Govt to address major gaps in Commercial Courts Act

The law minister yesterday promised to address four key issues in Commercial Courts Act 2026 that continue to drive away foreign investors.

“The major issues which international investors face here in Bangladesh are mostly absent in this act. So, being the law minister, I would like to look into that aspect and how we can address those issues,” Md Asaduzzaman said in a seminar on strengthening the commercial justice system in Dhaka’s Hotel InterContinental.

The minister of law, justice and parliamentary affairs identified the four issues as regulatory disputes, tax problems, labour conflicts, and criminal litigation.

The law was passed in April. The minister said the gaps persisted because the law was passed in haste.

He also flagged several limitations in the existing Arbitration Act 2001 which “can be fixed easily”.

Arbitrator fees are so high that ordinary businesspeople avoid the system, and files are kept pending so long that the act’s core purpose of expeditious dispute resolution is defeated, he said.

“It’s a good start that we have started with commercial courts. Now the government wants to re-examine it. We want to bring back certain amendments so that it really helps businesses,” said the minister.

Michael Miller, ambassador of the European Union, said establishing the commercial courts will send a powerful signal to foreign entrepreneurs that their investment is protected by the law and they will get justice fast.

It will also boost their confidence, he added.

Investors need legal certainty, predictability, and confidence that disputes can be resolved fairly and efficiently, said Mahbubur Rahman, chairman of the Bangladesh International Arbitration Centre (BIAC), which organised the seminar with support from the United Nations Development Programme.

In this context, the Commercial Courts Act and the proposed reforms to the Arbitration Act represent important milestones.

Efficient commercial courts can reduce delays, improve contract enforcement, and create a more business-friendly environment, he added.

Md Sameer Sattar, a former president of the Dhaka Chamber of Commerce and Industries (DCCI), said efficient contract enforcement, which is related to time and cost to resolve a commercial dispute, and the quality of judicial processes is crucial for attracting investments.

However, Bangladesh’s performance in this area remains notably weak with almost no improvement over five years, he said.

Citing  a World Bank report, he said the average time for enforcing contracts in Bangladesh is 1,442 days.

He added that reliable, efficient, and predictable enforcement of contracts is not optional for investors, but a baseline requirement for capital entry, expansion and risk assessment.

“When disputes are resolved swiftly, investor confidence rises, making them keen to invest in that particular country. It is, therefore, crucial for country branding,” said the former DCCI president.