Arbitration law in Bangladesh

Welcome to Biarb, where arbitration is a prevalent method of resolving disputes. In recent years, arbitration has gained significant recognition as a cost-effective and efficient alternative to traditional litigation. If you find yourself in need of arbitration services in Dhaka, Bangladesh, it is essential to have a clear understanding of the arbitration law in the country.

The primary legislative framework governing arbitration in Bangladesh is the Arbitration Act, 2001. This act is in line with international best practices, including those outlined in the United Nations Commission on International Trade Law (UNCITRAL) Model Law. The Act provides a comprehensive legal framework for arbitration in Bangladesh, ensuring impartiality, transparency, and enforceability of arbitral awards.

Under the Arbitration Act, parties are free to determine the procedure for appointing arbitrators in their arbitration agreements. They can select arbitrators of their choice, subject to certain qualifications and restrictions. This flexibility allows the parties to choose experts in their respective fields, ensuring a fair and knowledgeable resolution process.

The Act also establishes the Bangladesh International Arbitration Centre (BIAC) as an independent and neutral institution to facilitate and administer arbitration proceedings in Dhaka. BIAC has continuously played a vital role in promoting arbitration and assisting parties in resolving disputes through arbitration effectively.

Arbitration process in Dhaka

Now that we have a basic understanding of the arbitration law in Bangladesh, let's delve into the arbitration process in Dhaka, the bustling capital city.

The arbitration process in Dhaka follows a structured yet flexible approach, providing parties with an efficient mechanism for resolving their disputes. Here are the essential steps involved in an arbitration process in Dhaka:

1. Agreement to Arbitrate: The first step is for the parties to have a valid arbitration agreement in place. This agreement outlines the terms and conditions of arbitration, including the appointment of arbitrator(s), the seat of arbitration, and the governing law.

2. Appointment of Arbitrator(s): Once a dispute arises, the parties need to agree on the appointment of arbitrator(s) to preside over the arbitration proceedings. They can choose a single arbitrator or a panel of arbitrators, depending on the complexity and nature of the dispute.

3. Preliminary Hearing: After the appointment of arbitrator(s), a preliminary hearing is held to establish the procedural aspects of the arbitration. This includes setting timelines for various stages of the arbitration, determining the scope of the dispute, and discussing any preliminary matters raised by the parties.

4. Exchange of Pleadings: The parties then submit their case in writing through a process known as the exchange of pleadings. This involves the submission of statements of claim, defense, and any relevant documents supporting their respective positions.

5. Hearing: The arbitration process allows the parties to present their cases and provide evidence during a hearing. The arbitrator(s) may ask questions and seek clarifications as required. The hearing can be conducted in person or through virtual means, depending on the circumstances.

6. Award: Following the conclusion of the hearing, the arbitrator(s) will deliberate on the evidence and arguments presented and ultimately render an award. The award may be in favor of one party or contain a compromise solution, depending on the arbitrator's findings.

7. Enforcement: The final step in the arbitration process is the enforcement of the arbitral award. The Arbitration Act, 2001, ensures the enforceability of domestic and foreign arbitral awards in Bangladesh, making them binding and legally enforceable.

Affordable arbitrator in Dhaka

One of the significant advantages of arbitration in Dhaka is its affordability compared to traditional litigation. While the cost of litigation can quickly escalate due to lengthy court procedures and multiple appeals, arbitration provides a streamlined and cost-effective approach to dispute resolution.

As Bangladesh continues to develop and grow as a global business hub, there is a diverse pool of experienced and knowledgeable arbitrators available in Dhaka. These arbitrators offer their services at competitive rates, ensuring accessibility for parties seeking affordable and quality dispute resolution mechanisms.

Whether you are engaged in commercial, construction, or any other form of dispute, the affordable arbitrators in Dhaka possess the necessary expertise to handle complex issues effectively. They can provide a fair and impartial platform for parties to present their cases and reach a mutually satisfactory resolution.

Moreover, local arbitrators in Dhaka are well-versed in the intricacies of Bangladeshi law and customs, adding an invaluable advantage to the dispute resolution process. Their understanding of the local context allows for a more nuanced approach, ensuring the resolution aligns with the unique cultural and legal aspects of the country.

In conclusion, arbitration in Dhaka, Bangladesh, serves as a reliable and efficient alternative to conventional litigation. The robust legal framework, streamlined arbitration process, and affordable arbitrators contribute to making Dhaka an attractive destination for resolving disputes. Whether you are a local or international party, arbitration in Dhaka offers the opportunity to seek justice while saving time and costs.