Enforcement of Bangladeshi arbitration awards

What is Arbitration in Bangladesh?

• To settle conflicts outside of court.
• Following a party arbitration agreement.
• An arbitral tribunal and arbitrators will rule.

Various Forms of Arbitration

Arbitration inside the Country:

According to the Arbitration Act 2001, it would be considered domestic arbitration if the site of arbitration was in Bangladesh and the execution of the arbitral judgment was to be controlled in the domestic court of Bangladesh.

Arbitration in a Foreign Country:

If the venue of the arbitration is located in a different nation and the enforcement of the arbitral award will take place in a different nation in order to ensure the validity of the arbitration, then the arbitration in question is regarded to be conducted in a foreign country.

What exactly are the steps involved in the arbitration process in Bangladesh?

The first stage is the agreement to arbitrate.

To begin, there has to be a binding arbitration agreement in place. An agreement between the parties that all or some of their disagreements, which have occurred or may develop as a result of their legal connection, will be resolved via the use of arbitration.

A provision in a contract that provides for arbitration might serve as the basis for an arbitration agreement. It is to be reduced to writing.

The second stage consists of the appointment of arbitrators.

The parties are required to agree upon an arbitrator who will preside over the arbitration proceeding.
The number of arbitrators is something that is entirely up to the parties involved, but in the event that they are unable to agree on an amount, the panel will be made up of three people.

In the event that there are an even number of arbitrators, the ones who have been chosen to the position of arbitrator must decide among themselves who would serve as the Chairman of the arbitration panel.

The third stage includes time constraints for the appointment of arbitrators.

In the event that one party makes a request to another party for the appointment of the arbitrator, and that party is unable to reach an agreement on who will serve in that role within a period of thirty days after receiving the request, then the appointment of the arbitrator will be made by the District Judge in the event that the arbitration in question is not international.

In the event of an international arbitration, the appointment of the arbitrator will be made by the Chief Justice or any other Judge of the Supreme Court that has been chosen by the Chief Justice.

What exactly is an arbitration award?

When the disagreements are finally resolved and the Arbitral Tribunal decides to issue an award in favor of one of the parties, such decision will be referred to as a “arbitral award.”

A decision rendered by an arbitrator in accordance with the terms of an arbitration agreement may take place on the territory of any state other than Bangladesh.

What procedural processes are required to put an arbitral award into effect?

If the party that lost the case does not wish to hand over the arbitral judgment to the party that won, the party that won may submit an application to the District Judge Court in Dhaka to have the arbitral award carried out.

Which Documents Are Needed to Make the Arbitration Award Legally Binding?

the original arbitral award or a copy thereof, properly authenticated in the way required by the law of the country in which it was made, 2the original agreement for arbitration or a duly certified copy thereof, and 3such proof as may be necessary to establish that the award is a foreign award. the original arbitral award or a copy thereof, legally authenticated in the manner required by the law of the country in which it was made.

a translation into English of the order or award document that must be attested to as being accurate by an agent of the country’s diplomatic or consular service.

What are the reasons why an international arbitration award should not be put into effect?

There are a few different reasons why awards rendered by foreign arbitrators shouldn’t be recognized or put into effect;If the party against whom it is called provides evidence to the court that the other party is incapacitated (because they are a juvenile, do not have a sound mind, or are disqualified by law), then the injunction will be lifted.

The agreement to arbitrate being in violation of the law

An insufficient amount of notice was provided about the appointment of an arbitrator.

• The composition of the arbitral tribunal was carried out in a manner that was in compliance with the agreement.
• The award is either going to be overturned, it is going to be suspended, or it is not going to be binding on the parties.
• In the event that the ruling falls beyond the parameters of the matter that was submitted for arbitration.
• Or, where the court determines that the issue cannot be settled by arbitration due to the nature of the current legal framework, which precludes the possibility of a settlement by arbitration.
• There is a contradiction between the public policy of Bangladesh and the granting or administration of prizes.

How may a decision made by an arbitrator be overturned?

Within sixty days of receiving the judgment, the party is required to submit an application to the District Judge Court in Dhaka requesting that the arbitral verdict be overturned and declared invalid.
On the application of a party made within sixty days of the award’s receipt, the High Court Division has the authority to vacate an arbitral award that was issued by a foreign arbitral body if the arbitration in question took place in Bangladesh.

What are the circumstances that warrant removing an arbitral tribunal from its duties?

If a party can demonstrate the following, the arbitral decision may be overturned:

There is a degree of disability affecting him.
The legislation that the parties are bound by renders the arbitration agreement invalid; hence, it cannot be enforced.
The side was not provided with the required notice on the appointment of an arbitrator.
The arbitral tribunal and the agreement reached by the parties both seem to be in direct opposition to one another.
The arbitral award addresses a matter that is beyond the purview of arbitration as a dispute resolution mechanism.
In addition to this, the arbitral award can be null and void if the court or the High Court Division is persuaded that,

• According to Bangladeshi law, the disagreement cannot be resolved since it concerns an issue that cannot be arbitrated.
  The arbitral award cannot be enforced under Bangladeshi law since it violates Bangladeshi legislation.
  The arbitral ruling cannot be enforced since it goes against Bangladesh’s national policy.
  The decision of the arbitrator was influenced by bribery or other illegal activity.
• When is it possible to challenge a decision made by an arbitrator?
• We do not have the ability to file a direct appeal against the arbitral ruling. Before we can even begin to challenge the arbitral ruling, we need to submit a formal request.
  We have the ability to file an appeal against the ruling that the Court will either hand down in the form of an order to set aside the arbitral award or a refusal to set aside the decision.
  Refuse to enforce a decision made in a domestic arbitration proceeding.
  Refuse to enforce the award that was reached in the international arbitration.