§ 1Short title, application and introduction
Sections60
LanguageEnglish
The Arbitration Act, 2001 is the principal legislation governing domestic and international commercial arbitration in Bangladesh. It applies to arbitrations conducted within Bangladesh and, for certain provisions, also to arbitrations seated outside Bangladesh that involve Bangladeshi parties or assets. The Act is based on the UNCITRAL Model Law framework and establishes a comprehensive regime for arbitration agreements, arbitral tribunal composition (default of three arbitrators, Section 11), arbitrator challenge and replacement (Sections 13-16), tribunal jurisdiction (competence-competence principle, Section 17), interim measures (courts and tribunals can grant protective orders, Sections 7A and 21), conduct of proceedings (procedural flexibility, Sections 23-30), expert appointment (Section 32), and the making of arbitral awards (Section 38). The Act provides for court assistance in taking evidence (Section 33) and for challenge of awards on limited grounds, such as incapacity of a party, invalid arbitration agreement, lack of proper notice, composition not in accordance with party agreement, or award contravening public policy (Section 43). International commercial arbitration awards can only be challenged before the High Court Division (Section 42). The Act replaced the earlier Arbitration Act of 1940 and is currently in force.
Full text · showing key sections
§ 2Definition
Unless there is anything contrary to the subject or context, in this Act,—
(a) "legal representative" means a person who legally represents the estate of a deceased person; and who is engaged in the administration of the estate of a deceased person, and in the case of a party acting in a representative capacity, shall include the person to whom the said property devolves on the death of that party;
(b) "Court" means the Court of the District Judge, and shall include any Court of the Additional District Judge appointed by the Government, by notification in the Official Gazette, to perform the functions of the Court of the District Judge under this Act;
(c) "international commercial arbitration" means any arbitration relating to a dispute arising out of an expressly provided contractual or non-contractual legal relationship which is treated as a commercial dispute under the prevailing laws of Bangladesh and where either of the parties-
(b) a person who is a citizen of, or a natural resident of, a country other than Bangladesh; or
(a) is a statutory body incorporated in any State other than Bangladesh; or
(e) company or association or body corporate whose central management and control is exercised in a country other than Bangladesh; or
(e) is a government of a foreign country;
(d) “Tamadi Act” has the meaning
Limitation Act, 1908
(IX of 1908);
(e) “Code of Civil Procedure” has the meaning
Code of Civil Procedure, 1908
(Act V of 1908);
(f) "specified State" means any specified State declared by the Government under section 47;
(g) "party" means any party to the arbitration agreement;
(h) "Chief Justice" means the Chief Justice of Bangladesh;
(j) "rules" means rules made under this Act;
(j) "person" shall include a statutory or other body, company, association and partnership firm;
(k) "foreign arbitral tribunal" means any arbitral tribunal awarded in the territory of a State other than Bangladesh under an arbitration agreement,
However, it shall not include any arbitral award given in the territory of a particular State;
(l) "Evidence Act" has the meaning
Evidence Act, 1872
(Act I of 1872);
(d) "arbitration" means any arbitration whether or not conducted by a permanent arbitral institution;
(d) "arbitration agreement" means an agreement expressly provided by the parties to that legal relationship to submit to arbitration for the settlement of all or any disputes arising out of or arising out of the legal relationship by mutual consent, whether contractual or non-contractual;
(n) "arbitral tribunal" means the sole arbitrator or panel of arbitrators;
(v) "arbitral ruling" means a decision rendered by an arbitral tribunal on the subject matter of the dispute;
(th) "High Court Division" means the High Court Division of the Supreme Court of Bangladesh;
§ 3Scope
(1)If the place of arbitration is Bangladesh, the provisions of this Act shall apply to the said arbitration.
(2)Notwithstanding anything contained in sub-section (1), if the place of arbitration is outside Bangladesh, the provisions of sections 45, 46 and 47 of this Act shall also apply to the said arbitration.
(3)If there is no opportunity to refer any dispute to arbitration under any other law for the time being in force, nothing in those laws shall be affected by this Act.
(4)If any arbitration agreement has been executed before or after the coming into force of this Act, the provisions of this Act shall apply to arbitration proceedings initiated in Bangladesh regarding any dispute arising out of the said arbitration agreement.
§ 4Construction of References
(1)In cases where the parties are at liberty in this Act to determine a particular matter, except for the matters mentioned in section 36, the power of the parties to any other person to determine that particular matter shall also be included in such liberty.
(2)Where this Act—
(a) any matter to which the parties agree or may be referred to in any contract; or
(b) any agreement otherwise referred to between the parties—
In that case, any arbitration clause mentioned in the relevant agreement shall also be included in the said agreement.
(a) any matter to which the parties agree or may be referred to in any contract; or
(b) any agreement otherwise referred to between the parties—
In that case, any arbitration clause mentioned in the relevant agreement shall also be included in the said agreement.
(3)In cases where any claim is raised under this Act, the provisions other than clause (a) of sub-section (3) of section 35 or clause (a) of sub-section (2) of section 41 of this Act shall also apply to the counter-claim, reply and counter-reply to the said claim.
§ 5Receipt of written communications
(1)Unless the parties otherwise agree, if any written communication, notice or summons is required to be issued to any party or person under this Act, and unless the parties otherwise agree as to the issuance, the said written communication, notice or summons shall be deemed to have been issued to that party or person, if—
(a) to him personally or at his business address or his usual place of business;
accommodation or otherwise provided to his mailing address; And
(b) if he is not found at any place mentioned in clause (a) after the usual search, sent by registered post or by any other method to his last known business, residential or mailing address and evidence of such delivery is recorded therein.
(a) to him personally or at his business address or his usual place of business;
accommodation or otherwise provided to his mailing address; And
(b) if he is not found at any place mentioned in clause (a) after the usual search, sent by registered post or by any other method to his last known business, residential or mailing address and evidence of such delivery is recorded therein.
(2)The communication, notice or summons shall be deemed to have been received on the date on which, as the case may be, it is delivered or sent.
(3)This section shall not apply to any communication, notice or, as the case may be, summons in relation to the proceedings of any judicial authority.
§ 6Waiver of Right to Object
which party-
(a) no provision of this Act has been complied with by the parties to the breach; or
(b) no requirement under the arbitration agreement has been complied with—
If the said party, being aware of the matter, proceeds to arbitration without unreasonable delay or within such time limit, if any, without objection, then the said party shall be deemed to have waived the right to object.
§ 7Jurisdiction of the court over matters covered by the arbitration agreement
If a party to an arbitration agreement institutes legal proceedings against the other party in any matter agreed to be arbitrated under that agreement, the court shall have no jurisdiction to hear any legal proceedings other than the provisions of this Act, notwithstanding any other law for the time being in force.
§ 7APower of Courts and High Court Divisions to grant interim orders
1
[7a. (1) Notwithstanding anything contained in section 7, unless the parties otherwise agree, the High Court Division in the case of international commercial arbitration and in the case of other arbitral tribunals may, on the application of any party either during or before the arbitral proceedings or until the execution of the arbitral award under section 44 or 45, make the following orders, namely:-
(a) appointment of a guardian to conduct arbitration proceedings on behalf of a minor or natural person;
(b) taking interim custody or sale or any other conservatorship of any goods or property included as a subject matter of the arbitration agreement;
(c) prohibiting the transfer or transfer of any property intended to impede the enforcement of the arbitral award by any party;
(d) empowering any person to seize, preserve, inspect, photograph, photograph, take custody, collect information and samples, observe, examine or take evidence of any goods or property included as a subject matter of arbitration proceedings and for that purpose to enter any land or building occupied by a party;
(e) interim injunction;
(f) appointment of receiver; And
(g) any other interim protective measures as appear to the Court or High Court Division to be reasonable or appropriate.
(2)The Court or, as the case may be, the Division of the High Court shall have the same power to make an order under sub-section (1) as the Court or Division of the High Court has in respect of any legal proceedings.
(3)In respect of an application received under sub-section (1), notice shall be given to the other party before the Court or Division of the High Court passes an order:
Provided thatif the Court or, as the case may be, the Division of the High Court is satisfied that the purpose of taking interim measures would be defeated if an immediate order is not passed in any matter, such notice shall not be required.
(4)If the Court or Division of the High Court is satisfied that the arbitral tribunal lacks jurisdiction to proceed under sub-section (1) in any matter or that the Tribunal has failed to make an order under section 21 in the matter concerned, the Court or, as the case may be, the Division of the High Court, may make an order under this section.
(5)The Court or, as the case may be, the Division of the High Court, may, if it thinks fit, set aside, vary or amend any order made under this section.
(6)If any order passed by any arbitral tribunal or any other institution or person empowered to make any order under sub-section (1) in the matter, the order passed by the Court or, as the case may be, the High Court Division in that regard shall be void in whole or the relevant part of the said order, as the case may be.]
§ 8Administrative support
The parties or, with the consent of the parties, the arbitral tribunal may receive administrative assistance through an appropriate person in order to facilitate the conduct of the arbitral proceedings.
§ 9Types of Arbitration Agreements
(1)An arbitration agreement may be in the form of an arbitration clause or a separate agreement in a contract.
(2)The arbitration agreement shall be in writing and an arbitration agreement shall be deemed to be in writing if the subject matter of the agreement—
(a) forms part of any document signed by the parties;
(b) referred to in any instrument communicated by letter, telex, telegram, fax, e-mail or any other means of exchange;
(c) any statement exchanged between the parties relating to the claim and the counter-claim refers to which one party asserts the existence of the contract and the other party does not deny it.
(a) forms part of any document signed by the parties;
(b) referred to in any instrument communicated by letter, telex, telegram, fax, e-mail or any other means of exchange;
(c) any statement exchanged between the parties relating to the claim and the counter-claim refers to which one party asserts the existence of the contract and the other party does not deny it.
Explanation- If any written contract (contract) contains reference to any other document containing an arbitration clause and as a result of such reference, the arbitration clause becomes part of the contract, it shall be an arbitration agreement.
§ 10Arbitrability of Disputes
(1)If a party to an arbitration agreement or a claimant under that party institutes any legal proceedings in any court against any other party to the agreement or a claimant under a similar party in any matter which has been agreed to be settled by arbitration, any party may apply to the concerned court for the matter to be referred to arbitration before filing a written reply in the said proceedings.
(2)If, on an application under sub-section (1), it appears to the court that the relevant arbitration agreement exists and is not void, void or incapable of arbitrability, the court shall refer the matter to arbitration and stay the proceedings.
(3)An application under sub-section (1) may be instituted, continued and arbitral awards made in respect of the matter pending before the court and pending legal proceedings.
§ 11Number of arbitrators
(1)Subject to the provisions of sub-section (3), the parties shall be free to determine the number of arbitrators in the arbitral tribunal.
(2)If the number is not determined under sub-section (1), the arbitral tribunal shall consist of three arbitrators.
(3)Where the parties appoint an even number of arbitrators, unless otherwise agreed, the appointed arbitrators shall jointly appoint one additional arbitrator, who shall act as chairman of the arbitral tribunal.
§ 12Appointment of arbitrator
(1)The parties shall, subject to the provisions of this Act, be free to agree to determine the procedure relating to the appointment of an arbitrator.
(2)Unless the parties otherwise agree, a person of any nationality may be appointed as an arbitrator.
(3)In the absence of the agreed procedure referred to in sub-section (1)—
(a) in the case of an arbitral tribunal consisting of a sole arbitrator, if the parties fail to agree on the appointment of an arbitrator within thirty days of the receipt of a request from any party, on the application of any party—
(b) in the case of arbitration other than international commercial arbitration, the District Judge shall appoint such arbitrator; And
(a) in the case of international commercial arbitration, the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice shall appoint the arbitrator;
(b) In the case of an arbitration consisting of three arbitrators, unless the parties otherwise agree, each party shall appoint one arbitrator and the arbitrators so appointed shall appoint a third arbitrator who shall be the chairman of the arbitral tribunal.
(a) in the case of an arbitral tribunal consisting of a sole arbitrator, if the parties fail to agree on the appointment of an arbitrator within thirty days of the receipt of a request from any party, on the application of any party—
(b) in the case of arbitration other than international commercial arbitration, the District Judge shall appoint such arbitrator; And
(a) in the case of international commercial arbitration, the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice shall appoint the arbitrator;
(b) In the case of an arbitration consisting of three arbitrators, unless the parties otherwise agree, each party shall appoint one arbitrator and the arbitrators so appointed shall appoint a third arbitrator who shall be the chairman of the arbitral tribunal.
(4)In the case of following the procedure of appointment under sub-section (3)—
(a) if either party fails to appoint an arbitrator within thirty days of the receipt of the request from the other party; or
(b) if the appointed arbitrators fail within thirty days of their appointment to agree to the appointment of a third arbitrator, such third arbitrator on the application of any party;
(c) appoint district judges in respect of arbitrations other than international commercial arbitrations; And
(d) In the case of international commercial arbitration, the Chief Justice, or any Judge of the Supreme Court nominated by the Chief Justice shall appoint.
(a) if either party fails to appoint an arbitrator within thirty days of the receipt of the request from the other party; or
(b) if the appointed arbitrators fail within thirty days of their appointment to agree to the appointment of a third arbitrator, such third arbitrator on the application of any party;
(c) appoint district judges in respect of arbitrations other than international commercial arbitrations; And
(d) In the case of international commercial arbitration, the Chief Justice, or any Judge of the Supreme Court nominated by the Chief Justice shall appoint.
(5)The third arbitrator appointed under clause (b) of sub-section (4) shall be the chairman of the said tribunal.
(6)If more than one arbitrator is appointed under sub-section (4), the District Judge or, as the case may be, the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice shall appoint one of the arbitrators as Chairman of the Arbitral Tribunal.
(7)Subject to the procedure of appointment agreed upon by the parties, if—
(a) a party fails to follow such procedure; or
(b) the parties, or the arbitrators, fail to agree on any matter under similar procedures; or
(c) any person or third party fails to perform any duty imposed on such person or third party under such procedure,
provided that either party, unless otherwise provided for in the arbitration agreement, to take the necessary steps for the appointment of the arbitrator or arbitrators;
(d) in the case of arbitrations other than international commercial arbitration, may apply to the Court of Appeal and the Court of Appeal shall appoint other arbitrators including the Chairman of the Arbitral Tribunal; And
(e) In the case of international commercial arbitration, an application may be made to the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice and the Chief Justice or a Judge of the Supreme Court nominated by the Chief Justice shall appoint the other arbitrators including the Chairman of the Arbitral Tribunal.
(a) a party fails to follow such procedure; or
(b) the parties, or the arbitrators, fail to agree on any matter under similar procedures; or
(c) any person or third party fails to perform any duty imposed on such person or third party under such procedure,
provided that either party, unless otherwise provided for in the arbitration agreement, to take the necessary steps for the appointment of the arbitrator or arbitrators;
(d) in the case of arbitrations other than international commercial arbitration, may apply to the Court of Appeal and the Court of Appeal shall appoint other arbitrators including the Chairman of the Arbitral Tribunal; And
(e) In the case of international commercial arbitration, an application may be made to the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice and the Chief Justice or a Judge of the Supreme Court nominated by the Chief Justice shall appoint the other arbitrators including the Chairman of the Arbitral Tribunal.
(8)The appointment of the arbitrator or arbitrators under sub-sections (3), (4) and (7) shall be made within sixty days of the receipt of such application.
(9)The Chief Justice, or a Judge of the Supreme Court nominated by the Chief Justice or, as the case may be, the District Judge, in appointing an arbitrator under this section shall have regard to the qualifications and conditions of impartiality of the arbitrator under the agreement entered into by the parties and other qualifications with a view to ensuring the appointment of an independent and impartial arbitrator.
(10)In the case of appointment of a sole arbitrator or a third arbitrator in international commercial arbitration, the Chief Justice or, as the case may be, a judge of the Supreme Court nominated by the Chief Justice, may appoint an arbitrator of a different nationality if the parties are of more than one nationality.
(11)The Chief Justice or, as the case may be, the District Judge may formulate such procedure or scheme as he may think fit for the disposal of matters under this section.
(12)The decision of the Chief Justice or the Judge of the Supreme Court nominated by the Chief Justice or, as the case may be, the District Judge shall be final under sub-sections (3), (4) and (7).
(13)For the purposes of this section, the Chief Justice may appoint a judge to the charge of any particular case or cases or to perform general duties and fix the term of office of the said judge.
Explanation- In this section "District Judge" shall mean the District Judge within whose local jurisdiction the relevant arbitration agreement is executed.
§ 13Grounds of objection
(1)Every person requested to be appointed as an arbitrator shall first disclose all circumstances which may give rise to reasonable doubt as to his impartiality and independence.
(2)Every arbitrator shall, from the time of his appointment and at any time during the course of the arbitral proceedings, promptly notify all parties to the contract and all other arbitrators of the circumstances referred to in sub-section (1), if they have not already been notified thereof.
(3)An objection may be raised against an arbitrator if any circumstances exist raising doubts as to his impartiality and independence or if he does not have the qualifications agreed upon by the parties.
(4)Any party appointing an arbitrator or consenting to the appointment of an arbitrator may, on account of any circumstances known to him after the appointment, object to the said arbitrator.
§ 14Procedure for lodging objections
(1)Subject to the provisions of sub-section (6), the parties shall be free to agree on the procedure for lodging objections to arbitration.
(2)In case of failure to reach the consent referred to in sub-section (1), if any party wishes to file an objection against any arbitrator, the said party shall within thirty days of becoming aware of the circumstances referred to in sub-section (3) of section 13, by means of a written statement stating the reasons for the objection, file the objection with the arbitral tribunal.
(3)Unless the arbitrator concerned withdraws himself or, in the case of the other party or more than one party, the parties agree to the objection, the arbitral tribunal shall render a decision on the objection within thirty days of the submission of the written statement referred to in sub-section (2).
(4)A party aggrieved by a decision passed by the arbitral tribunal under sub-section (3) may appeal to the High Court Division within thirty days of the delivery of such decision.
(5)The High Court Division shall render a decision in the matter within ninety days of the filing of the appeal.
(6)The arbitral tribunal shall continue the arbitral proceedings and award the award if the objection filed under the procedure agreed upon by the parties, or the procedure referred to in sub-section (3), or the appeal filed against the decision is unsuccessful.
§ 15Termination of Authority of Arbitrator
(1)The authority of the arbitrator shall cease if—
(a) he withdraws himself from his office;
(b) he died;
(c) all parties agree to its removal; or
(d) he is unable to discharge his duties or discharge them without unreasonable delay and withdraws himself from his office or all parties agree to the termination of his authority.
(a) he withdraws himself from his office;
(b) he died;
(c) all parties agree to its removal; or
(d) he is unable to discharge his duties or discharge them without unreasonable delay and withdraws himself from his office or all parties agree to the termination of his authority.
(2)If an arbitrator fails to withdraw himself from his office on account of disqualification for the reason mentioned in clause (d) of sub-section (1) and all the parties fail to agree to his removal, then, within such time as may be prescribed by rule, on the application of any party—
(a) in the case of arbitration other than international commercial arbitration, the judge;
(b) In the case of international commercial arbitration, the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice may remove the said arbitrator.
(a) in the case of arbitration other than international commercial arbitration, the judge;
(b) In the case of international commercial arbitration, the Chief Justice or any Judge of the Supreme Court nominated by the Chief Justice may remove the said arbitrator.
(3)Where the parties so agree, the removal shall be effected by a person agreed upon by the parties.
(4)If an arbitrator withdraws himself from his office or where all the parties under the circumstances referred to in clause (d) of sub-section (1) agree to the termination of his authority, it shall not be construed as accepting the validity of any of the grounds referred to in this clause or in sub-section (3) of section 13.
Explanation- In this section "District Judge" shall mean the District Judge within whose local jurisdiction the relevant arbitration agreement is executed.
§ 16Replacement of arbitrator whose authority has ceased
(1)In the case of termination of the authority of an arbitrator, the provisions of the appointment of the original arbitrator shall apply to the appointment of the replacement of the said arbitrator.
(2)In the absence of agreement between the parties—
(a) the substituted arbitrator shall, in the discretion of the arbitral tribunal, continue the hearing from the stage at which the removed arbitrator's authority had ceased;
(b) No order or decision of the arbitral tribunal before the termination of the authority of any arbitrator shall be invalid by reason of such termination.
(a) the substituted arbitrator shall, in the discretion of the arbitral tribunal, continue the hearing from the stage at which the removed arbitrator's authority had ceased;
(b) No order or decision of the arbitral tribunal before the termination of the authority of any arbitrator shall be invalid by reason of such termination.
§ 17Power of arbitral tribunal to decide on its own jurisdiction
Unless otherwise agreed by the parties, the arbitral tribunal may, within its jurisdiction, decide any question, including:-
(a) existence of valid arbitration agreement;
(b) the proper constitution of the arbitral tribunal;
(c) the arbitration agreement is contrary to public policy;
(d) unenforceability of the arbitration agreement; And
(e) Matters Referred to Arbitration Pursuant to Arbitration Agreement.
§ 18Severability of contract
For the purposes of determining the jurisdiction of the arbitral tribunal, every arbitration agreement which forms part of another agreement shall be deemed to be a separate agreement.
§ 19Objection to jurisdiction of arbitral tribunal
(1)Any objection to the jurisdiction of the arbitral tribunal shall be raised before the reply is filed.
(2)In the course of arbitral proceedings, the arbitral tribunal shall, as soon as the arbitral tribunal exceeds the scope of its jurisdiction, raise allegations of extra-scope matters.
(3)Any objection raised after the period specified in sub-sections (1) and (2) shall be entertained if in the opinion of the arbitral tribunal such delay is considered reasonable.
(4)The arbitral tribunal shall decide on the objections referred to in sub-sections (1) and (2) and where the arbitral tribunal dismisses any complaint it shall continue the arbitral proceedings and award the award.
(5)No party shall be precluded from raising an objection to the jurisdiction of the Tribunal merely because it has appointed or participated in the appointment of an arbitrator.
§ 20Power of High Court Division to decide jurisdictional matters
(1)The High Court Division may, on the application of any party to the arbitral proceedings, by notice to all other parties, pass a decision on any matter relating to the jurisdiction of the arbitral tribunal.
(2)No application under this section shall be entertained unless the High Court Division is satisfied that—
(a) settlement of the matter may result in substantial savings in costs;
(b) the application was filed promptly; And
(c) There are good arguments in support of the settlement of the matter.
(a) settlement of the matter may result in substantial savings in costs;
(b) the application was filed promptly; And
(c) There are good arguments in support of the settlement of the matter.
(3)All the arguments on the basis of which the matter needs to be settled by the High Court Division shall be mentioned in the said application.
(4)Unless the parties otherwise agree, during the pendency of any application under this section in the High Court Division, the arbitral tribunal may continue the arbitral proceedings and award the award.
§ 21Power of arbitral tribunal to grant interim orders
(1)Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of either party, order the other party to take interim protective measures in respect of any matter and no appeal shall lie against such order.
(2)The arbitral tribunal may direct any party to furnish suitable security in respect of the measures prescribed under sub-section (1).
(3)No order under this section shall be made without notice to the other party:
Provided that, if the arbitral tribunal is satisfied that the purpose of taking interim measures under this section would be defeated, the arbitral tribunal may waive the requirement to give notice.
(4)An order for interim measures passed by the arbitral tribunal may be enforced by the court on the application of the party requesting the said measures.
(5)An application to the Court for enforcement of an interim measure under sub-section (4) shall be deemed not to be inconsistent with section 7 or the arbitration agreement or a waiver of any term of the agreement.
§ 22Settlement other than arbitration
(1)It shall not be inconsistent with the arbitral proceedings if the arbitral tribunal encourages settlement of the dispute other than arbitration and the arbitral tribunal may, with the consent of all the parties, at any stage of the arbitral proceedings, pursue mediation, conciliation or any other method for the settlement of the dispute.
(2)If during the course of the arbitral proceedings the parties settle the dispute amicably and if requested by the parties, the arbitral tribunal shall record such settlement as a unanimous decision in the form of arbitral award.
(3)An arbitral award shall be made in accordance with section 38 and shall be referred to in the arbitral award to the effect that an arbitral award has been agreed upon.
(4)The validity and enforceability of arbitral awards of unanimous terms shall have the same effect as arbitral awards given in any other matter.
§ 23General Duties of Arbitral Tribunal
(1)The arbitral tribunal shall decide fairly and impartially any dispute submitted to it and to that end—
(a) give each party a reasonable opportunity of presenting his case in writing, orally or both; And
(b) afford each party a reasonable opportunity of examining the documents and other relevant materials presented to the Tribunal by the other party or any other person concerned;
(a) give each party a reasonable opportunity of presenting his case in writing, orally or both; And
(b) afford each party a reasonable opportunity of examining the documents and other relevant materials presented to the Tribunal by the other party or any other person concerned;
(2)The arbitral tribunal shall dispose of any dispute submitted to it for arbitration as expeditiously as possible.
(3)The arbitral tribunal shall exercise impartiality and impartiality in the conduct of the arbitral proceedings, in deciding matters of procedure and evidence and in the exercise of all other powers vested in it.
§ 24Arbitral tribunals are not bound by the Code of Civil Procedure and the Evidence Act
24 The arbitral tribunal shall not be bound to follow the provisions of the Code of Civil Procedure and the Evidence Act in deciding any dispute under this Act.
§ 25Determination of rules of procedure
(1)The arbitral tribunal shall, subject to the provisions of this Act, in all or any matters to be followed in its proceedings, follow the procedure prescribed by the parties.
(2)In the absence of the procedure referred to in sub-section (1), the arbitral tribunal shall, subject to the provisions of this Act, determine procedural and evidentiary matters in the conduct of its proceedings.
(3)Without prejudice to the power to determine procedural and evidentiary matters by agreement of the parties, or by the arbitral tribunal in the conduct of the proceedings, such procedural and evidentiary matters shall include the following matters; Namely:-
(a) the time and place at which the whole or part of the proceedings shall be held;
(b) providing translations of the language used in the proceedings and any relevant documents;
(c) specimen written statement and defense of claim, time of filing and scope of amendment;
(d) disclosure and presentation of documents;
(e) questions to be put to the parties and their answers;
(f) written or oral testimony as to the admissibility, relevance or weight of any material;
(g) the power of the arbitral tribunal to review the facts or legal aspects of the dispute;
(h) producing or presenting oral or written evidence.
(a) the time and place at which the whole or part of the proceedings shall be held;
(b) providing translations of the language used in the proceedings and any relevant documents;
(c) specimen written statement and defense of claim, time of filing and scope of amendment;
(d) disclosure and presentation of documents;
(e) questions to be put to the parties and their answers;
(f) written or oral testimony as to the admissibility, relevance or weight of any material;
(g) the power of the arbitral tribunal to review the facts or legal aspects of the dispute;
(h) producing or presenting oral or written evidence.
(4)The arbitral tribunal may fix the time for carrying out any direction given by the Authority and may extend the time fixed.
§ 26Place of Arbitration
(1)The parties may agree to fix the place of arbitration.
(2)If there is no agreement under sub-section (1), the arbitral tribunal shall, having regard to the circumstances of the case including the convenience of the parties, determine the place of arbitration.
(3)Notwithstanding anything contained in sub-sections (1) and (2), unless the parties otherwise agree, the arbitral tribunal may meet at such place as the arbitral tribunal may think fit for the purpose of conferring with its members, for hearing witnesses, experts or parties or for inspecting documents, goods or other property.
§ 27Commencement of arbitration proceedings
Unless otherwise agreed by the parties, an arbitral proceeding shall be deemed to have been commenced if—
(a) the applicable arbitration agreement applies to any dispute arising; And
(b) any party to the contract—
(b) receives notice from the other party agreeing to submit or to submit any dispute arising out of the Agreement to arbitration; or
(a) receives notice from the other party to appoint or participate in the appointment of an arbitral tribunal in the dispute or to consent to the appointment of an arbitral tribunal;
§ 28Consolidation of Proceedings and Consolidation of Hearings
(1)The parties may agree that—
(a) any arbitration proceeding shall be consolidated with another arbitration proceeding;
(b) Joint hearings shall be held under agreed conditions.
(a) any arbitration proceeding shall be consolidated with another arbitration proceeding;
(b) Joint hearings shall be held under agreed conditions.
(2)The arbitral tribunal shall have no power to order the consolidation of proceedings or to order a hearing together, unless the parties have by agreement delegated similar powers to the arbitral tribunal.
§ 29Statement of claim and reply
(1)Unless otherwise agreed by the parties, the claimant shall, within the time limit fixed by the arbitral tribunal, state the facts, considerations and proposed remedies in support of his claim, and the opponent shall respond to these particulars.
(2)The parties may file all documents relating to the particulars and attach particulars of all such documents or evidence as may be produced in future.
(3)Unless otherwise agreed by the parties, any party may during the course of the arbitral proceedings amend its claim or add to the claim, unless the arbitral tribunal considers that in the interests of justice or to avoid delay it would not be proper to grant such amendment or addition.
§ 30Hearings and proceedings
(1)Unless otherwise agreed by the parties, the arbitral tribunal shall determine whether an oral hearing or oral argument shall be held for the presentation of evidence or whether the proceedings shall be conducted on the basis of documents and other materials, including affidavits, filed by the parties:
Provided, however, that unless the parties agree that no oral hearing shall be held, the arbitral tribunal shall, at the request of any party or on its own initiative, conduct an oral hearing at an appropriate stage of the proceedings.
Provided, however, that unless the parties agree that no oral hearing shall be held, the arbitral tribunal shall, at the request of any party or on its own initiative, conduct an oral hearing at an appropriate stage of the proceedings.
(2)shall give the parties sufficient advance notice of the sitting of the arbitral tribunal for the purpose of hearing and inspecting documents, goods or other property.
(3)The arbitral tribunal shall inform the other party of all statements, documents or other information supplied to the arbitral tribunal or of any application submitted by either party to the said tribunal and any expert report or evidentiary document which the arbitral tribunal may rely on for making a decision.
§ 31Legal or other representation
Unless otherwise agreed by the parties, any party to arbitration proceedings may be represented in such proceedings by counsel or any other person designated by him.
§ 32Power to appoint experts, legal advisers or assessors
(1)Unless otherwise agreed between the parties, the arbitral tribunal shall—
(a) the Commissioner may appoint experts or legal advisers to submit reports on such specific matters as may be prescribed;
(b) may appoint assessors to assist in technical matters; And
(c) may order any party to provide any relevant information or to produce or give access to relevant documents, goods or other property to experts, legal advisers, or, as the case may be, assessors.
(a) the Commissioner may appoint experts or legal advisers to submit reports on such specific matters as may be prescribed;
(b) may appoint assessors to assist in technical matters; And
(c) may order any party to provide any relevant information or to produce or give access to relevant documents, goods or other property to experts, legal advisers, or, as the case may be, assessors.
(2)Unless the parties otherwise agree—
(a) at the request of a party or the arbitral tribunal any expert, legal adviser, or, as the case may be, assessor shall participate in an oral hearing after submitting his written or oral report and providing information, opinion or advice, so that the parties may have an opportunity to question him and to present expert witnesses on the subject;
(b) the expert, legal adviser, or, as the case may be, the assessor shall make available to any party at his request all documents, goods or other property in his possession which were supplied to him for the preparation of the report;
(c) give the parties a reasonable opportunity to comment on any report, information, opinion or advice filed with the arbitral tribunal by any expert, legal adviser or assessor.
(a) at the request of a party or the arbitral tribunal any expert, legal adviser, or, as the case may be, assessor shall participate in an oral hearing after submitting his written or oral report and providing information, opinion or advice, so that the parties may have an opportunity to question him and to present expert witnesses on the subject;
(b) the expert, legal adviser, or, as the case may be, the assessor shall make available to any party at his request all documents, goods or other property in his possession which were supplied to him for the preparation of the report;
(c) give the parties a reasonable opportunity to comment on any report, information, opinion or advice filed with the arbitral tribunal by any expert, legal adviser or assessor.
§ 33Summons to witness
(1)The arbitral tribunal or, with the permission of the arbitral tribunal, any party to the arbitral proceedings may apply to the court for the purpose of issuing a summons to appear before the arbitral tribunal or, as the case may be, a summons to appear before the arbitral tribunal for examination, or production of goods or for both purposes, and the court shall issue such summons.
(2)No person may be compelled to answer any question or to produce any material in any suit in the Court. No person appearing before the arbitral tribunal by any summons issued under sub-section (1) shall be compelled to answer any such question or to produce any such document or material.
(3)Any person who fails to appear before the arbitral tribunal in pursuance of a summons issued under sub-section (1), or deviates or refuses to comply with any other matter or matters concerned or commits an offense of contempt of the arbitral tribunal during the course of the arbitral proceedings, shall, on the charge of the arbitral tribunal, be liable, by order of the court, to such punishment as for a similar offense committed during the trial of the suit in the court. He will be liable for such punishment.
§ 34Giving evidence to arbitral tribunals
Unless the parties otherwise agree—
(a) evidence may be given orally or in writing or by affidavit to the arbitral tribunal;
(b) Subject to the consent of the witness, the arbitral tribunal may cause the witness to be sworn or sworn.
§ 35Powers of arbitral tribunal in case of failure of parties
(1)The parties may agree on the jurisdiction of the arbitral tribunal in the event of failure of any party to do anything necessary for the proper and expeditious conduct of the arbitral proceedings.
(2)Any claimant under section 29—
(a) the arbitral tribunal shall terminate the proceedings if he fails to deliver his statement of claim in accordance with sub-section (1); And
(b) If the opponent of the claimant fails to file a statement of reply in accordance with sub-section (1), the arbitral tribunal shall not treat that failure as an admission of the complaint and continue the proceedings.
(a) the arbitral tribunal shall terminate the proceedings if he fails to deliver his statement of claim in accordance with sub-section (1); And
(b) If the opponent of the claimant fails to file a statement of reply in accordance with sub-section (1), the arbitral tribunal shall not treat that failure as an admission of the complaint and continue the proceedings.
(3)If it appears to the satisfaction of the arbitral tribunal that the claimant has made such inordinate and inexcusable delay in taking steps to realize the claim as to result in—
(a) a real risk has arisen or is likely to arise that a fair resolution of the dispute will not be possible; or
(b) has caused or is likely to cause serious damage to the other party—
In that case the arbitral tribunal may dismiss the claim and award the award.
(a) a real risk has arisen or is likely to arise that a fair resolution of the dispute will not be possible; or
(b) has caused or is likely to cause serious damage to the other party—
In that case the arbitral tribunal may dismiss the claim and award the award.
(4)If any party, without sufficient cause, notwithstanding the receipt of notice issued to that effect—
(a) fails to appear or be represented at any oral hearing; or
(b) fails to file the requisite written evidence or submit written submissions, the arbitral tribunal may continue the proceedings in the absence of the party or, as the case may be, on his behalf without submitting written evidence or submissions and make an award based on the evidence submitted.
(a) fails to appear or be represented at any oral hearing; or
(b) fails to file the requisite written evidence or submit written submissions, the arbitral tribunal may continue the proceedings in the absence of the party or, as the case may be, on his behalf without submitting written evidence or submissions and make an award based on the evidence submitted.
(5)If any party fails to comply with any order or direction of the arbitral tribunal without showing sufficient cause, the said tribunal may issue an order specifying a time limit in its discretion for complying with such order or direction.
(6)If any claimant fails to comply with any order or direction given by the arbitral tribunal for the provision of security or costs, the said tribunal may dismiss the claim and issue an order.
(7)Notwithstanding any sub-section of this section, if any party fails to comply with any such order of the arbitral tribunal, the said tribunal shall—
(a) may direct that the incompetent party shall not rely on the allegations or material which were the subject of the order;
(b) take into account the circumstances arising out of the disobedience of the order, may take a decision adverse to the interests of the insolvent party;
(c) may proceed to formulate the Roidad on the basis of material duly presented to him; or
(d) may, in its discretion, make such order as to the expenditure of costs consequent upon non-compliance with the order.
(a) may direct that the incompetent party shall not rely on the allegations or material which were the subject of the order;
(b) take into account the circumstances arising out of the disobedience of the order, may take a decision adverse to the interests of the insolvent party;
(c) may proceed to formulate the Roidad on the basis of material duly presented to him; or
(d) may, in its discretion, make such order as to the expenditure of costs consequent upon non-compliance with the order.
§ 36Application of law to the subject matter of the dispute
(1)If it is determined by the parties which law shall apply to the subject matter of any dispute, the arbitral tribunal shall settle the dispute in accordance with the provisions of the relevant law:
Provided, however, that the law or legal system of the country in which the parties determine the relevant country, in case of conflict with the prevailing law of that country, shall be interpreted only as the substantive law.
Provided, however, that the law or legal system of the country in which the parties determine the relevant country, in case of conflict with the prevailing law of that country, shall be interpreted only as the substantive law.
(2)If the law of a country is not determined under sub-section (1), the arbitral tribunal shall, in the discretion of the arbitral tribunal, in case of difference, apply that law which it considers appropriate.
(3)The arbitral tribunal shall, in accordance with the terms of the contract, render a decision taking into account the relevant customs, if any, in the interest of general justice.
§ 37Decision-Making Procedures of Arbitral Tribunals Consisting of Multiple Arbitrators
(1)Unless otherwise agreed by the parties, the decision of an arbitral tribunal consisting of more than one arbitrator shall be taken by the majority of its members.
(2)Notwithstanding anything contained in sub-section (1), the chairman of the arbitral tribunal shall decide all questions of procedure, if authorized by the parties or by all the members of the arbitral tribunal.
§ 38Sample and Content of Arbitration Rules
(1)The minutes of the arbitral tribunal shall be in writing and signed by the arbitrator or arbitrators.
(2)A majority of the signatures of the arbitral tribunal consisting of more than one arbitrator shall be sufficient and if any arbitrator does not sign, the reason thereof shall be stated in the notice.
(3)Arguments in favor of arbitrators shall not be required if the parties agree that the arbitral award shall not be required or if the award is granted on terms agreed under section 22.
(4)The notice of arbitration shall state the date and place of arbitration as prescribed under section 26 and the notice shall be deemed to have been served at that place.
(5)A copy of the order bearing the signature of the arbitrator or arbitrators of the arbitral tribunal shall be delivered to each party after the order has been issued.
(6)Unless otherwise agreed by the parties—
(a) if the arbitral award is subject to payment, the amount payable shall bear interest at the rate specified in the arbitration agreement or, in the absence of such rate, at the rate determined by the arbitral tribunal for the whole or part of the period from the date of dispute to the date of award of the award; And
(b) Unless otherwise ordered in the judgment, the amount ordered by the arbitrator for the payment of the judgment shall bear interest at the rate of 2% per annum above the prevailing bank rate for the period from the date of the judgment to the date of payment.
(a) if the arbitral award is subject to payment, the amount payable shall bear interest at the rate specified in the arbitration agreement or, in the absence of such rate, at the rate determined by the arbitral tribunal for the whole or part of the period from the date of dispute to the date of award of the award; And
(b) Unless otherwise ordered in the judgment, the amount ordered by the arbitrator for the payment of the judgment shall bear interest at the rate of 2% per annum above the prevailing bank rate for the period from the date of the judgment to the date of payment.
Explanation- In this sub-section "bank rate" shall mean the rate of interest fixed by Bangladesh Bank from time to time.
(7)Unless the parties otherwise agree—
(a) the costs of arbitration shall be determined by the arbitral tribunal; And
(b) Arbitral Tribunal at Roedade—
(b) the name of the party entitled to receive costs;
(a) the name of the party paying the expenses;
(e) the amount of the expenditure or the method of determining that amount; And
(e) specify the manner of payment of expenses.
(a) the costs of arbitration shall be determined by the arbitral tribunal; And
(b) Arbitral Tribunal at Roedade—
(b) the name of the party entitled to receive costs;
(a) the name of the party paying the expenses;
(e) the amount of the expenditure or the method of determining that amount; And
(e) specify the manner of payment of expenses.
Explanation- In this sub-section "costs of arbitration" shall include the costs of the arbitrator including witness fees, legal fees and expenses, administrative fees of any institution supervising the arbitration and reasonable expenses incurred in connection with the arbitral proceedings and the arbitral tribunal.
§ 39Ruidad is final and binding
(1)An award made by an arbitral tribunal in pursuance of an arbitration agreement shall be final and binding on the parties and any person claiming through or under them.
(2)Notwithstanding anything contained in sub-section (1), the right of any person to raise objections against the arbitral tribunal under the provisions of this Act shall not be prejudiced.
§ 40Corrections, Explanations, etc. of Roedadas
(1)If the parties do not agree on a new time limit, within fourteen days of receipt of the notice—
(a) either party, by giving notice to the other party—
(b) to correct computational errors, clerical or typographical errors or deviations or any other errors of a similar nature occurring in the arbitration proceedings; or
(a) to modify the arbitral award where the severable part of the award relates to a matter not referred to arbitration and does not affect the decision rendered on the matter referred to arbitration,
The arbitral tribunal may request;
(b) Subject to agreement between the parties, either party may, by notice to the other party, request the arbitral tribunal to provide clarification on any part of the arbitration proceedings or on any specific matter.
(a) either party, by giving notice to the other party—
(b) to correct computational errors, clerical or typographical errors or deviations or any other errors of a similar nature occurring in the arbitration proceedings; or
(a) to modify the arbitral award where the severable part of the award relates to a matter not referred to arbitration and does not affect the decision rendered on the matter referred to arbitration,
The arbitral tribunal may request;
(b) Subject to agreement between the parties, either party may, by notice to the other party, request the arbitral tribunal to provide clarification on any part of the arbitration proceedings or on any specific matter.
(2)The arbitral tribunal shall, within fourteen days of the receipt of the request, if it thinks fit, make any such correction or modification or, as the case may be, clarification, if the parties agree to a longer period at the request of the arbitral tribunal.
(3)The arbitral tribunal may, within fourteen days of the award of the arbitral award, correct any computational, clerical or typographical error or any other similar error referred to in clause (a) of sub-section (1).
(4)Any amendment, modification or, as the case may be, interpretation under this section shall form part of the arbitral proceedings.
(5)Unless the parties otherwise agree, either party may, by notice to the other party, request the arbitral tribunal within fourteen days of receipt of the arbitral award to make an additional arbitral award in respect of any claim presented in the arbitral proceedings but not included in the award.
(6)The arbitral tribunal may, if it considers the request received under sub-section (5) to be appropriate, within sixty days of the receipt of the request, award additional fees.
(7)The provisions of sections 38 and 39 shall apply to the amendment, modification or interpretation of any arbitral award or additional arbitral award under this section.
§ 41End of proceedings
(1)The arbitral proceedings shall be terminated by a final arbitral award or order made under sub-section (2).
(2)The arbitral tribunal shall pass an order terminating the arbitral proceedings, if—
(a) the claimant withdraws its claim and unless, the counterparty raises objections to such termination and it is recognized by the arbitral tribunal that the counterparty has a legitimate interest in the final settlement of the dispute;
(b) the parties agree to terminate the proceedings; or
(c) for any reason the continued continuation of the proceedings becomes unnecessary or impossible.
(a) the claimant withdraws its claim and unless, the counterparty raises objections to such termination and it is recognized by the arbitral tribunal that the counterparty has a legitimate interest in the final settlement of the dispute;
(b) the parties agree to terminate the proceedings; or
(c) for any reason the continued continuation of the proceedings becomes unnecessary or impossible.
(3)Subject to the provisions of section 40, the jurisdiction of the arbitral tribunal shall terminate with the conclusion of the arbitral proceedings.
§ 42Application for annulment of arbitral award
(1)The Court may set aside any arbitral award made under this Act, other than an award made in international commercial arbitration, on an application filed by a party within sixty days of the receipt of the arbitral award.
(2)The High Court Division may set aside any arbitral award made in an international commercial arbitration held in Bangladesh on an application filed by any party within sixty days of receipt of the arbitral award.
§ 43Grounds for cancellation of arbitral award
(1)An arbitral proceeding may be set aside if—
(a) a party, by filing an application, produces evidence to the effect that—
(n) there was any incapacity of either party to the arbitration agreement;
(a) the law under which the parties entered into the arbitration agreement is not a valid law;
(e) the applicant party was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or the party was otherwise unable to present its case for any reasonable reason;
(e) the arbitral proceedings relate to any dispute which is outside the purpose or terms of the matter referred to arbitration or which contains an award which is outside the scope of the matter referred to arbitration;
(a) a party, by filing an application, produces evidence to the effect that—
(n) there was any incapacity of either party to the arbitration agreement;
(a) the law under which the parties entered into the arbitration agreement is not a valid law;
(e) the applicant party was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or the party was otherwise unable to present its case for any reasonable reason;
(e) the arbitral proceedings relate to any dispute which is outside the purpose or terms of the matter referred to arbitration or which contains an award which is outside the scope of the matter referred to arbitration;
Provided thatif the matter not referred to arbitration is distinguishable from the matter referred to arbitration, the part relating to the decision on the matter not referred to arbitration may be set aside;
(g) the constitution of the arbitral tribunal or the arbitral procedure was not consistent with the agreement of the parties or in the absence of such agreement is not consistent with the provisions of this Act;
(b) the Court or, as the case may be, the Division of the High Court is satisfied that—
(b) the subject matter of the dispute is not arbitrable in accordance with the laws prevailing in Bangladesh;
(a) the arbitral award is manifestly contrary to any law in force in Bangladesh;
(e) the arbitral award is contrary to the public policy of Bangladesh; or
(e) the arbitrator is induced or influenced by bribery or corruption.
(2)Where a party files an application for cancellation of the Roedad, the Court or, as the case may be, the High Court Division may order that party to deposit with the Court or the High Court Division, as the case may be, cash or otherwise, as security, any amount payable under the Roedad, until the application is disposed of.
Explanation- In this section "court" means the court within the local limits of jurisdiction of which the arbitral award is finally given and signed.
§ 44Application of arbitral awards
If the period for filing an application to set aside an arbitral award under section 42 expires or if such application is rejected, any arbitral award shall be enforced by a court under the Code of Civil Procedure as if it were a decree of that court.
Explanation- "Court" in this section shall mean the Court within the local limits of the jurisdiction of this Court where the arbitral award has been finally given and signed.
§ 45Recognition and enforcement of foreign arbitral awards
(1)Notwithstanding anything contained in any other law for the time being in force, subject to the provisions of section 46—
(a) shall be binding on all persons in respect of whom any foreign arbitral award has been made and may accordingly be relied upon by such persons to set off any legal proceedings in Bangladesh or for any other purpose;
(b) a foreign arbitral tribunal shall, on an application filed by a party, be enforceable in the manner in which a decree of a court is enforced under the provisions of the Code of Civil Procedure.
(a) shall be binding on all persons in respect of whom any foreign arbitral award has been made and may accordingly be relied upon by such persons to set off any legal proceedings in Bangladesh or for any other purpose;
(b) a foreign arbitral tribunal shall, on an application filed by a party, be enforceable in the manner in which a decree of a court is enforced under the provisions of the Code of Civil Procedure.
(2)An application for the enforcement of a foreign arbitral award shall be accompanied by the following items, namely:-
(a) the original arbitral award or a copy thereof duly authenticated in accordance with the laws of the country in which it is served;
(b) the original arbitration agreement or a certified copy thereof; And
(c) such evidence as is necessary to prove that the visa is a foreign visa.
(a) the original arbitral award or a copy thereof duly authenticated in accordance with the laws of the country in which it is served;
(b) the original arbitration agreement or a certified copy thereof; And
(c) such evidence as is necessary to prove that the visa is a foreign visa.
(3)If the deed or contract filed under sub-section (2) is in any language other than English or Bengali, then a translation thereof in English language duly certified by the diplomatic or consular representative of the country of which the applicant is a citizen under sub-section (1) or in such other manner as may be considered sufficient under the laws in force in Bangladesh shall be filed under the said sub-section. To be attached with the application.
Explanation- For the purposes of this section, "Court" shall mean the Court of the District Judge exercising jurisdiction in the District of Dhaka.
§ 46Grounds for refusal to enforce foreign arbitral awards
(1)A foreign arbitral award may be refused enforcement only on the following grounds, namely:-
(a) if the party against whom it is enforced produces evidence in the court in which enforcement is sought to the effect that—
(n) there was any incapacity of either party to the arbitration agreement;
(a) the law under which the parties entered into the arbitration agreement is not a valid law;
(e) the applicant was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings, or the party was unable to present his case or for any other reasonable cause; or
(e) the foreign arbitrator concerned has decided any dispute which was outside the subject matter referred to the arbitrator;
(a) if the party against whom it is enforced produces evidence in the court in which enforcement is sought to the effect that—
(n) there was any incapacity of either party to the arbitration agreement;
(a) the law under which the parties entered into the arbitration agreement is not a valid law;
(e) the applicant was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings, or the party was unable to present his case or for any other reasonable cause; or
(e) the foreign arbitrator concerned has decided any dispute which was outside the subject matter referred to the arbitrator;
Provided that, if an award given on a matter referred to arbitration is distinguishable from a matter not referred to arbitration, a foreign act containing an award given on such matter referred to arbitration shall be partially recognized and enforced; or
(f) the composition of the arbitral tribunal or the arbitral procedure was not consistent with the agreement of the parties or with the laws of the country in which the arbitration was held in the absence of such agreement; or
(v) the arbitral award has not yet become binding on the parties, or the award has been annulled or suspended by any competent authority in the country or under the laws of which the award was made; or
(b) the court in which enforcement of the foreign arbitral award is sought in the opinion of that court—
(b) the subject matter of the dispute is not arbitrable in accordance with the laws prevailing in Bangladesh; or
(a) Enforcing the foreign arbitral award would be against the public policy of Bangladesh.
(2)If an application has been filed with the competent authority mentioned in sub-clause (u) of clause (a) of sub-section (1) to cancel or suspend the foreign arbitral award, then the court in which the enforcement of the foreign arbitral award is sought, the said court may, if it thinks fit, suspend the decision to enforce the award and order the other party to provide suitable security on the application of the claimant for the enforcement of the award.
§ 47Power of Government to declare certain states
For the purposes of this section, the Government may, by notification in the Official Gazette, designate any State as a specified State.
§ 48appeal
Appeals lie to the High Court Division from the following orders passed by the Court, namely:-
(a) annulment or refusal to annul an arbitral award under sub-section (1) of section 42;
(b) refusal to implement arbitration proceedings under section 44;
(c) Refusal to recognize or enforce any foreign arbitral award under section 45.
§ 49Accumulation of expenses, etc
(1)The arbitral tribunal may fix for advance deposit the amount which may be incurred as expenses referred to in sub-section (7) of section 38 of any claim submitted to it:
Provided, however, that in cases where a counterclaim is filed with the arbitral tribunal in addition to the claim, the arbitral tribunal may fix different amounts of deposit of costs in the amalgamation of such claim and counterclaim.
Provided, however, that in cases where a counterclaim is filed with the arbitral tribunal in addition to the claim, the arbitral tribunal may fix different amounts of deposit of costs in the amalgamation of such claim and counterclaim.
(2)The deposit referred to in sub-section (1) shall be payable by the parties in equal shares:
Provided thatif one of the parties is unable to deposit its share, the other party may deposit that share:
Provided further that the arbitral tribunal may declare the arbitral proceedings closed or may refuse to pay the parties to the aforesaid claim or counterclaim if the other party also fails to submit the relevant part of the claim or counterclaim.
(3)After the conclusion of the arbitral proceedings the arbitral tribunal shall provide the parties with an account of the deposits and refund the unspent amount, to the party or, as the case may be, to the parties.
The Arbitration Act, 2001 is the principal legislation governing domestic and international commercial arbitration in Bangladesh. It applies to arbitrations conducted within Bangladesh and, for certain provisions, also to arbitrations seated outside Bangladesh that involve Bangladeshi parties or assets. The Act is based on the UNCITRAL Model Law framework and establishes a comprehensive regime for arbitration agreements, arbitral tribunal composition (default of three arbitrators, Section 11), arbitrator challenge and replacement (Sections 13-16), tribunal jurisdiction (competence-competence principle, Section 17), interim measures (courts and tribunals can grant protective orders, Sections 7A and 21), conduct of proceedings (procedural flexibility, Sections 23-30), expert appointment (Section 32), and the making of arbitral awards (Section 38). The Act provides for court assistance in taking evidence (Section 33) and for challenge of awards on limited grounds, such as incapacity of a party, invalid arbitration agreement, lack of proper notice, composition not in accordance with party agreement, or award contravening public policy (Section 43). International commercial arbitration awards can only be challenged before the High Court Division (Section 42). The Act replaced the earlier Arbitration Act of 1940 and is currently in force.