The initiation of commercial courts signifies a crucial and well-timed reform in Bangladesh’s judicial system. Businesses have long grappled with protracted legal battles, growing case backlogs, and inefficiencies in resolving commercial disputes. The establishment of specialized commercial courts under the Commercial Court Ordinance, 2026 underscores the understanding that economic progress and judicial effectiveness are closely intertwined. A recent announcement has led to the establishment of three commercial courts in Dhaka Metropolis and two in Chattogram Metropolis, with an additional 70 courts in other metropolitan areas and districts nationwide, totaling to 75 commercial courts operational across the country.
A significant challenge for the business community has been the delay in adjudicating cheque dishonor cases under Section 138 of the Negotiable Instruments Act. Despite being a criminal offense, these cases often drag on for years, impacting businesses with unpaid invoices and causing working capital constraints. The sluggish enforcement process erodes trust in commercial transactions and undermines the reliability of cheques as payment instruments.
Aside from cheque dishonor cases, enforcing commercial contracts in Bangladesh has historically been slow and unpredictable. Civil courts handle a wide array of disputes, resulting in commercial matters competing for limited judicial attention. This leads to prolonged resolution times for complex contractual disputes related to supply agreements, shareholder arrangements, construction contracts, and banking transactions, escalating business costs and introducing uncertainty. The introduction of commercial courts is a positive step forward. By allocating specific courts exclusively for commercial disputes, the judiciary can streamline case management, prioritize business conflicts, and reduce the backlog. Segregating commercial cases from general civil and criminal dockets should facilitate more focused adjudication, expedited hearings, and enhanced decision consistency.
The establishment of commercial courts is anticipated to enhance the business environment in Bangladesh. A critical benchmark in global business evaluations is the time and expenses associated with enforcing contracts. International investors have voiced concerns over legal system delays and uncertainties, influencing investment decisions. A dedicated forum for resolving commercial disputes within a defined timeframe can directly address these apprehensions, boosting investor trust and positioning Bangladesh as a more competitive investment hub.
Nevertheless, the efficacy of commercial courts hinges on the availability of trained judges with commercial acumen. Commercial disputes encompass various aspects like corporate governance, financial instruments, cross-border dealings, insolvency matters, and intricate contractual frameworks. Judges assigned to these courts must possess not only legal proficiency but also a deep comprehension of commercial realities. Judicial education plays a pivotal role in this reform. Comprehensive training in commercial law, banking law, company law, and modern case management practices is imperative. Ongoing professional development ensures that judges are well-versed in evolving business practices and financial systems. Procedural efficiency, including adherence to strict timelines, minimizing unnecessary delays, and leveraging technology for filings and case monitoring, is equally crucial.
In essence, the establishment of 75 commercial courts nationwide has the potential to revolutionize Bangladesh’s commercial legal landscape. By expediting cheque dishonor cases and fortifying contract enforcement, these courts can restore trust in financial transactions, enhance the business climate, and convey to international investors Bangladesh’s commitment to an efficient, dependable, and investment-friendly legal framework.
