Full text · showing key sections
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;
(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) 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.
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.
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.
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[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.
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.
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.
(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.
(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) 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) 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.
Explanation- In this section "District Judge" shall mean the District Judge within whose local jurisdiction the relevant arbitration agreement is executed.
(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) 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.
Explanation- In this section "District Judge" shall mean the District Judge within whose local jurisdiction the relevant arbitration agreement is executed.
(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.
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.
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.
(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.
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.
(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;
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.
(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.
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;
(a) any arbitration proceeding shall be consolidated with another arbitration proceeding;
(b) Joint hearings shall be held under agreed conditions.
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.
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.
(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) 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.
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.
(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) 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) 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) 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.
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.
(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.
(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.
(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) 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) 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.
Explanation- In this section "court" means the court within the local limits of jurisdiction of which the arbitral award is finally given and signed.
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.
(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) 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.
Explanation- For the purposes of this section, "Court" shall mean the Court of the District Judge exercising jurisdiction in the District of Dhaka.
(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.
For the purposes of this section, the Government may, by notification in the Official Gazette, designate any State as a specified State.
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.
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 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.