Foundations of Domestic Arbitration in Bangladesh

Domestic arbitration in Bangladesh provides a structured, efficient alternative to litigation, addressing disputes within the country’s legal framework. Governed by the Arbitration Act, 2001, it enables parties to resolve conflicts privately, reducing judicial backlogs and fostering fair outcomes. Bangladesh International Arbitration (BIArb) champions this process, promoting arbitration’s role in the nation’s dispute resolution ecosystem.

The Arbitration Act, 2001, outlines key principles, including party autonomy, impartiality, and enforceability of awards. Domestic arbitration applies to disputes between Bangladeshi entities or individuals, covering commercial, contractual, and property matters. Unlike international arbitration, it operates solely under local laws, ensuring accessibility for small businesses and individuals. Section 7 ensures arbitration agreements are binding, while Section 12 governs arbitrator appointments, emphasizing neutrality.

BIArb supports domestic arbitration through training and resources, equipping practitioners with skills to draft agreements, conduct hearings, and issue enforceable awards. The process begins with a valid arbitration clause, followed by arbitrator selection, hearings, and a final award, typically within months. This efficiency contrasts with court delays, as noted in 2024 reports highlighting Bangladesh’s overburdened judiciary.

Key Features of Domestic Arbitration

• Party autonomy in selecting arbitrators and procedures
• Confidentiality ensuring privacy of disputes
• Enforceable awards under Section 36 of the Act
• Cost-effective compared to prolonged litigation
• BIArb’s training for ethical, efficient arbitration

Challenges include limited public awareness and occasional judicial interference, though BIArb’s campaigns address these gaps. In 2024, BIArb facilitated over 100 domestic arbitrations, resolving disputes in sectors like construction and trade. The Act’s alignment with UNCITRAL principles ensures global credibility, while BIArb’s workshops, like the June 2025 session, enhance practitioner expertise.

Domestic arbitration strengthens Bangladesh’s legal landscape by offering a reliable, swift resolution mechanism. BIArb’s Resource Hub provides case studies and guides, supporting arbitrators and parties. As Bangladesh aims to become a regional ADR hub by 2030, domestic arbitration remains pivotal. Join BIArb’s mission to advance arbitration and reduce courtroom reliance.

Explore domestic arbitration with BIArb’s training and resources.