Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Saturday, February 29, 2020 03:25:31 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Bank Companies Act' 1991

BB enjoys the authority to safeguard public interest first

  • Twitter
  • Google+
  • Save
  • E-mail
  • Print
Share your thought
Post a comment »
Read all () »

High Court Division :
(Special Original Jurisdiction)
Md Ashfaqul Islam J }
KM Kamrul Kader J }
SA Oil Refinery Ltd……Petitioner
Bangladesh Bank and others…..Respondents    
April 12th, 2018
Bank Companies Act (XIV of 1991)
Sections 45(l)(Ga)(Gha) and 49(Kha)
Under Bank Companies Act, 1991 Bangladesh Bank (BB) holds a sublime position as a strong regulatory body and can interfere with the functioning and business of banking companies in a given situation………………………. (11)
Professor Muhammad Yunus vs Bangladesh, 63 DLR 260; Mr ASF Rahman vs Bangladesh Bank, 20 BLD (AD) 32 = 52 DLR (AD) 61 and JIT Knit Composite Ltd., vs Government of Bangladesh, 18 BLC 480 ref.
Najmul Karim, Faisal Mahmud Faizee, Nahid Sultana, Muhammad Anjarul Hasan, Md Rafiul Islam, Advocates-For the Petitioners.
Sabel Nawaz, Md Golam Sarwar, Maloy Kumar Roy, Sabel Nawaz, Advocates- For the Respondents
Md Ashfaqul Islam J : All these Writ petitions are taken up together for hearing and disposed of by a single judgment as there involved a common question of fact and law.
2. In all the petitions, the Rule Nisi was issued almost in a common terms. In writ petition No. 5376 of 2017 Rule was issued calling upon the respondents to show cause as to why the respondent Nos. 1-3 should not be directed to exercise 'the jurisdiction as contemplated in Section 49(1)(Cha) of the Bank Companies Act, 1991 in connection with the petitioner's loan accounts lying with the respondent Nos. 4 & 5 by directing them to review and reschedule the petitioner's liabilities and as to why the report of the Credit Information Bureau of Bangladesh Bank classifying the petitioner as defaulter borrower and debarring the petitioner from enjoying any kind of banking accommodation by application of Section 27 KaKa (3) of the Bank Companies Act, 1991 should not be declared to have been made without lawful authority.
3. Facts are also similar in other writ petitions and can be ascertained from the terms of the respective Rule. Mainly a direction has been sought upon in all the petitions upon the respondents who are the different wings of respondent No.1 Bangladesh Bank.
4. In all the cases complications have arisen due to recovery of loan as mentioned in the petition. Inaction on the part of the respondent Nos. 1-2 as regulatory authority in this respect is under challenge.
5. Mr Sabel Nawaz and Mr Md Golam Sarwar, the learned Advocates appearing for the petitioners candidly submits that it is within the absolute domain and competence of Bangladesh Bank to give a decision in a situation like this. However, Mr A Al-Masud Beagh and Mr Nikhil Kumar Biswas, the learned Advocates for the respondent-bank emphasized that whatever decision Bangladesh Bank would take in this regard should be taken in terms of the relevant laws applicable in that regard.
6. We have heard the learned counsel of both sides and considered their respective submissions. We have already mentioned that we are not going to touch upon the merit of the case in minute details by considering submissions of both sides. We have evaluated the petition, affidavit in opposition and other papers filed by the parties with precision. All these materials are before the respondent Nos. 1-2 and in all fairness we would expect that after scrutinizing those papers and documents and the relevant Laws as hinted herein after the respondents shall come to a decision.
7. That being the position, we do not want to embark upon vividly touching upon the merit of the case rather we think it would be worthwhile to leave the matter to be decided by the respondent No.I. Bangladesh Bank within their jurisdiction conferred under Section 45(1) (Ga) (Gha). 49 (Khal) of Bank Companies Act. 1991 read with Article 7 A(f) of the Bangladesh Bank Order 1972 (PO 127 of 1972).
    (emphasis added)
8. Let us now see what are the relevant provisions of laws on the issue-
Section 45 of the Bank Companies Act, 1991 runs  as follows:-
৪৫ । (১) বাংলাদেশ ব্যাংক যদি এই মর্মে সš'ষ্ট হয় যে  ক) জনস্বার্থে, বা  খ) মুদ্রানীতি এবং ব্যাংক-নীতির উন্নতি বিধানের জন্য, বা  গ) কোন ব্যাংক-কোম্পানীর আমানতকারীদের স্বার্থের পরিপšি' বা ব্যাংক-কোম্পানীর স¦ার্থের পক্ষে ক্ষতিকর কার্যকলাপ প্রতিরোধ করার জন্য; বা  ঘ) কোন ব্যাংক-কোম্পানীর যথাযথ ব্যব¯'াপনা নিশ্চিত করার জন্য, সাধারণভাবে সকল ব্যাংক-কোম্পানীকে, অথবা বিশেষ কোন ব্যাংক-কোম্পানীকে নির্দেশ প্রদান করা প্রয়োজন, তাহা হইলে বাংলাদেশ ব্যাংক যথাযথ নির্দেশ জারী করিতে পারিবে; এবং সংশ্লিষ্ট ব্যাংক-কোম্পানী উক্ত নির্দেশ পালন করিতে বাধ্য থাকিবে ।
২। বাংলাদেশ ব্যাংক স্বে"ছার অথবা উহার নিকট পেশকৃত কোন আবেদনের পরিপ্রেক্ষিতে উপ-ধারা  (১) এর অধীন প্রদত্ত নির্দেশ খারিজ  বা পরিবর্তন করিতে পারিবে; এবং এইরূপ বাতিলকরণ বা পরিবর্তন শর্তসাপেক্ষ হইতে হইবে ।
 ৯. ঝবপঃরড়হ ৪৯ ড়ভ ঃযব অপঃ ভঁৎঃযবৎ ংঃরঢ়ঁষধঃবং-
ধারা-৪৯ বাংলাদেশ ব্যাংকের অধিকতর ক্ষমতা ও কার্যাবলী ।
(১)    বাংলাদেশ ব্যাংক ---
ক) সাধারণভাবে সকল বা কোন বিশেষ ব্যাংক-কোম্পানীকে কোন নির্দিষ্ট বা বিশেষ শ্রেনীর লেনদেনে চুক্তিবদ্ধ হওয়ার বিরুদ্ধে সতর্ক বা নিষেধ করিতে পারিবে ;
খ) সাধারণভাবে সকল বা কোন বিশেষ ব্যাংক-কোম্পানীকে উহাদের বা উহার (ব্যবসা) সংক্রান্ত কোন বিশেষ ব্যাপারে নির্দিষ্ট কোন কার্যক্রম গ্রহণ না করার জন্য বা করার জন্য নির্দেশ প্রদান করিতে পারিবে;
10. Then Article 7 A (f) States:
The main functions of the Bank Shboth be:
f)    to regulate and supervise banking companies and financial institutions, (underlining's are mine)
11.    On a combined reading of the above provisions, we want to reiterate that under Bank Companies Act, 1991 Bangladesh Bank holds a sublime position as a strong regulatory body and can interfere with the functioning and business of banking Companies in a given situation. Section 45(1) (Ga) (Cha) and 49(Kha) read with Article 7 A (f) of the Bangladesh Bank Order 1972 (PO 127 of 1972) in particular play a pivotal role in this regard.
12. In the case of Professor Muhammad Yunus vs Bangladesh, 63 DLR 260 it was held that under Sub-Section (l)(Ka) and Sub-Section (l)(Gha) of the Section 45 of the Act, Bangladesh Bank enjoys the authority to pass any direction on both or any of the Bank-Companies in the public interest or for ensuring proper management.
13. In this context we think it relevant to quote a line from the decision of the Mr ASF Rahman vs Bangladesh Bank, 20 BLD (AD) 32 = 52 DLR (AD) 61. In para 11 of the said decision our Appellate Division clearly observed- "Section 45(1)(Ga)(Gha) and Section 49(Kha) of the Bank Companies Act clearly invest Bangladesh Bank with a strong regulatory power over the functioning and business of banking companies."
14. In JIT Knit Composite Ltd. vs Government of Bangladesh, 18 BLC 480 where one of us was a party unequivocally endorsed the view of our Appellate Division and observed-
"Under Bank Companies Act, 1991 Bangladesh Bank holds a sublime position as a strong regulatory body and can interfere with the functioning and business of banking Companies in a given situation."
Fortified with all the decisions referred to above and our observations, all the Rules are disposed of Respondent No.1, Governor, Bangladesh Bank is hereby directed to give a decision with due importance on the matter within 4 (four) months on receipt of this order. The order of stay granted earlier by this Division shall continue till decision of the respondent.

Add Rate

News Archive

Inside The New Nation

Entertainment »

Jacqueline shares her secret mantra to happiness

Jacqueline Fernandez holds the best name and fame for being happy and lightning up the place wherever she goes. The audiences always wonder how she keeps up with this charming nature. Sharing her secret mantra to staying happy Jacqueline shares, “It is not that I am consistently happy. I am ...

Editorial »

Power prices hike to make more hazards to people

AT a time when people are grappling with high prices of many daily essentials, the government has hiked electricity prices, which is likely to cause a big ripple effect on the economy. The new rate will take effect from Sunday, and in a few weeks power consumption will increase with ...

Sports »

Sweden's Pernilla Lindberg watches her tee shot on the eighth hole during the opening round of the New Zealand Golf Open in Queenstown, New Zealand on Thursday.

International »

UN chief declares women’s inequality ‘stupid’ and a global shame

Reuters, United Nations :United Nations Secretary-General Antonio Guterres called women's inequality "stupid" and a cause for global shame on Thursday, as he pledged to press governments to end discriminatory laws in the face of a "strong and relentless pushback" against women's rights.While Guterres did not name and shame, U.S. President ...

International »

Netanyahu is Israel’s longest-serving Prime Minister

AFP, Jerusalem  :Facing a corruption indictment, Benjamin Netanyahu-Israel's longest-serving prime minister-is a veteran rightwinger, former elite soldier and a close ally of US President Donald Trump.The 70-year-old is the first premier in Israeli history to be indicted in office, accused of corruption charges that could end the veteran leader's political ...

Editorial »

It is a relief not to slash interest rates on postal savings

The government on Wednesday backtracked on its decision to slash the interest rates on ordinary and fixed deposits in Post Office Savings Bank, with the previous rates to return from next month. The disclosure came two weeks after the Finance Ministry decided to slash the interest rates on the three-year ...

International »

Pelosi urges Democratic unity amid Sanders` campaign surge

AP, Washington  :Speaker Nancy Pelosi on Wednesday urged party unity amid Bernie Sanders' surge in the presidential race, even as House Democrats worry about a volatile election season that could put a self-described democratic socialist atop the ticket and threaten their majority."I would hope that everyone would say, no matter ...

City »

Desh Banchao Manush Banchao Andolon formed a human chain in front of the Jatiya Press Club on Thursday in protest against killing of people and ransacking of religious establishments in Delhi.


Entertainment »

Neha Dhupia looks glamorous in this Pooja Shroff outfit

Neha Dhupia is known for being a fashion icon as her sense of style never fails. This time she adorns a beautiful Pooja Shroff outfit from her SS’20 collection that she showcased at the Lakme Fashion Week S/S 2020 and we are awestruck! Neha Dhupia rocks the Pooja Shroff’s SS’20 ...

Editorial »

Corruption is the ultimate outcome of unethical evil politics

MEMBERS of Rapid Action Battalion on Tuesday recovered Tk 26.55 crore in cash and fixed deposit receipts worth Tk 5.15 crore from the flat of two ruling party men Enamul Haque Enu and Rupon Bhuiyan who were earlier detained for their involvement in the illegal casino business. A good amount ...

Entertainment »

Kriti Sanon brings fashion in full spring

Kriti Sanon looks all pop and fun as she poses for her clothing brand’s new amazing spring-summer collection 2020.Styled by Kriti Sanon, MsTaken is the fashion brand for the bold and carefree woman of today. The brand says, “life isn’t serious” it materialises its tag line by being peppy and ...

Sports »

Jelena Ostapenko of Latvia hits a return during the women's singles second round match against Barbora Strycova of the Czech Republic at the 2020 WTA Qatar Open in Doha, Qatar on Tuesday.

International »

Sanders calls Netanyahu 'reactionary racist'

The Independent :Bernie Sanders has called Israeli prime minister Benjamin Netanyahu a "reactionary racist", while saying he supports Israel during the latest Democratic debate.Mr Sanders, who is one of the frontrunners in the contest, said he was "very proud" to be Jewish when he was asked about his position on ...

Entertainment »

Nishita always keeps requests from audience

Entertainment Report :While performing in stage shows popular singer Nishita Barua always got requests from the audience to render her popular original song titled Bondhu Tomai Mone Pore and she also kept their requests. It is Nishita-rendered her most popular song. This time another two songs of her includes in ...

International »

Turkey, Russia to hold more talks to reduce Syria tensions

AP, Ankara :Turkey's president announced Tuesday that a Russian delegation would arrive the following day to resume talks aimed at easing tensions in northwestern Syria. He also said no consensus was reached for a four-way meeting next month between the leaders of France, German, Russia and Turkey.However, Recep Tayyip Erdogan ...

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