In a bid to strengthen the country’s investment environment, the Bangladesh Supreme Court has submitted a draft law to the Ministry of Law recommending the creation of specialized commercial courts. The proposal, finalized under Chief Justice Syed Refaat Ahmed, aims to provide faster, more transparent resolution of business disputes and bolster investor confidence at home and abroad.
Courts to Cover Wide Range of Business Disputes
Under the draft, every district would see the establishment of one or more commercial courts headed by district judges. Jurisdiction would extend across import and export matters, aviation and maritime transport, construction and infrastructure projects, franchise agreements, distribution and licensing, technology development, intellectual property rights, insurance, partnerships, and joint ventures. To support appellate review, separate commercial benches would be formed in the High Court and the Appellate Division.
Mediation Mandatory Before Filing Cases
A notable feature of the plan is the requirement that parties attempt mediation before initiating formal proceedings. Officials believe this will allow many disputes to be resolved outside the courtroom, significantly reducing the burden on the judiciary and speeding up outcomes for businesses. “This is designed to change the culture of litigation by encouraging negotiated settlements first,” an official at the Law Ministry said.
Strict Deadlines for Trial and Appeals
The Supreme Court’s proposal sets firm deadlines to ensure efficiency. District-level commercial courts would be required to conclude final hearings within 90 days. Appeals before the High Court would need to be resolved within six months, while the Appellate Division would have three months to decide. The draft also allows for summary trials in appropriate cases, avoiding unnecessary delays that have long plagued the justice system.
Business Community and Global Rankings at Stake
Bangladesh ranked 168th out of 190 countries in the World Bank’s 2020 Ease of Doing Business Index, with slow dispute resolution cited as a critical factor undermining competitiveness. Business leaders have repeatedly called for reforms, warning that unresolved conflicts in trade, infrastructure, and intellectual property discourage investment. The new commercial courts are seen as a direct response to those concerns and a step toward improving Bangladesh’s standing in global economic rankings.
Economic Benefits Could Be Significant
Supporters argue that the specialized courts will improve transparency, speed up infrastructure and trade projects, protect intellectual property, and ease judicial backlogs. By enhancing investor confidence, the initiative could accelerate overall economic growth. “Timely and specialized handling of disputes will help create a more predictable environment for both domestic and foreign investors,” the Supreme Court said in a media statement.
The Law Ministry is working closely with the judiciary on the draft. Once approved by the advisory council, the measure could be enacted swiftly through an ordinance with the president’s consent. Officials emphasize that infrastructure development, training programs for judges and lawyers, and continuous professional development will be necessary to ensure effective implementation.
The proposal follows a series of regional consultations and seminars organized by the Supreme Court and UNDP. Stakeholder input, including feedback from lawyers, judges, and development partners, was incorporated before the final draft was sent forward.
If enacted, Bangladesh’s commercial courts could mark a new chapter in the country’s legal and economic history, signaling to investors that disputes will be resolved fairly, quickly, and transparently.