Arbitration and the Salishnama in Bangladesh: Writing It, Running It and Enforcing the Award

In this guide: Village salish, Village Court or arbitration? · What a good salishnama says · Challenging or enforcing the award

The short answer

In everyday Bangla, salish covers both a village elders’ settlement and formal arbitration. Only formal arbitration under the Arbitration Act 2001 produces an award the court will enforce. It starts with a written arbitration agreement, either a clause in a contract or a separate salishnama signed after a dispute arises.

The tribunal hears both sides and gives a written award. The District Judge’s court deals with domestic arbitration matters; the High Court Division handles international commercial arbitration.

Village salish, Village Court or arbitration?

Village Courts at Union Parishad level can hear specified minor civil and criminal disputes under the Village Courts Act 2006, as amended in 2024. The monetary ceiling is Tk 3 lakh, subject to the case categories, valuation rules and other conditions in the Act and its Schedule. In criminal matters this is a power to order compensation, not a general power to fine.

A Village Court is a separate statutory forum, not arbitration. It cannot take a civil dispute where the parties’ contract contains an arbitration or dispute-resolution clause (section 3(2)(b)).

What a good salishnama says

• The parties, with full names, addresses and NID numbers.
• The disputes covered: all disputes under a contract, or a defined dispute.
• The number of arbitrators and how each is appointed, including what happens if one side fails to appoint.
• The seat (place), the language, and any rules, such as those of BIAC.
• That the award is final and binding, and how costs are shared.
• Signatures of both parties and witnesses, with the date.

A vague clause invites court applications later about who appoints whom.

Challenging or enforcing the award

A party can apply to set aside the award within 60 days of receiving it, on limited grounds such as invalid agreement, no proper notice, matters beyond the reference, procedural failure, public policy, fraud or corruption (ss.42–43). The court does not re-hear the merits.

If no challenge succeeds, the award is enforced as if it were a decree of the court (s.44). Foreign awards are enforced through the District Judge’s court in Dhaka (s.45).