BANGLADESH Law and Practice Contributed by: Sharif Bhuiyan, Dr Kamal Hossain and Associates
refused to set aside arbitral awards on grounds aris - ing out of the substance of the awards. However, in Gas Transmission Company Limited v Drilltec-Max- well Joint Venture LEX/BDHC/0039/2021, the HCD departed from the above decisions, re-examined the substance of an arbitration award and eventually set it aside in view of the findings made by the HCD. An appeal against the judgment in this case is currently pending.
a foreign arbitral award is binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal pro - ceedings in Bangladesh. Section 45 (1)(b) of the Act states that a foreign arbitral award must, on an application made by any party to it, be enforced by execution by the District Court, Dhaka under the CPC, in the same manner as if it were a decree of a court in Bangladesh. Section 45 (2) of the Act provides that application for the execution has to be accompanied by the origi - nal arbitration award or an authenticated copy of the award, original or authenticated copy of the agree - ment for arbitration and any other evidence proving that the award is a foreign award. According to Section 45 (3) of the Act if the foreign arbitral award to be enforced or the arbitration agree - ment to be produced is in a language other than English or Bangla, the applicant is required to pro - duce a translation in English certified as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in Bangladesh. Section 46 (1) of the Act lays down the grounds for refusing recognition or execution of foreign arbitral awards. The grounds are identical to those set out in Section 43 (1) for setting aside a domestic arbitral award. Under Section 46 (1)(a)(vi), an award that has been set aside by a court in the seat of the arbitration will not be recognised and enforced in Bangladesh. When an award is subject to ongoing set aside pro - ceedings at the seat, the courts in Bangladesh may stay enforcement proceedings pending a resolution of the proceedings at the seat. The Act does not contain any provision allowing the state of Bangladesh or a state entity to raise a defence of sovereign immunity at the enforcement stage.
12. Enforcement of an Award 12.1 New York Convention
Bangladesh is a party to the 1958 New York Conven - tion on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”). Bangla - desh acceded to the New York Convention on 6 May 1992. The Act has incorporated the principle of recog - nition and enforcement of foreign arbitral awards, as contained in the New York Convention. The Act does not make a distinction in relation to the recognition and enforcement of a foreign arbitral award between a New York Convention state and a non-New York Convention state. Sections 45 to 47 of the Act provide for recognition and enforcement of foreign arbitration awards. 12.2 Enforcement Procedure Enforcement of Arbitration Award Made in Arbitration Held in Bangladesh An arbitration award made in an arbitration held in Bangladesh is enforceable under Section 44 of the Act in the same manner as if it were a decree of the court. Section 44 states that where the time for making an application to set aside an arbitration award under Section 42 of the Act has expired, or such application having been made has been refused, the award will be enforced by the court under the CPC in the same manner as if it were a decree of that court. The expres - sion “court” refers to the District Court within the local limits of whose jurisdiction the arbitration award has been finally made and signed. Enforcement of Foreign Arbitral Award A foreign arbitral award is enforceable under Section 45 of the Act. Section 45 (1)(a) of the Act states that
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