What are some major precedents of arbitration in Bangladesh?
While arbitration has previously been used in major cases involving energy and foreign investment, its application in the telecom sector marks a potentially significant shift in regulatory practice.
Bangladesh's major telecom operators, led by Grameenphone, have called for arbitration to resolve long-standing audit disputes with the country's telecom regulator, a move that could set a new precedent for corporate dispute resolution in the country.
For the first time, both the government and the Bangladesh Telecommunication Regulatory Commission (BTRC) appear receptive to the idea.
While arbitration has previously been used in major cases involving energy and foreign investment, its application in the telecom sector marks a potentially significant shift in regulatory practice.
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Precedents of arbitration in Bangladesh
Bangladesh has witnessed several high-profile arbitration cases in recent years, particularly in the energy and investment sectors, highlighting how complex commercial disputes can be resolved through international mechanisms.
One of the most prominent examples is the Niko Resources Ltd vs Petrobangla and Bapex case, which was brought before the International Centre for Settlement of Investment Disputes (ICSID) over compensation claims linked to gas field explosions in the country's northeast.
In another instance, a dispute between Bangladesh and a US-based power company over independent power purchase agreements was settled through arbitration, avoiding a prolonged court process.
Similarly, Bapex vs Socar AQS LLC, a joint venture with Azerbaijan, was resolved under international commercial laws following disagreements over exploration contracts.
In the manufacturing sector, a case between the Export Processing Zone (EPZ) authorities and Japan's Maruhisa Pacific went to investment arbitration under a bilateral trade treaty, further underscoring the growing reliance on arbitration to settle cross-border business disputes.
Legal experts say these examples demonstrate that arbitration can serve as a credible and effective dispute resolution mechanism, even in the absence of explicit provisions in specific sectoral laws.
They note that with mutual consent and reference to Bangladesh's existing Arbitration Act, both domestic and international entities can pursue arbitration to achieve faster, less adversarial settlements.
