In mid-2004, the Bangladesh Council of Arbitration (BCA) was established as an arbitral body. The BCA rules have not yet been finalised. Arbitration in Bangladesh is governed by the Arbitration Act 2001. This is based on the UNCITRAL model law. Bangladesh is a party to the New York Convention. In practice, however, there are difficulties in enforcing arbitration awards in Bangladesh. The difficulty is greater if it is a foreign party seeking to enforce an award against a local party. Where the arbitration is convened abroad, there have been instances where the Bangladeshi courts have allowed legal proceedings which interfered with the issues raised ...view middle of the document...
The Act is based on the UNCITRAL model law.
What are the available rules?
There are no available institutional rules specific to Bangladesh. Parties are free to agree on the rules to govern the arbitration. In the absence of an agreement, and where the rules selected by the parties do not cover a particular circumstance, the Act sets certain default rules.
What supervision is there of arbitrators and their awards?
International commercial arbitrations are supervised by the Chief Justice and the Supreme Court. The court has limited power, however, to intervene in arbitrations; the Act states that a court may only intervene in circumstances allowed under the Act. Under the Act, no judicial authority (including the courts) is allowed to hear any legal proceedings commenced by any of the parties to an arbitration agreement. However, section 7A of the Act contains an
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exception to this general rule. Under section 7A, the High Court Division, before or during an arbitration may, inter alia, take interim protective measures in respect of goods or property included in arbitration agreement.
How quickly can a tribunal be set up?
The speed at which a tribunal may be set up depends on the rules chosen by the parties. If the parties have not agreed a set of rules, the default rules under the Act will apply. Under those rules, and where an international commercial arbitration is concerned, there are two possible courses of action. If the arbitration is before a sole arbitrator and the parties cannot agree on the arbitrator within 30 days of the notice of arbitration, then, upon request by one of the parties, the appointment will be made by the Chief Justice (or any other judge or the Supreme Court designated by the Chief Justice). If the arbitration is before three arbitrators, each party selects one arbitrator and the two arbitrators select the third. If the two arbitrators cannot agree on the third arbitrator within 30 days of their appointment, then, upon request by one of the parties, the appointment will be made by the Chief Justice (or any other judge or the Supreme Court designated by the Chief Justice).
What happens if one party refuses to participate in the process?
If one party fails to nominate an arbitrator, the Chief Justice (or any other judge or the Supreme Court designated by the Chief Justice) shall nominate the arbitrator in place of that party. The Chief Justice should do this within 60 days of the request to the Chief Justice.
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Once a tribunal is constituted, the tribunal may proceed to an award even if one of the parties refuses to participate in the arbitration. Under the Act, where any party to an arbitration agreement starts court proceedings against the other party concerning any matter agreed to be...