the mediator

For commercial mediation, look for subject-matter credibility, a record of settling disputes of similar size, availability within the mandate and genuine neutrality. BIAC's chief executive, when appointing, considers any qualifications the contract requires, professional or business experience, independence and impartiality, and availability.[8] Those are sensible criteria for party nominations too. In legal aid mediation the parties usually do not choose; the mediator is the legal aid officer or a special mediator.[2]

What a mediation lawyer actually does

Parties may be represented by persons of their choice in BIAC mediation, provided they notify names and roles in advance.[8] A good mediation lawyer does four things: assesses the legal merits honestly before the session, prepares the client and the bundle, negotiates in the room without inflaming it, and drafts a settlement agreement that is enforceable in the right forum. The skill set differs from trial advocacy. The best mediation counsel know when to stop arguing and start designing a deal.

Red flags

Be wary of anyone who promises a particular outcome. The BIAC code forbids mediators from giving assurances about results and from charging fees contingent on the outcome or settlement amount.[8] The Law Minister has publicly reiterated a zero-tolerance stance on corruption in the mediation process.[5] Any request for an informal payment to "secure" a settlement should be refused and reported.

Costs of mediation in Bangladesh

Legal aid mediation is government-funded and free to the parties.[6] [7] Commercial mediation at BIAC carries published fees: a registration fee of Tk 20,000 on filing a request, mediator fees of Tk 5,000 to Tk 50,000 per hour as agreed among the parties, the mediator and BIAC, and VAT at 15 per cent on top.[11] Unless otherwise agreed, each party bears its own costs, and the mediator's fees, expert costs and BIAC's charges are shared equally, funded by equal deposits.[8]

Against those figures sits the cost of not settling. Commercial litigation in Bangladesh routinely runs for years, and every year adds lawyers' fees, management time and enforcement risk. A single well-prepared mediation day is usually the cheapest serious attempt at resolution available.

A practical sequence for mediation

The forum changes the detail, but the discipline does not. This is the sequence we follow when preparing clients for mediation in Bangladesh.

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Throughout, mark settlement communications as without prejudice and confirm, before you begin, whether any statutory time limit is running.

Comparing the main routes for mediation in Bangladesh

The table summarises how the principal mediation routes compare. On a phone, scroll it sideways.

For many disputes the best strategy combines routes: a short commercial mediation window in the contract, arbitration if it fails, and a settlement recorded in the form that will be easiest to enforce. For family, property and small cheque disputes in covered districts, legal aid mediation is the starting point. Our alternative dispute resolution and mediation practice advises on each.

What to watch next

Three developments will shape mediation in Bangladesh over the coming year. First, the geographical reach of compulsory legal aid mediation continues to expand and nationwide coverage is planned in phases.[4] Second, the pre-suit mediation rules under the commercial courts law will determine whether commercial mediation becomes a real filter for business disputes or remains mainly an in-suit option.[10] Third, Bangladesh remains outside the Singapore Convention on Mediation, a gap that cross-border parties should address by contract.[9]

If a dispute is emerging, the earliest choices carry the most weight: which forum, which documents, which deadlines and what a sensible settlement range looks like. To prepare properly, contact TRW.

Frequently asked questions

Is mediation compulsory before filing a case in Bangladesh?

For listed disputes in covered districts, yes. Under section 21B of the Legal Aid Services Act 2000, as amended in 2026, family, partition, rent, parents' maintenance, certain cheque and other listed claims must first go to mediation at the district legal aid office.[4] [6]

How long does legal aid mediation take?

Under the rules issued in September 2025, pre-case mediation must be concluded within 21 working days. If it fails, the office issues a mediation failure certificate.[2]

Is a mediated settlement binding in Bangladesh?

It depends on the route. A certified legal aid settlement has the status of a court order, a commercial court settlement is treated as a decree once accepted, and a court-annexed settlement becomes a compromise decree. A private settlement is a binding contract.[3] [10] [14]

Does the Commercial Courts law require mediation?

Section 7 of the Commercial Courts Ordinance 2026 requires pre-suit mediation where no urgent interim relief is sought and the prescribed rules exist, and allows in-suit mediation within 30 days, extendable by 30. The Ordinance has been replaced by the Commercial Courts Act 2026, so check the current text.[10]

How long does BIAC mediation last?

A mediator's appointment may not extend beyond 60 days without the parties' written consent and BIAC's approval.[8]

What does BIAC mediation cost?

BIAC publishes a Tk 20,000 registration fee and mediator fees of Tk 5,000 to Tk 50,000 per hour, plus 15 per cent VAT. Costs are normally shared equally.[8] [11]

Can what I say in mediation be used against me in court?

Under the BIAC rules, offers, views and admissions made in mediation may not be relied on in later arbitration or litigation, and the mediator cannot be called as a witness.[8]

Can a mediator decide the dispute?

No. The mediator facilitates a negotiated settlement and must not advise a party on the issues or impose terms.[8]

Can a mediated settlement be enforced abroad?

Bangladesh is not party to the Singapore Convention on Mediation, so cross-border parties should consider recording the settlement as an arbitral award on agreed terms under section 22 of the Arbitration Act 2001.[9] [13]

Do I need a lawyer for mediation?

It is not mandatory, but independent advice is valuable because the mediator cannot advise you. A lawyer assesses the merits, prepares the case and drafts an enforceable settlement agreement.[8]