This briefing summarises the principal features of alternative dispute resolution (ADR) in Bangladesh and key practical points for international and UK-based parties considering ADR options. It is prepared from our London office (Holborn Gate, 330 High Holborn, London, WC1V 7QH) to assist commercial clients in assessing dispute-resolution strategy involving Bangladesh-linked contracts or assets.

Overview of the ADR landscape

Bangladesh recognises a range of ADR mechanisms: negotiation, mediation/conciliation, and arbitration. The Arbitration Act 2001 implements an arbitration framework substantially modelled on the UNCITRAL Model Law, and Bangladesh is a party to the 1958 New York Convention, factors that enhance the predictability of international commercial arbitration. In practice, domestic institutions such as the Bangladesh International Arbitration Centre (BIAC) administer arbitrations, while courts retain supervisory and enforcement roles under local statutory provisions and established case law.

Common ADR processes and their role

• Negotiation: First-line, low-cost resolution. Often used to narrow issues before invoking formal processes.
• Mediation/conciliation: Increasingly used for commercial and construction disputes. Options include private mediators or institutionally-administered schemes at BIAC and others.
• Arbitration: Party autonomy on procedure, seat and governing law is generally respected; however, forum, seat and enforcement realities should inform drafting.
• Court interaction: Courts in Bangladesh can refer parties to ADR in some circumstances and exercise supervisory jurisdiction over arbitration proceedings and awards.

Practical considerations for international parties

Selecting the appropriate ADR mechanism and drafting the dispute-resolution clause are decisive. Key practical matters include choice of seat, governing law, institutional rules, language, interim relief, confidentiality and costs. The enforceability of awards or settlement agreements should be assessed against local enforcement procedures and the location of assets.

Checklist before agreeing ADR terms

• Specify seat of arbitration and governing law clearly; consider a neutral seat if enforcement is likely outside Bangladesh.
• Decide whether to use an institutional arbitration (e.g., BIAC) or ad hoc rules; set rules for emergency/interim relief.
• Set language and decision-maker qualifications/appointment process for arbitrators or mediators.
• Address confidentiality and whether settlement agreements will be recorded as consent awards.
• Assess enforceability of awards or settlements in jurisdictions where assets are situated; confirm New York Convention coverage.
• Consider staged ADR (negotiation, then mediation, then arbitration) and time limits for each stage.

Strategic considerations — seat, enforcement and hybrid approaches

For high-value international contracts, parties often select a neutral seat with a mature arbitration jurisprudence to reduce perceived enforcement risk, while permitting hearings to be held elsewhere. Bangladesh is conventionally receptive to arbitral autonomy, but local enforcement and interim measures can be more predictable where awards are obtained in or subject to recognition under the New York Convention. Hybrid approaches — combining mediation with the option to arbitrate unresolved matters — can preserve business relationships while protecting enforceable remedies.

Jurisdiction and sources

• Supreme Court of Bangladesh
• Ministry of Law, Justice and Parliamentary Affairs (Bangladesh)
• Bangladesh International Arbitration Centre (BIAC)
• UNCITRAL (Model Law materials)
• Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention)

General information only; not legal advice and not a substitute for advice on a particular matter.