In a landmark move to strengthen trade justice and accelerate the country`s economic development, the government has issued the Commercial Court Ordinance, 2026.
The ordinance provides for the establishment of Commercial Courts across the country, aimed at increasing investment and ensuring the timely resolution of business disputes.
The gazette, issued last night, confirmed that the ordinance will come into effect immediately. Analysts say this initiative is a major step in improving the judicial infrastructure for commerce, a longstanding demand from both domestic and foreign investors.
Scope of commercial disputes: The ordinance defines a wide range of commercial disputes, including routine business transactions of traders, bankers, merchants, and financial institutions. It also covers conflicts arising from the use, interpretation, and enforcement of commercial documents, as well as export and import-related disputes.
Specialised coverage extends to transactions involving aircraft, aircraft engines, equipment, and helicopters, including their sale, lease, and financing. Disputes arising from construction projects, infrastructure development, tenders, and immovable property used for commercial purposes also fall under the courts` jurisdiction.
Further, the ordinance includes franchising, distribution, licensing, management, consultancy, joint venture agreements, shareholder agreements, partnership contracts, and technology development agreements. Service-sector transactions such as outsourcing and financial services are explicitly covered.
The ordinance also addresses intellectual property disputes, covering trademarks, copyrights, patents, industrial designs, geographical indications, and domain names.
Additionally, it governs the use of natural resources, minerals, gas, and the electromagnetic spectrum, as well as insurance, reinsurance, and shipbuilding contracts. Arbitration agreements under the Arbitration Act, 2001, transactions under the Payment and Settlement Systems Act, 2024, and other commercial disputes notified by the government or relevant authorities are included.
Establishment and functioning of commercial courts: In line with the ordinance, Commercial Courts will be established across the country. The appropriate authority will determine the number and territorial jurisdiction of these courts in consultation with the Supreme Court and may adjust this jurisdiction over time as needed.
Judges of the Commercial Courts will be appointed from among District Judges and Additional District Judges of the Bangladesh Judicial Service, with preference given to those holding advanced qualifications in commercial law or possessing experience in handling commercial disputes.
The Chief Justice of Bangladesh will constitute one or more Commercial Appellate Benches in the High Court Division to hear appeals and revision petitions against judgments or orders issued by the Commercial Courts.
Commercial Courts will have the authority to hear and dispose of all commercial suits and applications within their territorial jurisdiction. However, where other laws limit or exclude civil court jurisdiction, Commercial Courts will not adjudicate such matters.
While appeals are limited to final judgments, revision or review petitions may be filed in accordance with civil procedure. Aggrieved parties have 60 days from the date of the judgment or order to file an appeal or revision petition in the High Court Division.
Implications for Business and Investment: Experts say the ordinance will reduce backlogs in commercial litigation, ensure faster dispute resolution, and create a more investor-friendly environment. By providing a specialised judicial mechanism for business disputes, it is expected to enhance legal certainty, reduce operational risks, and encourage both domestic and foreign investment.
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