Phased budget with cap · Banking disputes
Debt recovery in Bangladesh: Artha Rin and commercial court routes
A lender-side pack that picks the right forum, completes the pre-suit steps, runs the suit and mediation and takes the decree through execution, with a fixed-fee first review and a capped budget for each later phase.
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Who this is for
Why it matters now
Debt recovery in Bangladesh
Debt recovery in Bangladesh now runs on two tracks. Suits by financial institutions to recover loans must be filed in, and decided by, the Artha Rin Adalat under the Artha Rin Adalat Ain 2003 [1]. Other commercial debts, from supply and trade contracts to construction and financing disputes outside that jurisdiction, belong in the new commercial courts, because the commercial courts legislation expressly excludes Artha Rin Adalat matters [2]. Choosing the wrong track wastes months, so the first question in every file is who the creditor is and what the debt arises from.
The Artha Rin regime is demanding for lenders as well as borrowers. Before suing, a lender must sell pledged security, or sell or try to sell mortgaged or hypothecated property [1]. Once a written statement is filed, the court refers the case to mediation, which must finish within 60 days, extendable by 30 days [1], and a contested suit should be decided within 90 days of the written statement, again extendable by 30 days [1]. A first execution case must be filed within one year of the decree, and no execution case may be filed more than six years after the first [3].
The commercial courts are new. Seventy-five were set up in February 2026, including three in Dhaka [7]. The Commercial Court Ordinance 2026 set no minimum claim value, required pre-suit mediation under government rules where no urgent interim relief is sought, and required the final hearing to finish within 90 days of the date fixed [2]. Parliament replaced it with the Commercial Courts Act 2026 (Act No. 23 of 2026) [2], and the Law Minister has said the Act needs re-examination and amendment [6]. Each filing therefore needs checking against the current text.
What is included
What our debt recovery in bangladesh service includes
We confirm whether the claim belongs in the Artha Rin Adalat, a commercial court or another forum, check limitation and the loan or contract documents, and identify guarantors, security and any arbitration clause that changes the route.
For financial institutions, we run the sale or attempted sale of pledged, hypothecated or mortgaged security that section 12 of the Artha Rin Adalat Ain 2003 requires before suit, and keep the records the plaint will need.
For commercial court claims, we send a structured demand and complete any pre-suit mediation procedure required where no urgent interim relief is sought, so the suit is not exposed to a procedural objection later.
We draft and file the plaint with the full documentary record, and apply for attachment, injunction or other interim relief where assets are at risk of being moved or sold before judgment.
We represent you in court-referred mediation, negotiate rescheduling or settlement terms, and make sure any settlement is recorded in a form the court can enforce if the debtor defaults.
We file execution within the statutory limits, pursue attachment and auction, apply for civil detention where justified, oppose bail without the required deposit and use the court's powers to trace the debtor's assets.
We defend appeals and revisions, check that a borrower's appeal is supported by the required deposit of 50 per cent of the decretal amount [4], and answer writ petitions designed to delay recovery.
How it works
Debt recovery in Bangladesh, step by step
- Founding partner consultationWeek 1
Book a 40-minute consultation with a founding partner. We review the facility or contract, the default history and the security, then confirm the forum, the phases and the cap for each phase in writing before work starts.
- Phase 1: file review and forum choicePhase 1
We review the loan or contract file, limitation, security and guarantees, and give you a written route map for debt recovery in Bangladesh that identifies the forum, the pre-suit steps and any evidence gaps to close.
- Phase 2: pre-suit stepsPhase 2
We complete the section 12 security sale for financial institutions, or the demand and pre-suit mediation for commercial claims, and assemble the evidence bundle needed to file a clean plaint.
- Phase 3: suit and mediationPhase 3
We file the suit, seek interim relief where needed, attend mediation and hearings and press for disposal within the statutory time limits, reporting to you in writing after each hearing.
- Phase 4: executionPhase 4
We open execution within the statutory window, pursue attachment, auction and, where justified, civil detention, and advise you on any settlement offers the debtor makes during execution, reporting progress to you in writing after each hearing.
Phase 1 is a fixed fee. Each later phase has its own budget and cap, because cost depends on the forum, the number of defendants and securities, and whether the debtor contests, appeals or files writs. Court fees, auction and valuation costs are passed through at cost, and each phase budget is confirmed in writing before that phase starts.
We confirm the fee in writing before any work starts. Government fees, court fees and stamp duty are passed through at cost.Questions
Debt recovery in Bangladesh: questions
Which court handles debt recovery in Bangladesh for banks?
The Artha Rin Adalat. Section 5 of the Artha Rin Adalat Ain 2003 requires suits by financial institutions to recover loans to be filed in and decided by that court [1]. The commercial courts legislation expressly excludes matters within the Artha Rin Adalat's jurisdiction from the definition of a commercial dispute [2]. So a bank's loan recovery suit stays with the Artha Rin Adalat, while some of its other disputes, such as certain trade or payment disputes, may belong in a commercial court.
How does debt recovery in Bangladesh work for non-bank creditors?
Suppliers, contractors, distributors and other commercial creditors generally sue in the commercial courts, which hear 24 listed categories of commercial dispute [2]. Under the Commercial Court Ordinance 2026, the plaintiff had to follow a pre-suit mediation procedure under government rules unless urgent interim relief was involved, and an appeal lay to the High Court Division within 60 days [2]. That Ordinance has been replaced by Act No. 23 of 2026 [2], so we check the Act and any rules in force on the day we file.
Is mediation compulsory in an Artha Rin suit?
Yes, at the court referral stage. After the written statement is filed, the court refers the case to the parties or their lawyers for mediation [1]. The parties name a mediator within 10 days of the order, failing which the court appoints one, and mediation should finish within 60 days, extendable by up to 30 days [1]. The process is confidential [1]. A good settlement records payment dates and default consequences precisely, so the lender can move straight to enforcement if the borrower defaults.
How long does a lender have to execute an Artha Rin decree?
Under section 28 of the Artha Rin Adalat Ain 2003, as summarised by the High Court Division, a first execution case must be filed within one year of the decree, a further case within one year of the earlier case's rejection or disposal, and no execution case may be filed more than six years after the first [3]. Missing these limits can end recovery even where the debt is not disputed, so we diarise them from the day the decree is signed.
Can a borrower delay recovery by appealing?
An appeal is possible, but it comes at a cost. A borrower appealing an Artha Rin decree must deposit 50 per cent of the decretal amount [4], and a defendant seeking to set aside an ex parte decree must apply within 30 days with a 10 per cent deposit [1]. A judgment debtor in civil detention is generally not entitled to bail without depositing 25 per cent of the decretal amount [3]. Writ petitions remain a common delaying tactic, which is why we build the record so that a writ is easy to answer.
Is there a minimum claim value for the commercial courts?
The Commercial Court Ordinance 2026 set no minimum or maximum claim value: jurisdiction turned on whether the dispute fell within the listed categories [2]. The Commercial Courts Act 2026, passed in April 2026, replaced the Ordinance [5][8], and the government has said it intends to amend the Act [6]. We do not rely on any threshold figure, and we confirm jurisdiction against the current text of the Act and any amendments before filing.
Sources
- Artha Rin Adalat Ain 2003 (Act No. 8 of 2003), print view: Laws of Bangladesh
- Commercial Court Ordinance 2026 (Ordinance No. 1 of 2026), repealed by the Commercial Courts Act 2026 (Act No. 23 of 2026): Laws of Bangladesh
- High Court Division, Abdul Hafiz Salawat v Judge, Artha Rin Adalat No. 1, Chattogram, Writ Petition No. 10157 of 2022 (29 January 2024)
- The Financial Express: Remedial provisions of Artha Rin Adalat Ain 2003
- The Daily Star, May 2026: Govt to address major gaps in Commercial Courts Act
- The Financial Express, 22 May 2026: Commercial Court Act needs re-examination, says Law Minister
- RisingBD, 4 February 2026: 75 commercial courts formed nationwide, three in Dhaka (Bangla)
- US Department of State: 2026 Investment Climate Statements, Bangladesh
Related
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General information on the law of Bangladesh, not legal advice. Sending an enquiry does not create a lawyer-client relationship.