In the present study, three bio-electrochemical treatment systems (BET) were designed with variations in cathode electrode placement [air exposed (BET1), partially submerged (BET2) and fully submerged (BET3)] to evaluate azo-dye based wastewater treatment at three dye loading concentrations (50, 250 and 500 mg L-1). Highest dye decolorization (94.5 +/- 0.4%) and COD removal (62.2 +/- 0.8%) efficiencies were observed in BET3 (fully submerged electrodes) followed by BET1 and BET2, while bioelectrogenic activity was highest in BET1 followed by BET2 and BET3. It was observed that competition among electron acceptors (electrode, dye molecules and intermediates) critically regulated the fate of bio-electrogenesis to be higher in BET1 and dye removal higher in BET3. Maximum half-cell potentials in BET3 depict higher electron acceptance by electrodes utilized for dye degradation. Study infers that spatial positioning of electrodes in BET3 is more suitable towards dye remediation, which can be considered for scaling-up/designing a treatment plant for large-scale industrial applications.