International Mediated Settlement Agreements in Bangladesh
We draft, review and structure international mediated settlement agreements for disputes with a Bangladesh connection, so that what the parties agree at the mediation table is clearly recorded, properly signed, and capable of enforcement in Bangladesh and in other countries where it may matter.
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Making a mediated settlement work across borders
A successful mediation ends with agreement in principle, but value is only secured when that agreement is turned into a document the parties will honour and a court or tribunal will enforce. We help clients structure each mediated settlement in a cross-border dispute with a Bangladesh connection: the terms, the parties who must sign, the approvals they need, the payment mechanics and the route to enforcement if a party later defaults. This work sits within our dispute resolution practice in Bangladesh, alongside our arbitration and litigation teams, and draws on their experience of enforcing outcomes in practice.
The legal framework is fragmented. The United Nations Convention on International Settlement Agreements Resulting from Mediation, known as the Singapore Convention, creates a direct enforcement route in states that have ratified it. Bangladesh signed the Convention in 2019, but its practical effect here depends on ratification and domestic implementation, so the current position must be checked. In the meantime, a mediated settlement is usually enforced in Bangladesh as a contract, as a compromise decree in court proceedings, or as an award on agreed terms if the parties are already in arbitration. Each option has different strengths and formalities.
Barrister Tahmidur Rahman and Barrister Remura Meheruba Mahbub advise on mediated settlement structure, drafting and enforcement, drawing on their transactional, banking and international arbitration practice. Barrister Mahbub is also a solicitor of England and Wales (non-practising), which helps where a settlement is governed by English law or follows a London mediation. Adv Syed Wahid, our founding partner, advises on court-annexed mediation and compromise decrees in Bangladesh, and on enforcement if a party later fails to perform. We work with counsel in the UK, US, UAE, China, India and Singapore when a settlement must be effective in more than one country.
Many settlement problems are avoidable. A document may be signed by someone without authority, omit a group company that holds the assets, leave payment terms vague, or fail to deal with withdrawal of pending cases and complaints. Payments from Bangladesh to a foreign party may need foreign exchange documentation through an authorised dealer bank, and tax and stamp duty treatment can affect the net amount. Confidentiality clauses must sit alongside regulatory and disclosure duties. We review each mediated settlement for these points before signature, when changes are still easy to make and the parties remain willing to agree.
Mediation is becoming more prominent in Bangladesh. Courts already refer civil disputes to mediation under the Code of Civil Procedure 1908, and the Legal Aid Services (Amendment) Act 2026 is introducing mandatory pre-case mediation for certain disputes, district by district. International parties are also more willing to mediate before or during arbitration. As a result, more mediated settlement agreements need to be written with enforcement in Bangladesh in mind. If a mediation is scheduled or a settlement is close, please contact our Dhaka office early, so that drafts are ready and approved when the parties reach agreement.
Core workstreams
Four clear stages
- 01Plan the settlement
- 02Draft and negotiate
- 03Sign and formalise
- 04Monitor and enforce
Talk to a partner
Consultations in Dhaka or by video. Scope, team and fees are agreed in writing first.
Book →What we handle
Pre-mediation settlement planning
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Drafting the settlement agreement
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Execution, authority and approvals
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Consent awards and compromise decrees
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Singapore Convention and cross-border enforcement
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Default, enforcement and disputes
- Plan the settlement
- Draft and negotiate
- Sign and formalise
- Monitor and enforce
Pre-mediation settlement planning
Before a mediation, we help clients decide what a workable mediated settlement would look like and what it must contain to be enforceable. We prepare draft heads of terms, identify the signatories and approvals needed, consider tax and foreign exchange implications, and plan how pending cases, guarantees or complaints will be resolved, so that negotiation at the table is not slowed by avoidable technical questions late in the day.
Drafting the settlement agreement
We draft and review mediated settlement agreements covering payment, performance, releases, withdrawals of proceedings, confidentiality, governing law, dispute resolution and default provisions. Where the dispute involves several group companies, guarantors or insurers, we make sure each party with rights or obligations signs in the right capacity, and that the release language matches what the parties actually intend to settle and nothing more. Schedules record agreed figures and deadlines precisely.
Execution, authority and approvals
We check that signatories have authority under constitutional documents and board resolutions, that corporate or regulatory approvals are in place, and that execution formalities, stamping and any notarisation or legalisation required abroad are completed. These steps matter in Bangladesh, where defects in authority or approval are a common ground for resisting a settlement later. We keep a clear signing record for every mediated settlement, ready for any later enforcement.
Consent awards and compromise decrees
Where proceedings are already under way, we advise on converting a mediated settlement into a binding order. In arbitration, that may mean an award on agreed terms, which can then benefit from the New York Convention. In Bangladesh court proceedings, it may mean a compromise decree. We compare these options with a stand-alone contract and recommend the route that gives the strongest protection if a party later defaults.
Singapore Convention and cross-border enforcement
We advise on whether a settlement may fall within the Singapore Convention in the states where enforcement is likely, what evidence of mediation will be needed, and how to draft so that the agreement qualifies. Where the Convention is unavailable, we plan alternative routes in Bangladesh and abroad, working with foreign counsel to confirm local requirements for an international mediated settlement before it is signed by the parties.
Default, enforcement and disputes
When a party fails to perform, we advise on the remedies the settlement provides, such as acceleration, reinstatement of the original claim or agreed security, and on enforcement through the Bangladesh courts or abroad. We also handle disputes about the meaning or validity of a settlement, including allegations of mistake, misrepresentation or lack of authority, and coordinate parallel steps in other jurisdictions where assets or counterparties are located today.
Partner-led, on every matter.
Disputes & Arbitration matters at TRW are led by partners, supported by associates, with one responsible lawyer from first advice to final outcome.
Meet the firm →01Is a mediated settlement legally binding in Bangladesh?
Yes, if it meets the normal requirements of a contract under the Contract Act 1872: agreement on definite terms, parties with capacity and authority, lawful consideration and a lawful object. A signed mediated settlement can be enforced by a suit for breach or specific performance. Recorded as a compromise in court proceedings, it can lead to an executable decree. A settlement reached in arbitration can be recorded as an award on agreed terms. The weakness of a pure contract is that enforcement may require new proceedings, so we often recommend an additional layer of protection, such as security.
02Can a mediated settlement be enforced under the Singapore Convention in Bangladesh?
Bangladesh signed the Singapore Convention in 2019. Direct enforcement under the Convention requires that it is in force for the relevant state and given effect in its domestic law, and the position in Bangladesh must be checked at the time. If the Convention cannot be relied on here, enforcement in Bangladesh usually depends on contract law, a compromise decree or a consent award. The Convention may still be useful if the counterparty has assets in a state where it is in force. We assess the likely enforcement countries and draft the agreement to work under each available route.
03What is the difference between a settlement agreement and a consent award?
A settlement agreement is a contract. If one party breaks it, the other must normally sue on it, which takes time. A consent award, or award on agreed terms, is made by an arbitral tribunal recording the parties' settlement, and it has the status of an arbitral award. That means it can be enforced through the courts under the Arbitration Act 2001 and, abroad, under the New York Convention, subject to the usual grounds. A consent award is generally available only where a tribunal has been constituted, so the choice should be planned before the mediated settlement is finalised.
04Who should sign a mediated settlement on behalf of a Bangladeshi company?
A director or officer authorised under the company's articles and a valid board resolution, or an attorney acting under a properly executed power of attorney. For large settlements or those involving related parties, shareholder approval may also be required. State-owned enterprises and government bodies often need approval from a ministry or board before they can commit, and failure to obtain it can be raised later to resist the agreement. We review the constitutional documents and approval trail on both sides, so that the mediated settlement cannot easily be challenged on grounds of authority after the event, even years later.
05Can payments under a settlement be sent lawfully from Bangladesh to a foreign party?
Usually, but they must be made through an authorised dealer bank in compliance with Bangladesh Bank foreign exchange rules, with supporting documents explaining the payment. Some payments may need specific approval, depending on their nature and the parties' status. Tax may also need to be withheld, depending on how the payment is characterised, and the Finance Act 2026 reduced withholding on interest paid to non-residents to 10 percent. We build the payment mechanics into the mediated settlement, including timing, documentation and consequences of delay, so that a bank's queries do not become a ground for default or delay.
06How should a settlement deal with cases and complaints already pending in court?
It should state clearly which proceedings will be withdrawn, compromised or stayed, by whom and when, and what happens if the court does not permit withdrawal. Criminal complaints raise particular issues, because some offences can be compounded while others cannot, and a private agreement cannot always end a prosecution. Pending arbitrations should be terminated or converted into a consent award. Bank guarantee claims, regulatory complaints and enforcement steps also need attention. We map every related case before drafting, so that the mediated settlement brings the whole dispute to an end rather than only part of it, leaving no loose ends.
07Can a mediated settlement remain confidential?
Largely, if the parties agree clear confidentiality terms in writing and the mediation rules support them, though there are limits. A settlement may need to be disclosed to auditors, lenders, insurers, regulators or a court if enforcement is required, and listed companies may have disclosure obligations. Converting the settlement into a court decree may place its terms on the record. We draft confidentiality clauses that protect sensitive terms while allowing the disclosures the parties will genuinely need to make, and advise on what can be kept out of any public document, such as payment figures, discounts or ongoing commercial arrangements.
08What happens if the other side refuses to perform after signing the agreement?
That depends on how the settlement was structured. A well-drafted agreement will specify default remedies, such as accelerated payment, interest, reinstatement of the original claims or recourse to security. A consent award or compromise decree can be enforced directly through the courts, while a pure contract may require a new suit. Where the counterparty's assets are abroad, enforcement steps may be needed in another jurisdiction. We act quickly on default, serve the required notices and pursue the most efficient enforcement route, working with foreign counsel where necessary to protect the full value of the mediated settlement.
From first call to resolution.
- 01
Plan the settlement
Before or during mediation, we identify the essential terms, the parties who must sign, the approvals needed and the preferred enforcement route, and prepare draft heads of terms so agreement can be captured quickly and accurately on the day.
- 02
Draft and negotiate
We draft or review the settlement agreement, negotiate wording with the other side's lawyers, and resolve releases, payment mechanics, withdrawals of proceedings, confidentiality and default remedies in a single, consistent mediated settlement document that both sides understand.
- 03
Sign and formalise
We check signatory authority and corporate approvals, oversee signing, dating, stamping and any notarisation or legalisation, and, where appropriate, record the mediated settlement as a consent award or compromise decree to strengthen enforcement in Bangladesh and abroad.
- 04
Monitor and enforce
We track performance against agreed milestones and dates, handle withdrawals of pending cases and, if a party defaults, act promptly to enforce the agreement through the courts or arbitration in Bangladesh or abroad, using the remedies built into the agreement.
“Demonstrates an extraordinary command over both domestic litigation and international arbitration.”
The Legal 500 Asia Pacific, Bangladesh: Dispute resolution, client feedback
Related reading.

Mediation vs Arbitration in Bangladesh 2026: Choosing, Combining and Enforcing the Outcome

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

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

Alternative Dispute Resolution in Bangladesh: Routes, Rules and Results in 2026
All insights →
What is an international mediated settlement?
Do we need lawyers present at the mediation itself?
Does a mediated settlement attract stamp duty in Bangladesh?
Which law should govern a cross-border mediated settlement agreement?
Can a settlement include non-monetary terms as well as payment?
Can a party withdraw from a proposed settlement before signing it?
Can a court in Bangladesh set aside a mediated settlement?
Can BIAC or another institution administer the mediation for us?
Secure a settlement that will hold
Speak with the partners about Mediated settlement in Bangladesh or across borders.
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