On 10 April 2026, the Government of Bangladesh enacted the Commercial Court Act, 2026 (the
"Act"), a landmark step in reshaping how commercial disputes are resolved in the country. Once
the Act is fully operational nationwide, the Commercial Court (the "Court") is intended to ease
the backlog of pending cases and allow newly filed suits to proceed more efficiently. As of 31
December 2025, more than four million cases (4,041,924) remained pending before subordinate
courts across the country. 1
Section 2(d) of the Act identifies several categories of matters that fall specifically within the
jurisdiction of the courts established under section 3, including ordinary transactions involving
merchants, bankers, financiers and traders, as well as the enforcement and interpretation of
related documents, arbitration matters under Arbitration Act 2001 among other matters.
Under section 4 of the Act, the Court holds territorial jurisdiction to try all suits and hear
applications relating to commercial disputes within its designated territory, and the Act sets out
roughly 23 categories under which such disputes may arise. Former Chief Justice of Bangladesh
Dr Syed Refaat Ahmed observed that “by institutionalizing transparency and credibility through
these commercial courts, we are sending a clear and resounding message to the world that
Bangladesh is open for business, and its justice system stands as the guarantor of that promise.” 2
Pre-suit mediation is made mandatory in certain circumstances under section 7 of the Act. Where
the interim relief sought is unrelated to the underlying dispute, the parties are required to first
pursue mediation under section 7(1). This process must ordinarily be completed within 30 days,
though the courts retain discretion to grant a further 30-day extension where completion within
the initial period is not feasible under section 7(2). Where the parties reach an agreement through
mediation, the Court may treat that agreement as a decree and enforce it, provided the Court is
satisfied that no third-party rights have been violated.
It is important to note that only a final judgment of the Commercial Courts may be appealed;
interim orders cannot be challenged on appeal. Nevertheless, a party dissatisfied with an order of
the Court may seek review or revision of that order under section 6(1).
The Act draws on the Commercial Courts Act, 2015 of India (the "Indian Act"), and the two
statutes share notable similarities in their approach to case management. Section 9(4) of the Act
empowers the commercial court to frame the issues in dispute (both factual and legal), determine
whether oral and/or documentary evidence is required, set the number and timing of such
evidence, and fix the costs of the suit at each stage of proceedings. Section 6 of the Indian Act
likewise empowers courts to frame issues, determine evidence, and dismiss claims or render
judgment. The principal difference between the two lies in the level of detail: section 6 of the
Indian Act sets out more detailed instructions and authority regarding case management powers
than the Act does.
Section 20 of the Act also provides for summary judgment, in terms comparable to the summary
judgment regime under CPR Part 24 of the UK's Civil Procedure Rules. Under CPR 24.3, a party
seeking summary judgment must satisfy one of two tests, the first being that the court considers
the opposing party to have no real prospect of succeeding on the claim, defence or issue in question. Section 10 of the Act adopts a similar first condition, requiring the applicant to show
that there is no real prospect that the claimant or defendant will succeed in obtaining relief. The
Act's cost structure likewise closely mirrors that of the civil court system in the United Kingdom.
In conclusion, the resolution of commercial disputes may still be delayed by the process of
transferring suits between courts. It is therefore important that further guidance be issued on the
transfer of suits, so as to minimise hardship to the parties, transfer-related delays, and
unnecessary costs. Although the Act empowers the Government to publish rules to give effect to
its objectives, no such rules have yet been issued. Once these supporting rules are in place,
meaningful progress in the development of commercial dispute resolution can be expected across
the country.
Written by Managing Partner Junayed Ahmed Chowdhury and Pupil Md. Mostofa Galib Khan
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