M&C represented a U.S.-based foreign investor in securing interim protection restricting the bank account operations of its Bangladeshi joint venture partner in support of ongoing international commercial arbitration.
The High Court Division recently granted interim protection under Section 7A of the Arbitration Act, 2001, in support of ongoing arbitration proceedings involving a foreign investor and its Bangladeshi joint venture partner.
The dispute arose between a major U.S.-based technology company and one of Bangladesh’s largest business groups. Following commencement of the arbitration, Mahbub & Company’s Cross-Border Dispute Resolution team acted for the foreign investor in seeking urgent court protection in Bangladesh to preserve its position pending determination of the dispute by the arbitral tribunal.
Following a hearing, the Court granted interim injunctive relief in favour of the foreign investor by restricting the Respondent’s operation of its bank accounts, except for payments relating to salaries, utilities and statutory returns. The relief secured an immediate and commercially significant safeguard while the cross-border arbitration remained pending.
On the Respondent’s subsequent modification application, the Court permitted reasonable operating expenses subject to statements of account being provided to the Petitioner, while leaving the exclusivity-clause issue to the arbitral process.
The matter demonstrates Mahbub & Company’s strength in managing complex cross-border disputes requiring coordinated arbitration strategy and urgent court intervention. The team combined international commercial dispute expertise with effective local advocacy to obtain and preserve meaningful asset-protection measures, while ensuring that substantive contractual issues remained within the jurisdiction of the arbitral tribunal.
The Cross-Border Dispute Resolution team of Mahbub & Company was led by Saqeb Mahbub, Partner; Rifat Rahman, Senior Associate; and S. M. Shakil, Associate. The team is also representing the foreign investor in the related international commercial arbitration.
The Petitioner was also represented by Mr Fida M. Kamal, Senior Advocate and former Attorney General for Bangladesh, and Mr Aneek R. Haque, Senior Advocate and Additional Attorney General of Bangladesh, as Senior Counsels.
