How the Commercial Court Ordinance 2026 Will Affect Arbitration and Enforcement of Arbitral Awards in Bangladesh (2026 Update)

The Commercial Court Ordinance 2026 arbitration Bangladesh landscape has shifted decisively with the promulgation of Ordinance No. 01 of 2026, published in the Extraordinary Gazette on 1 January 2026. By establishing specialised Commercial Courts with statutory timelines for resolving business disputes, the Ordinance introduces a dedicated judicial forum that intersects directly with the enforcement of arbitral awards, both domestic and foreign. For in-house counsel, foreign investors, banks and dispute-resolution practitioners, the practical question is no longer whether the new courts matter for international commercial arbitration but how they change enforcement strategy, interim-relief options and the day-to-day conduct of award-related litigation.

This guide provides the step-by-step procedures, risk analysis and tactical checklists that practitioners need to navigate the post-Ordinance regime with confidence.

Executive Summary

The Commercial Court Ordinance 2026 creates a parallel track for commercial litigation in Bangladesh, carving out business and investment disputes from the general civil court system and routing them to specialist benches with compressed timelines. For arbitration practitioners, the Ordinance does not replace the Arbitration Act 2001, that statute continues to govern the conduct of arbitration, the setting-aside of awards and the recognition of foreign awards under the New York Convention. Industry observers expect, however, that the new Commercial Courts will assume a gatekeeping role for enforcement and challenge applications that previously languished in overburdened civil courts.

The practical consequences for foreign parties can be distilled into three key takeaways:

• Jurisdiction. Commercial Courts are now the designated first-instance forum for commercial disputes, which likely includes applications to enforce or challenge arbitral awards arising from commercial relationships. The High Court Division retains supervisory jurisdiction.
• Speed. The Ordinance mandates that Commercial Courts conclude trials within a compressed statutory window, a significant departure from the multi-year timelines historically associated with Bangladeshi civil litigation.
• Interim relief. Parties can seek interim and emergency measures from Commercial Courts during pending arbitration proceedings, providing a court-based alternative to tribunal-ordered provisional measures.

Background, The Commercial Court Ordinance 2026: Text, Scope and Key Dates

Where to Find the Official Text

The full Bangla text of the Commercial Court Ordinance 2026 was published by the Department of Printing and Publications (DPP) through the Extraordinary Gazette dated 1 January 2026. The consolidated statutory text is also available on the Laws of Bangladesh repository maintained by the Ministry of Law, Justice and Parliamentary Affairs. Practitioners should treat the DPP gazette as the primary authoritative source and cross-reference section numbering against the BDLaws version for any subsequent amendments or corrections.

What the Ordinance Establishes

The Ordinance establishes specialised Commercial Courts Bangladesh 2026 designed to handle business and investment-related disputes that were previously adjudicated by regular civil courts. These courts are staffed by judges with subject-matter familiarity and operate under procedural rules that prioritise expedited resolution. The scope of “commercial disputes” is defined broadly to include routine business transactions of traders, banking and financial disputes, insurance claims, intellectual property matters, company law issues, shipping and maritime claims, and, critically for arbitration practitioners, applications arising out of arbitration agreements and awards in a commercial context.

The Ordinance requires Commercial Courts to conclude the trial of a dispute within 90 days from the date the issues are framed, with limited scope for extensions. This timeline represents a paradigm shift in a jurisdiction where commercial suits in regular civil courts could span several years. The legislation also contemplates digital court systems, electronic filing and virtual hearings, which are intended to lower transactional costs for both domestic and foreign litigants.

What the Commercial Court Ordinance 2026 Means for Arbitration in Bangladesh

Overview of the Arbitration Act and Statutory Framework

The Arbitration Act 2001 remains the governing statute for international arbitration Bangladesh and domestic arbitration alike. It draws on elements of the UNCITRAL Model Law and provides the legal framework for the conduct of arbitration proceedings, the appointment and challenge of arbitrators, the issuance of interim measures by tribunals, and the enforcement and setting-aside of awards. Part II of the Act deals specifically with international commercial arbitration, while Part IV addresses the recognition and enforcement of foreign arbitral awards in line with Bangladesh’s accession to the New York Convention.

The Commercial Court Ordinance 2026 does not amend or repeal any provision of the Arbitration Act 2001. The two statutes operate in parallel, with the Ordinance governing the court forum and procedural timelines while the Arbitration Act continues to set out the substantive grounds for enforcement, refusal and challenge of awards.

Jurisdictional Allocation: Commercial Courts vs High Court Division

The critical practical question is which court now hears applications to enforce or set aside an arbitral award. Under pre-2026 practice, enforcement applications for domestic awards were filed in the court of the District Judge or, depending on the nature of the dispute, in the High Court Division. Applications to set aside awards under the Arbitration Act were typically directed to the court that would have had original jurisdiction over the subject matter of the dispute.

The likely practical effect of the Ordinance will be to redirect enforcement and challenge applications arising from commercial relationships into the new Commercial Courts, provided the subject matter falls within the Ordinance’s definition of a “commercial dispute.” The High Court Division retains its constitutional supervisory jurisdiction, including writ jurisdiction under Articles 44 and 102 of the Constitution. Early indications suggest that practitioners should file enforcement applications in the Commercial Court as the court of first instance and reserve High Court Division applications for constitutional challenges, appeals and matters that fall outside the Ordinance’s scope.

This jurisdictional layering creates a dual-track system that demands careful forum analysis at the outset of any arbitration enforcement procedure Bangladesh. Counsel must assess whether the underlying dispute qualifies as “commercial” under the Ordinance and, if so, route the application accordingly.

Enforcement of Arbitral Awards Under the New Regime, Domestic and Foreign

Enforcement Route for Domestic Awards

Domestic arbitral awards, including those rendered under BIAC arbitration rules or ad hoc proceedings seated in Bangladesh, continue to be enforceable under the Arbitration Act 2001. The practical change is the forum. Where the underlying dispute is commercial in nature, the enforcement application should now be filed in the designated Commercial Court rather than the general civil court of the relevant district.

The step-by-step enforcement route for a domestic award under the post-Ordinance regime is as follows:

1. Obtain the original or certified copy of the arbitral award and the underlying arbitration agreement.
2. Confirm that the subject matter falls within the definition of “commercial dispute” under the Ordinance.
3. Prepare the enforcement application referencing the relevant sections of the Arbitration Act 2001 and file in the designated Commercial Court.
4. Serve the respondent in accordance with the procedural rules of the Commercial Court (monitor practice directions for electronic service options).
5. Attend the expedited hearing, the Commercial Court is required to resolve matters within the statutory timeline.
6. Obtain the enforcement order and proceed to execution (attachment, sale of assets, garnishment of bank accounts).

Recognition and Enforcement of Foreign Awards (Step-by-Step)

Foreign award-holders seeking to enforce ICC awards, SIAC awards, LCIA awards or other international arbitral awards in Bangladesh must continue to follow the New York Convention pathway as implemented through Part IV of the Arbitration Act 2001. The Commercial Court Ordinance 2026 does not alter the substantive requirements for recognition but changes the procedural forum for certain applications.

To enforce a foreign arbitral award in Bangladesh in 2026, practitioners should follow these steps:

1. Obtain the duly authenticated original award (or certified copy) and the original arbitration agreement (or certified copy).
2. If the award or agreement is not in Bangla or English, arrange a certified translation by an official or sworn translator.
3. Prepare supporting affidavits establishing the award’s authenticity, the commercial nature of the dispute, and the respondent’s assets in Bangladesh.
4. File the recognition and enforcement application in the Commercial Court (if the dispute qualifies as commercial) or in the High Court Division (for constitutional or non-commercial matters).
5. Serve the respondent and allow the statutory response period.
6. Address any objections raised by the respondent under the grounds for refusal set out in the Arbitration Act (mirroring Article V of the New York Convention).
7. Obtain the enforcement order from the Commercial Court.
8. Proceed to execution against the respondent’s assets in Bangladesh, bank accounts, real property, receivables, or other commercial assets.

Quick checklist for foreign award-holders:

• Certified award and agreement. Ensure originals or certified copies are available with apostille or consular legalisation as applicable.
• Translation. Prepare certified Bangla or English translations of all documents not already in those languages.
• Asset identification. Conduct pre-filing due diligence on the respondent’s assets within Bangladesh to support execution.
• Forum selection. Confirm that the Commercial Court is the correct forum, assess whether the underlying dispute qualifies as “commercial” under the Ordinance.
• Local counsel. Engage experienced Bangladesh enforcement counsel familiar with both the Arbitration Act and the new Commercial Court procedures. Browse the Global Law Experts lawyer directory to identify qualified practitioners.
• Interim relief. Consider applying for pre-enforcement interim measures (freezing orders, injunctions) simultaneously with the main enforcement application.

Interim and Emergency Relief, Options and Tactical Considerations

Interim Measures from Arbitration Tribunals vs Commercial Courts

Under the Arbitration Act 2001, arbitral tribunals have the power to order interim measures, including injunctions, preservation of evidence and security for the amount in dispute. These tribunal-ordered measures are binding on the parties but may lack direct enforceability against third parties such as banks or government agencies. The Commercial Court Ordinance 2026 preserves the court’s parallel jurisdiction to grant interim measures arbitration Bangladesh parties may need to secure assets, prevent dissipation or maintain the status quo pending the conclusion of arbitration.

Practitioners should apply to the Commercial Court for interim relief when:

• The opposing party is likely to dissipate assets before the tribunal can act.
• Third-party compliance is required (e.g., freezing orders directed at banks).
• Emergency relief is needed before the tribunal is constituted.
• The tribunal’s order is likely to be ignored and court-backed enforcement is necessary.

Practical Approach for Emergency Relief

The compressed timelines of the Commercial Courts create an opportunity for faster emergency relief than was available under the regular civil court system. Industry observers expect that well-prepared ex parte applications for freezing orders or injunctions could be heard within days of filing, compared to weeks or months under the prior regime.

A sample emergency application timeline under the new regime might proceed as follows:

• Day 1. File ex parte application with supporting affidavits and evidence in the Commercial Court.
• Days 2–3. Court hearing on the ex parte application; if urgent, same-day listing may be possible.
• Days 3–7. If granted, serve the interim order on the respondent and relevant third parties (banks, registries).
• Days 7–14. Inter partes hearing to confirm or vary the interim order.

Practitioner tip: When seeking emergency relief from a Commercial Court, always preserve parallel options for foreign-seizure or regulatory remedies in other jurisdictions where the respondent holds assets. A Bangladesh freezing order may be insufficient if the respondent’s primary assets are offshore.

Step-by-Step Practitioner Guide, Enforcing an Award in Bangladesh

The following 12-step procedure consolidates the arbitration enforcement procedure Bangladesh practitioners should follow under the new Commercial Court regime, whether the award is domestic or foreign.

1. Obtain and authenticate the award. Secure the original or a certified copy of the arbitral award, the arbitration agreement, and all relevant procedural orders. For foreign awards, arrange apostille or consular authentication.
2. Prepare certified translations. If any documents are not in Bangla or English, commission certified translations by an authorised translator.
3. Identify the respondent’s assets. Conduct thorough due diligence on the respondent’s assets in Bangladesh, bank accounts, real property, shares, receivables, inventory and equipment.
4. Determine the correct forum. Assess whether the underlying dispute is “commercial” within the meaning of the Ordinance. If yes, file in the Commercial Court. If no, file in the appropriate civil court or the High Court Division.
5. Draft the enforcement application. Prepare the application referencing the relevant provisions of the Arbitration Act 2001 (for domestic awards) or Part IV of the Arbitration Act and the New York Convention (for foreign awards). Include a prayer for enforcement and, where appropriate, interim relief.
6. File and pay court fees. Submit the application with all supporting documents in the Commercial Court registry. Monitor for e-filing options under the Ordinance’s digital court provisions.
7. Serve the respondent. Effect service in accordance with Commercial Court procedural rules. Confirm service through the court record to avoid jurisdictional challenges.
8. Apply for ex parte relief if needed. If there is a risk of asset dissipation, file a simultaneous application for a freezing order or injunction.
9. Respond to defences. Prepare for common respondent objections, jurisdictional challenges, public policy arguments, allegations of procedural irregularity in the arbitration, and fraud claims.
10. Attend the expedited hearing. The Commercial Court is required to resolve matters within the statutory trial window. Be prepared for compressed timelines for evidence, submissions and argument.
11. Obtain the enforcement order. Once the court grants enforcement, secure a certified copy of the order immediately.
12. Execute the order. Proceed to execution, attachment and sale of immovable property, garnishment of bank accounts, seizure of movable assets, or other execution measures available under Bangladesh law. Monitor appeal windows and setting-aside applications, which may be filed within the statutory period.

Note: these estimates reflect early practitioner expectations under the new regime. Actual timelines will depend on court capacity, respondent cooperation and whether setting-aside or appeal proceedings are pursued.

Key Risks, Defences and Common Pitfalls

Enforcement of arbitral awards in Bangladesh, even under the improved Commercial Court framework, carries risks that experienced counsel must anticipate and manage. The following are the most frequently encountered challenges:

• Improper service. Failure to effect proper service on the respondent remains the single most common ground for delay. Commercial Court procedural rules must be followed precisely.
• Jurisdictional objections. Respondents may challenge whether the Commercial Court has jurisdiction over the enforcement application, arguing that the dispute is not “commercial” within the Ordinance’s definition or that the High Court Division has exclusive competence.
• Public policy defence. The most potent defence to enforcement under both the Arbitration Act and the New York Convention, respondents may argue the award conflicts with Bangladesh public policy.
• Procedural irregularity. Allegations that the arbitral proceedings did not comply with due process requirements, improper notice, lack of opportunity to present a case, or irregularity in tribunal constitution.
• Fraud allegations. Claims that the award was obtained through fraud or misrepresentation, which can trigger protracted factual inquiries.
• Non-arbitrability. Respondents may argue that the subject matter of the dispute is not arbitrable under Bangladesh law.
• Currency controls and enforcement barriers. Even after obtaining an enforcement order, converting and repatriating funds can face regulatory obstacles under Bangladesh Bank regulations.
• State immunity. Where the respondent is a state entity or state-owned enterprise, sovereign immunity defences may be raised.

Defence checklist for respondents: Respondents facing enforcement should immediately assess whether any of the Arbitration Act’s grounds for refusal apply, file a timely challenge or setting-aside application within the statutory window, and consider applying for a stay of execution pending the outcome of any challenge proceedings.

Forum Selection and Strategic Recommendations for Foreign Parties

The introduction of Commercial Courts Bangladesh 2026 creates a meaningful choice for foreign parties structuring cross-border transactions with Bangladeshi counterparts. When drafting dispute-resolution clauses, parties should consider the following decision framework:

• Pure arbitration clause (recommended for most cross-border transactions). Seat the arbitration outside Bangladesh (e.g., Singapore, London, Hong Kong) and enforce the resulting foreign award through the New York Convention pathway in the Commercial Court. This preserves neutrality, access to international procedural standards, and a well-established enforcement mechanism.
• BIAC arbitration clause. Suitable for disputes where both parties prefer a domestic seat and institutional support. BIAC arbitration awards are domestic awards enforceable directly through the Commercial Court.
• Direct Commercial Court litigation. Consider only for straightforward debt recovery, banking disputes or other commercial matters where speed and a specialist bench outweigh the benefits of party autonomy and confidentiality offered by arbitration.

Industry observers expect that for high-value cross-border transactions, particularly in the garment, energy, infrastructure and shipping sectors, foreign-seated arbitration with enforcement in the Commercial Courts will emerge as the dominant dispute-resolution model. Parties should ensure their arbitration clauses expressly refer to institutional rules, designate the seat and governing law, and include provisions for emergency arbitrator relief to complement court-based interim measures.

Comparative Table, Pre-2026 vs Post-2026 Practice

Conclusion and Practitioner Checklist

The Commercial Court Ordinance 2026 arbitration Bangladesh framework represents the most significant procedural reform for commercial dispute resolution in Bangladesh in decades. While the Arbitration Act 2001 and the New York Convention continue to govern the substantive law of arbitration and award enforcement, the new Commercial Courts change the speed, forum and tactical landscape for every practitioner involved in enforcement or challenge proceedings. The following checklist summarises the immediate actions counsel should take:

• Review all pending enforcement and challenge applications to determine whether they should be transferred to, or filed in, a Commercial Court.
• Confirm the “commercial dispute” classification of each matter under the Ordinance’s statutory definition.
• Update standard arbitration clauses in new contracts to reflect forum selection strategy under the post-Ordinance regime.
• Prepare enforcement evidence bundles in advance, certified awards, translations, asset identification reports and supporting affidavits.
• Monitor Commercial Court practice directions and procedural rules as they are issued.
• Assess whether interim relief applications should be filed in the Commercial Court before or simultaneously with enforcement.
• Identify respondent assets in Bangladesh early and consider pre-enforcement freezing orders.
• Engage experienced local enforcement counsel, consult the Global Law Experts directory for qualified practitioners.
• Calendar all statutory deadlines for setting-aside and appeal windows under the Arbitration Act.
• Maintain parallel enforcement strategies in other jurisdictions where the respondent holds assets.

Sources

1. Extraordinary Gazette, Commercial Court Ordinance, Jan 1, 2026 (Official DPP)
2. Laws of Bangladesh (BDLaws / MinLaw), Commercial Court Ordinance 2026
3. The Daily Star, A Review of the Commercial Court Ordinance 2026
4. Jural Acuity, Commercial Court Ordinance 2026 Explainer
5. Tahmidur Rahman (TRW Law), Commercial Court Ordinance 2026 in Bangladesh
6. New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards
7. Bangladesh International Arbitration Centre (BIAC)