A review of the Commercial Court Ordinance 2026

The Commercial Court Ordinance 2026 (the Ordinance) marked a significant milestone in the commercial justice system of Bangladesh. It established a specialised process for settling business disputes, which was previously adjudicated upon by the regular civil courts under ordinary processes. Although the pre-existing legal frameworks provided channels for resolving disputes, they proved insufficient to handle the growing complexity, urgency, and technological elements of modern business disputes.

In an attempt to bridge this institutional gap, the Ordinance, under section 3, prescribes the establishment of specialised courts throughout the country to deal with commercial disputes throughout the country. These courts’ territorial jurisdiction shall be determined by competent authorities through consultation with the Supreme Court. The judges are required to be chosen from the District Judges and Additional District Judges, preferably those having advanced commercial law degrees or expertise and training in business dispute. Furthermore, under section 3(4), the Chief Justice of Bangladesh shall establish one or more Commercial Appellate Benches in the High Court Division to hear appeals and revisions against decisions made by Commercial Courts.

Again, the Ordinance defines, and thereby enables, the resolution of more than 23 types of business conflicts under section 2(gha). It includes disputes involving transactions by banks and financial institutions, subscription and investment contracts, joint venture agreements, insurance matters, intellectual property rights, agreements for the use of minerals, gas or natural resources (such as electromagnetic spectrum). Thus, it operates as a measured response to the traditional civil courts that are often burdened with land-centric disputes, family matters, and other ordinary civil litigation.

The main advantage of this ordinance, in my opinion, is the specialisation it offers. Since judges are to be preferred based on their training and proficiency in commercial law and dispute resolution, it will ensure well-reasoned and consistent rulings, contributing to building investors’ trust in the long term.

In the past, the lengthy litigation timeframe for business disputes often discouraged both foreign direct investment (FDI) and high-value domestic investments. Consequently, investors opted for arbitration despite it being a costly and challenging alternative for small or domestic businesses. The Ordinance accelerates this lengthy procedure by requiring the Commercial Courts to conclude the trial of a dispute within 90 days from the date set for the final hearing. It also addresses the structural shortcomings of the traditional litigation process by creating time-bound procedures, limited adjournments of maximum three times, mandatory pre-suit mediation, strict deadlines for submitting pleadings, and case management hearings to expedite the settlement of commercial disputes. In sum, by providing a unique avenue for business litigation outside of the larger civil court system, the Ordinance, which was long overdue in Bangladesh’s legal system, distinguishes commercial justice from traditional civil justice.

The main advantage of this ordinance, in my opinion, is the specialisation it offers. Since judges are to be preferred based on their training and proficiency in commercial law and dispute resolution, it will ensure well-reasoned and consistent rulings, contributing to building investors’ trust in the long term. Moreover, the guarantee of quicker dispute settlement under the Ordinance, active case management, and hard deadlines for statements make commercial justice achievable, particularly for small and medium-sized enterprises.

However, it needs to be said that the success of commercial courts in Bangladesh will ultimately depend on the judges’ skills, training, and institutional resources, for which adequate preparation is required. Issues with accessibility and uniformity may also arise, especially in places with inadequate court infrastructure. Again, collaboration between commercial courts and existing civil courts during the transition period may present practical challenges if not managed properly, especially with regard to the transfer of pending cases.

A trustworthy and efficient mechanism for resolving commercial disputes is seen as a vital component sought by foreign investors and development partners. In fact, Bangladesh’s goal for Least Developed Country graduation is also facilitated by the Ordinance, if implemented properly. If it is well executed, it could increase investors’ confidence and aid Bangladesh’s shift to a competitive post-LDC economy.

The writer is lecturer in Law at North East University, Bangladesh.