Frequently Asked Questions
1 What is the Bangladesh International Mediation & Arbitration Centre (BIMAC)?
BIMAC is an independent, neutral and not-for-profit global arbitration institution which provides case management services to the domestic and international business community. BIMAC is the first growing arbitration center in Bangladesh.
2 What are the benefits of arbitration?
• Arbitration is a less formal process than court litigation, and it is conducted in private, away from the glare of the media and the public. Parties to the arbitration, as well as arbitrators, are generally obliged to maintain the confidentiality of all matters relating to the arbitration proceedings and the arbitration award.
• Parties are free to appoint their own arbitrators, engage their preferred counsel and choose the procedures and rules for the conduct of an arbitration.
• Parties are generally assured of finality once the arbitration award is issued as there are limited avenues for appeal against an arbitration award.
• The arbitration process can be more cost-effective and efficient than court litigation.
3 What types of disputes does BIMAC administer?
BIMAC administers a wide range of disputes, including, among others, corporate and commercial, trade and investment, construction/engineering, shipping/maritime, insurance, intellectual property, and banking and finance.
4 Is there a minimum or maximum claim amount for BIMAC arbitrations?
No. There is no minimum or maximum claim amount for cases to be administered by BIMAC.
5 Can BIMAC administer arbitrations where the governing law of the contract is not Bangladesh law?
Yes. BIMAC is able to administer arbitrations where the governing law of the contract is not Bangladesh law. The most commonly selected governing laws are Bangladesh law, English law and Indian law.
6 Is there a default seat of arbitration under the BIMAC Rules?
No. Under the BIMAC Rules 2019, parties may agree on the seat of arbitration; failing such agreement, the Tribunal shall determine the seat of arbitration.
Bangladesh is the default seat of arbitration for emergency arbitration proceedings unless parties have agreed otherwise.
7 Can a party commence arbitration at BIMAC without an arbitration clause?
No. Unless there is an arbitration clause in the contract or parties have a post-dispute agreement to refer the dispute to arbitration at BIMAC or arbitration in accordance with the BIMAC Rules, BIMAC will not be able to administer the arbitration.
8 Would an arbitration clause which provides for “Arbitration in Bangladesh” be sufficient for BIMAC to administer the arbitration under the BIMAC Rules?
No. An arbitration agreement referring to “Arbitration in Bangladesh” may not sufficiently provide for BIMAC-administered arbitration, although it may provide for ad hoc arbitration seated in Bangladesh.
To ensure that parties’ intention for arbitration at BIMAC under the BIMAC Rules is reflected in the contract, parties may wish to use the BIMAC Model Clause.
Costs of the Arbitration
9 What is included in “costs of the arbitration”?
The “costs of the arbitration” are defined in the BIMAC Rules 2019 as including:
(i) the Tribunal’s fees and expenses and the Emergency Arbitrator’s fees and expenses, where applicable;
(ii) BIMAC’s administration fees and expenses; and
(iii) the costs of any expert appointed by the Tribunal and of any other assistance reasonably required by the Tribunal.
“Costs of the arbitration” do not include parties’ legal fees and other costs.
Party Representation & Arbitrators
10 Does BIMAC maintain a panel of arbitrators?
Yes. BIMAC maintains a Panel of Arbitrators comprised of experienced, qualified and well-known arbitrators from over 40 jurisdictions. BIMAC also maintains a specialist Panel of Arbitrators for Intellectual Property Disputes.
11 Can a party nominate an arbitrator who is not on BIMAC’s Panel of Arbitrators?
Yes. Parties to an arbitration are free to nominate arbitrators of their choice. It is not necessary for parties’ nominees to be on BIMAC’s Panel of Arbitrators.
12 Must arbitrators be lawyers?
No. Subject to the circumstances of the case, it is not necessary for arbitrators to be lawyers or to have a legal background. As an example, there are engineers, quantity surveyors, architects and master mariners who are on BIMAC’s Panel of Arbitrators.