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Contents
CHAPTER 1..................................................................................................................................................3
INTRODUCTION.......................................................................................................................................3
ARBITRATION IN BANGLADESH...............................................................................................3
CHAPTER 2..................................................................................................................................................6
HISTORICAL DEVELOPMENT...................................................................................................................6
CHAPTER 3..................................................................................................................................................7
COMMERCIAL ARBITRATION..................................................................................................................7
INTERNATIONAL COMMERCIAL ARBITRATION..................................................................................7
CHAPTER 4..................................................................................................................................................9
ARBITRATION OF RIGHTS........................................................................................................................9
CHAPTER 5.................................................................................................................................................10
ARBITRATION IN BANGLADESH............................................................................................................10
DEFINITIONS......................................................................................................................................10
CHAPTER 6.................................................................................................................................................12
RULES OF ARBITRATION.......................................................................................................................12
CHAPTER 7.................................................................................................................................................16
THE ARBITRAL TRIBUNAL......................................................................................................................16
CHAPTER 8.................................................................................................................................................18
CONSTITUTION OF ARBITRAL TRIBUNAL..............................................................................................18
CHAPTER 10...............................................................................................................................................23
JURISDICTION OF ARBITRAL TRIBUNAL................................................................................................23
CHAPTER 11...............................................................................................................................................23
POWER OF TRIBUNAL...........................................................................................................................23
CHAPTER 12...............................................................................................................................................25
LANGUAGE OF ARBITRATION...............................................................................................................25
CHAPTER 13...............................................................................................................................................29
CLOSE OF PROCEEDINGS.......................................................................................................................29
CHAPTER 14...............................................................................................................................................30
CASES....................................................................................................................................................30
CHAPTER 15...............................................................................................................................................32
CONCLUDING REMARKS AND PERSPECTIVE.........................................................................................32
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CHAPTER 16...............................................................................................................................................34
BIBLIOGRAPHY......................................................................................................................................34
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CHAPTER 1
INTRODUCTION

In any state, access to justice is considered a most coveted aspiration and is regarded as vital
component of human rights because injustice anywhere is a threat to justice everywhere. Every
man born with some human rights, some of them have been guaranteed in the chapter of
fundamental rights in the constitutions of the most of the countries of the world. Bangladesh
constitution guarantees to every citizen equality before law and ensures the right to enjoy the
protection of law and to be treated in accordance with law. These rights have also been
guaranteed in different international and regional documents .The Universal Declaration of
Human Rights 1948 says everyone is entitled to all the rights and freedoms which have been set
forth in this declaration without distinction of any kind, such as race, color, sex etc. The African
Charter on Human and Peoples Rights provides that every individual shall be equal in the eye of
law. The responsibility to ensure these rights and to deliver justice to the common people has
been vested on the legal institutions including courts. But due to some reasons, access to justice
to the vast majority of people has become a hollow promise guaranteed under the constitution.
The reasons are inordinate delay, repetition, backlogging of cases, high cost, complex procedural
rules, limited opportunity or incentives for consensual settlements etc. Our legal system
theoretically ensures access to justice for each and every citizen of the country but in practice the
door of justice is not open for disadvantaged segment of the society. In most of the cases access
to justice is only available to the resourceful person and powerful elite since in order to have
access to justice one must have the means which includes money. This scenario is common in
civil justice delivery system where the parties fight in a „do or die‟ manner with no or little
prospect of any consensual settlement. So we have the only choice the “Alternative Dispute
Resolution” which can easily and quickly ensure access to justice. At present ADR is seen by
many as an important part of the countries‟ judicial framework, particularly in so far as the civil
justice delivery system is concerned. ADR is a range of processes which without following
adversarial and formal judicial process assists the disputants to solve their dispute in amicable
way with harmony. ExChief justice Mustafa Kamal described ADR as “a non -formal settlement
of legal and judicial disputes as a means of disposing of cases quickly and inexpensively” The
European Commission, in its green paper on ADR stated

ARBITRATION IN BANGLADESH
Bangladesh has recently enacted a new arbitration law, known as “The Arbitration Act, 2001 (the
“Act”).” The Act came into force on April 10, 2001. The Act has repealed The Arbitration
(Protocol and Convention) Act, 1937 and The Arbitration Act, 1940. With this new enactment
Bangladesh has kept pace with the recent trends in the field of international commercial
arbitration in the rest of the world. Such a legislative step was urgent in the face of increasing
foreign investment in various sectors, especially in the natural gas and power sectors in
Bangladesh, and her ever-growing export trade with the rest of the world. The new Act,
principally based on the UNCITRAL Model Law on International Commercial Arbitration
(1985), consolidates the law relating both to domestic and international commercial arbitration.
4

The new Act thus creates a single and unified legal regime for arbitration in Bangladesh which
has also been the trend in recent years elsewhere. However, in the context of international
commercial arbitration, the Act has specific prescriptions which are not applicable to domestic
arbitration. In certain respects it has drawn on the Indian Arbitration and Conciliation Act, 1996.
This is obviously in tune with the reality of the region as a growing popular destination for
foreign investment. The new Act represents a significant improvement over its predecessor, the
Arbitration Act (X of 1940), a legacy of the British Raj in the Indian subcontinent. Until
recently, the 1940 Act governed arbitration in India and Bangladesh, and it still does in Pakistan.
Thus the 1940 Act is the common heritage of all these countries. Experience had taught that a
change in the arbitral legal regimes in these countries was a must. As the Supreme Court of India
once noted: Interminable, time consuming, complex and expensive court procedures impelled
jurists to search for an alternative forum, less formal, more effective and speedy for resolution of
disputes avoiding procedural claptrap and this led them to Arbitration Act of 1940. However, the
way in which the proceedings under the Act are conducted and without an exception challenged
in Courts, has made lawyers laugh and legal philosophers weep. Experience shows and law
reports bear ample testimony that the proceedings under the Act have become highly technical
accompanied by unending prolixity, at every step providing a legal trap to the unwary. Informal
forums chosen by the parties for expeditious disposal of their disputes has by the decisions of the
Courts been clothed with “legalese” of unforeseeable complexity. In light of their common
historical experience as such, both Bangladesh and India have recently modernized their
arbitration laws along the lines of the UNCITRAL Model Law. The modernization of law
relating to international commercial arbitration in Bangladesh by the 2001 Act gives her a
facelift as an world. The new Act, principally based on the UNCITRAL Model Law on
International Commercial Arbitration (1985), consolidates the law relating both to domestic and
international commercial arbitration. The new Act thus creates a single and unified legal regime
for arbitration in Bangladesh which has also been the trend in recent years elsewhere. However,
in the context of international commercial arbitration, the Act has specific prescriptions which
are not applicable to domestic arbitration. In certain respects it has drawn on the Indian
Arbitration and Conciliation Act, 1996. This is obviously in tune with the reality of the region as
a growing popular destination for foreign investment. The new Act represents a significant
improvement over its predecessor, the Arbitration Act (X of 1940), a legacy of the British Raj in
the Indian subcontinent. Until recently, the 1940 Act governed arbitration in India and
Bangladesh, and it still does in Pakistan. Thus the 1940 Act is the common heritage of all these
countries. Experience had taught that a change in the arbitral legal regimes in these countries was
a must. As the Supreme Court of India once noted: Interminable, time consuming, complex and
expensive court procedures impelled jurists to search for an alternative forum, less formal, more
effective and speedy for resolution of disputes avoiding procedural claptrap and this led them to
Arbitration Act of 1940. However, the way in which the proceedings under the Act are
conducted and without an exception challenged in Courts, has made lawyers laugh and legal
philosophers weep. Experience shows and law reports bear ample testimony that the proceedings
under the Act have become highly technical accompanied by unending prolixity, at every step
providing a legal trap to the unwary. Informal forums chosen by the parties for expeditious
disposal of their disputes has by the decisions of the Courts been clothed with “legalese” of
5

unforeseeable complexity. In light of their common historical experience as such, both

Bangladesh and India have recently modernized their arbitration laws along the lines of the
UNCITRAL Model Law. The modernization of law relating to international commercial
arbitration in Bangladesh by the 2001 Act gives her a facelift as an attractive place for dispute
resolution in the field of international trade, commerce and investment. In this article the new
Bangladesh Act will be discussed, wherever relevant, with reference to the Model Law and the
The Indian Act, 1996 and beyond. The purpose here is to examine how both the new Bangladesh
Act and its counterpart in the sub-continent, i.e. the Indian Act have followed the Model Law as
a model or a source of inspiration and how the new Bangladesh law fares with the recent trends
of modernization of international arbitration law.
INTERNATIONAL COMMERCIAL ARBITRATION DEFINED
In defining “international commercial arbitration,” the new Bangladesh Act has adopted
verbatim the definition of The Indian Act,7 1996, but has deviated from the UNCITRAL Model
Law.8 In this respect Bangladesh or Indian Law significantly differs from the Model Law. The
former defines the “internationality” of arbitration in terms of natural or juridical personality, i.e.
nationality, or other status of the parties, and the latter in terms of locale of business of the
parties or of the subject matter of the dispute. Thus, according to the new Bangladesh Act, a
party to international commercial arbitration has to qualify as
(i) an individual who is a national of, or habitually resident in, any country other than
Bangladesh;
(ii) a body corporate which is incorporated in any country other than Bangladesh;
(iii) a company or an association or a body of individuals whose central management and
control is exercised in any country other than Bangladesh; or
(iv) the government of a foreign country. This means that a commercial dispute between
two Bangladeshi nationals having places of business even in different States cannot
be considered the subject matter of international commercial arbitration under the
new Act, which would be otherwise possible under the Model Law. In this context the
internationality of the nature of the transactions, in that they take place in different
jurisdictions, has been subjugated to the nationality of the disputing parties.
Nationality thus remains one of the determinative factors of the international
character of arbitration. Such a prescription, however, is found in recent legislation of
some other countries such as Iran.
6

CHAPTER 2
HISTORICAL DEVELOPMENT

The modern development of international arbitration can be traced to the Jay Treaty (1794)

between Great Britain and the United States, which established three arbitral commissions to
settle questions and claims arising out of the American Revolution. In the 19th century, many
arbitral agreements were concluded by which ad hoc arbitration tribunals were established to
deal with specific cases or to handle a great number of claims. Most significant was the Alabama
claims arbitration under the Treaty of Washington (1871), by which the United States and Great
Britain agreed to settle claims arising from the failure of Great Britain to maintain its neutrality
during the American Civil War.
Commissions consisting of members drawn from both disputant countries (“mixed arbitral
commissions”) often were used in the 19th century to settle pecuniary claims for the
compensation of injuries to aliens for which justice could not be obtained in foreign courts. Such
was the purpose of a convention in 1868 between the United States and Mexico, by which claims
of citizens of each country arising from the Civil War were settled. Boundary disputes between
states were also often settled by arbitration.
International arbitration was given a more permanent basis by the Hague Conference of 1899,
which adopted the Hague Convention on the pacific settlement of international disputes, revised
by a conference in 1907. The convention stated:
International arbitration has for its object the settlement of disputes between States by judges of
their own choice and on the basis of respect for law. Recourse to arbitration implies an
engagement to submit in good faith to the award.
A Permanent Court of Arbitration, composed of a panel of jurists appointed by the member
governments, from which the litigant governments select the arbitrators, was established at The
Hague in 1899.
Twenty cases were arbitrated between 1902 and 1932, but from that year until 1972 only five
cases were dealt with, largely because the importance of the Permanent Court of Arbitration was
diminished by the establishment of the Permanent Court of Justice (1922) and its successor,
the International Court of Justice. More recently, the International Court of Arbitration
(established in 1923), which was originally devised for the settlement of disputes between states,
has offered its services for the arbitration of controversies between states and individuals or
corporations. By the beginning of the 21st century, the court had arbitrated more than 10,000
disputes.
7

CHAPTER 3

COMMERCIAL ARBITRATION

Commercial arbitration is a means of settling disputes by referring them to a neutral person, an

arbitrator, selected by the parties for a decision based on the evidence and arguments presented
to the arbitration tribunal. The parties agree in advance that the decision will be accepted as final
and binding.
Historically, commercial arbitration was used in resolving controversies
between medieval merchants in fairs and marketplaces in England and on the European continent
and in the Mediterranean and Baltic sea trade. The increased use of commercial arbitration
became possible after courts were empowered to enforce the parties’ agreement to arbitrate. The
first such statute was the English Arbitration Act of 1889, which was later consolidated into an
act of 1950 and adopted by arbitration statutes in most countries of the British Commonwealth. It
was followed in the United States by an arbitration statute of the state of New York in 1920 and
the Federal Arbitration Act of 1925. The latter dealt with the enforcement in federal courts of
arbitration agreements and awards in maritime transactions and those involving interstate and
foreign commerce. Most U.S. states adopted, sometimes with minor changes, the Uniform
Arbitration Act of 1955, as amended in 1956, which had been promoted by the Commissioners
on Uniform State Laws and recommended by the American Bar Association. This act provided
for the judicial enforcement of an agreement to arbitrate existing and future disputes and thereby
made the arbitration agreement no longer revocable, as it had been under common law. It also
provided for the substitution of arbitrators in the event of a party’s failing to select an arbitrator
and for a suspension of any court action instituted in contravention of a voluntary arbitration
agreement. The courts thereby play an important role in implementing arbitration agreements
and making judicial assistance available against a recalcitrant party. This concept of modern
arbitration law, which recognizes the irrevocability of arbitration agreements and the
enforceability of awards, also prevails in the arbitration statutes of nearly all countries

INTERNATIONAL COMMERCIAL ARBITRATION

International commercial arbitration between traders of different countries has long been
recognized by the business community and the legal profession as a suitable means of settling
trade controversies out of court. The procedure in international commercial arbitration is
basically the same as in domestic arbitration. In the mid-1960s, in order to establish more
uniformity in procedure and to make access to arbitration facilities more easily available,
the United Nations economic commissions published new rules applying to international
arbitration for Europe and Asia.
The development of international commercial arbitration was furthered by uniform arbitration
legislation prepared by the UN Conference on International Commercial Arbitration in 1958 and
by the Council of Europe and the Inter-American Juridical Committee of the Organization of
American States. One particularly difficult problem of international commercial arbitration is the
8

enforcement of awards in a country other than the one in which they were rendered. Statutory
municipal laws usually do not contain provisions for the enforcement of foreign awards, and
parties are faced with uncertainty about the law and practice of enforcement procedure in a
country other than their own.
International agreements facilitate the enforcement of foreign awards to the extent that no further
action is necessary in the country in which the award was rendered; the opposing debtor must
establish that the award has been set aside or that its effects have been suspended by a competent
authority, which thus shifts the burden of proof of the nonbinding character of the award to the
losing party. Further development of international commercial arbitration has been encouraged
by the UN Commission on International Trade Law, which aims at promoting the harmonization
and unification of laws in the field of international commercial arbitration.
9

CHAPTER 4
ARBITRATION OF RIGHTS
Arbitration of rights under the terms of a collective-bargaining agreement is employed in the
United States far more frequently than in most other countries. Outside the United States, labour
courts, industrial courts, or conciliation and arbitration commissions perform the function of
arbitrating rights. These bodies usually are appointed by the government, and recourse to them is
frequently compulsory.

More than 90 percent of the collective-bargaining agreements in the United States provide for
arbitration as a last step in the grievance procedure. For example, employees, through their
union, may present for arbitration complaints concerning such matters as discipline, discharge,
and violations of working conditions. Other issues frequently submitted to arbitration
customarily concern premium payments and incentive rates, overtime and vacations, holiday
bonuses, seniority rights, and fringe benefits, such as pension and welfare plans.
The arbitrator’s decision must be based on the collective-bargaining agreement, which provides
for the application of an existing contract to the grievance presented. The arbitrator, not the
court, usually is responsible for determining whether the various steps in the grievance procedure
have been complied with before the initiation of the arbitration process. However, the question of
whether the disputed issue is covered by the collective-bargaining agreement is determined by a
court and not by the arbitrator. In the United States, this authority of the courts was upheld by
the Supreme Court in 1960.
The choice of arbitrator is made either by naming him in the agreement or, more often, by
leaving the choice open until a dispute has arisen. Frequently, only a single arbitrator is
appointed—usually an expert in the field of industrial relations. Alternatively, tripartite
arbitration boards can be established, with each party appointing its own arbitrator, who acts
somewhat as an advocate. A neutral chairman is selected either by the parties or by the two
party-appointed arbitrators.
A further technique of arbitration of rights is the appointment of a single permanent arbitrator to
resolve disputes for the duration of the collective-bargaining agreement. This type of arbitrator is
intimately acquainted with the various economic, financial, and other aspects of the particular
industry and is familiar with the past relationship between management and union. This
permanent system originated in the United States in the anthracite-coal industry at the beginning
of the 20th century and has been employed in other industries (e.g., newspaper publishing and
clothing).

Labour arbitrators render binding decisions and are not bound by strict rules of court procedure,
especially as regards burden of proof and the presentation of evidence. Arbitrators have the
power to subpoena persons and written evidence. They tend to evaluate factual evidence rather
freely and often reduce penalties imposed upon employees by the management for breach of the
labour contract. In order to establish precedents in the operation of the plant, even minor
questions, such as the use of company time by employees for breaks, are submitted to arbitration.
However, arbitrators generally are not bound to follow previous decisions. Decisions of labour
arbitrators are seldom reviewed by the courts, as awards are usually fully complied with by both
parties.
10

CHAPTER 5
ARBITRATION IN BANGLADESH
DEFINITIONS 
 In these Rules, the following words have the following meanings:   
 "Arbitration" means proceedings conducted for resolution of dispute by a constituted
Arbitral Tribunal under these Rules; 
 "Arbitration agreement" means an agreement by the parties to submit to arbitration all
or certain disputes which have arisen or which may arise between them in respect of a
defined legal relationship, whether contractual or not; 
 "Arbitral Award" means a decision made by the Tribunal on the issue in dispute which
includes an interim, ex-parte, partial or final Award, as the case may be; 
 "Arbitral Tribunal" or "Tribunal" means a Tribunal constituted under these Rules
consisting of an Arbitrator or Arbitrators for determining a particular dispute or
difference; 
 "Claimant" includes one or more Claimants and "Respondent" includes one or more
Respondents, as the case may;
 "Council" means the Bangladesh Council of Arbitration (BCA) with its Governing
Body and Tribunal. 
 "FBCCI" means Federation of Bangladesh Chamber of Commerce and Industry.
 "Fast Track Arbitration" means arbitration in accordance with Rule 11
 "Governing Body" means the Governing Body of the Council.
 "International Commercial Arbitration" means an arbitration relating to disputes
arising out of legal relationships, whether contractual or not, considered as
commercial under the law in force in Bangladesh and where at least one of the parties
is (i) an individual who is a national of, or habitually resident in any country other
than Bangladesh; or (ii) a body corporate which is incorporated in any country other
than Bangladesh; or (iii) a company or an association or a body of individuals whose
central management and control is exercised in any country other than Bangladesh; or
(iv) the Government of a foreign country; 
 "Legal representative" means a person who in law represents the estate of a deceased
person and includes any person who intermeddles with the estate of the deceased, and,
where a party acts in a representative character, the person on whom the estate
devolves on the death of the party so acting; 
 "Person" means a statutory or other organisations, company and association and
includes partnership firm; 
 "Panel" means the Panel of Arbitrators maintained by the Council; 
11

 "Party" means a party to an arbitration including any person claiming through or under
him;
 "Registrar" means the Registrar for the time being appointed by the Governing Body
and includes an Assistant Registrar and such other person as the Governing Body may
nominate for carrying out the duties of the Registrar under these Rules; 
 "Request" means an application requesting for arbitration under Rule 6.1 along with
all the relevant documents under Rule 6.3. 
 "Response" means a reply to the Request in accordance with Rule 7.1 along with a
statement of defence and all other relevant documents. 
 "Rules" means the Rules of Arbitration of the Bangladesh Council of Arbitration
(BCA) or such amended Rule(s) as the BCA may adopt from time to time;    
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CHAPTER 6
RULES OF ARBITRATION
Rule 3
REGISTRAR'S DUTY   
3.1       The Registrar shall act on behalf of the Council and execute all decisions of the
Governing Body and discharge all the functions under these Rules.  
3.2       The Registrar shall receive applications for arbitration on behalf of the Council,
receive payment of fees and deposits, and appoint Arbitrator as and when required. The
Registrar shall also receive all communications made to the Arbitral Tribunal by the parties
and communicate to them the orders and directions of the Arbitral Tribunal, keep a register of
applications to the Council and of Awards made by the Arbitral Tribunal, keep such other
books or memoranda and make such other records or returns as the Governing Body shall
from time to time require and generally carry out the directions of the Arbitral Tribunal so
constituted under these Rules and take such other steps as may be necessary to assist such
Arbitral Tribunal in carrying out of its functions.   
3.3       The Registrar may delegate to any officer of the Council, Chambers of Commerce or
Trade Association at the premises of which the arbitration proceedings are taking place, to
discharge such of the functions and administrative duties of the Registrar as are deemed
proper and necessary from time to time, with reference to a particular case or cases. However,
the Registrar must supervise the activities of such authorised officer and shall remain
responsible for all foreseeable adverse consequences.   
Rule 4
  RULES APPLICABLE  
4.1.  Any dispute relating to any commercial matter or any other matter arising between two
or more parties in Bangladesh or a party or parties in Bangladesh and a party or parties in a
foreign country or between foreign parties who agree or have agreed for arbitration by the
Council or under the Rules of Arbitration of the Council, shall be determined and settled in
accordance with these Rules.   
4.2.  The Council shall also be competent to administer the conduct of arbitration in any
dispute or difference relating to a commercial transaction between parties as mentioned in
Rule 4.1 where they have agreed to have their dispute arbitrated under any other Rules of
Arbitration or otherwise and have agreed to have such arbitration administered by the
Council, wholly or in respect of some matters arising out of such arbitration.   
4.3.  The Council shall be competent to function as appointing authority as contemplated
under the Arbitration Rules of the United Nations Commission on International Trade Law
(UNCITRAL).   
4.4. Wherever the parties have provided or agreed for arbitration by the Council or for
arbitration under the Rules of Arbitration of the Council, these Rules or any amendment made
thereof at the time the dispute is referred to arbitration of the Council, shall apply.  
13

4.5. Any Chamber of Commerce, trade association or any arbitral or other organisation may
adopt these Rules; by making them generally available to its members or by applying them to
any dispute in which any of its members may be parties or by normally conducting its
arbitration under these Rules.  
4.6. The decisions of the Council with respect to all administrative matters relating to the
arbitration shall be conclusive and binding upon the parties and neither the Governing Body
nor the Arbitral Tribunal shall be required to give any reasons.  
Rule 5 
INTERPRETATION OF RULES  
5.1. If any dispute has been raised prior to the formation of the Arbitral Tribunal, the decision
of the Governing Body on any question relating to interpretation of these Rules or any
procedural matter thereunder shall be final and binding on the parties. However, once the
Arbitral Tribunal is formed, notwithstanding anything contained under these Rules, any
question relating to interpretation of these Rules or any procedural matter thereunder, so far it
relates to the Tribunal so constituted, shall be resolved by the Arbitral Tribunal and its
decision on such matter shall be final and binding on the parties.  
5.2.  Wherever in these Rules reference is made in masculine it shall also include feminine.
Similarly all references in singular may also mean, where the context admits or requires,
plural and vice versa.
 
Rule 6  
REQUEST FOR ARBITRATION  
6.1.   A party wishing to have recourse to arbitration under these Rules ("the Claimant") shall
submit its written application for Request for Arbitration ("the Request") to the Registrar
which shall contain, inter alia, following information:   
a.the names and full addresses of the parties to the arbitration 
b.relevant particulars concerning the -  
i.  number and nomination of Arbitrator(s) 
ii. an indication of any amount claimed to the extend it is possible 
iii. receipt confirming payment of the registration fees. Without which the Request shall
be treated as not having been received by the Council.   
6.2. The date on which the Request is received by the Registrar shall, for all purposes, be
deemed to be the date of the commencement of the arbitral proceedings.  
6.3. Along with the Request the Claimant shall supply to the Registrar the following
documents in the number of copies specified in Rule 34.1  
a.  statement of claim in accordance with Rule 13.1.1. 
14

b.  written documents as contemplated in Rule 1.1 containing an arbitration agreement

together with the copies of all relevant contractual documents in respect of which the dispute
arises; 
c.  if any Court makes an order directing that an arbitration be held under these Rules the
order of that Court or a duly certified copy thereof shall also accompany the application for
arbitration.   
6.4. In the event that the Claimant fails to comply with either of the requirements of Rule 6.3,
the Registrar may fix a time limit within which the Claimant must comply, failing which the
file may be closed without prejudicing the right of the Claimant to submit the same claim at a
later date in another Request.  
6.5. The Registrar shall notify the Claimant its acknowledgment of receipt of the Request
within seven days from the date of such receipt. The Registrar shall also immediately send
such notice to the Respondent along with a set of documents submitted with the Request by
the Claimant and ask for its Response to the Request within the stipulated time in Rule 7.1.
Copy of any other or further document(s) submitted by the Claimant subsequently must also
be dispatched to the Respondent immediately.   
6.6. On receipt of an application for arbitration the Registrar may, in consultation with the
Chairperson of the Governing Body or in his absence in consultation with the member of the
Governing Body designated by him, reject the application without giving any reason. Before
deciding on the acceptability of an application for arbitration, the Registrar may ask the
parties for further information and particulars of their claims. Similarly, if any information or
particulars regarding the arbitration agreement furnished by Claimant with the application for
arbitration are found to be incorrect or false, at any stage subsequently, the Arbitral Tribunal
shall have a like power to reject the application for arbitration and forfeit the deposit, if any,
made by the Claimant under these Rules. 
6.7. Any party aggrieved by the decision of the Registrar, in accepting or rejecting an
application for arbitration as above, may apply to the Court for suitable directions.  
Rule 7  
THE RESPONSE  
7.1. Within 30 days from the receipt of the notice under Rule 6.5 the Respondent shall file a
written reply to the Request in the form of a statement of defence in accordance with Rule
13.1.2, nominate Arbitrator where applicable; and make comments in writing, if any, as to the
nomination of Arbitrator(s) or on any other relevant issue ("the Response") along with the
receipt confirming payment of the required fees as prescribed under these Rules.  
7.2. The Respondent may apply to the Registrar for an extension of time for filing the
Response, subject to payment of fees specified in the Schedule of Costs. The Registrar, in his
absolute discretion, may grant an extension if any reasonable ground for such extension exists
to the satisfaction of the Registrar.  
7.3. The Respondent shall supply along with the Response all other relevant documents to the
Council in the number of copies specified in Rule 34.1.  
15

7.4. The Registrar shall send a copy of the Response and the documents annexed thereto to
the Claimant within seven days of the receipt of the same.   
7.5. The Respondent may make a counterclaim against the Claimant within the period laid
down for the defence statement to the claim under Rule 7.1 provided the counterclaim arises
under the same transaction as the original claim. Any counterclaim made by the Respondent
shall be filed with its Response along with money receipt confirming the payment of required
cost under these Rules and shall provide:  
a.   a description of the nature and circumstances of the dispute giving rise to the
counterclaim; and 
b.   a statement of the relief sought, including, to the extent possible, an indication of any
amount counterclaimed.  
7.6. The Claimant shall file a Reply to any counterclaim within 21 days from the date of
receipt of the counterclaim communicated by the Council. The Registrar may grant the
Claimant an extension of time for filing the Reply, subject to payment of fees in accordance
with the Schedule of Costs, if any reasonable ground for such extension exists to the
satisfaction of the Registrar. The Registrar shall dispatch any such Reply to the Respondent
immediately.  
7.7.  Failure to send a Response shall not preclude the Respondent from denying any claim or
from advancing a counterclaim in the arbitration.  
 
  

CHAPTER 7
THE ARBITRAL TRIBUNAL  
Rule 8  
16

PANEL OF ARBITRATORS  
8.1. Enlistment 
8.1.1.    A Panel of Arbitrators shall be enlisted by the Governing Body of the Council from
amongst persons who are qualified and willing to serve as Arbitrators generally or in specific
fields. Council, on its own motion or on recommendation of any member of the Governing
Body of the Council or any member of the Executive Committee of the FBCCI or its other
sister organisation, may enlist anyone as a Panel Arbitrator. Council may set the required
qualification for enlistment of a Panel Arbitrator which may be changed from time to time.  
8.1.2.    Before enlistment by the Council, each Panel Arbitrator shall furnish to the
Chairperson of the Governing Body a written résumé of his educational qualification and
professional experience; he shall agree in writing on fee rates stipulated by the Council under
these Rules; and he may be required to sign a declaration to the effect that he is eligible in
accordance with all the eligibility criteria which may be specified by the Council from time to
time.  
8.1.3    A person of any nationality may be enlisted in the Panel of Arbitrators. 

8.2.  Panel 
8.2.1.    The Registrar shall prepare and maintain an up-to-date list of Panel of Arbitrators
together with adequate information as to their qualifications and experience. Separate lists
may also be kept and maintained of Arbitrators included in the Panel for disputes in general
and for each of the fields of international trade and/or business transactions in which the
Governing Body decides that the Council will offer arbitration facilities under these Rules.  
8.3. Choosing an Arbitrator 
8.3.1.    The parties to a dispute or the Registrar, where he appoints the Arbitrator, may
choose any person from the Panel with reference to any dispute. If any party appoints
someone residing abroad as Arbitrator, that party will have to meet the stay and travel
expenses of the person appointed as Arbitrator. The Arbitral Tribunal may, however, make an
order in regard thereto in the Award. The Panel of Arbitrators shall be open to inspection by
anyone with the permission of the Registrar.  
8.4. Amendment of Panel 
8.4.1    The Council, at any time, may add the name of any person to the list of Arbitrators in
the Panel or delete any name from the Panel without giving any reason.  
8.5. Special Arbitrator 
8.5.1    The Chairperson of the Governing Body may include the name of any person, who
would qualify under these Rules in the Panel, if it is required in any particular arbitration. The
Council may decide his continuance in the Panel even after conclusion of such particular
arbitration.  
8.6. Disqualifications 
17

8.6.1    An Arbitrator who has attained the age of 75 years or more will automatically cease to
be a member of the Panel of Arbitrators. A person who has been appointed as an Arbitrator in
a reference before attaining the age of 75 years may continue to serve as an Arbitrator till
pronouncement of the final Award in the said reference pending before the Council.   
8.6.2.   An Arbitrator shall also ipso facto be disqualified to serve as an Arbitrator if:   
a.   he is found to be of unsound mind by a court of competent jurisdiction; or 
b.   he is adjudged as insolvent; or 
c.   he is sentenced to a term of imprisonment exceeding six months for any criminal offence
involving moral turpitude; or  
d.   by notice in writing to the Council he expresses unwillingness to serve as an Arbitrator;
or 
e.   his name is deleted from the list of Panel by the Council under Rule 8.4.   

CHAPTER 8
CONSTITUTION OF ARBITRAL TRIBUNAL  
Rule 9.
18

9.1. Expedited formation 

9.1.1.   In exceptional urgency, any party may apply in writing to the Council for the
expedited formation of the Arbitral Tribunal. The application shall set out the specific
grounds for exceptional urgency in the formation of the Arbitral Tribunal accompanying all
relevant documents under Rule 6.3 as well as the proof that all papers have duly been served
upon all other parties to the arbitration.  
9.1.2.  The Registrar may, in his complete discretion, abridge or curtail any time limit or relax
any requirement specified under these Rules to expedite the formation of an Arbitral Tribunal
under Rule 9.1.1. The Registrar shall not be entitled to abridge or curtail any time limit or
relax any requirement specified under these Rules after the formation of the Arbitral Tribunal.
9.2.   Regular formation 
9.2.1   The Registrar shall take necessary steps to constitute Arbitral Tribunal for the
adjudication of the dispute or difference as soon as practicable once the Response is received
or where no Response is received immediately after expiry of the time limit stipulated under
Rule 7.1 or 7.2, the Registrar may proceed with the formation of the Arbitral Tribunal
notwithstanding that the Request is incomplete or the Response is missing, late or incomplete.
9. 3. Number of Arbitrator 
9.3.1.    Number of Arbitrators, prima facie, shall be the specified number in the agreement. If
the agreement specified an even number of Arbitrators, an additional Arbitrator shall be
appointed under Rule 9.4.4 when the parties nominated their respective Arbitrators and in any
other case an additional Arbitrator shall be appointed under Rule 9.5.2.  
9.3.2.    Where the agreement does not specify any number of Arbitrators and the claim does
not exceed taka five crore, the reference shall be deemed to be to a sole Arbitrator, unless the
parties to the dispute jointly submits before the Council in writing to refer the dispute to three
Arbitrators within thirty days from the date of notification of Request for arbitration.   
9.3.3.    Where the agreement does not specified any number of Arbitrator(s) and the claim
exceeds taka five crore the dispute will be heard and determined by three Arbitrators, unless
the parties to the dispute jointly submits before the Council in writing to refer the dispute to a
sole Arbitrator within thirty days from the date of the notification of the Request for
arbitration.  
9.3.4.    Where three Arbitrators have to be appointed and any of the parties to the dispute
fails to make the necessary deposit towards the cost and expenses of arbitration, instead of
three Arbitrators, the Registrar may appoint a sole Arbitrator unless one party agrees to pay
for all the parities.   
9.3.5.    Where disputed amount is the determining factor for constituting an Arbitral Tribunal
under these Rules and the disputed amount is mentioned in a currency other than the takas, it
shall be converted into takas, at the current official rate of exchange.   
9.4.   Nomination by parties 
19

9.4.1.    If the parties have agreed that any Arbitrator from the Panel is to be nominated by one
or more of them or by any third person authorised in the arbitration agreement, that agreement
shall be treated as an agreement to nominate an Arbitrator for all purposes. Such nomination
may only be confirmed by the Council as Arbitrator subject to his prior compliance with Rule
9.12.   
9.4.2.    Where the parties or any third person authorised by the arbitration agreement
nominate the Arbitrator from outside the Panel. Registrar will refer the matter to the
Chairperson of the Governing Body to settle the same in accordance with the Rule 8.5.  
9.4.3.    Where the parties have agreed that a sole Arbitrator shall settle the dispute, the
Claimant in its Request for Arbitration shall provide the name of the nominee Arbitrator and
in the Response the Respondent shall acknowledge such nomination. If in the Response no
disagreement with the Claimant's nomination is mentioned or no Response is given on time as
stipulated under Rule 7.1, acknowledgement of such nomination shall be deemed. Upon
receiving name of the sole Arbitrator the Registrar shall confirm such nomination subject to
Rule 9.12. If the Claimant fails to mention the name of the sole Arbitrator or the Respondent
disagrees with the name provided in the Request or no confirmation can be given due to non-
conformity of Rule 9.12, the Registrar shall proceed in accordance with the Rule 9.5.1 for
appointment.   
9.4.4.    Where the parties have agreed to refer to settle the dispute to three Arbitrators, each
party shall provide one name of its nominated potential Arbitrator in the Request and in the
Response, respectively, for confirmation by the Council. The Registrar, in consultation with
the Chairperson of the Governing Body and in his absence in consultation with the Member
of the Governing Body designated by the Chairperson, shall appoint the third Arbitrator, who
will act as Umpire of the Arbitral Tribunal, unless the parties have clearly demonstrated their
agreement to that effect by naming the third Arbitrator on their respective Request and
Response or on a joint application. Upon receiving the name of the Arbitrators the Registrar
shall confirm such nominations subject to Rule 9.12. If a party fails to mention the name of its
nominated potential Arbitrator or the Respondent disagrees with the name provided in the
Request, the Registrar shall proceed in accordance with the Rule 9.5.2 for appointment.   
9.4.5.    If the Arbitration Agreement calls for nomination of Arbitrator(s) by the parties,
failure to make such nomination by a party within the stipulated time shall be construed as an
irrevocable waiver of that party's opportunity to nominate an Arbitrator.  

9.5. Appointment by Council 

9.5.1    If the arbitration agreement or Rule 9.3.2 requires appointment of sole Arbitrator but
no procedure for nomination is agreed or no nomination or confirmation under Rule 9.4.3 has
been made, the Registrar, in consultation with the Chairperson of the Governing Body and in
his absence in consultation with the member of the Governing Body designated by the
Chairperson, shall appoint the sole Arbitrator in writing from among the Panel of Arbitrators.
The sole Arbitrator so nominated shall constitute the Arbitral Tribunal to hear the dispute.
The Registrar shall give notice to the parties of the constitution of the Arbitral Tribunal.  
20

9.5.2.    If the arbitration agreement or Rule 9.3.3 requires appointment of three Arbitrators
but no procedure for nomination is agreed or no nomination or confirmation under Rule 9.4.4
has been made, the Registrar, in consultation with the Chairperson of the Governing Body
and in his absence in consultation with the Member of the Governing Body designated by the
Chairperson, shall appoint all three or the required number of Arbitrator(s) in writing from the
Panel of Arbitrators and one of the Council appointed Arbitrators shall be designated by the
Registrar as the Umpire of the Arbitral Tribunal so constituted. The Arbitrators so appointed
shall constitute the Arbitral Tribunal. The Registrar shall give notice to the parties of the
constitution of the Arbitral Tribunal.  
9.6. Multiple parties 
9.6.1.    Where there are multiple parties, whether as Claimant or as Respondent in a dispute,
and where such dispute is to be referred to three Arbitrators, the multiple Claimants, jointly,
and the multiple Respondents, jointly, shall nominate their respective Arbitrator for
confirmation and the Registrar shall proceed in accordance with Rule 9.4.4.   
9.6.2.    In the absence of such a joint nomination and where all parties are unable to agree to
a method for the constitution of the Arbitral Tribunal, Registrar shall appoint all three or the
required number of Arbitrator(s) from the Panel of Arbitrators in accordance the Rule 9.5.2.  
9.7. Challenge of Arbitrator 
9.7.1.   Any party shall have the right to challenge the appointment of an Arbitrator within 15
days of the receipt of the notice of his appointment or of his becoming aware of the reason
which will disqualify him as an impartial or independent Arbitrator. Copies of the
communication of challenge, if necessary, may be sent to the concerned parties including the
other Arbitrator(s). Unless the Arbitrator in question withdraws himself or all other parties, if
notified, agree to the challenge within 15 days of the receipt of such notice, the Registrar
along with two Members of the Governing Body designated by the Chairperson shall consider
the grounds of such challenge and their decision shall be final and binding on all the parties. 

9.8. Replacement of Arbitrator 

9.8.1.    An Arbitrator shall be replaced on his death, mental or serious physical incapacity,
upon the acceptance by the Registrar of the Arbitrator's resignation, upon acceptance by the
Council of a challenge under Rule 9.7 or, when he is found disqualified under Rule 8.6 or,
upon the request of all the parties. An Arbitrator may also be replaced on the Council's own
initiative when it decides that he is prevented de jure or de facto from fulfilling his functions,
or that he is not fulfilling his functions in accordance with the Rules or within the prescribed
time limits. The Registrar shall terminate the authority of such an appointed Arbitrator and
inform him accordingly and decide upon the amount of fees and expenses to be paid for the
services rendered by him as it may consider appropriate under the circumstances.  
9.8.2.    In case of the resignation or death or termination of authority of an appointed
Arbitrator under Rule 9.8.1, a new Arbitrator will be appointed in his place by the Registrar in
case he had appointed the original Arbitrator. Where the nomination was made by a party to
the arbitration, the Registrar shall call upon the party who had nominated the said Arbitrator
to nominate another Arbitrator in his place. If any party refuses or neglects to nominate an
21

Arbitrator within 15 days of the date of notice requiring him to nominate another Arbitrator or
within such extended time, the Registrar shall appoint another Arbitrator on behalf of that
party from among the Panel of Arbitrators and his decision will be final and binding on all the
parties.   
9.8.3.    The Arbitrator(s) appointed earlier will be informed about the reconstitution of the
Arbitral Tribunal and the reconstituted Arbitral Tribunal shall make the Award expeditiously
within the time prescribed under these Rules. The reconstituted Arbitral Tribunal in its first
meeting shall determine if and to what extent prior proceedings shall be repeated.    
9.9. Consent 
9.9.1    The parties will obtain consent of the person(s) nominated by them as Arbitrator(s)
and intimate the Council accordingly. Similarly the Registrar will obtain the consent of the
Arbitrator(s) nominated by him. After an Arbitrator gives his consent for appointment as an
Arbitrator, he will be duly intimated about his appointment to decide the dispute by a memo
in writing under the hand of the Registrar about the constitution of the Arbitral Tribunal.  
9.10.   Date of Appointment 
9.10.1  The appointment of an Arbitrator will take effect from the date of intimation about the
constitution of the Arbitral Tribunal under Rule 9.9.  
9.11.  Date of reference 
9.11.1.   The Registrar shall send copies of all papers relating to arbitration received from the
parties to the dispute to the Arbitrator/Arbitrators constituting the Arbitration Tribunal with a
request to proceed with the arbitration and the Arbitral Tribunal shall be deemed to have
entered on the reference the day on which applications, defence statement, counterclaims,
replies, documents, etc have been dispatched to the Arbitrator/Arbitrators. Intimation shall be
given to the parties of the day on which the Bench is deemed to have entered on the reference.
If the Claimant does not file all the requisite documents, papers, etc. or does not deposit the
appropriate Fees as per the Rules after having been given due opportunity for the purpose by
the Registrar or the Arbitral Tribunal, the Registrar or the Arbitral Tribunal may dismiss/close
the case on file. Similarly, if the Respondent fails to produce any requisite documents, papers
including the statements of defence or information or fails to deposit administrative fees or
Arbitrators fees etc. after having been given due opportunity for the purpose by the Registrar
or the Arbitral Tribunal, the Registrar or the Arbitral Tribunal may proceed further with the
arbitration proceedings as per the Rules, notwithstanding such failure or refusal by the
Respondent.  
9.12.     General provisions regarding Arbitrators 
9.12.1.   All Arbitrators conducting an arbitration under these Rules shall be and remain at all
times impartial and independent of the parties involved in the arbitration and he shall not act
as an Arbitrator where he will have reason to doubt as to his impartiality or independence;
and none shall act in the said arbitration as an advocate for any party. No Arbitrator, after his
appointment, shall advise any party on the merits or likely outcome of the arbitration.   
22

9.12.2.   Before appointment or nomination and confirmation, a prospective Arbitrator shall

sign a statement to the effect that there will be no circumstances known to him likely to give
rise to any justifiable doubts as to his impartiality or independence, other than any
circumstances already disclosed by him before giving his consent under Rule 9.9. If any such
circumstance is disclosed, the Registrar shall provide such information to the parties in
writing and fix a time limit for any comments from them. If the parties are willing to proceed
under the circumstances disclosed, they shall advise the Registrar accordingly within such
time fixed by the Registrar. If either party declines to waive the presumptive disqualification
or fails to reply within the stipulated time fixed by the Registrar, the prospective Arbitrator
shall be disqualified from acting as an Arbitrator and the vacancy so created shall be filled
under Rule 9.8.   
9.12.3.   Each Arbitrator shall also assume a continuing duty forthwith to disclose in writing
to the Council, to any other members of the Arbitral Tribunal and to all the parties any
circumstances likely to give rise to any justifiable doubts as to his impartiality or
independence after the formation  of Arbitral Tribunal and before the arbitration is concluded.
9.12.4.   The decisions of the Council as to the appointment, confirmation, challenge or
replacement of an Arbitrator shall be final and the Council is not required to give any reason
for such decisions to anyone.   
9.12.5.   By accepting to serve, every Arbitrator undertakes to carry out his responsibilities in
accordance with these Rules.  
23

CHAPTER 10
JURISDICTION OF ARBITRAL TRIBUNAL  
Rule 10
10.1    The Arbitral Tribunal shall have the power to rule on its own jurisdiction, including
any objection to the initial or continuing existence, validity or effectiveness of the Arbitration
Agreement. A decision by the Arbitral Tribunal that such other agreement is non-existent,
invalid or ineffective shall not entail ipso jure the non-existence, invalidity or ineffectiveness
of the arbitration clause.   
10.2.   A plea by the Respondent that the Arbitral Tribunal does not have jurisdiction shall be
treated as having been irrevocably waived unless it is raised not later than the date of
submission of the Response; and a similar plea in relation to a counterclaim by the Claimant
shall be treated likewise unless it is raised by the Claimant not later than the date of
submission of the reply to the Response and counterclaim. A plea that the Arbitral Tribunal is
exceeding the scope of its authority shall be raised promptly after the Arbitral Tribunal has
indicated its intention to decide on the matter alleged by any party. In any case, the Arbitral
Tribunal may nevertheless admit an untimely plea if it considers the delay justified in the
particular circumstance. The Arbitral Tribunal may determine the plea to its jurisdiction or
authority in the form of a preliminary order or later in the final Award, as it considers
appropriate under the circumstances. 

CHAPTER 11
POWER OF TRIBUNAL  
14.1.     Conservatory and interim measures 
14.1.1  On an application of any party the Arbitral Tribunal shall have the power to make an
order of any interim or conservatory measure it deems appropriate. The Arbitral Tribunal may
make the granting of any such measure subject to appropriate security being furnished by the
requesting party. Any such measure shall take the form of an order, giving reasons, or of an
Award, as the Arbitral Tribunal considers appropriate. No order under this section shall be
passed without giving notice to the other parties provided that the Arbitral Tribunal may,
where it appears that the object of taking interim measure would be defeated by the delay,
dispense with such notice.  
14.2.     Majority power to continue proceedings 
14.2.1.   If an Arbitrator on a three-member Arbitral Tribunal refuses or persistently fails to
participate in its deliberations, the two other Arbitrators shall have the power, upon their
written notice of such refusal or failure to the Council, the parties and the third Arbitrator, to
proceed with the arbitration (including the making of any decision, ruling or Award),
notwithstanding the absence of the third Arbitrator. In determining whether to continue the
arbitration, the two other Arbitrators shall take into account the stage of the arbitration, any
24

explanation made by the third Arbitrator for his non-participation and such other matters as
they consider appropriate in the circumstances of the case. The reasons for such determination
shall be stated in any Award, order or other decision made by the two Arbitrators without the
participation of the third Arbitrator.   
14.2.2.   In the event that the two other Arbitrators determine at any time not to continue the
arbitration without the participation of the third Arbitrator missing from their deliberations,
the two Arbitrators shall notify in writing the parties, through the Registrar, of such
determination; and in that event, the two Arbitrators or any party may refer the matter to the
Registrar for the revocation of that third Arbitrator's appointment and his replacement under
Rule 9.8.  
14.3.     Additional powers of Arbitral Tribunal 
14.3.1.   The Arbitral Tribunal shall have the power, on the application of any party or of its
own motion, but in either case only after giving the parties a reasonable opportunity to state
their views:   
a.     to extend or reduce any time-limit provided by the Arbitration Agreement or these
Rules for the conduct of the arbitration or by the Arbitral Tribunal's own orders;  
b.     to conduct such enquiries as may appear to the Arbitral Tribunal to be necessary or
expedient, including whether and to what extent the Arbitral Tribunal should itself take the
initiative in identifying the issues and ascertaining the relevant facts and the law(s) or rule of
law applicable to the arbitration, the merits of the parties' dispute and the Arbitration
Agreement;  
c.     to order any party to make any property, site or thing under its control and relating to
the subject matter of the arbitration available for inspection by the Arbitral Tribunal, any
other party, its expert or any expert to the Arbitral Tribunal;  
d.     to allow, only upon the application of a party, one or more third persons to be joined in
the arbitration as a party provided any such third person and the applicant party have
consented thereto in writing, and thereafter to make a single final Award, or separate Awards,
in respect of all parties so implicated in the arbitration;   
25

CHAPTER 12
LANGUAGE OF ARBITRATION  
Rule 15  
15.1.    The language of the arbitration proceedings shall generally be in English unless
otherwise agreed by the parties. If any documents filed by a party are in a language other than
English, the party filling such documents shall simultaneously furnish an English translation
of the documents, unless exempted by the Tribunal e.g. in a domestic commercial arbitration
documents in Bengali may also be accepted by the Tribunal along with the documents in
English. The Registrar may make arrangements for the service of an interpreter at the request
of one or more of the parties and costs thereof shall form part of the costs of the arbitration.  
Rule 16  

WAIVER     
16.1.     Any party who proceeds with the arbitration with the knowledge that any provision or
requirement of these Rules has not been complied with and who fails to state his objection
thereto in writing, shall be deemed to have waived his right to object. The parties can also
mutually agree to abandon certain provisions of these Rules provided the Arbitral Tribunal do
not think the same would frustrate the process of arbitration.  
Rule 17  

PROCEDURAL TIMETABLE  
17.1.    The arbitration session will go on as far as possible on a day-to-day basis in the
convenient office hours once the hearing begins after completion of all the formalities. The
Arbitral Tribunal shall not ordinarily adjourn a hearing at the request of any party, except
where the circumstances are beyond the control of the party and the Arbitral Tribunal is
satisfied that reasons and circumstances for the adjournment are justified. While granting an
adjournment, the Arbitral Tribunal may make such orders regarding payment of costs by one
or both of the parties, as it deems fit and reasonable.  
Rule 18 

CONDUCT OF PROCEEDINGS  
18.1.    The Arbitral Tribunal shall deal with any of the dispute submitted to it fairly and
impartially and for this purpose each party shall be given reasonable opportunity to present its
case orally, or in writing; or both, and each party shall be given reasonable opportunity to
examine all the documents and other relevant materials file by other party or any other person
concerned before the Tribunal.   
18.2.    The Tribunal shall deal with a dispute submitted to it as quick as possible by avoiding
unnecessary delay or expense. The Arbitral Tribunal shall adopt procedures suitable to the
circumstances of the arbitration; act fairly in deciding evidence and in exercising other
powers conferred on it.  
26

18.3.    The Arbitral Tribunal may proceed with conducting the arbitration notwithstanding
any failure by a party to comply with any of the directions of the Arbitral Tribunal and may
also proceed with the arbitral proceedings in the absence of any or both the parties who fail or
neglect to attend at the time and place appointed by the Arbitral Tribunal, in spite of due
notice.  
18.4.    The Arbitral Tribunal shall have the widest discretion to discharge its duties allowed
under these Rules and such other law or rule of law as the Arbitral Tribunal may determine to
be applicable; and at all times the parties shall do everything necessary for the fair, efficient
and expeditious conduct of the arbitration.   
Rule 19 

 HEARINGS  
19.1.    When a hearing is to be held, the Arbitral Tribunal, giving reasonable notice, fix the
date, time and physical place of any meetings and hearings in the arbitration, and shall
summon the parties to appear before it on the day and at the place fixed by it. If any of the
parties, although duly summoned, fails to appear without valid excuse, the Arbitral Tribunal
shall have the power to proceed with the hearing in his absence. The Arbitral Tribunal shall
be in complete charge of the hearings, at which all the parties shall be entitled to be present.
Save with the approval of the Arbitral Tribunal, persons not involved in the proceedings shall
not be admitted. The Arbitral Tribunal shall have the fullest authority to establish time-limits
for meetings and hearings, or for any parts thereof.  
19.2.    Every party has the right to be heard orally before the Arbitral Tribunal on the merits
of the dispute. If no such desire is expressed by any party, the Tribunal shall decide
considering all the circumstances whether to hold oral hearings for the presentation of
evidence or for oral argument, or whether the proceedings shall be conducted on the basis of
documents and other materials only.  
Rule 20   

EVIDENCE  
20.1.    The Arbitral Tribunal shall decide whether or not to apply any strict principles of
evidence (or any other rules) as to the admissibility, relevance or weight of any material
tendered by a party on any matter of fact or expert opinion; and to determine the time, manner
and form in which such material should be exchanged between the parties and presented to
the Arbitral Tribunal.  
20.2.    The Registrar shall make necessary arrangements for a stenographic record of
evidence whenever such record is required by a party. The cost of the stenographic record and
all transcripts thereof, if any, shall form part of the costs of the reference.  
27

Rule 21 
WITNESSES 
21.1.     Before any hearing, the Arbitral Tribunal may require any party to disclose the
identity of each witness that party wishes to call, as well as the subject matter of that witness's
testimony, its content and its relevance to the issues in the arbitration.   
21.2.    The Arbitral Tribunal may also determine the time, manner and form in which such
materials should be exchanged between the parties and presented to the Arbitral and it has a
discretion to allow, refuse, or limit the appearance of witnesses (whether witness of fact or
expert witness).  
21.3.     Subject to any order otherwise by the Arbitral Tribunal, the testimony of a witness
may be presented by a party in written form, either as a signed statement or as a sworn
affidavit. However, any party may request that a witness, on whose testimony another party
seeks to rely, should attend for oral questioning at a hearing before the Arbitral Tribunal. If
the Arbitral Tribunal orders that other party to produce the witness and the witness fails to
attend the oral hearing without good cause, the Arbitral Tribunal may place such weight on
the written testimony (or exclude the same altogether) as it considers appropriate in the
circumstances of the case.  
21.4.     The Arbitral Tribunal may administer oath or affirmation to the parties or witnesses
appearing and giving evidence. Any witness who gives oral evidence at a hearing before the
Arbitral Tribunal may be questioned by each of the parties under the control of the Arbitral
Tribunal. The Arbitral Tribunal may put questions at any stage of his evidence.  
21.5.      Any individual intending to testify to the Arbitral Tribunal on any issue of fact or
expertise shall be treated as a witness under these Rules notwithstanding that the individual is
a party to the arbitration or was or is an officer, employee or shareholder of any party.   

Rule 22   

APPOINTING LEGAL ADVISERS, EXPERTS

ETC.  
22.1.      At a hearing, a party shall be entitled to appear by counsel, attorney, advocate or a
duly authorised adviser or representative or personally. However, where the dispute is purely
of a commercial nature, the parties shall have no right to be represented by lawyers except
where, having regard to the nature or complexity of the dispute, the Arbitral Tribunal
considers it necessary in the interest of justice that the parties should be allowed to be
represented by counsel, attorney or advocate.  
22.2.     The Arbitral Tribunal may at its discretion at any time or times before making the
final Award and at the expense of the parties concerned, consult any person having special
knowledge relating to the particular industry, commodity, product or branch of trade
28

concerned in the reference or any expert or qualified accountant and may also at the like
expenses of the parties, consult solicitors, counsel or advocates upon any technical question of
law, evidence, practice or procedure arising in the course of the arbitration. If the parties
agree, the Arbitral Tribunal may, at the expense of the parties, appoint any expert, accountant,
or lawyers to sit with as an assessor and take into account the advice of such assessor. The
parties shall be given reasonable opportunity to comment on the report, information, opinion
or advice submitted in the Tribunal by the expert, legal adviser or the assessor.  
22.3.     If a party to the Arbitral Tribunal so requests, the expert or the assessor, as the case
may be, shall, after delivery of his written or oral report, participate in an oral hearing where
the parties have the opportunity to put questions to him and to present expert witness in order
to testify on the points at issue. The expert, or the assessor, as the case may be, shall, on the
request of a party, make available to that party all documents, goods or other property in the
possession of him with which he was provided in order to prepare his report.  
Rule 23  

CONSOLIDATING PROCEEDINGS AND

CONCURRENT HEARING  
23.1.   The parties shall be free to agree to the effect that any arbitration proceedings shall be
consolidated with other arbitral proceedings or concurrent hearings of arbitration between the
same parties shall be held on such terms as may be agreed. The Arbitral Tribunal shall have
no power to consolidate the proceedings or concurrent hearing unless the same is given by the
parties on agreed terms to the Tribunal.  
23.2.    Where there are two or more applications for arbitration by the Council and the issue
involved in the dispute arises out of same transactions, the Registrar may, if he thinks proper
to do so and with the consent of the parties, fix the hearing of the disputes to be heard jointly
or refer the applications to the same Tribunal. The Awards, however, shall be given separately
in each case.   
29

CHAPTER 13
CLOSE OF PROCEEDINGS  
Rule 24 
24.1.    When it is satisfied that the parties have had a reasonable opportunity to present their
cases, the Arbitral Tribunal shall declare the proceedings closed. Thereafter, no further
submission or argument may be made, or evidence produced, unless requested or authorised
by the Arbitral Tribunal.   
Rule 25 
25.1. The arbitral proceedings shall be terminated by the final Arbitral Award or by an order
of the Arbitral Tribunal where-  
a. the Claimant withdraws his claim and no objection of the Respondent in this regard shall
be taken into account unless he has a counterclaim;  
b.  the parties agree on the termination of the proceedings; or  
c.   the Arbitral Tribunal finds that the continuation of the proceedings has for any other
reason become unnecessary or impossible. 

ARBITRAL AWARD AND THE TERMINATION

OF PROCEEDINGS
Chapter VII of the Bangladesh Act deals with the rules applicable to the merits of the dispute,
decision-making by the panel of arbitrators, form and contents of the award, decision on
costs, finality and binding nature of the arbitral award, correction and interpretation of
awards, and termination of proceedings. It has to be noted that although the Bangladesh Act
followed in this chapter Articles 28, 29, 31, 32 and 33 of the UNCITRAL Model Law, it has
deviated in some respects from the Model Law provisions and introduced some innovation
and added new provisions. These deviations, innovations and additions are not surprising as
they are in keeping with the post-Model Law recent developments in the field of international
arbitration. Like the UNCITRAL Model Law,135 the new Bangladesh Act upholds party
autonomy or the parties’ freedom of choice and allows the parties to choose any rules of law,
not necessarily the law or the legal system of the country whose law is applicable to the
substance of the dispute.136 This choice is so expansive that the parties can choose the lex
mercatoria or the rules of transnational commercial law, rules of specific international trade or
anything which is not characteristically the legal system of a particular country.137 It further
provides that if the law or the legal system of a country is designated by the parties, such
designated law is meant to refer directly to the substantive law of that country and not to its
conflict of laws rules. Like the UNCITRAL Model Law,138 the Act139 thus expressly avoids
the renvoi situation. However, unlike the Model Law, the new Bangladesh Act allows the
arbitral tribunal, in the absence of the parties’ choice of applicable substantive law, the
freedom to apply any rules of law as it objectively deems appropriate in the circumstances of
the dispute.140 Thus in the absence of the parties’ choice the arbitral tribunal is no longer
30

required to have recourse to the applicable conflict of laws rules as under the Model Law141
to determine the applicable substantive law. It should be noted that this prescription reflects
the recent trend in many international institutional arbitration rules142 as well as in some
national legislative enactments on international commercial arbitration.143 It is striking that
unlike the Model Law,144 the Bangladesh Act makes no provision on the matter of the
arbitral tribunal’s authority to decide ex aequo et bono or as amiable compositeur, 145 nor
does it expressly prohibit such authority. This means that if the parties to a dispute refer to
international institutional arbitration rules, for example, the ICC Arbitration Rules (1998),146
which provide for the arbitral tribunal’s authority as such (of course, provided the parties have
expressly authorized it to do so), the arbitral tribunal having its seat in Bangladesh will have
no problem deciding ex aequo et bono or as amiable compositeur. As under the Model
Law,147 the tribunal is also mandatorily required under the new Bangladesh Act148 to decide
in accordance with the terms of the contract and to take into account the usages of the trade
applicable to the transaction. However, unlike the Model Law, the Act expressly states the
purpose of this specific requirement to be the “ends of justice.” But the question still remains
– if justice is done otherwise, would this requirement be superfluous? It is noteworthy that the
Act does not say expressly that this requirement is to obtain “in all cases” as does the Model
Law.149 The upshot may be that if justice is done somehow, there is perhaps no need to
fulfill the requirement by the arbitral tribunal, hence the omission of the phrase “in all cases”
in the relevant provision of the new Bangladesh Act.  

CHAPTER 14
CASES
INTERNATIONAL ARBITRATION CASE
Countries with border and treaty disputes often look to the international arena for resolution. For
example, China and the Philippines have been arguing over territorial rights in the South China
Sea for several years. The Filipino government wants the arbitral tribunal formed under the
United Nations Convention on the Law of the Sea (UNCLOS) to arbitrate the matter. Any
decision would be binding in both countries. But to get to the arbitral tribunal, China has to agree
to its jurisdiction even though it and the Philippine government ratified the UNCLOS. China
believes it has undisputed sovereignty in this area and is resisting compulsory arbitration though
it has not ruled out alternative dispute resolution measures such as a conciliation commission,
Further, the arbitral tribunal has yet to accept jurisdiction over the issues, which could affect the
future validity and enforceability of international law.

This case highlights the high stakes involved in certain arbitration matters but also the
uncertainties of international law and the viability of tribunals that many nations hoped would be
an alternative to the use of force.
 31

PERSONAL INJURY
Arbitration may be a sound and practical alternative to formal litigation for personal injury
cases. As indicated above, most litigants do not want to wait for years to have their cases
resolved, especially if the sole or main issue is one of damages. If a party was seriously injured,
then medical expenses and the loss of income can overwhelm a family that cannot be made up
through medical or disability insurance or other plans. Insurance companies are also motivated to
resolve claims quickly in most cases.
There is a movement to have medical negligence or malpractice claims resolved by arbitration.
When signing up for a plan, consumers often have the option of resolving a medical
malpracticeallegation by arbitration. Most choose arbitration since trials and courts are
intimidating, costly, and can take years to get their case to trial. Some observers feel that
consumers often receive less in compensation, if at all, in medical negligence cases decided by
arbitration but most cases with compelling evidence will generally result in reasonable
compensation for the claimant.

Personal injury cases have common issues: liability, whether the alleged injuries were caused by
the accident or the defendant's negligent conduct, and the number of damages. Typical examples
of personal injury cases along with medical malpractice that are arbitrated include:

 Car accidents
 Premises liability (slip and fall)
 Dog bite cases
 Product liability

CASE IN BANGLADESH
Nurul Abser Vs Golam Rabbani

Facts of the case:

The plaintiff, Nurul Abser was inducted into the possession of the suit property as a temporary
tenant under late Alhaj Abul Khair, predecessor of defendant Nos. 1-7 and in that connection, a
tenancy agreement was executed on April 14 1995. On March 15 2002, an arbitration agreement
was entered into between the plaintiff and the defendant, and Alhaj Dostagit Chowdhury was
appointed as the arbitrator to resolve the dispute between the parties regarding the suit property.
Alhaj Dostagit Chowdhury settled the issue and gave an award on March 3 2002 and copy of the
award was duly served to all concerned parties. Thereafter, no step was taken by the plaintiff
within the time frame of 60 days as stated in section 42 of the Arbitration Act 2001(herein after
mentioned as the Act). It was when the defendant moved to the court for execution of the award
they contested the validity of the arbitral agreement and award. However, the learned assistant
32

judge rejected the application. Again a Civil revision was initiated which was again rejected by
the District Judge as any relief against arbitral award has to be initiated within the time under the
provisions of the Act of 2001. Being aggrieved by the order of the District Judge, the plaintiff
moved to the High Court Division and filed an appeal. The appeal was dismissed by the HCD,
hence a petition for leave to appeal was filed in the Appellate Division of the Supreme Court.

Judgment:
This petition was dismissed by the honourable Appellate Division as it found that the HCD did
not commit any error of law in dismissing the first appeal. A domestic arbitral award can be
challenged within 60 days from the receipt of the award within the meaning of section 42(1) of
the Act. And the grounds for setting aside an award are mentioned in section 43 of the Act. In
this context section 39 is also relevant which confirms that an award made by an arbitral tribunal
pursuant to an arbitration agreement will be final and only be subject to challenge in accordance
with the provisions of this Act. So a careful combination of sections 42, 43 and 39 of the Act
shows that, an application to set aside an arbitral award has to be made within 60 days. After the
expiry of 60 days the award becomes enforceable within the meaning of section 43.
As in this case the petition side failed to challenge the award within stipulated time, the award
has become final and enforceable. The claim of the petitioner side that he did not receive any
arbitral award was also rejected as the prima facia evidence shows that a copy of the award was
duly served upon both the plaintiff and the defendant.

CHAPTER 15
CONCLUDING REMARKS AND PERSPECTIVE
The foregoing examination of the new Bangladesh Act, 2001 from a comparative perspective
shows that the Bangladesh legal regime has embraced the fundamental tenets of modernization
of international arbitration such as

(i) party autonomy;

(ii) minimal judicial intervention in arbitration;
(iii) independence of the arbitral tribunal;
(iv) fair, expeditious and economical resolution of disputes and
(v) effective enforcement of arbitral awards. This modernization has also been brought
about in the context of domestic arbitration. Although the new Act is principally
based on the UNCITRAL Model Law, it has introduced certain improvements on the
Model Law prescriptions in certain respects as highlighted above. As the new Act is
now about three years old, it will be premature to express any judgment on its
efficacy as an arbitral legal regime and the impact it will have in the future for
Bangladesh as a place for settlement of international commercial and investment
disputes by arbitration. Certainly, Bangladesh, being a prospective destination for
increasing foreign investment in the future, has made a positive step in the right
direction by enacting the new law on arbitration. Although Bangladesh, like her sub-
continental counterparts, has historically a long tradition of settlement of disputes by
alternative methods – a phenomenon that pervades her social fabrics for centuries –
she can still improve her international arbitral legal regime by incorporating, as it may
33

be deemed appropriate, lessons from various other jurisdictions 187 in her efforts
towards modernization and internationalization of arbitration. No doubt, there is still
room for improvement in the Act itself as indicated above. It must be appreciated that
in order to make Bangladesh an attractive place for much-needed foreign investment,
for economic growth and development, and for alternative dispute resolution (i.e.
ADR), it is not enough simply to enact a new law on arbitration, the Government has
to go a long way to achieve the stated purpose. Bangladesh needs more than a mere
piece of legislation on arbitration at the present time. The Government and the
judiciary, as well as the legal profession, must take initiatives and make constant
efforts towards the development of legal infrastructure and institutionbuilding in the
field of alternative dispute resolution, including arbitration. In this respect the
following tentative suggestions may be worth consideration.

(1) The efficacy of the Arbitration Act, 2001 depends, to a great extent, on the attitude of
the judiciary. When interpreting the new Act Bangladesh courts should not be detracted from
the spirit of modernization of arbitration as a global phenomenon and should not be guided
by the 1940 Arbitration Act as a source of inspiration. Not only the judiciary, but also the
legal profession must change its traditional mind-set developed under the old legal regime.

(2) The members of the judiciary as well as the legal profession must appreciate the
reality that in this era of globalization dispute settlement by alternative methods is not only a
domestic matter, but also an increasingly growing international phenomenon in the context of
cross-border transactions. They have to be open to absorbing international values, norms and
principles while performing their professional functions in the field of international dispute
settlement, otherwise their professionalism will prove moribund and will be useless to the
international business community.

(3) As noted above, the new Act authorizes the High Court Division to set aside any
arbitral award made in an international commercial arbitration held in Bangladesh, whereas
for recognition and enforcement of foreign arbitral awards, it is the District Judge’s Court,
exercising jurisdiction within the district of Dhaka, that is entrusted with responsibility. With
this latter provision the Act seems to have downplayed the importance of international
arbitration for which so much effort has been given to modernize the arbitration law in
Bangladesh. International commercial arbitration is a complex matter. It involves expertise in
public international law, private international law and also knowledge of international
commerce, law and practice. One may wonder whether District Court Judges are equipped
with sufficient knowledge, expertise and training to handle foreign arbitral awards that may
very often involve complicated international legal issues. It may be that the High Court
Judges are better placed to deal with the responsibility for enforcement of foreign arbitral
awards. It is desirable that this specific responsibility be given to the High Court Division
even if it means adjusting the Code of Civil Procedure mutatis mutandis for this purpose.
34

CHAPTER 16
BIBLIOGRAPHY
BOOK REFERENCE:
1. A Book Of Commercial Law And International Law
2. Law of Arbitration
3. Civil Procedure Of Bangladesh
4. Handbook on International Commercial Law (Ashford peter)

WEBSITE:
1. Karapancoalbana.pdf
2. https://bdjls.org.
3. https://www.thedailystar.net.
4. https://www.fmassociatesbd.com
5. https://law.duke.edu
6. http://www.assignmentpoint.com
7. http://www.intracen.org
8. https://rahmansc.com
9. https://legaldictionary.net

Bangladesh has recently enacted a

new arbitration law, known as
“The
35

Arbitration Act, 2001 (the “Act”).”

The Act came into force on April
Bangladesh has recently enacted a
new arbitration law, known as
“The
Arbitration Act, 2001 (the “Act”).”
The Act came into force on April