Issues in Jurisdiction, Choice of Law and Lex-Arbitri Provisions in International Commercial Arbitration under Arbitration Act, 2001 in Bangladesh

Issues in Jurisdiction, Choice of Law and Lex-Arbitri
Provisions in International Commercial Arbitration
under Arbitration Act, 2001 in Bangladesh

Abstract
The International commercial arbitration has appeared as the significant mechanism for dispute
settlement presently in international trade, commerce and foreign direct investment as they
possess independence and regulation over dispute resolution process regarding choice of law, lex
arbitri as well as seat of arbitration. Bangladesh has incorporated the modern practices of
worldwide commercial arbitration and implemented the 2001 Act, which includes the
requirements of choice of law, party independence and applicability of lex arbitri as well as
employment of foreign arbitral award in Bangladesh. The involvement of court has also been
kept to minimal level.

Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
International Commercial Arbitration in Bangladesh......................................................................4
Jurisdictional Objections to Arbitral Tribunal.................................................................................6
Court and Arbitration Tribunal........................................................................................................7
Supervisory Power of Court on Arbitration Proceedings................................................................9
Choice of Law - Party Autonomy on the Choice of Seat and the Lex Arbitri...............................10
Enforcement of Foreign Arbitral Award in Bangladesh................................................................12
Bangladesh Arbitration Rule: Challenges and Views...................................................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

Introduction
The legal system existing in Bangladesh considers arbitration as a tradition which was previously
used for the purpose of resolution of dispute and was administrated by the Arbitration Act, 1940.
Most of the provisions of the Arbitration Act, 1940 were outdated as compared to the
contemporary arbitration regulations existing in various parts of the world. Under the Arbitration
Act, 1940, the extensive use of arbitration procedures involved the role of courts in the
arbitration procedure, its regulation as well as implementation of arbitral awards as well.
However, the implementation of arbitral award has been demonstrated to be slow and
burdensome as for its implementation, order could be obtained from the District Court. After the
implementation of the new Arbitration Act, 2001, the utilization of arbitration in the form of
alternative to the resolution of dispute related procedures has increased. Bangladesh has started
taking the initiatives for reform and it is predictable that the new Arbitration Act, 2001 would
make changes in the execution of international arbitral awards as declared in the New York
Convention, of which Bangladesh is also a member. Both business community as well as
government has positively reacted to the enactment of the 2001 Act. The Division of the High
Court has established a specific bench with the jurisdiction of nomination of arbitrators regarding
international arbitration. The research will explore and emphasize upon jurisdictional issues,
choice of law and lex arbitri provisions as major points.
International Commercial Arbitration in Bangladesh
For the purpose of effective dispute resolution in international trade as well as commerce, the
arbitration is considered as a significant process. The reason behind business community to