{"id":119932,"date":"2025-11-12T14:26:20","date_gmt":"2025-11-12T14:26:20","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=119932"},"modified":"2025-11-12T14:26:20","modified_gmt":"2025-11-12T14:26:20","slug":"bangladesh-international-arbitration","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/bangladesh-international-arbitration\/","title":{"rendered":"Bangladesh: International Arbitration"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-119932","comparative_guide","type-comparative_guide","status-publish","hentry","guides-international-arbitration","jurisdictions-bangladesh"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Vertex Chambers<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2022\/10\/Untitled-1.gif\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Vertex Chambers<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2022\/10\/Untitled-1.gif\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of International Arbitration laws and regulations applicable in Bangladesh<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legislation applies to arbitration in your country? Are there any mandatory laws?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The primary legislation governing arbitration in Bangladesh is the Arbitration Act, 2001. This Act provides the legal framework for both domestic and international arbitration. However, there are some laws that require specific disputes to be settled mandatorily by arbitration. For example, section 36 of the Real Estate Development and Management Act, 2010 requires disputes concerning failure to provide real estate utilities (Section 21), cancellation of real estate allotment (Section 22), mortgage of real estate (Section 23), unauthorized sale of real estate (Section 24), use of inferior quality of raw materials (Section 25) etc. to be resolved mandatorily via arbitration. Another example is Section 61 of the Road Transport Act 2018 under which any person aggrieved by a review or appeal decision concerning compensation for motor vehicle accident can apply to an arbitrator for an award and in a case concerning compensation for motor vehicle accident, the civil court\u2019s jurisdiction is barred. If parties to an agreement have an arbitration clause in their agreement, then it is mandatory for the parties to settle the dispute through arbitration. All arbitration in Bangladesh is governed by the Arbitration Act, 2001. There are mandatory laws within the Arbitration Act, 2001 that govern the conduct of arbitration proceedings, including provisions on the validity of arbitration agreements, the composition of arbitral tribunals, and the enforcement of arbitral awards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country a signatory to the New York Convention? Are there any reservations to the general obligations of the Convention?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, Bangladesh is a party by way of accession to the New York Convention. Bangladesh has not filed any reservation under the Convention. However, it should be noted that unlike some other jurisdiction, the Arbitration Act, 2001 does not officially capture Bangladesh\u2019s accession to the Convention but some of the statute\u2019s features are inspired by it. For example, the definition of \u201cforeign arbitral award\u201d in Section 2(k) of the Arbitration Act, 2001 is inspired by the New York Convention and Section 46 (Chapter X) of the Arbitration Act, 2001 has borrowed provisions from the Convention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What other arbitration-related treaties and conventions is your country a party to?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Apart from New York Convention, Bangladesh is a party to International Centre for Settlement of Investment (ICSID) and SAARC Arbitration Council.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the law governing international arbitration in your country based on the UNCITRAL Model Law? Are there significant differences between the two? Are there any impending plans to reform the arbitration laws in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act, 2001 does not adopt the UNCITRAL Model Law but the Arbitration Act, 2001 is generally based on it. The absence of adoption of the UNCITRAL Model Law means that the UNCITRAL Model Law or its principles do not automatically apply to the Arbitration Act, 2001. However, despite this lack of official adoption, the courts tend to take guidance from the UNCITRAL Model Law or the explanatory note issued by the UNCITRAL secretariat (Explanatory Note by the UNCITRAL secretariat on the 1985 Model Law on International Commercial Arbitration as amended in 2006) in interpreting provisions of the Arbitration Act, 2001. There are some differences between the Act and the UNCITRAL Model Law in terms of supporting jurisdiction of the court in foreign seated arbitration (Section 3), jurisdiction of the court in matters governed by the arbitration agreement (Section 7), composition of arbitral tribunal with even number of arbitrators (Section 11, appointment of arbitrators (Section 12), substitution of terminated arbitrator (Section 16), judicial enforcement of arbitrator\u2019s order for interim measures (Section 21(4)), commencement of arbitration (Section 27), court assistance in taking evidence (Section 33), party default provisions (Section 35), and the arbitrator\u2019s power to choose the rules of law applicable to the substance of the dispute (Section 36(2)).<\/p>\n<p>The Arbitration Act, 2001 was enacted in 2001 and it was amended in 2004 to add Section 7A conferring powers on the High Court Division and the District Court to make interim orders in support of foreign and local arbitrations. There have not been any amendments to the Arbitration Act, 2001 since. Although the previous law minister in 2022 hinted towards the erstwhile Government\u2019s intention about reforms but there are no official steps from the Government to reform arbitration laws in Bangladesh.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What arbitral institutions (if any) exist in your country? When were their rules last amended? Are any amendments being considered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Bangladesh has several arbitral institutions, including The Bangladesh International Arbitration Centre (BIAC), The Dhaka Chamber of Commerce and Industry (DCCI), Bangladesh Institute of Arbitration (BIArb) etc. There is no official data about the number of times these institutions\u2019 rules were amended (if at all). In 2019, Bangladesh International Arbitration Centre (BIAC) Rules, 2011 were replaced by BIAC Rules, 2019.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a specialist arbitration court in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no specialist arbitration court in Bangladesh.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the validity requirements for an arbitration agreement under the laws of your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The validity requirements for an arbitration agreement in Bangladesh is that an arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. An arbitration agreement shall be in writing and an arbitration agreement shall be deemed to be in writing if it is contained in \u2013<\/p>\n<p>(a) a document signed by the parties;<\/p>\n<p>(b) an exchange of letters, telex, telegrams, Fax, e-mail or other means of telecommunication which provide a record of the agreement; or<\/p>\n<p>(c) an exchange of statement of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitration clauses considered separable from the main contract?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. Furthermore, an arbitration agreement or clause that forms part of another agreement is deemed to constitute a separate agreement for the purpose of determining the jurisdiction of the arbitral tribunal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts of your country apply a validation principle under which an arbitration agreement should be considered valid and enforceable if it would be so considered under at least one of the national laws potentially applicable to it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The courts in Bangladesh have not yet applied the validation principle in the context of an arbitration clause. However, the Arbitration Act, 2001 provides guidance on the validity and enforceability of arbitration agreements. The arbitral tribunal may rule on its own jurisdiction on the question whether there is existence of a valid arbitration agreement, unless otherwise agreed by the parties. In Anamika Corp. Ltd v. Humayun M. Chowdhury 17 SCOB [2023] HCD 119, on the issue of the arbitral tribunal\u2019s power to rule on its own jurisdiction in the context of determining the existence of a valid arbitration agreement, the High Court Division observed that in view of Section 17(a) read with the other provisions of Chapter 5 of the Arbitration Act, 2001, particularly Section 19(1) and Section 19(2), the power to decide on the issue of existence of a valid arbitration agreement has been conferred upon the arbitral tribunal and the court does not possess simultaneous or parallel jurisdiction to determine that issue.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are asymmetric arbitration clauses \u2013 for instance, where one party has the right to choose between arbitration or litigation while the other party does not have this option \u2013 valid in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Asymmetric arbitration clauses have not been judicially tested in Bangladesh under the Arbitration Act, 2001. There are comparative common law cases that support such clauses but Bangladesh courts are yet to decide on this question.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an arbitration agreement? Are there any recent court decisions on these issues?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act, 2001 does not deal with third parties or non-signatories being bound by an arbitration agreement. However, in a reported case it has been held that an assignee of a contract containing an arbitration clause\/agreement is a \u201cparty\u201d to such clause\/agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any recent court decisions in your country concerning the choice of law applicable to an arbitration agreement where no such law has been specified by the Parties?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There have not been any recent court decisions in Bangladesh concerning the choice of law applicable to an arbitration agreement where no such law has been specified by the Parties. However, in one reported judgment it has been held that where a contract (containing the arbitration clause) with a non-resident foreign national is governed by the laws of Bangladesh, and if the contract does not stipulate the rules of procedure or the seat or place of arbitration, then the provisions of the Arbitration Act, 2001 shall apply as if the arbitration is an international commercial arbitration seated in Bangladesh.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the law applicable to the substance determined? Is there a specific set of choice of law rules in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The arbitral tribunal shall decide the dispute in accordance with the rules of law as are designated by the parties as applicable to the substance of the dispute. Furthermore, any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country. Failing any designation of the law by the parties, under Section 36(1) of the Arbitration Act, 2001, the arbitral tribunal, in case of conflict of laws, shall apply the rules of law which it considers appropriate. In effect, with respect to the arbitrator\u2019s power to choose the rules of law applicable to the substance of the dispute, the Act applies a voie directe approach, which is not the case for article 28(2) of the UNCITRAL Model Law. The arbitral tribunal shall decide the dispute in accordance with the terms of the contract taking into account the usages of the concerned matter, if any, for ends of justice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any particular requirements for and\/or restrictions in the appointment of arbitrators?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The parties to arbitration proceedings are free to agree on a procedure for appointing the arbitrator or arbitrators. However, there is a restriction with respect to even number of arbitrators. Although Section 11(1) of the Arbitration Act, 2001 gives the parties the autonomy to determine the number of arbitrators, that autonomy is \u201csubject to\u201d Section 11(3) when the parties appoint an even number of arbitrators. Thus, in case of selection of an even number of arbitrators, Section 11(3) of the Arbitration Act, 2001 requires that the appointed arbitrators jointly appoint a third arbitrator who shall act as a chairman of the arbitral tribunal. In other words, for all practical purposes, the Arbitration Act, 2001 does not allow the composition of an arbitral tribunal with even numbers.<\/p>\n<p>A person of any nationality may be an arbitrator, unless otherwise agreed by the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the local courts intervene in the selection of arbitrators? If so, how?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Section 12(1), the parties have full autonomy to agree on a procedure for appointing the arbitrator. The local court\u2019s interventions in the selection of arbitrators are as follows:<\/p>\n<ul>\n<li>In case of a sole arbitrator tribunal, if the parties have not agreed on an appointment procedure at all under Section 12(1), then the provisions of Section 12(3) will apply under which, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree, then the appointment shall be made upon request of a party- (i) by the District Judge in case of arbitration other than international commercial arbitration; and (ii) by the Chief Justice or by any other Judge of the Supreme Court designated by the Chief Justice in case of international commercial arbitration.<\/li>\n<li>For a three-member arbitral tribunal, if the parties have not agreed on an appointment procedure at all under Section 12(1), then the provisions of Section 12(4) will apply under which if a party fails to appoint an arbitrator within thirty days of the receipt of a request to do so from the other party or if the appointed arbitrators fail to agree on the third arbitrator within thirty days of their appointment, the appointment shall be made, upon the application of a party \u2013 (i) by the District Judge except in case of international commercial arbitration, and (ii) by the Chief Justice or by any other Judge of the Supreme Court designated by the Chief Justice in case of international commercial arbitration.<\/li>\n<li>If the parties agreed on a procedure under Section 12(1), but one party has failed to act, or both parties have failed to act as required, or the parties or the arbitrators have been unable to reach the agreement expected of them, or a person or any third party fails to perform any function assigned to him under the agreed procedure under Section 12(1), and unless the agreement on the appointment procedure under Section 12(1) provides other means to take the necessary measure for securing the appointment, then the provisions of Section 12(7) will apply under which a party may apply to \u2013 (i) the District Judge except in case of international commercial arbitration and the District Judge shall appoint the Chairman of the tribunal along with the other arbitrators; and (ii) the Chief Justice or any Judge of the Supreme Court designated by the Chief Justice in case of international commercial arbitration and the Chief Justice or the Judge of the Supreme Court as designated by the Chief Justice shall appoint the Chairman of the tribunal along with other arbitrators.<\/li>\n<li>If more than one arbitrator are appointed under Section 12(4) of the Arbitration Act, 2001, then under Section 12(6), the District Judge, or the Chief Justice or any other Judge of the Supreme Court designated by the Chief Justice, as the case may be, shall appoint one person from among the said arbitrators to be the Chairman of the arbitral tribunal.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the appointment of an arbitrator be challenged? What are the grounds for such a challenge? What is the procedure for such a challenge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When a person is requested to accept appointment as an arbitrator, he shall first disclose any circumstances likely to give rise to justifiable doubt as to his independence or impartiality. An arbitrator, shall from the time of his appointment and throughout the arbitral proceedings, without delay, disclose to the parties any circumstances referred to in Section 13(1) of the Arbitration Act, 2001 unless they have already been so informed by him. An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or he does not possess the qualifications agreed to by the parties. A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.<\/p>\n<p>Subject to Section 14(6) of the Arbitration Act, 2001, the parties shall be free to agree on a procedure for challenging an arbitrator.<\/p>\n<p>Failing any agreement referred to in Section 14(1) of the Arbitration Act, 2001, a party who intends to challenge an arbitrator shall, within thirty days after becoming aware of the circumstances referred to in Section 13(3) of the Arbitration Act, 2001, send a written statement of the reasons for the challenge to the arbitral tribunal.<\/p>\n<p>Unless the arbitrator challenged under Section 14(2) of the Arbitration Act, 2001 withdraws from his office or the other party agrees to the challenge, the arbitral tribunal shall decide on the challenge within thirty days from the date of filing the written statement referred to in Section 14(2).<\/p>\n<p>Any party aggrieved by the decision of the arbitral tribunal under Section 14(3) of the Arbitration Act, 2001, may prefer an appeal to the High Court Division within thirty days from the date of the said decision.<\/p>\n<p>The High Court Division shall decide the matter within ninety days from the date on which it is filed. There are no consequences provided for the event when the appeal is decided beyond the 90 day period. It is submitted that any appeal decided by the High Court Division under Section 14(5) beyond the 90 day period shall be bad in law and can be set aside.<\/p>\n<p>If a challenge under any procedure agreed upon by the parties or under the procedures under Section 14(3) of the Arbitration Act, 2001 or the appeal preferred against the decision is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an award.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments concerning the duty of independence and impartiality of the arbitrators, including the duty of disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As discussed above under Section 13(1) of the Arbitration Act, 2001, when a person is requested to accept appointment as an arbitrator, he shall first disclose any circumstances likely to give rise to justifiable doubt as to his independence or impartiality. There are no reported judgment in Bangladesh dealing with the issue of independence and impartiality of the arbitrators. However, under comparative common law jurisdictions, it has been held that non-disclosure by the arbitrator about matters related to independence and impartiality under Section 13(1) of the Arbitration Act, 2001 will invalidate any appointment, the arbitration and the resulting award (See Aoki India v. Mira International 2006 (3) Arb LR 503 (Madras); Imaging Solutions v. Hughes Communications 2013 (1) Arb LR 433 (P&amp;H)).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are arbitrators immune from liability?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no provision in the Arbitration Act, 2001 which deals with liability of arbitrators. However, in one case it has been indicated by the court that if an arbitrator does not provide or record the reasoning of the award (or his dissent), then the appointing party may ask for refund of the fees paid to such arbitrator on the ground of being deprived of the benefit of such reasoning for the purpose of taking subsequent legal steps.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the principle of competence-competence recognized in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Section 17 of the Arbitration Act, 2001 states that unless otherwise agreed by the parties, the arbitral tribunal may rule on its own jurisdiction on any questions including the following issues, namely \u2013<\/p>\n<p>(a) whether there is existence of a valid arbitration agreement.<\/p>\n<p>(b) whether the arbitral tribunal is properly constituted;<\/p>\n<p>(c) whether the arbitration agreement is against public policy;<\/p>\n<p>(d) whether the arbitration agreement is incapable of being performed; and,<\/p>\n<p>(e) whether the matters have been submitted to arbitration in accordance with the arbitration agreement.<\/p>\n<p>Furthermore, Section 18 of the Arbitration Act, 2001 states that an arbitration agreement which forms part of another agreement shall be deemed to constitute a separate agreement while giving decision for the purpose of determining the jurisdiction of the arbitral tribunal.<\/p>\n<p>The provisions of Section 17 of the Arbitration Act, 2001 capture the principle of competence-competence which allows the arbitral tribunal to rule on its own jurisdiction. Loosely, Section 17 of the Arbitration Act, 2001 can be described as a jurisdictional point for the arbitral tribunal to decide but it also captures the related severability or separability point in Section 17(a), which is further clarified in Section 18 of the Arbitration Act, 2001.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the approach of local courts towards a party commencing litigation in apparent breach of an arbitration agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where any party to an arbitration agreement or any person claiming under him commences any legal proceedings against any other party to the agreement or any person claiming under him in respect of any matter agreed to be referred to arbitration, any party to such legal proceedings may, at any time before filing a written statement, apply to the relevant court before which the proceedings are pending to refer the matter to arbitration. The expression \u201cany person claiming under him\u201d conveys the notion of derivative action or defence, that is to say, cause of action or ground of defence derived from the party, and under this principle, an arbitration clause in a contract between A and B was allowed to be relied upon by C, who was a party to another contract between A, B and C and which incorporated by reference the arbitration clause of the first-mentioned contract on the ground that although C was not a party to that first-mentioned contract, it could rely on the arbitration clause because in view of Section 10 of the Act, C could claim its rights under the second-mentioned contract as a party claiming under A and B, who were the parties to the first-mentioned contract. However, criminal proceedings cannot be stayed under Section 10 of the Act on the ground that there is an arbitration clause or agreement.<\/p>\n<p>The relevant court shall, if it is satisfied that an arbitration agreement exists, refer the parties to arbitration and stay the proceedings, unless the relevant court finds that the arbitration agreement is void, inoperative or is incapable of determination by arbitration. It has been held that if the contract itself is a void, illegal or fraudulent act, then the entire contract along with the arbitration clause would become non est.<\/p>\n<p>Notwithstanding that an application has been made under Section 10(1) of the Arbitration Act, 2001 and that the issue is pending before the court, an arbitration may be commenced or continued and an arbitral award made.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What happens when a respondent fails to participate in the arbitration? Can the local courts compel participation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act, 2001 does not contain any provision under which a respondent can be compelled to participate in the arbitration. If without showing sufficient cause a party \u2014 (a) fails to attend or be represented at an oral hearing of which due notice was given, or (b) where matters are to be dealt with in writing fails, after due notice, to submit written evidence or make written submissions, the arbitral tribunal may continue the proceedings in the absence of that party or, as the case may be, without any written evidence or submissions on his behalf and may make an award on the basis of the evidence before it.<\/p>\n<p>If the arbitral tribunal makes an award based on the basis of Section 35(4) of the Arbitration Act, 2001, the courts will enforce such awards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can third parties voluntarily join arbitration proceedings? If all parties agree to the intervention, is the tribunal bound by this agreement? If all parties do not agree to the intervention, can the tribunal allow for it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Third parties cannot voluntarily join arbitration proceedings. The Arbitration Act, 2001 is silent on allowing third parties joining arbitration upon agreement of the contesting parties. There is no judicial precedent on this point in Bangladesh. However, comparative common law jurisprudence shows that if a third party (who did not execute the arbitration agreement) acts for a party to the arbitration agreement with the consent of counterparty and is given the power to consent to the appointment of an arbitrator under the arbitration agreement, then the third party may be regarded as a \u201cparty\u201d to the arbitration agreement despite the fact that it did not sign the arbitration agreement. If all parties do not agree to the intervention, then the tribunal cannot allow for it.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What interim measures are available? Will local courts issue interim measures pending the constitution of the tribunal? Are anti-suit and\/or anti-arbitration injunctions available and enforceable in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unless the parties agree otherwise, upon prayer of either parties, before or during continuance of the proceedings or until enforcement of the award under in the case of international commercial arbitration the High Court Division and in the case of other arbitrations the District Judge Court may pass order in the following matters: (a) To appoint guardian for a minor or insane person to conduct the arbitral proceedings on his\/her behalf. (b) To take into interim custody or sale of or other protective measures in respect of goods or property included in the arbitration agreement. (c) To restrain any party to transfer certain property or pass injunction on transfer of such property which is intended to create impediment on the way of enforcement of award. (d) To empower any person to seize, preserve, inspect, to take photograph, collect specimen, examine, to take evidence of any goods or property included in arbitration agreement and for that purpose to enter into the land or building in possession of any party. (e) To issue ad interim injunction. (f) To appoint receiver; and (g) To take any other interim protective measures which may appear reasonable or appropriate to the District Judge Court or the High Court Division.<\/p>\n<p>However, there has been substantial litigation about the power of the court to pass preservative or interim orders under Section 7A in support of arbitration seated outside Bangladesh in view of Section 3(2) along with Section 3(1) of the Arbitration Act, 2001. There were two sets of cases that went in opposite directions in dealing with this issue. In the first set of cases, it was held that except Sections 45, 46 and 47, the other provisions (including Section 7A) of the Arbitration Act, 2001 will not apply to foreign seated arbitrations. In the second set of cases, there were only two cases that held that the provisions of the Arbitration Act, 2001 will apply to foreign seated arbitrations. This conflict was later settled by a larger bench of the High Court Division in the case of Accom Travels and Tours Limited v. Oman Air where it was held that except Sections 45, 46 and 47, the other provisions (including Section 7A) of the Arbitration Act, 2001 will not apply to foreign seated arbitrations. The case of Accom Travels was questioned as being per incuriam in the recent case of Italian Thai Development Public Company Ltd. v. The Export-Import Bank of China and others, where the High Court Division reiterated the position that except Sections 45, 46 and 47, the other provisions (including Section 7A) of the Arbitration Act, 2001 will not apply to foreign seated arbitrations. This decision was challenged before the Appellate Division where by an interim order, the Appellate Division ordered the parties to maintain status quo until the first sitting of the foreign seated arbitral tribunal (Singapore) and subsequently, by invoking Section 7A(6) of the Arbitration Act, 2001, the order of status quo was vacated by the Appellate Division when the foreign seated arbitral tribunal passed an interim order. Although not a full or complete judgment, but the latest case of Italian Thai Development Public Company Ltd. indicates that in an appropriate case, courts in Bangladesh will exercise the authority to grant interim measures for foreign-seated arbitrations.<\/p>\n<p>Generally, anti-suit and\/or anti-arbitration injunctions from a foreign court is enforceable within the provisions of the Code of Civil Procedure 1908. However, there are some legal uncertainties about the extent of anti-arbitration injunctions from Bangladeshi courts on foreign seated arbitrations. Two recent cases have taken the position that Bangladeshi courts have the jurisdiction to issue anti-arbitration injunctions on foreign seated arbitrations. However, there is academic commentary that has questioned the soundness of these judgments.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there particular rules governing evidentiary matters in arbitration? Will the local courts in your jurisdiction play any role in the obtaining of evidence? Can local courts compel witnesses to participate in arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The arbitral tribunal has wide latitude in deciding the matters of procedure and evidence in conducting the arbitration in the absence of the parties\u2019 agreement under Section 25(1). Unless otherwise agreed by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other material.<\/p>\n<p>Unless otherwise agreed by the parties- (a) evidence may be given before the arbitral tribunal orally or in writing or by affidavit, (b) the arbitral tribunal may administer an oath or affirmation to a witness subject to his consent. The arbitral tribunal, or a party to the proceedings with the approval of the tribunal, may apply to the court for issuing summons upon any person necessary for examining, or submitting materials or appearing, or producing before the tribunal for both the purposes, as the case maybe, and the court shall issue such summons. A person shall not be compelled under any summons issued under Section 33(1) of the Arbitration Act, 2001 to answer any question or produce any documents or materials which that person could not be compelled to answer or produce at the trial in an action before the court. Persons failing to attend before the tribunal in accordance with such summons as issued under Section 33(1) of the Arbitration Act, 2001 or making any other default, or refusing to perform, or guilty of any contempt to the arbitral tribunal during the conduct of arbitral proceedings, shall be subject to the like punishments by order of the court on the representations of the arbitral tribunal as they would incur for the like offences in suits tried before the court. An interesting question that arises is whether the power to issue summons under Section 33 can be exercised against persons in Bangladesh in case of a foreign seated arbitration. There is no reported case on this point. However, in view of the latest interim order of the Appellate Division in Italian Thai Development Public Company Ltd. v. The Export-Import Bank of China and others, and due to the problems of the larger bench judgment of the High Court Division in the case of Accom Travels and Tours Limited v. Oman Air, it seems that a Bangladeshi court may possess the jurisdiction to issue summons to persons in Bangladesh to give evidence or produce documents as witnesses for a foreign seated arbitration.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What ethical codes and other professional standards, if any, apply to counsel and arbitrators conducting proceedings in your country? Do these codes and professional standards apply only to counsel and arbitrators having the nationality of your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When a person is requested to accept appointment as an arbitrator, he shall first disclose any circumstances likely to give rise to justifiable doubt his to his independence or impartiality. An arbitrator, shall from the time of his appointment and throughout the arbitral proceedings, without delay, disclose to the parties any circumstances referred to in Section 13(1) of the Arbitration Act, 2001 unless they have already been so informed by him. An arbitrator\u2019s appointment may be challenged if circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or he does not possess the qualifications agreed to by the parties.<\/p>\n<p>Moreover, the arbitral tribunal shall deal with any of the dispute submitted to it fairly and impartially and for this purpose \u2013 each party shall be given reasonable opportunity to present his case orally or in writing or both, and each party shall be given reasonable opportunity to examine all the documents and other relevant materials filed by other party or any other person concerned before the tribunal. The arbitral tribunal shall deal with a dispute submitted to it as quickly as possible. The arbitral tribunal in conducting proceedings shall act fairly and impartially in deciding procedure and evidence and in exercising other powers conferred on it. The Arbitration Act, 2001 does not specify anything with respect to conduct of the counsel.<\/p>\n<p>The Arbitration Act is applicable to all arbitration proceedings conducted in Bangladesh. Therefore, the codes and professional standards will be applicable to everyone irrespective of their nationality.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In your country, are there any rules with respect to the confidentiality of arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Bangladesh, there are no rules with respect to the confidentiality of arbitration proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the IBA guidelines on conflicts of interest and other similar soft law sources viewed by courts and tribunals in your jurisdiction? Are they frequently applied?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>IBA guidelines on conflicts of interest and other similar soft law sources are not used in Bangladesh.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the costs of arbitration proceedings estimated and allocated? Can pre- and post-award interest be included on the principal claim and costs incurred?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Bangladesh, unless otherwise agreed by the parties, the costs of an arbitration shall be fixed by the arbitral tribunal. The arbitral tribunal shall specify (i) the party entitled to costs; (ii) the party who shall pay the costs; (iii) the amount of costs or method of determining that amount, and (iv) the manner in which the costs shall be paid. Arbitration costs include reasonable costs relating to the fees and expenses of the arbitrators and witnesses; legal fees and expenses, any administration fees of the institution supervising the arbitration and any other expenses incurred in connection with the arbitral proceedings and the arbitral award.<\/p>\n<p>Unless otherwise agreed by the parties where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made, interest, at such rate as it deems reasonable, on the whole or any part of money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made (the pre-award stage). A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two percent higher than the usual bank rate (the bank rate being the rate of interest as determined by the Bangladesh Bank from time to time) from the date of the award to the date of payment (the post-award stage).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are applications for security for costs viewed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order a party to take any interim measure of protection as the arbitral tribunal may consider necessary in respect of the subject matter of the dispute, and no appeal shall lie against this order. The arbitral tribunal may require a party to provide appropriate security (including security for costs) in connection with a protective measure so ordered.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What legal requirements are there in your country for the recognition and enforcement of an award? Is there a requirement that the award be reasoned, i.e. substantiated and motivated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A domestic arbitral award may be enforced under the Code of Civil Procedure 1908 in the same manner as if it were a decree of the court within the local limits of whose jurisdiction the arbitral award was finally made and signed. A foreign arbitral award which would be enforceable is binding on all the persons in respect of whom it has been made and may accordingly be relied upon by any of those persons by way of defence, set off or otherwise in any legal proceedings in Bangladesh. With regard to enforcement, a foreign arbitral award may, on the application being made by any party, be enforced by execution by the District Judge\u2019s Court exercising jurisdiction within the district of Dhaka. The foreign arbitral award may be enforced under the Code of Civil Procedure 1908 in the same manner as if it were a decree of the District Judge\u2019s Court exercising jurisdiction within the district of Dhaka. An application for execution of a foreign arbitral award must be accompanied by (a) the original arbitral award or a copy thereof duly authenticated in the manner required by the law of the country in which it was made, (b) the original agreement for arbitration or a duly certified copy thereof, and (c) such evidence as may be necessary to prove that the award is a foreign award. If the aforesaid award or agreement is in English or in any other languages excepting Bangla, the party seeking to enforce the award must produce a translation into English certified as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in Bangladesh.<\/p>\n<p>Under section 38(3) of the Arbitration Act, 2001, no reason shall have to be stated by the arbitral tribunal where the parties have agreed that no reasons are to be given or the award is an arbitral award on agreed terms under section 22 of the Act.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the estimated timeframe for the recognition and enforcement of an award (domestic and international)? Can a party bring a motion for the recognition and enforcement of an award on an ex parte basis? Would the standard of review be different for domestic and international awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Bangladesh the time frame for enforcement of an award is around 12 to 24 months.<\/p>\n<p>A party may bring a motion for the recognition and enforcement of an award on an ex parte basis.<\/p>\n<p>The grounds for setting aside a Bangladesh seated arbitral award in an international commercial arbitration are almost the same as the grounds for refusing recognition or execution of foreign arbitral awards. One of the differences is that, a Bangladesh seated arbitral award may be set aside if the court is satisfied that the arbitral award is induced or affected by fraud or corruption. Although fraud and corruption is not an express ground of refusing recognition or enforcement of foreign arbitral award, it should be treated as part of the ground that the foreign arbitral award should not be in conflict with the public policy of Bangladesh.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can arbitration awards be appealed or challenged in local courts? What are the grounds and procedure in this regard? Is it possible for parties to waive any rights of appeal or challenge to an award by agreement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The courts may set aside a domestic award or a Bangladesh seated arbitral award in an international commercial arbitration on the application of a party within 60 (sixty) days from the receipt of the award. In case of the former, the application for setting aside the award should be made to the District Judge\u2019s Court within the local limits of whose jurisdiction the arbitral award has been finally made and signed, and in case of the latter, the application should be made to the High Court Division. The grounds for setting aside such award are:<\/p>\n<p>(a) the party making the application furnishes proof that \u2013<\/p>\n<p>(i) a party to the arbitration agreement was under some incapacity, or<\/p>\n<p>(ii) the arbitration agreement is not valid under the law to which the parties have subjected it, or<\/p>\n<p>(iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable due to some reasonable causes to present his case, or<\/p>\n<p>(iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration or it contains decision on matters beyond the scope of the submission to arbitration, or<\/p>\n<p>(b) the court is satisfied that \u2013<\/p>\n<p>(i) the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force in Bangladesh, or<\/p>\n<p>(ii) the arbitral award is prima facie opposed to the law for the time being in force in Bangladesh, or<\/p>\n<p>(iii) the arbitral award is in conflict with the public policy of Bangladesh, or<\/p>\n<p>(iv) the arbitral award is induced or affected by fraud or corruption.<\/p>\n<p>Under the Arbitration Act, 2001, in case of a foreign arbitral award, the only option for the unsuccessful party is to wait for the successful party to come to Bangladesh to file the award for enforcement under Section 45 and object to any such application under Section 46.<\/p>\n<p>The only provision regarding waiver in the Arbitration Act, 2001 is that if a party knows that (a) the parties may derogate from any provision of the Arbitration Act, 2001, or (b) any requirement under the arbitration agreement has not been complied with and despite such knowledge, proceeds with the arbitration without stating his objection to such non-compliance without undue delay or, without stating his objection to such non-compliance within a time limit as provided in the Arbitration Act, 2001 for such objection, then that party shall be deemed to have waived his right to raise such objection. However, the parties cannot waive rights of appeal or challenge to an award by way of agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what instances can third parties or non-signatories be bound by an award? To what extent might a third party challenge the recognition of an award?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An arbitral award made by an arbitral tribunal pursuant to an arbitration agreement is binding on both the parties and on any persons claiming through or under them. Thus, an arbitral award is not binding on any third party who is not a party to the arbitration agreement. Any challenge to the recognition of a foreign arbitral award must be made by the party against whom the award is being invoked (that is, the unsuccessful party in the arbitration). Therefore, such challenge cannot be initiated by a third party.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any rules \/ court decisions that regulate or prohibit third party funding of arbitration proceedings \u2013 for instance, where funding by an entity not involved in the dispute in return for a share of the eventual award may be barred \u2013 in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is emergency arbitrator relief available in your country? Are decisions made by emergency arbitrators readily enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Section 21 empowers an arbitral tribunal to grant interim measures unless otherwise agreed by the parties. An order of an arbitral tribunal for taking interim measures may be enforced by the court upon an application by the party that requested such interim measures.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there arbitral laws or arbitration institutional rules in your country providing simplified or expedited procedures for claims under a certain value? Are they often used?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Arbitration Act, 2001 does not provide for simplified or expedited procedures for claims under a certain value. However, BIAC holds fast track arbitration upon request by a party before the preliminary conference when the amount in dispute, including the claim, counterclaim and defense, does not exceed Taka 50 million (or equivalent). In fast track arbitration, BIAC passes the award within 3 (three) months, unless exceptional circumstances require an extension.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the setting aside of an award that has been enforced in another jurisdiction or vice versa?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country considering the issue of corruption? What standard do local courts apply for proving corruption? Which party bears the burden of proving corruption?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Professor M. Samsul Alam v. Bangladesh 10 SCOB [2018] HCD, the High Court Division of the Supreme of Bangladesh rejected the claim of payment for services provided under a contract procured by bribery and corruption. Although there are no guidelines about corrupt behaviour among private parties, with regard to public servants, the Penal Code 1860 contains a number of offences such as accepting any gratification other than legal remuneration as a motive or reward for doing or forbearing to do any official act. The party applying to set aside an arbitral award or to refuse recognition or enforcement of a foreign arbitral award bears the initial burden of proof. However, in case of corruption, even if a party does not raise the issue of corruption, the court may inquire about and consider it in its own motion.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent court decisions in your country with respect to intra-European investor-State arbitration generally or enforcement of awards stemming from proceedings of this nature? Are there any pending decisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have arbitral institutions in your country implemented reforms towards greater use of technology and a more cost-effective conduct of arbitrations? Have there been any recent developments regarding virtual hearings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unless otherwise agreed by the parties, the arbitral tribunal can decide whether to hold oral hearings for the presentation of evidence or for oral argument. The tribunal can hold oral hearings, at an appropriate stage of the proceedings, either on a request by a party, or of its own motion, unless the parties have agreed that no oral hearing shall be held. The aforesaid provisions can accommodate virtual arbitration hearings. For the justice delivery system of a country, the need to adjust in changing circumstances, for example, through examination of witness by video-conference rather than in person, has been judicially recognised in Bangladesh.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any recent developments in your jurisdiction with regard to disputes involving ESG issues such as climate change, sustainability, social responsibility and\/or human rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have any international economic sanctions regimes been implemented (either independently, or based on EU law) in your jurisdiction recently? Have there been any recent decisions in your country considering the impact of sanctions on international arbitration proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There has been no implementation of international economic sanctions or any court decisions considering the impact of such sanctions on international arbitration proceedings. With regard to recognition and enforcement of a foreign arbitral award, the courts will consider whether such award is in conflict with the public policy of Bangladesh. International economic sanctions do not form part of such public policy and no authoritative judgment has been passed in this regard. However, academic commentary suggests that if international economic sanctions or any other laws render an arbitration agreement, which is governed by foreign law, invalid, then under Section 17(c) of the Arbitration Act, 2001, an arbitral tribunal of an international arbitration seated in Bangladesh, which considers such an arbitration agreement (governed by such foreign law), will not have jurisdiction to decide any dispute under such an arbitration agreement for being contrary to public policy of that foreign jurisdiction regardless of what the seat law (that is, the laws of Bangladesh) provides. Consequently, Bangladesh courts must recognise this want of jurisdiction of the arbitral tribunal and give effect to it.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has your country implemented any rules or regulations regarding the use of artificial intelligence, generative artificial intelligence or large language models in the context of international arbitration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">7680<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/119932","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=119932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}