The Promulgation of the Commercial Court Ordinance 2026: An Overview
The promulgation of the Commercial Court Ordinance 2026 (Ordinance No. 01 of 2026) by President Mohammed Shahabuddin on January 1, 2026, represents a seminal transformation in the state’s approach to the adjudication of high-stakes business disputes.1 For a nation positioned as an emerging global economic hub, the intersection of commerce and the rule of law has historically been a site of significant friction. The Bangladeshi judiciary has long been characterized by a staggering case backlog, which as of June 2025 reached an alarming 4,652,260 pending matters.3 Within this context, the Ordinance emerges not merely as a procedural update but as a strategic institutional intervention designed to decouple complex commercial litigation from the overburdened general civil docket.4
From the perspective of both a senior judicial officer and a specialist in international trade law, the Ordinance signals a departure from the traditional, often dilatory, procedures of the Code of Civil Procedure (CPC) 1908 5, moving instead toward a specialized, time-bound, and technology-driven adjudication framework that mirrors the standards of established international commercial centers like Singapore and the UK.4
The Socio-Economic Imperative: Bridging the Justice Gap for LDC Graduation
The timing of this Ordinance is inextricably linked to Bangladesh’s impending graduation from the United Nations’ list of Least Developed Countries (LDCs), scheduled for 2026.7 As the nation seeks to attract higher levels of Foreign Direct Investment (FDI) and integrate more deeply into global supply chains, the efficiency of contract enforcement has become a primary economic indicator.8 Investors seek the assurance that disputes will be resolved within months rather than decades.8
The historical “culture of delay” in the Bangladeshi courts, where a standard civil suit can take 10 to 15 years to dispose, has functioned as a severe constraint on economic growth.3
Pre-Reform Status Versus Targeted Reform Outcomes
| Metric | Pre-Reform Status (2024–2025) | Targeted Reform Outcome |
|---|---|---|
| Total Pending Cases | 4,652,260 3 | Significant reduction via specialized diversion |
| Avg. Resolution Time (Civil) | 10–20 years 10 | Under 1 year for commercial matters |
| Judicial Capacity | <10 judges per million people 3 | Specialized benches with expert training 2 |
| Enforcement Mechanism | Cumbersome execution procedures 10 | Direct execution of mediated settlements 2 |
| Ease of Doing Business | 1,071+ days to settle disputes (Comparative) 11 | Alignment with top global economies |
The Ordinance addresses these systemic failures by establishing specialized Commercial Courts at the district level and dedicated Commercial Appellate Benches within the High Court Division.1
Jurisdictional Analysis: Defining the Commercial Sphere
A critical challenge in any specialized legal regime is the clear demarcation of its boundaries. Section 2(ঘ) of the Ordinance provides an exhaustive list of 24 categories of disputes that qualify as “commercial”.12 This broad definition is essential for capturing the multifaceted nature of modern trade, ranging from traditional mercantile transactions to sophisticated digital services and natural resource management.12
The 24 Functional Categories of Commercial Disputes
The Ordinance adopts a functional approach to jurisdiction, focusing on the nature of the transaction. Even when the government or a public service entity is a party, the dispute remains commercial if the subject matter fits the defined categories.2
- General Mercantile Transactions: Includes dealings of traders, bankers, and financiers, as well as the interpretation of commercial documents.12
- International Trade: Specifically targets the import and export of goods and services.12
- Aviation and Maritime: Covers sale, lease, and financing of aircraft and engines, as well as shipbuilding and export contracts.12
- Logistics and Infrastructure: Encompasses the carriage of goods and disputes arising from construction and infrastructure tenders.12
- Corporate and Investment: Includes joint ventures, shareholder agreements, and partnership contracts.12
- Intellectual Property: Provides specialized coverage for trademarks, copyrights, patents, industrial designs, and domain names.12
- Service Sector and Fintech: Explicitly includes outsourcing, financial services, and transactions under the Payment and Settlement Systems Act 2024.12
- Natural Resources and Energy: Covers mineral, gas, and electromagnetic spectrum usage contracts.12
- Insurance: Matters falling under the Insurance Act 2010, including reinsurance.12
The exclusion of the Artha Rin Adalat (Money Loan Courts) and the High Court’s original jurisdiction from this Ordinance is a strategic decision to maintain the stability of established specialized laws.13
The Pecuniary Threshold and the SME Dilemma
Initial proposals suggested a pecuniary threshold of Taka 50 lakh (5 million BDT).14 In international trade law, setting a threshold ensures that specialized judicial resources are reserved for complex disputes with macro-economic impact.15 However, this risks marginalizing Small and Medium Enterprises (SMEs).17
The Ordinance allows the government to re-determine this value limit as needed to ensure broader access.14
Procedural Revolution: From Reactive to Proactive Adjudication
The most significant jurisprudential shift is the move toward a judge-led case management system.4 Section 9 introduces “special provisions” that override standard CPC procedures where inconsistencies exist.1
The Suit Management Hearing (SMH) and Active Case Management
Section 9(4) introduces the “Suit Management Hearing,” where the judge must formulate core issues, determine the necessity of oral versus documentary evidence, and establish a strict timeline for each stage of the trial.4 This mechanism ensures that the trial proceeds without the frequent, open-ended adjournments that characterize general civil litigation.3
The 90-Day Trial Mandate: Ambition Versus Reality
Section 9(6) requires that the final hearing of a commercial dispute be completed within 90 days.1 While revolutionary, previous attempts at time-bound trials in Bangladesh, such as under the Nari-O-Shishu Nirjatan Daman Ain, have seen low conviction rates due to systemic bottlenecks like witness absenteeism.18
The Ordinance attempts to mitigate this through Section 9(6)’s provision for “exemplary costs” on parties whose negligence or willful delay hinders the proceedings.4
Summary Trial and the Elimination of Frivolous Litigation
Section 10 introduces “Summary Judgment,” allowing the court to dispose of a case without a full trial if one party has “no real prospect of succeeding” and there is no other compelling reason for a trial.4 This is particularly relevant for international trade to prevent meritless litigation used as a stalling tactic.20
| Procedure | Regular Trial | Summary Trial (Section 10) |
|---|---|---|
| Evidence Basis | Oral testimony and cross-examination 2 | Documentary evidence and affidavits 2 |
| Pleading Status | Full discovery and trial stages 22 | Early disposal after summons is served 8 |
| Standard | Preponderance of evidence 23 | “No real prospect of success” 20 |
| Goal | Adjudication of complex factual disputes | Elimination of “frivolous” claims 9 |
Alternative Dispute Resolution: The Mandatory Mediation Mandate
Section 7 makes pre-suit mediation mandatory, except in cases involving urgent interim relief.14 A settlement agreement reached through mediation, once signed by the parties and the mediator, shall be treated as a decree of the court.2 This aligns with international frameworks like the UNCITRAL Model Law on International Commercial Mediation.25
Institutional Autonomy: The Role of the Supreme Court Secretariat
The Ordinance’s implementation is buttressed by the Supreme Court Secretariat Ordinance 2025, which terminated the “dual administration” where the Ministry of Law controlled the transfers and promotions of the subordinate judiciary.27 This allows for:
- Specialized Appointments: The Chief Justice can prioritize judges with advanced qualifications in commercial law.1
- Dedicated Funding: The Supreme Court is given project-approval authority up to Taka 50 crore, enabling the high-tech infrastructure required by Section 14.4
Critical Legal Challenges and Constitutional Balance
While a landmark achievement, some provisions warrant scrutiny. Section 6(1) provides that no appeal shall lie against an order except for the final judgment.12 Aggrieved parties have 60 days to file an appeal or revision petition in the High Court Division.12 Critics suggest that defining commercial disputes too broadly might risk legal fragmentation and jurisdictional conflicts.30
Comparative Analysis: The Bangladesh Ordinance in the Global Landscape
| Feature | Bangladesh (2026 Ordinance) | Singapore (SICC Model) | India (2015 Act) |
|---|---|---|---|
| Bench Composition | Local Judges with Specialized Training 2 | Local and International Judges 31 | Specialized Judges 32 |
| Case Management | Mandatory SMH 2 | Active, Judge-Led Conferences 6 | Case Management Hearings 32 |
| Appellate Structure | High Court Benches 1 | SICC Court of Appeal 34 | Commercial Appellate Division 36 |
| IT Integration | Virtual Hearings & E-Filing 2 | High-Tech Courtrooms 6 | Digitization Focus 37 |
The SICC model utilizes “Memorials,” “Statements,” and “Pleadings” tracks to handle technical complexity.6 While Bangladesh has not yet adopted foreign jurists, the emphasis on “advanced qualifications” 2 signals a move toward global technical standards.
The Role of Information Technology and Transparency
Section 14 enables virtual hearings and electronic document filing.2 Furthermore, Section 11 mandates the monthly publication of case statistics on the Supreme Court website.4 This data-driven approach fosters a culture of accountability and efficiency.4
Stakeholder Perspectives and Economic Impact
The business community, including the Dhaka Chamber of Commerce and Industry (DCCI), has described the Ordinance as a “game-changing step” to boost private sector confidence.38 However, some legal professionals remain skeptical about “hasty implementation” and the potential for increased legal fragmentation.30
Conclusion
The Commercial Court Ordinance 2026 is a sophisticated legal instrument addressing judicial inefficiencies through the lens of economic modernization. Its success depends on implementation: the transition to an autonomous judiciary through the Supreme Court Secretariat provides the necessary foundation.27 If the state can successfully invest in digital infrastructure and specialized training for the bench and bar 9, the Commercial Courts will become a cornerstone of Bangladesh’s post-LDC prosperity.
Works Cited:
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- বাণিজ্যিক আদালত অধ্যাদেশ, ২০২৬
- Case backlog surpasses 4.65 m – Daily Industry, accessed January 3, 2026, https://www.dailyindustrybd.com/news/1699
- Bangladesh Launches Major Reforms to Modernize Commercial Justice System, accessed January 3, 2026, https://www.alm.com/press_release/alm-intelligence-updates-verdictsearch/?s-news-18668423-2025-12-06-bangladesh-launches-major-reforms-to-modernize-commercial-justice-system
- The Code of Civil Procedure, 1908 – Laws of Bangladesh, accessed January 3, 2026, http://bdlaws.minlaw.gov.bd/act-details-86.html
- CICC – Justice Steven Chong: Procedural Rules and … – 国际商事法庭, accessed January 3, 2026, https://cicc.court.gov.cn/html/1/219/208/203/12514.html
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- Bangladesh Moves to Strengthen Commercial Courts and Investor Confidence, accessed January 3, 2026, https://www.undp.org/bangladesh/press-releases/bangladesh-moves-strengthen-commercial-courts-and-investor-confidence
- A Study on Delay of Civil Suits of Bangladesh – IJARIIE, accessed January 3, 2026, http://ijariie.com/AdminUploadPdf/A_STUDY_ON_DELAY_OF_CIVIL__SUITS_OF_BANGLADESH_ijariie9581.pdf
- Impact of the Commercial Courts Act of 2015 on the Speedy Resolution of Commercial Disputes in India, accessed January 3, 2026, https://www.lawjournal.info/article/225/5-2-14-115.pdf
- Commercial Court Ordinance – A New Era for Trade Justice and Economic Growth | Bangladesh Sangbad Sangstha (BSS), accessed January 3, 2026, https://www.bssnews.net/news-flash/347176
- Notes on Arthorin Adalat Ain 2003 | Scribd, accessed January 3, 2026, https://www.scribd.com/document/692017592/Notes-on-Arthorin-Adalat-Ain-2003
- SC Sends Proposal to Law Ministry for Setting up Specialized Courts – BSS, accessed January 3, 2026, https://www.bssnews.net/news/314462
- The Commercial Courts (Amendment) Bill, 2018 – PRS India, accessed January 3, 2026, https://prsindia.org/billtrack/the-commercial-courts-commercial-division-and-commercial-appellate-division-of-high-courts-amendment-bill-2018
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- A Comprehensive Study on Impact of the Artha Rin Adalat Ain 2003 on Borrowers’ Rights, accessed January 3, 2026, https://www.researchgate.net/publication/389143094_A_comprehensive_study_on_impact_of_the_Artha_Rin_Adalat_Ain_2003_on_Borrowers’_Rights
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- Public Prosecution System in Bangladesh: Justice for Violence against Women and Girls, accessed January 3, 2026, https://dgikh81ssvyrj.cloudfront.net/media/documents/Public-Prosecution-System-in-Bangladesh-The-Issues-of-Justice-for-Violence-aga_IKQWThX.pdf
- What Is a Summary Judgment and How Does It Work? Harper James, accessed January 3, 2026, https://harperjames.co.uk/article/what-is-summary-judgment-how-does-it-work/
- Motions to Dismiss and Moving for Summary Judgment | NYSBA, accessed January 3, 2026, https://nysba.org/events/motions-to-dismiss-and-moving-for-summary-judgment-best-practices/
- The Singapore International Commercial Court: Friend or Foe to International Arbitration?, accessed January 3, 2026, https://legalblogs.wolterskluwer.com/arbitration-blog/the-singapore-international-commercial-court-friend-or-foe-to-international-arbitration-in-singapore/
- UNCITRAL Model Law on International Commercial Mediation, 2018, accessed January 3, 2026, https://uncitral.un.org/en/texts/mediation/modellaw/commercial_conciliation
- Annex II UNCITRAL Model Law on International Commercial Mediation, accessed January 3, 2026, https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/annex_ii.pdf
- DCCI Welcomes Commercial Court Ordinance, accessed January 3, 2026, https://www.tbsnews.net/bangladesh/dcci-welcomes-commercial-court-ordinance-sees-it-boost-business-climate-1319456
