Litigation, the process of resolving disputes through the formal court system, is a primary mechanism for enforcing rights and settling commercial disagreements in Bangladesh. Governed principally by the Code of Civil Procedure, 1908, and the Evidence Act, 1872, understanding the litigation landscape is crucial for businesses operating within the country.
The Bangladeshi Court Structure for Civil Matters#
Commercial disputes typically fall under the civil jurisdiction of the Bangladeshi courts. The hierarchy is generally as follows:
- Assistant Judge Courts / Senior Assistant Judge Courts: These are the courts of first instance for most civil suits, with jurisdiction determined by the monetary value of the claim.
- Joint District Judge Courts: These courts handle suits exceeding the financial jurisdiction of the Assistant/Senior Assistant Judge Courts and also hear appeals from those lower courts.
- District Judge Courts: The principal civil court of original jurisdiction in a district. It hears appeals from the Assistant, Senior Assistant, and Joint District Judge Courts. It also has original jurisdiction over certain matters (e.g., insolvency, probate).
- High Court Division (HCD) of the Supreme Court of Bangladesh: The HCD has extensive appellate jurisdiction over subordinate courts. It also possesses original jurisdiction in specific areas, including company matters, admiralty, and writ petitions for enforcing fundamental rights.
- Appellate Division (AD) of the Supreme Court of Bangladesh: This is the highest court in the land. It hears appeals from judgments, decrees, orders, or sentences passed by the High Court Division. Leave (permission) is generally required to appeal to the Appellate Division.
The Litigation Process: Key Stages#
The litigation process under the Code of Civil Procedure, 1908 involves several distinct stages:
- Institution of Suit: A lawsuit commences with the filing of a plaint (statement of claim) in the appropriate court. The plaint details the facts of the case, the cause of action, the relief sought, and the valuation of the suit for jurisdictional purposes.
- Summons: Once the suit is admitted, the court issues summons to the defendant(s) to appear and file a written statement (defence) within a specified timeframe.
- Pleadings: This stage involves the exchange of formal written documents – the plaint and the written statement – outlining each party’s case.
- Framing of Issues: After examining the pleadings, the court identifies the points of dispute (issues of fact and law) that need determination.
- Discovery and Inspection: Parties may request the disclosure and inspection of relevant documents in the possession of the opposing party.
- Hearing and Examination of Witnesses: Parties present their evidence, primarily through witness testimony (examination-in-chief, cross-examination, re-examination) and documentary evidence.
- Arguments: After the evidence is closed, lawyers for both sides present their final arguments, summarising the evidence and citing relevant legal precedents.
- Judgement and Decree: The court delivers its judgement, stating the reasons for its decision on the framed issues. A decree, the formal expression of the adjudication, is then drawn up based on the judgement.
- Execution: If the losing party (judgement-debtor) fails to comply with the decree, the winning party (decree-holder) can apply to the court for execution proceedings to enforce the decree (e.g., attachment and sale of property, arrest).
- Appeals: Parties aggrieved by the decision of a lower court generally have the right to appeal to a higher court, following specific procedures and timelines outlined in the Code of Civil Procedure, 1908.
Considerations for Commercial Litigation#
- Timeframe: This is arguably the most disadvantage of enforcing a contract or seeking redress through the courts in Bangladesh. Litigation in Bangladesh usually is a lengthy process due to court backlogs and procedural complexities. As a result major businesses tend to opt for arbitration in Bangladesh.
- Costs: Litigation involves court fees, lawyers’ fees, and other associated expenses.
- Evidence: Success heavily relies on the strength and admissibility of evidence presented according to the Evidence Act, 1872.
- Interim Relief: Parties may seek interim orders (e.g., injunctions) from the court during the proceedings to protect their interests pending the final judgement.
While litigation provides a formal mechanism for dispute resolution with binding decisions, businesses should carefully weigh the potential time, cost, and complexities involved against other options like arbitration or mediation.
Key Contact
For detailed advice and representation in commercial litigation matters in Bangladesh, please contact:
- Osman Goni
- Phone: +8801715569498
- Email: [email protected]
- Sazzad Hossain
- Phone: +8801682571960
- Email: [email protected]