BIAC Arbitration Rules (bangladesh) 2019, Model Clause, Filing Steps, Fees & Tribunal Powers

The BIAC Arbitration Rules 2019 are the procedural backbone of institutional arbitration administered by the Bangladesh International Arbitration Centre, the country’s principal arbitration institution operating under the auspices of the Dhaka Chamber of Commerce and Industry. For in-house counsel and commercial practitioners negotiating contracts in Bangladesh, understanding how to draft enforceable BIAC arbitration clauses, navigate the filing process, budget for fees and leverage tribunal powers is essential to effective dispute planning. This practitioner guide consolidates the key provisions of the BIAC Arbitration Rules 2019, maps them against the Arbitration Act, 2001, Bangladesh’s governing arbitration statute, and provides ready-to-use model clauses, a step-by-step filing checklist, a detailed fees table and a comparative analysis against other major institutional rules.

Quick Answer: What Do the BIAC Arbitration Rules 2019 Govern?

The BIAC Arbitration Rules 2019 govern all institutional arbitration proceedings administered by the Bangladesh International Arbitration Centre. When parties include a BIAC arbitration clause in their contract, the Rules dictate the procedural framework, from filing the Notice of Arbitration and constituting the tribunal through to the issuance of the final award. The Arbitration Act, 2001 operates as the overarching statutory framework, providing for court assistance in matters such as arbitrator appointment and interim relief, as well as governing the enforcement and setting aside of awards. Parties should therefore read the BIAC Arbitration Rules 2019 alongside the Act: the Rules control institutional procedure, while the Act supplies the legal underpinning that makes those procedures binding and enforceable in Bangladesh’s courts.

What Are the BIAC Arbitration Rules 2019?

The BIAC Arbitration Rules 2019 are the institutional procedural rules published by the Bangladesh International Arbitration Centre. They apply to any arbitration where the parties have agreed, typically via a BIAC arbitration clause in their contract, that their dispute will be administered by BIAC. The Rules draw on principles consistent with the UNCITRAL Model Law on International Commercial Arbitration, which Bangladesh’s Arbitration Act, 2001 also broadly follows. This alignment ensures that arbitration in Bangladesh under BIAC administration benefits from internationally recognised procedural safeguards while remaining anchored in local statutory requirements.

Key Procedural Features

• Centralised administration. BIAC acts as the administering body, handling case registration, communication between parties, fee collection and logistical support for hearings, which reduces the administrative burden on parties and counsel.
• Emergency and interim measures. The Rules provide mechanisms for parties to seek urgent relief before the full tribunal is constituted, supplementing the court-based interim relief available under the Arbitration Act, 2001.
• Defined timelines. The Rules set procedural time limits for filing responses, constituting the tribunal and conducting hearings, aiming to deliver a final award within a commercially reasonable timeframe.

Legal Framework: Arbitration Act 2001 and Enforcement in Bangladesh

The Arbitration Act, 2001 is Bangladesh’s principal arbitration statute. It consolidates the law relating to both domestic and international commercial arbitration and repealed the earlier Arbitration Act 1940. The Act covers several critical areas that any party commencing arbitration in Bangladesh, whether under the BIAC Arbitration Rules or ad hoc, must understand.

On court assistance, the Act empowers the courts to appoint arbitrators where the parties’ agreed mechanism fails or proves inapplicable, and to grant interim relief such as injunctions to preserve the subject matter of the dispute. The Act also enshrines the principle of separability: the arbitration agreement is treated as independent from the underlying contract, meaning that a challenge to the validity of the main contract does not automatically invalidate the arbitration clause. For enforcement, awards made in Bangladesh are enforceable as decrees of the court.

Foreign awards benefit from Bangladesh’s accession to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which permits enforcement subject to limited grounds for refusal such as public policy, incapacity of a party, or procedural irregularity. Setting aside a domestic award is similarly restricted to narrow grounds, including jurisdictional excess and conflicts with Bangladesh’s public policy.

Interaction Between the BIAC Arbitration Rules and the Act

The BIAC Arbitration Rules operate within, and are subject to, the Arbitration Act, 2001. Where the Rules address a procedural matter (such as tribunal appointment or time limits for filing), those provisions control the BIAC proceedings. Where the Rules are silent, or where mandatory statutory provisions apply (such as court powers to appoint arbitrators or to set aside awards), the Act governs. Practitioners should treat the Rules as procedural regulation and the Act as the overarching legal authority.

Model BIAC Arbitration Clause Bank (Practitioner Copy‑Paste)

Drafting an effective BIAC arbitration clause at the contract stage is the single most impactful step a practitioner can take to ensure smooth dispute resolution. The model clauses below are designed for direct insertion into contracts and cover the most common commercial scenarios. Each clause should be reviewed and adapted to the specific transaction.

• Clause 1, Basic BIAC clause (single seat, Bangladesh). “Any dispute arising out of or in connection with this contract shall be finally resolved by arbitration administered by the Bangladesh International Arbitration Centre (BIAC) in accordance with the BIAC Arbitration Rules in force at the date of commencement of the arbitration. The seat of the arbitration shall be Dhaka, Bangladesh. The language of the arbitration shall be English.”
• Clause 2, International commercial clause (neutral governing law). “Any dispute arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the BIAC Arbitration Rules. The seat of the arbitration shall be Dhaka, Bangladesh. The tribunal shall consist of [one / three] arbitrator(s). The governing law of the contract shall be [specify].”
• Clause 3, Emergency measures clause. “The parties agree that, prior to the constitution of the tribunal, either party may apply to BIAC for the appointment of an Emergency Arbitrator in accordance with the BIAC Arbitration Rules. Nothing in this clause shall prevent either party from seeking interim relief from any court of competent jurisdiction.”
• Clause 4, Multi‑contract / multi‑party clause. “The parties agree that disputes arising under this contract and any related agreement between the same or related parties may be consolidated and heard in a single BIAC arbitration, provided that the tribunal is satisfied that the disputes arise out of the same transaction or series of transactions. The tribunal shall have the power to join additional parties in accordance with the BIAC Arbitration Rules.”
• Clause 5, Fast‑track clause (lower‑value disputes). “Any dispute with an amount in dispute not exceeding BDT [specify threshold] shall be resolved under the expedited procedure provisions of the BIAC Arbitration Rules. The tribunal shall consist of a sole arbitrator appointed by BIAC. The tribunal shall endeavour to render an award within [90/120] days of its constitution.”
• Clause 6, Arbitrator appointment and challenge clause. “Each party shall nominate one arbitrator within [15] days of service of the Notice of Arbitration. The two nominated arbitrators shall jointly select the presiding arbitrator within [15] days of their appointment. If any appointment is not made within the stipulated period, BIAC shall make the appointment. Any challenge to an arbitrator shall be determined by BIAC in accordance with its Rules.”

Filing an Arbitration at BIAC: Step‑by‑Step Checklist

Once a dispute arises under a contract containing a BIAC arbitration clause, the claimant must navigate a defined filing process. The following step-by-step checklist, drawn from the BIAC Arbitration Rules 2019, provides a practical roadmap for legal operations teams and counsel.

Before You File: Jurisdiction, Seat and Internal Approvals

Before drafting the Notice of Arbitration, confirm three preliminary matters. First, verify that the arbitration clause in the contract validly refers disputes to BIAC and identify the seat and language of arbitration. Second, assess whether the dispute falls within the scope of the clause, particularly in multi-contract arrangements where the scope of a BIAC arbitration clause may vary between agreements. Third, obtain any necessary internal approvals, board resolutions or litigation-hold notifications required by the claimant’s governance framework.

Filing Documents Required

The claimant initiates BIAC proceedings by submitting a Notice of Arbitration to the Bangladesh International Arbitration Centre. Under the BIAC Arbitration Rules, the Notice must include:

1. The names and contact details of all parties.
2. A copy of the arbitration agreement or the clause within the contract.
3. A brief statement of the nature and circumstances of the dispute.
4. A statement of the relief or remedy sought.
5. The claimant’s proposal regarding the number of arbitrators and, where applicable, the nomination of the claimant’s arbitrator.
6. Payment of the registration fee as set out in the BIAC Annexure of Fees.

The Notice should be filed at BIAC’s registered office in Dhaka. Industry observers expect BIAC to expand electronic filing capabilities over time, but practitioners should confirm current filing procedures directly with the Centre.

Registration and Administrative Timeline

Upon receipt of a complete Notice and registration fee, BIAC registers the case and serves the Notice on the respondent. The respondent is given a defined period under the Rules to submit its response, which may include any counterclaim. If the respondent fails to respond within the specified deadline, the proceedings continue without default. The tribunal is then constituted according to the method agreed in the BIAC arbitration clause, or, failing agreement, through BIAC’s administrative appointment mechanism. Once constituted, the tribunal sets a procedural timetable covering written submissions, document production, hearings and the target date for the award.

BIAC Fees Explained

Understanding the fee structure is essential for accurate dispute budgeting. BIAC publishes its Annexure of Fees, which sets out the principal fee categories. The table below summarises the key items as published by BIAC.

Practice tip: For lower-value claims (around BDT 500,000), the combined registration and administrative fees represent a proportionally higher cost, making the fast-track procedure, with a sole arbitrator, the more efficient option. For mid-value disputes (around BDT 20 million), budget for a three-member tribunal and higher administrative fees. For high-value disputes (BDT 200 million and above), the arbitrator fee bands typically generate the largest single cost component; negotiate fee caps or hourly-rate arrangements at the appointment stage where the BIAC Arbitration Rules permit. Always consult the current BIAC Annexure of Fees for exact BDT amounts before filing.

Tribunal Composition and Powers Under the BIAC Arbitration Rules

The BIAC Arbitration Rules provide flexible tribunal composition. Parties may agree on a sole arbitrator or a panel of three. Where the parties have not agreed on the number of arbitrators, BIAC will determine the appropriate composition based on the complexity and value of the dispute. For arbitrator appointment in Bangladesh under BIAC administration, each party nominates its arbitrator, and the two party-appointed arbitrators then select the presiding arbitrator. If any appointment is not made within the prescribed period, BIAC steps in to make the appointment from its published panel.

Once constituted, the tribunal has broad powers under the BIAC Arbitration Rules. These include the power to rule on its own jurisdiction (competence-competence), order interim and conservatory measures, direct the production of documents, determine the admissibility and weight of evidence, conduct hearings in person or remotely, and award costs. Decisions of a three-member tribunal are made by majority. The presiding arbitrator may decide procedural matters alone if the parties or the other arbitrators so authorise.

Practice tip: To minimise appointment delays, specify the number of arbitrators and the appointment timeline in the BIAC arbitration clause itself. Clause 6 in the model bank above is designed precisely for this purpose.

Interim and Emergency Relief: Options and Practice Notes

Parties to BIAC proceedings have two principal avenues for interim relief. First, the BIAC Arbitration Rules provide for emergency measures that allow a party to seek urgent provisional relief before the tribunal is fully constituted. This mechanism enables the appointment of an emergency arbitrator to address matters that cannot wait, for example, preservation of assets or prevention of dissipation. Second, the Arbitration Act, 2001 preserves the right of parties to approach the courts of Bangladesh for interim injunctions and other conservatory relief, even where a BIAC arbitration clause governs the substantive dispute.

In practice, the court route remains the more commonly used avenue for interim relief in Bangladesh, given the established enforcement mechanisms of the judiciary. Early indications suggest, however, that BIAC’s emergency provisions are gaining traction among practitioners handling time-sensitive commercial disputes. When seeking emergency relief, parties should be prepared to pay an advance deposit for emergency arbitrator fees and to demonstrate urgency and potential irreparable harm.

Enforcing and Setting Aside BIAC Awards in Bangladesh

Awards rendered under the BIAC Arbitration Rules are enforceable as decrees of the court under the Arbitration Act, 2001. A successful party applies to the relevant court for enforcement, and the award is given the same force as a court judgment. Bangladesh is a contracting state to the New York Convention, which means that foreign arbitral awards, and BIAC awards where enforcement is sought outside Bangladesh, benefit from the Convention’s recognition and enforcement framework.

The grounds for resisting enforcement or seeking to set aside an award are narrow and largely mirror the UNCITRAL Model Law and the New York Convention. They include: incapacity of a party, invalidity of the arbitration agreement, procedural irregularity that prejudiced a party, the award dealing with matters beyond the scope of the submission to arbitration, and conflict with the public policy of Bangladesh. Courts in Bangladesh have generally adopted a pro-enforcement approach, though industry observers note that judicial timelines for enforcement applications can vary.

Practical Checklist for In‑House Counsel: Pre‑Contract and Dispute Readiness

• Seat vs. venue. Specify Dhaka as the juridical seat (which determines the supervisory court) and clarify if hearings may be held elsewhere for convenience.
• Number of arbitrators. Agree on one or three, a sole arbitrator suits lower-value or less complex disputes; a three-member panel is standard for high-value or technically complex matters.
• Emergency measures clause. Include Clause 3 (above) to preserve the option of seeking emergency relief before tribunal constitution.
• Fee allocation. Specify whether costs follow the event (loser pays) or each party bears its own costs regardless of outcome.
• Document preservation. Implement a litigation-hold protocol at the first sign of a dispute to preserve relevant electronic and paper records.
• Budget estimate. Model likely total costs, registration, administrative, arbitrator fees, counsel fees and disbursements, using the BIAC Annexure of Fees as the baseline.
• Forum-selection rationale. Document why BIAC was chosen over ad hoc arbitration or other institutional options (useful for defending the clause if challenged).

Comparison: BIAC Arbitration Rules 2019 vs Common Institutional Rules (ICC / SIAC)

Parties with cross-border exposure often weigh the BIAC Arbitration Rules against international alternatives. The table below provides a high-level comparison to support forum-selection decisions.

For disputes that are predominantly domestic or where the counterparty has assets principally in Bangladesh, the BIAC Arbitration Rules offer a cost-effective, locally administered alternative. For cross-border disputes with enforcement exposure in multiple jurisdictions, the broader international recognition and deeper caselaw surrounding ICC and SIAC rules may justify the higher institutional costs.

Conclusion

The BIAC Arbitration Rules 2019 provide a structured, cost-effective institutional framework for resolving commercial disputes in Bangladesh. By combining a well-drafted BIAC arbitration clause with a clear understanding of the filing process, fee structure and tribunal powers, parties can secure enforceable outcomes while controlling costs and timelines. The model clauses, filing checklist and fees table in this guide are designed for immediate use by in-house counsel and arbitration practitioners. For parties new to arbitration in Bangladesh, the interplay between the BIAC Arbitration Rules, the Arbitration Act, 2001 and Bangladesh’s New York Convention obligations creates a robust enforcement framework that supports both domestic and cross-border dispute resolution.

To connect with a qualified arbitration specialist in Bangladesh, visit the Global Law Experts lawyer directory.

Sources

1. BIAC, Arbitration Rules 2019
2. BIAC, Annexure of Fees
3. Arbitration Act, 2001 (Bangladesh), Official Text
4. Supreme Court of Bangladesh, High Court Division Judgments
5. UNCITRAL Model Law on International Commercial Arbitration
6. New York Convention, Bangladesh Contracting State Status