Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Wednesday, December 19, 2018 06:19:07 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Interest can't be reduced or waived by the court of law

Share your thought
Post a comment »
Read all () »

High Court Division :
(Civil Appellate Jurisdiction)
Mamnoon Rahman  J
Md Abu Zafor Siddique J

Sonali Bank .............
Md Lutfor Rahman and others ................
.......... Respondents
February 9th, 2012

Artha Rin Adalat Ain (VIII of 2003)
Section 50
Imposition of interest cannot be reduced or waived by the Court of law in any manner. The Court is to accept the rate of interest and other issues fixed by the financial institution.
...... (6)

Artha Rin Adalat Ain (VIII of 2003)
Section 47
The legislature imposed restriction on the claim to the tune that a financial institution in no way can demand any interest more than 200%. . ..... (6)
ABM Bayezid, Advocate-For the Appellant.
None appears-For the Respondents.

Md Abu Zafor Siddique J : This appeal is directed against the judgment and decree dated 3-4-1996 passed by the Artha Rin Adalat, Naogaon in Artha Rin Suit No. 196 of 1991 decreeing the suit in favour of the plaintiffs appellant.
2. The appellant on the basis of the application made by the defendant sanctioned credit facility to the tune of Taka 12 lakh vide sanction letter dated 23-1-1984 for which the defendant borrower executed registered mortgage of the property belonged to the borrower. Thereafter on different occasions the defendant borrower failed to adjust the credit facility for which the bank served legal notice and ultimately filed the Artha Rin Suit No. 196 of 1991. The defendant Nos. 1 to 5 and 6 9 contested the suit by filing separate written statement. The defendant in their written statement denied the material allegation made in the plaint. The Court below proceeded with the suit and ultimately on 3-4-1996 decreed the suit in the following terms:
অত্র মোকাদ্দমা একতরফা সূত্রে খরচায় ২৬,৬৫,০৭৮.২৭ (ছাব্বিশ লক্ষ পয়ষট্টি হাজার আটাত্তর টাকা সাতাশ পয়সার) ডিক্রি হইল। অত্র মোকাদ্দমা দায়ের এর হইতে ডিক্রির টাকা আদায় ১০% সুদে ডিক্রি দেওয়া হইল। অত্র আদেশের ষাট দিনের মধ্যে বিবাদী ডিক্রির টাকা পরিশোধিত না করিলে আদালত যোগে আদায় করা যাইবে।
মোঃ আব্দুল হামিদ
সাব জজ, অর্থঋণ আদালত, নওগাঁ।
3. Being aggrieved the appellant preferred the instant appeal before this Court.
4. No one appeared on behalf of the respondent to oppose the appeal.
5. Mr ABM Bayezid, the learned advocate appearing on behalf of the plaintiff appellant submits that the Court below without applying its judicial mind and without considering the facts and circumstances and the material specially the sanction letter as well as the other papers and documents most illegally and in an arbitrary manner passed the impugned judgment and decree wherein the Court below allowed an interest to the tune of 10% instead of 20% as claimed by the bank. He submits that admittedly the plaint/sanction letter was amended without any objection by the defendant wherein the interest rate was raised and as such as per the contract namely the sanction letter the borrower defendant is liable to pay interest at the rate of 20%. He submits that the money due to the defendants are public money and the borrower failed to adjust the same and as such the Court below erred in law in imposing interest at the rate of 10% despite the provision of imposing interest at the rate of 20% as per the sanction letter as well as the Bangladesh Bank direction.
6. We have heard the learned Advocate, perused the Memorandum of Appeal, impugned judgment and decree and LC record. Admittedly the Bank appellant sanctioned credit facility in favour of the defendant for business purpose to the tune of Taka 12 lakh Admittedly the predecessor of the defendant failed to adjust the credit facility for which the Bank instituted the suit. The defendant contested the suit by filing written statement wherein the defendant Nos. 1-5 in their written statement raised specific objection regarding the manner of imposition of interest as well as its rate and applicability. However the Court below decreed the suit exparte. The main contention as raised by the appellant is that the Court below while imposing interest reduced the same from the agreed amount. It appears from the sanction letter as evident in exhibit 1 that 5-1/2 % above bank rate minimum 60% per annum with quarterly rest subject to application for penal interest due to unsatisfactory contract of the above. However it appears from the L, C record that in the said sanction letter there is over a riding and another set discloses as 4% to 14 1/2%. It also appears that the original borrower died and subsequently the predecessor of the borrower contested the suit. It also appears from the LC record that the predecessor in interest of the defendant respondent approached the bank for waiver of the interest on the plea of deposition of Taka 8,81,125  Taka 5,000 as well as Taka 50,000. It further appears that while decreeing the suit, the Court below also considered this aspect. The Act 4 of 1990 was enacted for the purpose to realization of loan of the financial institution. Subsequently the same was amended in the year 2003. On perusal of the provision as laid down in the act of 2003 namely Section 50 it appears that the imposition of interest cannot be reduced or waived by the Court of law in any manner. The Court is to accept the rate of interest and other issues fixed by the financial institution. But on perusal of the Act of 1990 we do not find any such provision which shows that the Court while decreeing the suit cannot consider the imposition of interest and other issues. Admittedly in the present suit, the Court decreed the suit in favour of the plaintiff Bank for the full loan amount as well as 10% interest. Though the Act of 2003 came much later but in Section 47 of the present Act, the legislature imposed restriction on the claim to the tune that a financial institution in no way can demand any interest more than 200%.
7. Considering the facts and circumstances, we find no merit in this appeal.
8. Accordingly the appeal is dismissed.
Send down the LC record with a copy of the judgment at once.

Add Rate

News Archive

Inside The New Nation

Entertainment »

I always try to push negativity aside: Sunny Leone

Adult film star-turned-Bollywood actor Sunny Leone, who is often a target of sexist and disparaging remarks by people, says she is disturbed when "nonsense" gets highlighted."I always try to push negativity aside, but there are some things which I can't because I am also a human and I have feelings."I ...

Cricket »

Australia wins 2nd Test vs India by 146 runs, series 1-1

AP, Australia :Australia trounced India by 146 runs in the second Test to level the four-Test series 1-1 on the final day on Tuesday.Needing 287 runs to win, India resumed the day on 112-5 and was all out in a hurry for 140 in the second innings, and Australia was ...

Sports »

WTA changes rules affecting players returning from pregnancy

AP, St. Petersburg :The women's tennis tour approved rule changes Monday that are meant to ensure players are not penalized after they return from pregnancy or an injury that causes a long absence.The changes were prompted, in part, by the experiences of former No. 1 players Serena Williams and Victoria ...

Editorial »

The administration must prove its ability to hold free and fair polls

NEW United States ambassador in Dhaka Robert Earl Miller said that his country expected the upcoming December 30 elections in Bangladesh to be free, fair and credible as he paid a courtesy call on Prime Minister Sheikh Hasina. The US Ambassador informed the PM that his country would send 32 ...

Business & Economy »

Parveen Haque Sikder, EC Chairperson of National Bank Limited, inaugurating its 201st branch at Hili Land Port on Tuesday. Ali Haider Mortuza, Vice-President, other officials of the Bank, local businessmen and elites were also present.

International »

Former FBI chief lashes out at Trump, Republicans for telling `lies`

CNN, Washington :Washington (CNN)Former FBI Director James Comey slammed Republicans on Monday for not speaking out against President Donald Trump's attacks on the FBI and strongly defended the agency's conduct, following his second round of questioning at a closed-door congressional interview."Somebody has to stand up and speak for the FBI," ...

Chittagong »

A discussion meeting was held at Chattogram University of Engineering and Technology (CUET) marking the Victory Day on Sunday. Prof Dr Md Rafiqual Alam, VC of the University was present as Chief Guest.

City »

Vice-Chancellor of Dhaka University Prof Dr Akhtaruzzaman poses for photo session with the recipients of Provost Awards of Bijoy Ekattor Hall of DU in its auditorium on Tuesday.

Entertainment »

Ankhi Alamgir enthrals Kolkata audience

Entertainment Report :   In the beginning of current year popular singer Ankhi Alamgir performed in Utsab at Jodhpur Park in Kolkata. In the meantime, she also went to Kolkata for several times. On December 14, she got the opportunity to perform as a leading singer of Bangladesh at outdoor pool ...

Business & Economy »

Choudhury Atiur Rasul, Chief Financial Officer of Agricultural Marketing Company Limited (AMCL), a sister concern of PRAN Group, receiving the 'ICMAB Best Corporate Award-2017' in the Miscellaneous Manufacturing Category from Finance Minister Abul Maal Abdul Muhith, at a programme held at a hotel in the city on Saturday. Dr. M Khairul Hossain, Chairman of Bangladesh Securities and Exchange Commission and Suvod Kumar Karn, President of South Asian Federation of Accountants were also present.


Cricket »

Shakib Al Hasan plays a shot during the first Twenty20 International match between Bangladesh and West Indies at Sylhet International Cricket Stadium on Monday. Shakib scored 61 runs.

Cricket »

Fizz moves to top five in ODI rankings

Mustafizur Rahman has made a big leap to enter into the top five ranks of ICC ODI bowling rankings. Other Bangladeshi players have also made progress in the rankings after the end of Bangladesh-Windies ODIs.The Fizz moved five places to no.5 in the rankings. He has career-best 695 points against ...

Editorial »

Dhaka must involve ASEAN nations for early Rohingya repatriation

MALAYSIAN Prime Minister Mahathir Mohamad on Sunday asked the ASEAN nations to take tough measures for creating pressure on Myanmar and its de facto leader Aung San Suu Kyi to end atrocities against the Rohingya Muslims. More than 720,000 Rohingyas have fled Myanmar's strife-torn Rakhine State to Bangladesh since August ...

International »

Indian troops enforce lockdown to foil Kashmir public march

AP, Srinagar :Soldiers and police fanned out across Indian-controlled Kashmir on Monday to enforce a security lockdown for a second straight day to stop anti-India protests and foil a call by separatists for a march toward India's main military garrison in the disputed region.Government forces patrolled streets in the region's ...

Cricket »

Sri Lanka 275-9 at stumps on day 1, 1st Test vs New Zealand

AP, New Zealand :Tim Southee took 5-67 as New Zealand exploited an influential toss to contain Sri Lanka to 275-9 Saturday on the first day of the first cricket Test at the Basin Reserve.A late unbeaten half century by wicketkeeper Niroshan Dickwella helped swing the day a little in Sri ...

Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Write a comment to this news