International Commercial Arbitration at Bangladesh
Certainly! Here’s an overview of International Commercial Arbitration in Bangladesh:
International Commercial Arbitration in Bangladesh
Bangladesh’s legal framework for international commercial arbitration is evolving and reflects its commitment to promoting arbitration as an effective alternative dispute resolution (ADR) mechanism, particularly for cross-border commercial disputes.
Legal Framework:
Arbitration Act, 2001:
This is the primary legislation governing arbitration in Bangladesh. It is largely based on the UNCITRAL Model Law on International Commercial Arbitration (1985), aiming to harmonize Bangladesh’s arbitration laws with international standards.
Scope:
The Act applies to both domestic and international arbitrations, though some provisions are specifically tailored to international commercial arbitration.
Recognition and Enforcement:
Bangladesh is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards since 2012. This facilitates the enforcement of foreign arbitral awards in Bangladesh and vice versa.
Judicial Attitude:
Courts in Bangladesh generally support arbitration and encourage the enforcement of arbitration agreements and awards, although judicial intervention may occur in certain procedural or jurisdictional matters.
Arbitration Institutions:
While Bangladesh does not have a highly developed institutional arbitration framework like some other countries, several organizations provide arbitration and mediation services, including:
Dhaka Chamber of Commerce and Industry (DCCI) Arbitration Centre: Offers institutional arbitration services.
International Chamber of Commerce (ICC): ICC arbitration is often used in international contracts involving Bangladeshi parties.
Parties frequently choose ad hoc arbitration or international arbitration institutions (e.g., ICC, LCIA, SIAC) for cross-border disputes.
Key Features of Arbitration in Bangladesh:
Party Autonomy:
Parties have the freedom to choose the arbitration procedure, seat, language, and arbitrators, subject to mandatory provisions under the Arbitration Act.
Limited Judicial Intervention:
Courts intervene mainly to support arbitration by enforcing arbitration agreements, appointing arbitrators in the absence of agreement, and enforcing awards.
Enforcement of Awards:
Awards are binding and enforceable as court judgments once recognized, with limited grounds for challenge similar to the UNCITRAL Model Law.
Confidentiality:
Arbitration proceedings are generally confidential, enhancing their attractiveness for commercial disputes.
Summary
Bangladesh has adopted a modern arbitration law aligned with international best practices, supported by its accession to the New York Convention. Although institutional arbitration is still developing domestically, parties frequently use both local centers like DCCI and international institutions for resolving commercial disputes.
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