Setting aside arbitral award in Bangladesh is the only direct way to challenge an award made in an arbitration seated here. The Arbitration Act 2001 allows it on narrow grounds, within a strict time limit, and without reopening the merits. Parties on both sides need to understand those limits before an award is issued.

What setting aside arbitral award in Bangladesh means

Arbitration is designed to produce a final decision. Unlike a court judgment, an arbitral award cannot be appealed on its merits. The law instead provides a limited supervisory remedy: an application to the court of the seat to set aside the award if something fundamental went wrong. In Bangladesh, that remedy is found in sections 42 and 43 of the Arbitration Act 2001.

Setting aside arbitral award in Bangladesh is therefore about the integrity of the process and the limits of the tribunal's authority, not about whether the tribunal reached the right answer. Courts have repeatedly emphasised that they will not substitute their own view of the evidence or the contract for that of the arbitrators.

Which awards can be set aside

Only awards made in arbitrations seated in Bangladesh can be set aside under section 42. That includes purely domestic arbitrations and international commercial arbitrations seated in Bangladesh. Awards made in arbitrations seated abroad, for example in Singapore or London, are foreign awards; they can be challenged only in the courts of the seat, and in Bangladesh they can only be resisted when enforcement is sought.

Which court hears the application

For setting aside arbitral award in Bangladesh, the Act allocates jurisdiction according to the type of arbitration. For an arbitration other than an international commercial arbitration, the application is made to the District Judge's court. For an international commercial arbitration seated in Bangladesh, the application is made to the High Court Division. Filing in the wrong court wastes time that the 60-day limit does not allow.

International commercial arbitration is defined in the Act by reference to the parties, typically where at least one party is a foreign national, foreign company or foreign government. Where the classification is unclear, take advice early, because the forum affects procedure, timing and appeal routes.

The 60-day time limit

An application for setting aside arbitral award in Bangladesh must generally be made within 60 days from the date the applicant received the award, or, where a request for correction or interpretation was made, from the date that request was disposed of. The deadline is strict. Courts have been reluctant to extend it, and an application filed outside the period is likely to be dismissed regardless of its merits.

Because the clock starts on receipt, the party should record exactly when and how the award was delivered. Where the award was sent by email and courier on different days, the date of receipt may itself be argued. Counting from the earliest plausible date is the safe course.

Grounds under section 43

For setting aside arbitral award in Bangladesh, section 43 sets out the grounds on which the court may act. The applicant must prove one or more of them with evidence. In summary, the court may set aside an award where:

• Incapacity. A party to the arbitration agreement was under some incapacity.
• Invalid agreement. The arbitration agreement is not valid under the law to which the parties subjected it.
• No proper notice or inability to present case. The applicant was not given proper notice of the appointment of an arbitrator or of the proceedings, or was otherwise unable to present its case.
• Excess of jurisdiction. The award deals with a dispute not contemplated by, or beyond the scope of, the submission to arbitration; only the excess part may be set aside if it can be separated.
• Improper composition or procedure. The tribunal or procedure was not in accordance with the parties' agreement or, absent agreement, the Act.
• Non-arbitrability. The subject matter is not capable of settlement by arbitration under Bangladeshi law.
• Public policy. The award conflicts with the public policy of Bangladesh.
• Fraud or corruption. The award was induced or affected by fraud or corruption.

The list is closed. Arguments that the tribunal misread the contract, preferred the wrong witness or miscalculated damages do not, on their own, fall within these grounds unless they amount to an excess of jurisdiction or a public policy violation.

Public policy in setting aside arbitral award in Bangladesh

In setting aside arbitral award in Bangladesh, public policy is the ground most often invoked, and the one courts treat with most caution. Bangladeshi courts have generally interpreted it narrowly, referring to the fundamental policy of Bangladeshi law, the interests of the country, justice and morality, rather than any contravention of a statute or contractual term. An award that enforces an illegal contract, or was obtained in breach of fundamental principles of natural justice, may engage public policy; an award with an arguable error of law ordinarily does not.

Applicants who frame ordinary disagreements as public policy issues rarely succeed and may face costs. Respondents should resist attempts to stretch the ground into a merits appeal by pointing to the limited scope of section 43.

Step-by-step: making the application

1. Classify the arbitration. Confirm the seat and whether the arbitration is domestic or international commercial, to identify the court.
2. Calculate the deadline. Record the date of receipt and any correction or interpretation request, and fix the 60-day deadline.
3. Assemble the record. Collect the arbitration agreement, award, pleadings, procedural orders, transcripts and key correspondence.
4. Identify grounds. Match the facts to the grounds in section 43 and gather evidence, such as proof of lack of notice or of excess of mandate.
5. File the application. File in the correct court with certified copies of the award and agreement and the required court fee.
6. Address enforcement. Consider whether to seek a stay of enforcement while the application is pending.
7. Argue the case. Present the application on the record; the court will not take fresh evidence on the merits except as needed for the grounds.

Partial setting aside and remission

Not every successful challenge destroys the whole award. Where the tribunal decided some matters within its jurisdiction and some outside it, and the two can be separated, the court may set aside only the part that exceeds the submission. This partial approach preserves the parties' investment in the arbitration and reflects the Act's pro-arbitration policy.

Courts in some jurisdictions can also send an award back to the tribunal to cure a defect, for example where reasons are missing or an issue was not addressed. Whether and how that option is available in setting aside arbitral award in Bangladesh depends on the Act's provisions on correction, interpretation and additional awards, which allow a party to ask the tribunal itself to correct errors or decide omitted claims within short time limits. Using those mechanisms first can sometimes avoid a court challenge altogether.

Costs of a failed challenge

Courts can award costs against an applicant whose challenge fails. Unmeritorious applications that delay payment may also lead to interest running on the award amount and to conditions on any stay. Before filing, weigh the realistic chance of success against these costs.

Setting aside arbitral award in Bangladesh involving state parties

Arbitrations with government bodies and state-owned enterprises raise particular issues. State parties sometimes challenge awards on public policy grounds, citing public interest, procurement irregularities or alleged corruption in the contract's formation. Courts must balance the narrow public policy standard against genuine concerns about illegality.

Private parties contracting with the state should keep a complete record of tender and approval processes, because the legitimacy of the contract can become central to a later challenge. State parties, in turn, should raise objections during the arbitration rather than hold them back for the setting aside stage, which courts view unfavourably. Our international arbitration practice advises on these disputes.

Effect on enforcement

Under the Act, a domestic award is enforced as a decree of the court once the time for setting aside has expired or an application has been refused. A pending application for setting aside arbitral award in Bangladesh can therefore delay enforcement. Courts may impose conditions, such as deposit of the award amount or security, when deciding whether to stay enforcement, particularly where the challenge appears weak.

Award creditors should be ready to respond quickly, including by seeking security and by opposing any attempt to use the application purely to delay payment. Our enforcement of awards practice acts for creditors and debtors at this stage.

Appeals from the court's decision

The Act provides for appeals against certain orders, including orders setting aside or refusing to set aside an award, within the time and to the court specified. For decisions of the District Judge, the appeal ordinarily lies to the High Court Division; for decisions of the High Court Division, further appeal to the Appellate Division may be possible with leave. Appeals extend the timeline, which affects strategy for both sides.

Because appeals are limited and time-bound, parties should consider settlement at each stage. A realistic assessment of the grounds after the first-instance decision often leads to negotiated payment terms.

Foreign awards: resisting enforcement instead

For awards made outside Bangladesh, the relevant provisions are those on recognition and enforcement of foreign awards in the Act, which give effect to the New York Convention. A party resisting enforcement may rely on similar grounds, including incapacity, invalid agreement, lack of notice, excess of jurisdiction, irregular composition, non-arbitrability and public policy. It cannot ask a Bangladeshi court to set the award aside.

Where a party wishes to annul a foreign award, it must apply to the courts of the seat within their time limits, often much shorter than 60 days. Our guide to the arbitration process in Bangladesh explains how foreign awards are enforced locally.

Practical guidance during the arbitration

Most grounds for setting aside arbitral award in Bangladesh arise from events during the proceedings, not from the final reasoning. Parties can protect themselves by raising objections promptly. If a party believes the tribunal lacks jurisdiction, the tribunal was improperly constituted or it was denied a fair opportunity to present its case, it should object at the time, in writing. A party that participates without objection may be treated as having waived the point.

Tribunals, for their part, can reduce the risk of challenge by giving clear procedural directions, allowing each party a fair opportunity to respond, staying within the issues submitted and giving reasons in the award. A well-reasoned award that addresses each party's main arguments is much harder to attack.

Checklist for award debtors

• Record the date of receipt of the award.
• Obtain copies of all procedural orders and transcripts.
• Identify objections raised during the arbitration.
• Assess realistically whether any section 43 ground applies.
• Consider settlement before incurring the cost of a challenge.

In short, setting aside arbitral award in Bangladesh is a narrow remedy for serious defects. Parties who understand its limits, keep good records during the arbitration and act within the deadline are best placed either to challenge a flawed award or to defend a sound one.

Frequently asked questions about setting aside arbitral award in bangladesh

How we can help

We act for award creditors and debtors in applications for setting aside arbitral award in Bangladesh, enforcement proceedings, stays and appeals, and we advise during arbitrations to protect the award against later challenge. Learn more about our enforcement of awards practice.

Primary sources: the Arbitration Act 2001, sections 42 to 48, on the Laws of Bangladesh portal; the Model Law text via UNCITRAL; Convention text at newyorkconvention.org.

This article is general information about Bangladeshi arbitration law as of October 2026 and is not legal advice. Time limits and grounds depend on the facts and the current text of the Act; take advice immediately on receipt of any award.