TRW & Co · Arbitration and commercial disputes
Mediation in Bangladesh Civil and Commercial Cases
Mediation in civil suits Bangladesh courts hear is mandatory: under section 89A of the Code of Civil Procedure, the court refers a suit to mediation once the written statement is filed, and section 89C does the same for appeals. A settlement becomes an unappealable decree. Money loan suits, family disputes and, in many districts, pre-case disputes have their own mediation rules.
Key pointA settlement reached in court-referred mediation becomes a decree that cannot be appealed and can be executed directly, so draft its terms as carefully as you would a judgment you intend to enforce.
At a glance
Section 89A referral
After the written statement, the civil court refers the suit to mediation; mandatory referral was introduced by amendments in 2012.
Appeals too
Section 89C extends mandatory mediation to civil appeals, so a dispute can still settle after a trial judgment.
Artha Rin timetable
In money loan suits, a mediator is named within 10 days and mediation ends within 60 days, extendable by 30.
Settlement is final
A mediated settlement becomes a decree or order with no appeal or revision, enforceable through execution if a party defaults.
Pre-case mediation spreading
Listed family, rent, partition and pre-emption disputes must go to the District Legal Aid Office first in districts covered by the 2026 amendment.
Swipe or scroll →
The short answer: mediation in civil suits Bangladesh courts require
Mediation in civil suits Bangladesh courts handle is built into the Code of Civil Procedure 1908. Under section 89A, once the defendant files a written statement, the court refers the suit to mediation; section 89C does the same for appeals. A settlement ends the dispute with a decree that cannot be appealed, while a failed mediation sends the case back to trial.
Special laws run their own versions. Money loan suits by banks go to mediation under section 22 of the Artha Rin Adalat Ain 2003, Family Courts attempt compromise at set stages, and since 2025 listed disputes in a growing number of districts must go to pre-case mediation at the District Legal Aid Office before any suit is filed.
For Chattogram litigants, mediation is often the fastest exit from a long suit. This guide explains how each scheme works, how settlements are recorded and enforced, what remains confidential, and how to prepare so that mediation produces a result rather than another adjournment.
The legal framework
Sections 89A to 89E of the Code
Alternative dispute resolution was introduced into the Code in 2003 through sections 89A and 89B. Mediation was initially optional; amendments in 2012 made referral to mediation mandatory at the pre-trial stage, and extended mandatory mediation to appeals under section 89C. Later amendments brought legal aid officers into the mediation scheme. Section 89B separately allows the parties to refer a suit to arbitration.
The Code allows the parties, through their lawyers, to choose a mediator: another advocate not engaged in the suit, a retired judge, a person on a panel prepared by the District Judge, or another suitable person. The court can conduct the mediation itself, or it can be handled by a legal aid officer. If the parties cannot agree on a mediator, the court appoints one.
Time limits and outcomes
Commentary on the Code describes a sixty-day period for completing mediation, extendable by thirty days. If mediation succeeds, the court passes a decree or order in terms of the settlement, and no appeal or revision lies against it. If mediation conducted by the court fails, the same judge does not go on to hear the suit, which protects the confidentiality of what was said.
Other mediation schemes
- Money loan suits. Section 22 of the Artha Rin Adalat Ain 2003 provides its own mediation stage after the written statement, with strict time limits and a court-fee refund on settlement. Section 23 allows a renewed attempt at settlement later in the proceedings.
- Family disputes. The Family Courts Act 2023 requires the court to explore compromise, and family disputes are among those subject to pre-case mediation where that scheme applies.
- Pre-case mediation. The Legal Aid Services (Amendment) Act 2026 makes mediation at the District Legal Aid Office compulsory, in districts where it has been introduced, for listed disputes such as family, house rent, partition and pre-emption claims.
- Institutional mediation. Businesses can agree to mediate under the BIAC Mediation Rules 2019, often as the first stage of a med-arb clause.
Mediation in the Chattogram courts
In practice, the mediation in civil suits Bangladesh's Chattogram courts order takes place in the civil courts of the judgeship, from the Assistant Judge and Senior Assistant Judge courts to the Joint District Judge and District Judge courts, and in the Artha Rin Adalat for bank suits. Panels of mediators are maintained under the District Judge, and the District Legal Aid Office provides mediation for eligible parties. Our guide to the Chattogram courts explains which court hears what.
Commercial courts
Commercial courts were introduced in 2026 for defined commercial disputes: Parliament passed the Commercial Courts Act 2026 on 7 April 2026, replacing the January 2026 Ordinance, and the official cause-list portal lists two Commercial Courts for Chattogram Metropolitan and one for Chattogram district (October 2026). Readers should check the Act's current text for its trial timetable and any pre-suit mediation step. If your claim is a commercial dispute, check whether it now belongs in a commercial court and what mediation step applies there before filing. The approach to mediation in civil suits Bangladesh lawyers have developed under section 89A remains the starting point for preparation.
How mediation in civil suits Bangladesh courts order works, step by step
The details vary by court and scheme, but a court-referred mediation in a Chattogram civil court usually follows this path.
- Pleadings close. The plaintiff files the plaint, and the defendant files a written statement. This triggers the referral under section 89A.
- Referral order. The court refers the suit to mediation and invites the parties to name a mediator. If they do not, the court appoints one, or conducts the mediation itself.
- Preparation. Each side's lawyer briefs the client on strengths, weaknesses, likely costs and timing of a trial, and prepares a settlement range. Documents that support the case are collected and shared where useful.
- Sessions. The mediator meets the parties, together and separately. The mediator facilitates but does not decide; what is said is confidential.
- Settlement terms. If agreement is reached, it is written down and signed by the parties, their lawyers and the mediator, and reported to the court.
- Compromise decree. The court passes a decree or order in terms of the settlement. Because it rests on agreement, it cannot be appealed, and it can be executed like any other decree.
- If mediation fails. The mediator reports failure, and the suit moves on to framing issues, evidence and trial, before a different judge if the court itself mediated.
The schemes compared
| Scheme | When it applies | Who mediates | Key features |
|---|---|---|---|
| Section 89A CPC | Civil suits, after the written statement | Advocate not engaged in the suit, retired judge, panel mediator, legal aid officer or the court | Mandatory referral; settlement decree not appealable; same judge does not try the suit if court mediation fails |
| Section 89C CPC | Civil appeals | As above, at appellate level | Settlement can end the appeal and the underlying dispute |
| Section 22 Artha Rin Adalat Ain | Bank and financial institution recovery suits, after the written statement | Advocate, retired judge, retired banker or other suitable person, but not a serving government official | Mediator named within 10 days or appointed by the court; completed within 60 days, extendable by 30; court fee refunded on settlement |
| Pre-case mediation | Listed disputes, before any suit, in districts where introduced | District Legal Aid Office and its mediators | Compulsory where it applies; certified settlement enforceable like a court order |
| BIAC mediation | By agreement, usually commercial contracts | Mediators from BIAC's list | Voluntary and confidential; can be linked to BIAC arbitration |
Why mediation succeeds or fails
Experience across the courts suggests that mediation in civil suits Bangladesh parties attend works best when three conditions are met: the decision-makers are present or reachable, both sides have a realistic view of what a trial would deliver and when, and the settlement terms can actually be performed. It fails most often where one side uses the process to buy time, or where the dispute is really about something the suit cannot resolve, such as a wider family or business relationship. A good mediator brings those issues into the open.
Mediation in money loan suits
Lenders and borrowers often ask whether there is pre-suit mediation in Artha Rin cases. The answer is that the Artha Rin Adalat Ain's mediation stage comes after the written statement, not before the suit. Section 22 lets the parties' lawyers, with their clients' consent, appoint a mediator, including another advocate, a retired judge or a retired bank officer. If no mediator is named within 10 days of the order, the court appoints one.
Mediation must be completed within 60 days of the referral order, extendable by up to 30 days. Discussions, admissions and statements in mediation cannot be referred to later or used as evidence. If the dispute settles, the plaintiff receives a certificate to recover the court fee paid on the plaint, the settlement order is final, and no appeal or revision lies. If mediation fails, the suit resumes from where it stood. Section 23 allows a further attempt at settlement later in the proceedings. Our guide to money loan court procedure covers the rest of the process.
Treat the mediation session as a decision point, not a formality. Come with a mandate: who on your side can approve a settlement, the figure or terms you can accept, and how payment will be secured. Banks in particular should arrange internal approval in advance, because a settlement agreed in principle but not approved can collapse.
Settlement agreements, confidentiality and privilege
Recording the settlement
A settlement reached in a pending suit should be recorded with the court, which passes a compromise decree under Order XXIII of the Code. That decree is executable like any other, so draft it with execution in mind: exact sums, dates, the property affected, what happens on default and how security, such as post-dated payments or a charge on land, will operate.
What stays confidential
Mediation under the Code and under the Artha Rin Adalat Ain is confidential. In money loan suits, section 22 expressly prevents statements and admissions made in mediation from being referred to or used as evidence. More generally, section 23 of the Evidence Act 1872 protects admissions in civil cases made on an express condition, or in circumstances showing an agreement, that they would not be given in evidence; this is the basis of "without prejudice" negotiation. Mark settlement correspondence accordingly.
Settlements outside court
If parties settle before filing, or outside the court's mediation, the agreement is a contract. It can be enforced by suit, but it is not a decree. Where a suit is already pending, recording the compromise with the court is usually safer.
An illustrative scenario
This scenario is illustrative only; the parties are generic.
A Chattogram building contractor sues a commercial client for unpaid final bills; the client counterclaims for delay and defects. After the written statement, the court refers the suit to mediation, and the parties choose a retired judge with construction experience as mediator.
Before the first session, each side's lawyer prepares a short note on the realistic range of outcomes at trial and the time and cost of getting there. In joint and private sessions, the mediator helps the parties separate the undisputed portion of the bills from the contested items. The client agrees to pay the undisputed sum immediately and a reduced amount for the contested items in two instalments; the contractor agrees to fix a list of defects.
The settlement is signed, reported to the court and turned into a compromise decree with a default clause. When the second instalment is late, the contractor applies for execution of the decree rather than starting a fresh suit. This is mediation in civil suits Bangladesh courts can rely on working: a binding outcome reached in weeks, not years.
Risks and common mistakes
Treating mediation as a box to tick
Because referral is mandatory, some parties attend without authority, without documents and without a settlement range, simply to move the case on. That wastes the best opportunity many suits will have to end early. Prepare as for a hearing: know the strengths and weaknesses of both sides, the realistic trial timeline in the Chattogram courts and the cost of continuing.
Vague settlement terms
A compromise decree is only as good as its wording. Terms such as "payment within a reasonable time" or "transfer of the land as agreed" invite fresh disputes. Specify amounts, dates, bank details, property schedules with mouza, khatian and dag numbers, and the consequences of default. Think about how you would execute the decree if the other side does not comply.
Missing the pre-case mediation requirement
In districts where pre-case mediation applies, filing a family, rent, partition or pre-emption suit without first going to the District Legal Aid Office can cause problems. The scheme has been extended in phases, with ten more districts added in July 2026; check whether it applies in Chattogram and to your dispute before filing.
Leaking mediation statements
Using what the other side said in mediation as evidence, or in correspondence, undermines trust and may be inadmissible. Equally, a party may disclose too much, believing everything is protected. Discuss with your lawyer what can safely be shared and mark settlement letters "without prejudice".
Parties abroad and commercial counterparties
Many Chattogram suits involve family members in the UK, the Gulf or Singapore, or foreign commercial counterparties. Mediation sessions can often accommodate remote participation, and settlements can be signed through properly attested powers of attorney. Our guide to running a court case from abroad explains the formalities. For commercial contracts, a med-arb clause linking BIAC mediation to arbitration gives a structured path; see our guide to the arbitration clause for Bangladesh contracts.
What to do next
- Check whether your dispute needs pre-case mediation at the District Legal Aid Office before filing.
- If a suit is pending, prepare for mediation as soon as the written statement is filed.
- Agree who can approve a settlement and on what terms.
- Draft settlement terms that can be executed as a decree.
- Keep settlement correspondence marked "without prejudice".
Getting mediation in civil suits Bangladesh courts order right can save years of litigation. TRW & Co's Bangladesh advocates represent parties in court-referred mediation, Artha Rin Adalat mediation and the trials that follow when mediation fails. See our civil litigation team, our commercial litigation practice, our guide to civil suit procedure, the Chattogram office page, or contact us.
Frequently asked questions
01Is mediation compulsory in civil suits in Bangladesh?
Referral is mandatory. Under section 89A of the Code of Civil Procedure, after the written statement is filed the court refers the suit to mediation, and section 89C does the same for appeals. Settlement is not compulsory: the parties decide whether to agree. If they do not, the suit proceeds to trial. Separately, in districts covered by the 2026 legal aid amendment, listed disputes must go to pre-case mediation before a suit is filed.
02Who can act as mediator in a civil suit?
The parties, through their lawyers, can choose an advocate who is not engaged in the suit, a retired judge, a mediator from the panel prepared by the District Judge, or another suitable person. The court may also conduct the mediation itself, or a legal aid officer may do so. If the parties cannot agree, the court appoints the mediator. In money loan suits, serving government officials cannot act as mediators.
03How long does court-referred mediation take?
Mediation under the Code is generally expected to finish within sixty days of the mediator's appointment, with a possible extension of thirty days. In money loan suits under the Artha Rin Adalat Ain 2003, the mediator must be named within 10 days and the mediation completed within 60 days of the referral order, extendable by up to 30 days. Many settlements are reached in fewer sessions.
04Can a mediated settlement be appealed?
No. Where mediation succeeds, the court passes a decree or order in terms of the settlement, and no appeal or revision lies against it. The Artha Rin Adalat Ain says the same for money loan suits. Because the decree is final and executable, read every term carefully, and make sure amounts, dates, property details and default consequences are precise before you sign.
05Is what I say in mediation confidential?
Yes. Mediation under the Code is confidential, and in money loan suits the Artha Rin Adalat Ain expressly prevents mediation discussions, admissions and statements from being referred to or used as evidence later. Section 23 of the Evidence Act 1872 also protects admissions in civil cases made on the basis that they would not be given in evidence, which underpins without prejudice negotiation.
06Do I get my court fee back if the case settles?
In money loan suits, yes: section 22 of the Artha Rin Adalat Ain provides that if the dispute is settled through mediation, the court gives the plaintiff a certificate to recover the full court fee paid on the plaint. For ordinary civil suits, ask your lawyer to check the current rules on refunds before relying on one, as the position depends on the Code and court-fee legislation.
Sources and official materials
- Code of Civil Procedure 1908 (Bangladesh Laws) — Sections 89A to 89E on mediation and arbitration
- Artha Rin Adalat Ain 2003 (Bangladesh Laws) — Section 22 mediation in money loan suits
- Legal Aid Services Act 2000 (Bangladesh Laws) — Legal aid and pre-case mediation framework
- The Daily Star: ADR in ordinary civil courts — Commentary on sections 89A to 89E
- BIAC Mediation Rules 2019 — Institutional commercial mediation
- Jago News: Mandatory pre-case mediation in 10 more districts — July 2026 extension of pre-case mediation
General information only, current as at 27 October 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.
