What is the arbitration process in Bangladesh?

The arbitration process in Bangladesh begins when a claimant serves a Notice of Arbitration on the respondent. The respondent then submits an answer, and the parties (or the court, if they cannot agree) appoint one or more arbitrators. The constituted tribunal issues procedural orders, conducts hearings, and renders a final, binding award. The entire process is governed by the Arbitration Act 2001, which provides default rules on procedure, timelines, and court assistance where needed.

How do I start the arbitration process?

Start by reviewing your arbitration clause to confirm it is valid and covers the dispute. Next, prepare a Notice of Arbitration that identifies the parties, references the arbitration agreement, summarises the dispute, states the relief sought, and proposes the number and identity of arbitrators. Serve this notice on the respondent by registered post or courier with proof of delivery. If you are using BIAC, submit a Request for Arbitration to the BIAC secretariat along with the registration fee and supporting documents.

How can I initiate arbitration at BIAC?

To initiate at BIAC, submit a written Request for Arbitration to the BIAC secretariat in Dhaka. This request should include the arbitration agreement, a brief Statement of Claim, the claimant’s nomination of an arbitrator (if a three-member tribunal is proposed), and the required registration fee. BIAC will acknowledge receipt, notify the respondent, and set a deadline for the respondent’s answer and counter-nomination. The BIAC FAQ page provides current forms and fee schedules.

How do I appoint an arbitrator in Bangladesh?

If the parties have agreed on an appointment procedure in their arbitration clause, follow that procedure. Where the clause is silent, the Arbitration Act 2001 defaults to a sole arbitrator. For a three-member panel, each party nominates one arbitrator and the two nominees select a presiding arbitrator. If any step fails, because a party refuses to nominate or the nominees cannot agree on a chair, a party may apply to the Chief Justice under Section 12 of the Act to make the appointment.

Can I apply to courts for interim relief before the tribunal is formed?

Yes. Section 7A of the Arbitration Act 2001 preserves the court’s power to grant interim measures in support of arbitration proceedings, even before the tribunal is constituted. Courts can order asset preservation, evidence protection, injunctions, and status quo orders. Seeking interim relief from a court does not waive the right to arbitrate, the proceedings continue in parallel once the tribunal is formed.

How long does it take to form an arbitral tribunal in Bangladesh?

Where parties cooperate, an arbitral tribunal can typically be constituted within two to six weeks of the Notice of Arbitration. BIAC proceedings tend toward the shorter end of this range because the institution acts as a default appointing authority. In ad hoc arbitrations where a party is uncooperative, a court-assisted appointment under the Act may take an additional four to eight weeks, depending on the court’s schedule.

What must a valid Notice of Arbitration include?

At a minimum, a valid notice should include the full legal names and addresses of both parties, a reference to the arbitration agreement (with a copy attached), a concise summary of the dispute and the factual and legal basis for the claim, the specific relief sought, the proposed number of arbitrators and any nominations, the proposed seat and language of proceedings, and the claimant’s signature and date. BIAC proceedings may require additional items such as a registration fee payment and a brief Statement of Claim.

Is ad hoc arbitration risky in Bangladesh?

Ad hoc arbitration offers flexibility and potentially lower administrative costs, but it carries higher procedural risk. Without an institution to manage deadlines and appointments, disputes over procedure are more likely, and an uncooperative respondent can delay the formation of the tribunal. The risk is mitigated by adopting the UNCITRAL Arbitration Rules by reference in the arbitration clause, which provides a comprehensive procedural framework. Even in ad hoc proceedings, the Arbitration Act 2001 provides a court-assisted appointment mechanism as a safety net.

How To Initiate Arbitration In Bangladesh

Understanding how to initiate arbitration in Bangladesh is essential for any business or legal practitioner facing a commercial dispute that falls under an arbitration clause. The Arbitration Act 2001 governs the process, establishing clear requirements for notices, arbitrator appointments, and procedural timelines that parties must follow. Bangladesh offers two principal forums, institutional arbitration through the Bangladesh International Arbitration Centre (BIAC) and ad hoc arbitration managed by the parties themselves, each with distinct procedural pathways. This guide walks through every step from reviewing your arbitration agreement to constituting the tribunal, complete with checklists, a sample notice template, and a practical comparison of BIAC versus ad hoc proceedings.

Quick Summary, Can I Start Arbitration in Bangladesh?

Yes, provided a valid arbitration agreement exists between the parties. The arbitration process in Bangladesh follows a well-defined sequence governed by the Arbitration Act 2001.

Prerequisite. You must hold a written arbitration agreement (a standalone agreement or a clause within a contract) that meets the requirements of Section 9 of the Arbitration Act 2001.
Forum choice. Decide whether to file institutionally at BIAC (under BIAC arbitration rules) or proceed ad hoc, where parties administer the process themselves.
First formal step. Serve a Notice of Arbitration (or, for BIAC proceedings, submit a Request for Arbitration) on the respondent, setting out the dispute, the relief sought, and the proposed appointment mechanism.
Arbitrator appointment. Follow the agreed procedure or, where the parties cannot agree, invoke the statutory appointment routes under the Act, including application to the Chief Justice for court-assisted appointment.
Proceed to hearing. Once the tribunal is constituted, it will issue procedural orders, set a timetable, and move toward a final, binding award.

The sections below break each of these steps into actionable detail, with statutory references, timelines, and templates.

When You Can Initiate, Jurisdiction, Seat, and Arbitration Agreement Checklist

Before drafting any notice, a prospective claimant must confirm that the dispute is arbitrable and that the arbitration agreement is enforceable. Under Section 9 of the Arbitration Act 2001 Bangladesh, an arbitration agreement must be “in writing.” The Act adopts a broad definition: an exchange of letters, faxes, or any communication that records the agreement satisfies this requirement.

Beyond the writing requirement, a well-drafted arbitration clause should specify several critical elements. Ambiguity in any of these areas can delay the arbitration process in Bangladesh by weeks or even months.

Pre-initiation contract review checklist:

Seat of arbitration. Confirm whether the clause designates Dhaka, another Bangladeshi city, or a foreign seat. The seat determines the supervisory court and the procedural law applicable to the arbitration.
Governing law of the contract. Distinguish between the substantive law governing the merits and the law governing the arbitration procedure (often the law of the seat).
Number of arbitrators. Check whether the clause specifies a sole arbitrator or a three-member tribunal. Where the clause is silent, the Arbitration Act 2001 defaults to a sole arbitrator under Section 12.
Institutional designation. Determine whether the clause refers to BIAC, another institution, or is silent (which typically means ad hoc).
Language. Confirm whether Bangla, English, or another language is specified for the proceedings.
Time-bar and limitation. Verify that the claim has not become time-barred under the Limitation Act 1908 as applied to arbitration.

If the clause is pathological, for example, referencing a non-existent institution or contradicting itself on seat and law, industry observers expect that the respondent may challenge jurisdiction early. Addressing these issues before serving the notice of arbitration significantly reduces procedural risk.

Step-by-Step: Serving the Notice of Arbitration in Bangladesh

The notice of arbitration Bangladesh practitioners serve is the document that formally commences the arbitration. Under the Arbitration Act 2001, arbitral proceedings commence on the date the respondent receives this notice. Getting it right, in form, content, and method of delivery, is critical.

Minimum Contents Required for a Valid Notice of Arbitration

While the Arbitration Act 2001 does not prescribe a rigid template, Section 21 states that arbitral proceedings commence when the respondent receives “a request to refer the dispute to arbitration.” Drawing from the Act, BIAC filing requirements, and established international practice, the notice should include the following elements at a minimum:

Identity of the parties. Full legal names, registered addresses, and contact details of both claimant and respondent.
Reference to the arbitration agreement. Quote or attach the arbitration clause or separate agreement, specifying the contract and its date.
Summary of the dispute. A concise statement of the facts giving rise to the claim and the legal basis relied upon.
Relief sought. The specific monetary or non-monetary remedies the claimant requests.
Proposed number of arbitrators. State whether a sole arbitrator or a panel of three is proposed, consistent with the clause.
Nomination of arbitrator (if applicable). Where a three-member tribunal is envisaged, include the claimant’s nomination of its party-appointed arbitrator with that person’s name, qualifications, and contact information.
Proposed seat and language. Confirm the seat (if not already fixed by the clause) and the language of proceedings.
Signature and date. Signed by the claimant or its authorised representative, with the date of issue.

For BIAC institutional proceedings, the request for arbitration Bangladesh claimants submit must also comply with any additional requirements published in the BIAC Rules, including the filing of a registration fee alongside the request.

Sample Notice of Arbitration (Illustrative Template)

Note: This sample is provided for illustration only and does not constitute legal advice. Parties should tailor the notice to their specific arbitration clause and seek professional guidance.

NOTICE OF ARBITRATION Date: [Date] To: [Full legal name and address of Respondent] From: [Full legal name and address of Claimant] 1. Arbitration Agreement. This Notice is served pursuant to [Clause [X] of the [Contract Name] dated [Date]] / [the Arbitration Agreement dated [Date]], a copy of which is attached as Annexure A. 2. Summary of Dispute. [Brief factual narrative, e. g. , “The Respondent has failed to deliver goods conforming to specification under Purchase Order No. [X], resulting in losses of BDT [amount]. “] 3. Relief Sought. The Claimant seeks: (a) damages of BDT [amount]; (b) interest at the contractual / statutory rate; (c) costs of the arbitration; and (d) such further relief as the Tribunal deems just. 4.

Number and Appointment of Arbitrators. The Claimant proposes a [sole arbitrator / tribunal of three]. [If three-member panel: “The Claimant hereby nominates [Name, qualifications, address] as its party-appointed arbitrator, and invites the Respondent to nominate its arbitrator within [30] days. “] 5. Seat and Language. The seat of arbitration shall be [Dhaka, Bangladesh] and the language of proceedings shall be [English / Bangla], as provided in the arbitration agreement.

Practical Tips: Service Methods and Preserving Your Position

Proper service of the notice of arbitration is not merely a formality, it determines the commencement date and can affect limitation periods. Consider the following when serving your notice:

Method of delivery. Use registered post with acknowledgement due, courier with signed proof of delivery, or hand-delivery with a written acknowledgement receipt. Electronic delivery (email) may suffice if the arbitration clause expressly permits it, but physical proof of service is strongly recommended.
Retain evidence. Keep copies of the signed notice, the covering letter, the dispatch receipt, and the delivery confirmation. These may be needed if the respondent later disputes the commencement date.
Parallel court applications. If urgent interim relief is needed, such as an injunction to prevent asset dissipation, consider filing a court application simultaneously with or shortly after service of the notice. Section 7A of the Arbitration Act 2001 preserves the court’s power to grant interim measures.
Response deadline. It is common practice to give the respondent 30 days to respond and nominate an arbitrator (where a three-member tribunal is proposed), though the arbitration clause may specify a different period.

Choosing Forum, BIAC (Institutional) vs Ad Hoc Arbitration in Bangladesh

One of the most consequential decisions when initiating arbitration is whether to proceed under institutional rules at BIAC or to run the process ad hoc. The choice affects cost predictability, the speed of arbitrator appointment, and the degree of administrative support available throughout the proceedings. The comparison table below summarises the key differences.

Criteria	BIAC (Institutional)	Ad Hoc
Where to file	BIAC secretariat in Dhaka; submit a Request for Arbitration with supporting documents and registration fee.	No secretariat, parties coordinate appointments and administration directly between themselves.
Appointment method	BIAC appoints or administers appointments under its rules if parties fail to agree within the prescribed period.	Parties agree; if they fail, court assistance under the Arbitration Act 2001 (application to the Chief Justice).
Rules and procedural certainty	BIAC Rules govern procedure; set timelines and clear administrative benchmarks.	Parties must agree on applicable rules (UNCITRAL, ICC, or bespoke) or default to the Act; more flexible but higher risk of procedural disputes.
Cost predictability	More predictable, published administrative fee schedule and arbitrator fee scales.	Potentially lower administrative fees but arbitrators’ costs vary widely; disagreements on procedure can increase overall expenditure.
Case management and neutrality	Institutional case management, venue support, and a neutral appointing authority.	Greater party autonomy; more flexible seat choice but fewer administrative safeguards against delay.

How to Initiate Arbitration at BIAC, Filing Checklist

To commence proceedings at BIAC, a claimant must submit a Request for Arbitration to the BIAC secretariat. The BIAC arbitration rules require the following:

A written Request for Arbitration, containing the information outlined above (parties, clause, dispute summary, relief, and arbitrator nomination).
A copy of the arbitration agreement or the relevant contract containing the arbitration clause.
A brief Statement of Claim, or a summary sufficient to inform the respondent of the nature and quantum of the claim.
Payment of the applicable registration and administrative fees, as published by BIAC.
Any supporting documents the claimant wishes to rely upon at the preliminary stage.

BIAC will acknowledge receipt, serve the Request on the respondent, and set a deadline for the respondent’s Answer and counter-nomination (if a three-member tribunal is specified). Where parties fail to agree on an arbitrator, BIAC itself acts as the appointing authority.

When Ad Hoc Arbitration Is the Better Choice

Ad hoc arbitration in Bangladesh may be preferable where the parties have a sophisticated relationship, wish to minimise institutional fees, or where the arbitration agreement specifically provides for it. However, the absence of institutional support places a greater burden on the parties to agree on procedural rules, appointment timelines, and logistics. If the respondent is uncooperative, the claimant must resort to court-assisted appointment, a process that can be slower than BIAC’s internal mechanism. Early indications suggest that parties choosing ad hoc arbitration benefit most when they adopt the UNCITRAL Arbitration Rules by reference in the underlying clause, as these provide a self-contained procedural framework without requiring institutional administration.

Appointing Arbitrator(s) Under the Arbitration Act 2001, Routes and Problem-Solving

The appointment of arbitrator Bangladesh procedures under the Act are designed to balance party autonomy with safeguards against delay. The Act provides a tiered approach: party agreement first, statutory default second, and court intervention as a last resort.

Agreed Appointment, Party-Nominated Models

The most straightforward route is where both parties follow the procedure set out in their arbitration agreement. Common models include:

Sole arbitrator by agreement. Parties jointly select one arbitrator. This is the default under Section 12 of the Arbitration Act 2001 if the clause is silent on the number of arbitrators.
Three-member tribunal. Each party nominates one arbitrator; the two party-appointed arbitrators then select a presiding (third) arbitrator. This model is widely used in higher-value commercial disputes.
Institutional appointment. The clause may designate BIAC or another institution as the appointing authority, deferring the nomination process entirely to that body.

Failing Agreement, Statutory Routes and Court Assistance

Where parties cannot agree on an arbitrator, whether because the respondent refuses to nominate, the two party-appointed arbitrators cannot agree on a presiding arbitrator, or the clause is ambiguous, the Arbitration Act 2001 provides statutory fallback mechanisms.

Written request to the defaulting party. The initiating party should first send a written request to the respondent (or to the party-appointed arbitrators, as applicable) demanding that they complete the appointment within a specified period, typically 30 days.
Application to the Chief Justice. If the appointment is still not made, Section 12 of the Arbitration Act 2001 empowers a party to apply to the Chief Justice (or a person or institution designated by the Chief Justice) to make the appointment. This court-assisted route ensures that no party can frustrate the process indefinitely.
Court considerations. When exercising this power, the appointing authority considers qualifications agreed by the parties, the need for independence and impartiality, and, in international arbitrations, the desirability of appointing a person of a nationality different from those of the parties.

Industry observers expect that court-assisted appointments typically add four to eight weeks to the process, depending on the court’s docket. However, the mechanism is essential, without it, a recalcitrant respondent could prevent the arbitration from ever getting off the ground.

Challenges: Non-Cooperation, Disqualification, and Replacement

Even after appointment, issues can arise. The Act allows parties to challenge an arbitrator on grounds of lack of independence, impartiality, or qualifications (Sections 13 and 14). Where an arbitrator becomes unable or unwilling to act, the vacancy is filled following the same procedure used for the original appointment. Practitioners should be aware of the following practical scenarios:

Respondent ignores the notice entirely. The claimant proceeds with its nomination and applies for the remaining appointments under Section 12. The arbitration can proceed; a respondent’s refusal to participate does not invalidate the process.
Arbitrator resigns or is challenged. A substitute arbitrator is appointed using the original appointment method. Any hearings already conducted may need to be repeated at the discretion of the reconstituted tribunal.
Conflict of interest discovered post-appointment. Disclose immediately. The Act imposes a continuing duty of disclosure on arbitrators, and failure can be grounds for setting aside an award.

Timelines and Typical Process Durations, How to Initiate Arbitration in Bangladesh on Schedule

Realistic timeline expectations are critical for commercial planning. The table below outlines typical durations for each phase when initiating arbitration in Bangladesh, with ranges reflecting the difference between cooperative and contested proceedings.

Phase	BIAC (Institutional)	Ad Hoc
Serve Notice / File Request	Day 0	Day 0
Respondent’s Answer and counter-nomination	15–30 days (per BIAC Rules)	30 days (typical contractual deadline)
Arbitrator appointment (cooperative)	2–4 weeks from Answer deadline	2–4 weeks if parties agree
Arbitrator appointment (contested / court-assisted)	4–6 weeks (BIAC acts as appointing authority)	6–12 weeks (requires application to Chief Justice)
First Procedural Order / Preliminary Conference	1–2 weeks after constitution	2–4 weeks after constitution
Interim relief application (if needed)	Can be filed with courts at any time from Day 0	Can be filed with courts at any time from Day 0
Estimated total: Notice to First Hearing	8–14 weeks	10–22 weeks

These timelines are based on practitioner experience and reported averages. Actual durations vary depending on the complexity of the dispute, the cooperation of the respondent, and court docket congestion where court-assisted appointments are required.

Interim Relief, Preservation Measures, and Early Court Applications

A party initiating arbitration may need urgent court intervention before the tribunal is constituted. The Arbitration Act 2001 Bangladesh expressly preserves the court’s authority to grant interim measures in support of arbitration proceedings, regardless of whether the tribunal has been formed.

When to seek interim relief during the initiation phase:

Asset preservation. If there is a risk that the respondent will dissipate assets, transfer property, or move funds outside Bangladesh before an award can be enforced.
Evidence preservation. If documents, electronic records, or physical evidence are at risk of destruction or alteration.
Status quo orders. To prevent a party from taking steps that would render the arbitration meaningless, for example, completing a disputed construction project or disposing of disputed goods.
Injunctive relief. Restraining a party from acting in breach of a contractual obligation pending the tribunal’s determination.

Applications for interim relief are filed in the relevant district court or, for international arbitrations with a foreign seat, in accordance with the law of the seat. The likely practical effect of Bangladesh’s ongoing court modernisation efforts, including the Commercial Court Ordinance, is that dedicated commercial benches will handle these applications more efficiently, though the core provisions of the Arbitration Act 2001 remain unchanged. Practitioners should note that seeking court-ordered interim relief does not waive the right to arbitrate; Section 7A of the Act makes this clear.

Costs, Fees, and a Practical Checklist Before You Start

Understanding the cost structure helps parties budget effectively. The main cost categories when initiating arbitration include:

BIAC registration and administrative fees. Published on BIAC’s fee schedule; typically calculated as a percentage of the amount in dispute, with a minimum floor.
Arbitrators’ fees. In BIAC proceedings, guided by the BIAC fee schedule. In ad hoc proceedings, negotiated directly with the arbitrators, rates vary significantly based on experience and dispute value.
Legal counsel fees. Claimant’s own lawyers’ charges for preparing the notice, statement of claim, evidence, and attending hearings.
Venue and administrative costs. Hearing-room hire, transcription services, and travel (if the seat differs from the parties’ locations).
Court fees (if applicable). Stamp duty and filing fees for any interim relief applications or court-assisted appointment petitions.

Pre-launch checklist, confirm these items before serving your notice:

Arbitration agreement is in writing and covers the dispute in question.
Limitation period has not expired.
Forum decision made (BIAC or ad hoc) and confirmed against the clause.
Notice of Arbitration drafted with all required contents.
Claimant’s arbitrator nominee identified and confirmed as willing to serve (if three-member panel).
Service method selected and logistics arranged for proof of delivery.
Interim relief assessed, court application prepared if urgency exists.
Budget approved internally for registration fees, arbitrator fees, and counsel costs.

Next Steps, How to Initiate Arbitration in Bangladesh With Confidence

Initiating arbitration in Bangladesh is a structured, statute-driven process. By following the steps set out in this guide, verifying your arbitration agreement, drafting a compliant notice, choosing the right forum, and preparing for arbitrator appointment, you lay the groundwork for an efficient and enforceable proceeding.

For further guidance on what happens once the tribunal is constituted, see our detailed guide on the preparation for and conduct of arbitration hearings. For a broader overview of how dispute resolution mechanisms work in commercial contracts, including mediation and litigation alternatives, our separate resource covers the full landscape.

If you are ready to commence arbitration or need advice on your specific clause and dispute, find a qualified arbitration lawyer through the Global Law Experts directory to receive tailored professional assistance.

Need Legal Advice?

This article was produced by Global Law Experts. For specialist advice on this topic, contact Suhan Khan, FCIArb at ACCORD CHAMBERS, a member of the Global Law Experts network.