Arbitration.
The Bangladesh Arbitration
Act 2001 - Some Reflections
arbitral institutions.
suggests a number of improvements to the legisla
In this article, the author discusses the salient features of the Arbitration Act 2001 of Bangladesh and
on. A number of suggestions are made as to steps
that could be taken to promote international arbitration and ADR culture, education and training in
Bangladesh through the joint efforts of the Government, judges, lawyers and other professionals and
Prof AFM 2
Maniruzzaman *
T he Banglacleshi Arhvation Act 2001
{the Act! or 2001 Act came into
force on 10 Apri 2001.!1 repeated
the Arbitration (Protocol and Convention)
‘Act 1937 and the Arbitration Act 1940,2
legacies of the Bish Rajini, The 2001
‘Act was amendled ina numberof respects
in 2004?, Such legiatve steps were urgent
inthe Bight of increasing foreign investment
in Bangladesh in various sectors, especially
in natural gas andl power, andl the ever-
rowing export trade with the rest of the
‘world, The Act consolidates and modifies
the law rotating to both domestic and
‘ntematonal commercial abitaion. 1 thus
‘creates a single and wife legal egime for
aubitationin Bangladesh. This moderisaion
makes Bangladesh a more attractive place
for dispute resolution in the field of
international trade, commerce and
investment. Although the 2001 Act is
‘pase principally on the UNCITRAL Model
Las itis someting ofa patchwork quit
as there are some unique provisions derived
from the Indian Arbiation and Conciation
‘Act 1996 and the Engish Arbitation Act
1996
The 2001 Acthas 59 sections onrised
in 14 chapters as folows: Chapter (51)
intioductory matters; Chapter I (ss 2-8)
general provisions; Chapter Il (Ss 9-10)
aubitration agreement; Chapter 1V (ss 11
16) composition of arbitral buat; Chapter
617-22) justin of abit ibunas
Chapter VI (s 23-35) conduct of abil
proceedings; Chapter Vis 36-41) making
of arbitral award and termination of
proceedings; Chapter Vi (ss 42-43)
recourse against arbitra avard Chapter IK
{5 44) enforcement of arbitral awards;
Chapter X (ss 45-47) recogrition and
enforcement of certain foreign arbitral
awards Chapter (48) appeals; Chapter
XA (ss 49:56) miscellaneous (epost of
Costs dapute as to arbitao's remuneration
or costs, bankruptcy, limitation, ete);
Chapter XI (55 57-58) supplementary
proviions (power of the Government or of
the Supreme Court make res); Chapter
XIV (559) repeal and savings.
‘he salet features of the 2008 Act are
as folows.
1. The preamble desctibes the legion
as An Act to enact the ka relating t0
inteational commercial arbitration,
recognition and enforcement of lores
axbital awards and othes arbitrations”
‘The Acts; however, aso appkcable to
domestic abiation
2 In an international commercial
arbitation, one of the pais to the
dspute must be either a company
registered or firm controlled from
overseas ora forelgn national
3. The dspute in question must are out
of a legal relationship, whether
contactual or no, that's considered to
be a commercial dispute under
Banglades low.
4, ‘The parties ate feee to determine the
umber of arbittors. I the partis (ai
to fix the number of arbivators the
teibunalis to consis of thee arbitaors,
The parties may choose an arbitrator or
axbitators of any nationaty and the
chaiman ofthe tribunal may be of any
nationality if that is accepted by the
paris
6. The course the Cour ofthe Dist
Judge inspect of domestic commercial
arbivation andthe High Court Division
ofthe Supreme Cout of Bargladesh in
respect of international commercial
arbivation) canintervene with regard to
the appointment of party appointees
and tnbunal chairmen. Declsons hall
bye made within sity days from the
receipt of a party's pplication.
7. The court shall respect the partis!
agreement to arbitrate. ta so doing it
may stay and refer to arbitration ary
legal proceedings that have been
commenced against one party to the
agreement.
8 The partes ae free to agree on the
venue for the arbitration ang hich
the arbival tribunal having regard to the
reumstances ofthe case including th
convenience of the parties, shall
teen it
9. Inthe absence of party agreement as 0
the language of the proceedings, the
tibunal can use any language it deems
appropriate
10.The Act observes the doctrines of
severbilty ofthe arbitration agrcoment
and Kompetenz-Korppetenz, so that
the tebunal can cule on its own
juiscetion,
‘The tribunal isnt bound to folow the
Code of Civil Procedue 1908 or the
Fvidence Act 1872. Subject to the
parties! agreement, it may adopt any
procedure for conducting the abil
proceedings.
12. respect to the substance of a dispute,
1
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EVANS & PECK (HONG KONG) COMPANY LIMITED.
171, 88 Lockhart Rood Woncha\ Hong Keng
Furthernote geradona seat Telephone:+852 2722 0986 Fox +052 2492 2127
‘regional and international conferences
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the Ministry of Law and Pariamentary
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