TRW & Co · Civil Litigation, Arbitration & Writs
Arbitration Lawyer in Chittagong: Arbitration and Mediation in Chattogram
An arbitration lawyer in Chittagong helps businesses resolve contract disputes outside the courts and handles the court work around arbitration: stays, arbitrator appointments, interim relief, challenges and enforcement. With Chattogram's port, zones and industries tied to foreign counterparties, the Arbitration Act 2001, the New York Convention and the new commercial courts shape how disputes end.
Key pointA party has sixty days from receiving an award to apply to set it aside under section 42 of the Arbitration Act 2001, and the Appellate Division has held that a civil suit cannot be used instead.
At a glance
Arbitration Act 2001
A Model Law-based statute governs domestic and international commercial arbitration seated in Bangladesh, with some provisions reaching foreign-seated arbitrations.
Sixty-day challenge
Applications to set aside an award under section 42 must be made within sixty days of receiving it.
Foreign awards enforceable
Bangladesh acceded to the New York Convention in 1992; foreign awards are enforced through the District Judge's court.
BIAC since 2011
The Bangladesh International Arbitration Centre in Dhaka administers cases under its Arbitration Rules 2019 and Mediation Rules 2019.
Commercial courts in 2026
Chattogram has three commercial courts under the Commercial Courts Act 2026; the Arbitration Act itself was not amended.
Swipe or scroll →
What arbitration and mediation cover in Chattogram
An arbitration lawyer in Chittagong advises businesses whose contracts send disputes to private tribunals rather than the courts: supply and distribution agreements, construction and EPC contracts, charterparties and shipping contracts, joint ventures, port and terminal concessions, and finance documents. Arbitration also covers the court work around those tribunals, including appointing arbitrators, obtaining interim relief, and challenging or enforcing awards.
Chattogram is where much of Bangladesh's trade physically happens. The port, the export processing zones, the steel, cement and edible-oil industries and the ship-recycling yards at Sitakunda generate contracts with foreign counterparties every day. Those contracts usually contain an arbitration clause, often seated in Dhaka, Singapore or London. When a dispute arises, the clause, the seat and the Bangladeshi courts' approach to arbitration decide what happens next.
Mediation sits alongside arbitration. Courts refer civil suits to mediation, the new commercial courts may require pre-suit mediation (readers should check the Commercial Courts Act 2026's current text), and institutions such as BIAC offer structured mediation under their own rules. A good dispute strategy uses all three tools at the right moments.
The legal framework: the Arbitration Act 2001
Arbitration in Bangladesh is governed by the Arbitration Act 2001, which replaced the Arbitration Act 1940 and draws heavily on the UNCITRAL Model Law. It applies to arbitrations seated in Bangladesh, both domestic and international commercial arbitration, with certain provisions, including those on interim measures and the enforcement of foreign awards, also reaching arbitrations seated abroad.
Key provisions a Chattogram business should know
- The "Court". For most purposes the Act's "Court" is the District Judge's court, including an Additional District Judge. For a business in Chattogram that usually means the District Judge's courts in the city's court complex.
- Stay of court proceedings (section 10). If one party sues on a matter covered by a valid arbitration agreement, the other can ask the court to refer the dispute to arbitration.
- Interim measures (section 7A). The court can grant interim relief, such as preserving assets or goods, in support of arbitration. High Court Division decisions have differed on how far this reaches arbitrations seated abroad.
- Appointment of arbitrators (section 12). If the parties' mechanism fails, the District Judge appoints in a domestic arbitration; in an international commercial arbitration the appointing authority is the Chief Justice or a judge of the Supreme Court designated by the Chief Justice.
- Finality (section 39). An award is final and binding, subject only to the challenge the Act permits.
- Setting aside (sections 42 and 43). An application must be made within sixty days of receiving the award. The District Judge's court hears challenges to domestic awards; the High Court Division hears challenges to awards in international commercial arbitrations held in Bangladesh. Grounds are limited, including invalid agreement, lack of proper notice, excess of jurisdiction, improper composition, non-arbitrability, conflict with Bangladeshi public policy, and fraud or corruption.
- Enforcement (sections 44 to 46). Once the challenge period passes, a domestic award is enforced as if it were a decree. A foreign award is enforced on application to the District Judge's court, subject to the limited refusal grounds in section 46.
How the courts treat challenges
The Appellate Division has confirmed that the Act is a self-contained code. In Md. Nurul Abser v Alhaj Golam Rabbani, 6 SCOB [2016] AD 54, it held that a party could not side-step the Act by filing an ordinary civil suit to set an award aside; the only route was an application under section 42 within the time allowed. Missing that window can leave an award unchallengeable and enforceable under section 44.
The New York Convention and foreign awards
Bangladesh acceded to the New York Convention in 1992. Awards from London, Singapore, Hong Kong and other Convention states are therefore enforceable in Bangladesh under Part IV of the Act, on narrow refusal grounds that mirror the Convention. Our award enforcement page and the article on enforcing a foreign arbitral award explain the procedure in detail.
Institutions, rules and the 2026 commercial courts
The Bangladesh International Arbitration Centre (BIAC), operating since April 2011 and based in Dhaka, administers arbitrations under the BIAC Arbitration Rules 2019 and mediations under its Mediation Rules 2019. Many Chattogram contracts instead choose ad hoc arbitration under the Act, or foreign institutions such as SIAC, the ICC or the LCIA, and charterparties frequently choose London arbitration. See our article on BIAC arbitration for Chattogram businesses.
The Commercial Courts Act 2026, passed on 7 April 2026 to replace the January 2026 Ordinance, created specialised commercial courts; the official cause-list portal lists two for Chattogram Metropolitan and one for Chattogram district. The Act did not amend the Arbitration Act 2001, which continues to govern arbitration. Where court support is needed for an arbitration arising from a commercial relationship, check carefully whether the application now belongs before a commercial court or the District Judge's court. The answer affects timing and appeal routes.
Disputes an arbitration lawyer in Chittagong sees most
The disputes that reach arbitration from Chattogram reflect the region's economy. An arbitration lawyer in Chittagong spends much of the year on a handful of recurring patterns, each with its own evidence and its own pressure points.
Shipping, commodities and trade
Charterparty disputes over demurrage, off-hire and cargo damage are classic arbitration territory, usually seated in London. Commodity contracts for edible oil, steel scrap, wheat and fertiliser often carry trade-association or institutional clauses. When a vessel or cargo is in Chattogram waters, the Bangladeshi side of the dispute often turns on interim security, such as ship arrest or orders preserving goods, while the merits proceed abroad.
Construction, energy and infrastructure
Power plants along the Karnaphuli and on the wider Chattogram coast, port and terminal projects, and factory construction in the export processing and economic zones are built under EPC and FIDIC-style contracts with layered dispute clauses. Claims for delay, variations, defects and liquidated damages are document-heavy and expert-driven. Early record-keeping and compliance with contractual notice provisions often decide them.
Joint ventures, distribution and finance
Family-owned Chattogram groups increasingly partner with foreign investors, and shareholder or joint venture agreements commonly choose arbitration. Distribution and agency arrangements, equipment leases and supplier credit agreements produce smaller but frequent claims. Here the question is often whether arbitration is proportionate, or whether a court claim or mediation would recover money faster.
Court-annexed and institutional mediation
Section 89A of the Code of Civil Procedure 1908 allows Chattogram civil courts to refer pending suits to mediation, and the commercial courts introduced in 2026 provide for pre-suit mediation on commercial claims (check the Act's current text for the details). These processes run alongside private mediation under institutional rules. Information on court practice and cause lists is available from the Chattogram district judiciary, and the higher courts' practice from the Supreme Court of Bangladesh. An arbitration lawyer in Chittagong should know when each form of mediation is mandatory, when it is optional, and how to record a settlement so that it binds.
Arbitration, litigation or mediation: choosing the route
Not every dispute suits arbitration, and not every arbitration clause is a good one. An arbitration lawyer in Chittagong should compare the realistic options against the client's priorities: speed, cost, confidentiality, enforceability and the counterparty's assets.
| Factor | Arbitration seated in Bangladesh | Foreign-seated arbitration | Chattogram court litigation | Mediation |
|---|---|---|---|---|
| Choice of decision-maker | Parties choose arbitrators | Parties choose arbitrators | Assigned judge | Parties choose mediator; no binding decision |
| Confidentiality | Private hearings | Private hearings | Public record | Private and without prejudice |
| Enforcement against Bangladeshi assets | As a decree after the challenge period | Under Part IV of the Act and the New York Convention | Through execution of decree | Through a settlement agreement or court decree |
| Enforcement abroad | Generally under the New York Convention | Generally under the New York Convention | Often difficult | Depends on how the settlement is recorded |
| Typical cost profile | Moderate; arbitrator fees payable | Higher; foreign counsel and institution fees | Lower direct cost; longer timeline | Lowest |
For smaller claims against a local counterparty with assets in Chattogram, a well-run commercial suit may be quicker and cheaper. For cross-border contracts, arbitration is usually the stronger choice because the award travels. Mediation often works best early, before positions harden, and again once the evidence is in.
The arbitration clause you sign today decides where, how fast and at what cost your dispute will be fought years from now. Draft it for the dispute you hope never to have.
How an arbitration runs, step by step
Procedure varies with the rules chosen, but an arbitration seated in Bangladesh under the Act typically follows this path. An arbitration lawyer in Chittagong manages each stage and the court applications that support it. Our article on how arbitration works in Bangladesh gives more detail.
- Review the clause and notice. We confirm the agreement is valid, identify the seat, rules and any pre-arbitration steps, then serve a notice of arbitration.
- Constitute the tribunal. Parties appoint arbitrators as agreed. If a party refuses, an application under section 12 goes to the District Judge or, in international cases, to the Chief Justice's designate.
- Secure interim protection. Where assets, cargo or a guarantee are at risk, apply for interim measures to the court under section 7A or to the tribunal.
- Pleadings and evidence. Statements of claim and defence, document production, witness statements and expert reports follow a procedural timetable.
- Hearing and award. The tribunal hears witnesses and argument, then issues a reasoned award, which is final and binding under section 39.
- Challenge window. The losing party has sixty days from receipt to apply to set aside under section 42; the winner prepares for enforcement.
- Enforce. The award is enforced as a decree, with attachment and sale of assets in Chattogram where necessary.
If you have just received an award against you, diarise sixty days from the date of receipt immediately. The Appellate Division has made clear that a civil suit cannot be used instead of a section 42 application, so a missed deadline usually cannot be cured.
Documents and evidence to assemble
- The signed contract, all amendments and the arbitration clause, plus any incorporated terms, such as a charterparty clause incorporated into a bill of lading.
- Correspondence showing performance, breach, notices and any attempts at settlement.
- Invoices, payment records, letters of credit, bank guarantees and SWIFT messages.
- Technical records for construction or supply disputes: drawings, inspection reports, delay logs and variation orders.
- Shipping documents for maritime disputes: bills of lading, survey reports, port records and laytime calculations.
- Corporate documents proving authority to sign and to start proceedings, including board resolutions and powers of attorney.
- For enforcement: the original award or a certified copy, the arbitration agreement, and certified translations where needed.
Risks and common mistakes
Pathological or unclear arbitration clauses
Clauses that name a non-existent institution, mix incompatible rules or leave the seat unclear invite years of satellite litigation before the merits are heard. Common Chattogram examples include template clauses copied from foreign contracts without adapting them. Review clauses at contract stage, and if a dispute has already arisen, take early advice on how a Bangladeshi court is likely to read the clause. Our article on drafting an arbitration clause sets out safer wording.
Suing in court despite an arbitration clause
Filing a suit in the Chattogram courts on a matter covered by an arbitration agreement can lead to a stay and referral under section 10, wasting time and cost. Conversely, a defendant who takes steps in the suit before seeking a stay risks losing the right to arbitrate. Decide early which forum you will use and act consistently with that choice.
Missing the sixty-day challenge window
The time limit under section 42 runs from receipt of the award. Parties sometimes wait for internal approvals or a foreign counsel's opinion and lose the right to challenge. As the Appellate Division confirmed, a later civil suit will not rescue the position. Record the date of receipt carefully and start work on any challenge at once.
Winning an award with nothing to enforce against
An award is only as useful as the counterparty's reachable assets. Before investing in a long arbitration, investigate whether the respondent has bank accounts, property, receivables or ships that can be reached in Bangladesh or abroad. Interim measures can preserve assets during the arbitration where there is a real risk of dissipation, and ship arrest in admiralty can provide security in maritime claims.
Assuming the commercial courts have changed arbitration
The Commercial Courts Act 2026 introduced specialised courts for commercial suits, and readers should check the Act's current text for any pre-suit mediation step. It did not rewrite the Arbitration Act, and arbitration agreements remain enforceable. However, the forum for some supporting applications may now be debated. Check the current position before filing, rather than relying on pre-2026 practice.
Cross-border and foreign-party angles
Most arbitrations involving Chattogram businesses have a foreign element: a Chinese or Indian supplier, a Singapore trader, a European equipment maker or a Gulf-based shipowner. Foreign parties need to know whether a Bangladesh-seated arbitration is safe for them and whether a foreign award will be enforced against assets in Chattogram. Bangladeshi parties need to know how to defend a foreign arbitration and when to resist enforcement at home.
TRW & Co's offices in Dhaka, Singapore, Dubai and London support both sides of that equation. We work with foreign counsel on SIAC, ICC, LCIA and London maritime arbitrations, and handle the Bangladeshi court work: interim measures, enforcement, resisting enforcement and asset investigation. For maritime matters, see our charterparty and shipping pages.
Choosing the seat deserves particular care. A foreign seat gives neutrality and supervisory courts the foreign party trusts, but any interim relief or enforcement against Chattogram assets still runs through the Bangladeshi courts. A Dhaka seat keeps supervisory proceedings at home and can be cheaper, but foreign counterparties may resist it.
Some contracts split the difference with a neutral seat and an express agreement that Bangladeshi courts may grant interim measures. Whichever route is chosen, the governing law, the seat, the rules and the language should be stated plainly, and the clause should be checked against the counterparty's likely asset locations. Our foreign investment team often reviews these clauses as part of wider deal documentation.
How TRW & Co helps as your arbitration lawyer in Chittagong
Our Bangladesh advocates appear before arbitral tribunals, the Chattogram District Judge's courts and the High Court Division. We advise from clause drafting through to enforcement, and we keep the commercial objective in view at each step.
Clause drafting and review
We draft and review arbitration and multi-tier dispute clauses for supply, construction, shipping and joint venture contracts, choosing seat, rules and language that suit Bangladeshi enforcement.
Tribunal advocacy
We prepare pleadings, evidence and expert input, and represent clients in domestic and international arbitrations, alone or alongside foreign counsel.
Court support
We bring and resist applications for stays, arbitrator appointment and interim measures in the Chattogram courts and the High Court Division.
Challenges and enforcement
We pursue or resist set-aside applications within the statutory deadline, and enforce domestic and foreign awards against assets in Chattogram and elsewhere in Bangladesh.
Arbitration often overlaps with construction disputes and shareholder disputes. All our fields are listed on the practices page, and the Chattogram office hub explains how we work locally.
Checklist for decision-makers
- Locate the signed contract and confirm the arbitration clause, seat, rules and any pre-arbitration steps.
- Note any deadlines: contractual notice periods, limitation, and the sixty-day challenge window if an award exists.
- Identify the counterparty's assets in Bangladesh and abroad.
- Preserve documents, emails and technical records; suspend routine deletion.
- Decide whether early mediation or settlement talks are worth trying.
- Estimate the budget, including arbitrator and institution fees.
- Confirm who in the business can give instructions and sign authorisations.
- Speak to an arbitration lawyer in Chittagong at our Court Hill office, or through the contact page.
Early advice from an arbitration lawyer in Chittagong often changes the outcome: it secures assets before they move, protects the challenge window and keeps the dispute in the forum that suits you.
Frequently asked questions
01Which court in Chattogram deals with arbitration matters?
For most purposes under the Arbitration Act 2001, the "Court" is the District Judge's court, including Additional District Judges. For a Chattogram dispute this usually means the District Judge's courts in the city. Challenges to awards in international commercial arbitrations held in Bangladesh go to the High Court Division, and default appointments in international cases are made by the Chief Justice or a designated Supreme Court judge. Check whether the 2026 commercial courts affect your particular application.
02How long do I have to challenge an arbitral award?
Sixty days from receiving the award, under section 42 of the Arbitration Act 2001. Grounds are limited to those in section 43, such as an invalid agreement, lack of proper notice, excess of jurisdiction, conflict with public policy, or fraud and corruption. The Appellate Division has held that a party cannot bypass this by filing an ordinary civil suit, so the deadline should be treated as absolute.
03Can a foreign arbitral award be enforced against assets in Chattogram?
Yes. Bangladesh is a party to the New York Convention, and section 45 of the Arbitration Act allows a foreign award to be enforced on application to the District Judge's court as if it were a decree. Enforcement can be refused only on the limited grounds in section 46, which mirror the Convention. Practical success depends on identifying assets such as bank accounts, property or receivables in Bangladesh.
04Can I get urgent relief before the tribunal is formed?
Often, yes. Section 7A of the Act allows the court to grant interim measures, such as orders preserving assets, goods or the subject matter of the dispute. Courts have differed on how far this extends to arbitrations seated abroad, so the application needs careful framing. For maritime claims, ship arrest in the admiralty jurisdiction may also provide security for a claim proceeding in arbitration.
05Is BIAC arbitration a good choice for a Chattogram business?
It can be. BIAC, operating since 2011, offers administered arbitration and mediation under its 2019 rules, with institutional support on appointments, timetables and fees. It suits disputes with a mainly Bangladeshi profile. For contracts with foreign parties, SIAC, ICC or LCIA rules, or a foreign seat, may be preferred for neutrality. We help clients compare institutions when drafting the clause or starting proceedings.
06What happens if I file a court case despite an arbitration clause?
The defendant can apply under section 10 of the Arbitration Act for the court to refer the dispute to arbitration, and the court will generally do so where the agreement is valid and covers the dispute. The suit then stalls, and costs may follow. A defendant who wants arbitration should apply promptly and avoid taking steps in the suit that could be read as accepting the court's jurisdiction.
07Does mediation make sense if we have an arbitration clause?
Frequently. Mediation is confidential, quicker and cheaper, and can run before or alongside arbitration. Many multi-tier clauses require negotiation or mediation first. BIAC offers mediation under its 2019 rules, and the commercial courts introduced in 2026 may require pre-suit mediation for commercial claims; readers should check the Commercial Courts Act 2026's current text. A settlement should be documented carefully so it can be enforced if one side later defaults.
Sources and official materials
- Arbitration Act 2001 (Bangladesh Laws) — Arbitration procedure, challenge and enforcement
- Md. Nurul Abser v Alhaj Golam Rabbani, 6 SCOB [2016] AD 54 — Section 42 is the exclusive route to set aside an award
- Bangladesh International Arbitration Centre — BIAC Arbitration Rules 2019 and Mediation Rules 2019
- Code of Civil Procedure 1908 — Execution of awards enforced as decrees
- Supreme Court of Bangladesh — High Court Division arbitration jurisdiction
- Chattogram District Judiciary — District Judge's courts in Chattogram
General information only, current as at 2 November 2026. It is not legal advice and does not create an advocate–client relationship. It reflects the law of Bangladesh unless stated otherwise, and the law, court practice and official fees change frequently. Check current official sources and take advice on the facts of your matter.
