The High Court on Wednesday came up with an order, saying no bank or financial institute will be allowed to file cheque dishonour cases while recovering a loan.
A single judge bench of Justice Md Ashraful Kamal passed the order, allowing an appeal of a customer, who has been convicted and sentenced to six-month imprisonment in a cheque dishonour case, of BRAC bank.
The High Court in its order further said insurance coverage is needed against all kinds of loans. The court asked Bangladesh Bank authorities to issue directions and requested the National Parliament to amend concerning law in this regard.
The court asked lower courts not to accept any cheque dishonour case filed by any bank or financial institute from now on.
Confirming the matter to BSS, BRAC Bank lawyer Saifuzzaman Tuhin said banks or financial institutes will only be allowed to file cases with Artha Rin Adalat in line with measures narrated in Money Loan Court Act, 2003, while recovering loans.
The court came up with its judgment while holding a hearing on an appeal filed by one Md Ali, who has been sentenced to six-month imprisonment and fined Tk 2.95 lakh. Allowing the appeal of the convict, the court ordered him to pay back 50 per cent of the deposit within the next 10 days.
Advocate Abdullah Al Baki moved the case for the appellant, while Saifuzzaman Tuhin stood for Brac Bank. Deputy Attorney General Ashek Momin appeared for the state.