Bangladesh Institute of Bank Management

Mirpur-2, Dhaka

Certified Expert in Credit Management (CECM)

(10th Intake_2nd Batch: On Campus Module)

Group Assignment
Application of Legal and Non- Legal measures and their effectiveness in loan recovery

Name of Participant : SHAIKH JALAL UDDIN

Participant’s Serial No. : Serial No. 17

Participant’s ID No. :
Name of Affiliated Institute : Standard Chartered Bank
Cell Phone Number : +8801719646831
Email Address : [email protected]

Date of Submission: February 10, 2023

 Bangladesh Institute of Bank Management
Mirpur-2, Dhaka

Certified Expert in Credit Management (CECM)

(10th Intake_2nd Batch: On Campus Module)

Group Assignment
Application of Legal and Non- Legal measures and their effectiveness in loan recovery

Name of Participant : NOOR E BAHAR MINA

Participant’s Serial No. : Serial No.

Participant’s ID No. :
Name of Affiliated Institute :
Cell Phone Number :
Email Address :

Date of Submission: February 10, 2023

 Bangladesh Institute of Bank Management
Mirpur-2, Dhaka
Certified Expert in Credit Management (CECM)

(10th Intake_2nd Batch: On Campus Module)

Group Assignment
Application of Legal and Non- Legal measures and their effectiveness in loan recovery

Name of Participant : MD. ALAMGIR SHA TALUKDER

Participant’s Serial No. :
Participant’s ID No. :

Name of Affiliated Institute :

Cell Phone Number :
Email Address :

Date of Submission: February 10, 2023

 Bangladesh Institute of Bank Management
Mirpur-2, Dhaka
Certified Expert in Credit Management (CECM)

(10th Intake_2nd Batch: On Campus Module)

Group Assignment
Application of Legal and Non- Legal measures and their effectiveness in loan recovery

Name of Participant : SAGAR SEN NATH

Participant’s Serial No. : 14
Participant’s ID No. :

Name of Affiliated Institute : Standard Bank Ltd.

Cell Phone Number : 01812584585
Email Address : [email protected]

Date of Submission: February 10, 2023

 Bangladesh Institute of Bank Management
Mirpur-2, Dhaka
Certified Expert in Credit Management (CECM)
(10th Intake_2nd Batch: On Campus Module)

Group Assignment
Application of Legal and Non- Legal measures and their effectiveness in loan recovery

Name of Participant : BISHWARUP CHAKRAVARTY

Participant’s Serial No. : Serial No. 23

Participant’s ID No. :
Name of Affiliated Institute : The Premier Bank Ltd.
Cell Phone Number : 01915937583
Email Address : [email protected]

Date of Submission: February 10, 2023

 Bangladesh Institute of Bank Management
Mirpur-2, Dhaka
Certified Expert in Credit Management (CECM)
(10th Intake_2nd Batch: On Campus Module)

Group Assignment
Application of Legal and Non- Legal measures and their effectiveness in loan recovery

Name of Participant : MITHUN CHOWDHURY

Participant’s Serial No. : Serial No.
Participant’s ID No. :
Name of Affiliated Institute :
Cell Phone Number :

Email Address :

Date of Submission: February 10, 2023

Introduction: Bank business basically deals with money. Bank collects deposit from the
customers and lends it to the borrowers; actually these are the main functions of Bank Business.
Borrowers are supposed to return the money to the bank with interest. But at the end of the day it
has been observed that a certain portion of money remains unpaid by the borrowers which are
considered as the classified loan or Non-performing loan (NPL).
A loan which has already turned default or close to being defaulted is named Non performing
loan (NPL) which means when a bank fails to collect the interest payments or the principal
amount then that loan is considered to be non-performing loan. A non-performing loan is one
which remains overdue for such a period or more as defined by the country’s regulatory body
excepting some special cases. Non-performing loan mainly include three categories of loan- sub-
standard, doubtful and bad/loss, all of which are calculated on the basis of uniform criteria
prescribed by Bangladesh Bank. A nonperforming loan (NPL) is a loan that is in default due to
the fact that the borrower has not made the scheduled payments for a specified period and the
lender deprived of regular earnings.

Present situation of NPL

At a time when the country’s economy was on its way for a turnaround from pandemic-induced
losses, the banking sector has fallen into deep trouble with default loan shooting up by Tk.
31,122.00 crore in the first nine months of year 2022 after the end of moratorium facility in
December 2021.
(Amount in Billion BDT)

Table: Banking Sector NPL Ratio

Source: Financial Stability Department, September-2022, Bangladesh Bank.

From the above table the default loans stood at Tk. 1.34 lakh crore at the end of September 2022
from Tk. 1.03 lakh crore in December 2021, according to data from the Bangladesh Bank.
The banking sector saw a sharp rise of Tk. 9,139.00 crore in default loans in the July-September
quarter in 2022, taking the rate to 9.36%. In the January-March quarter, default loans rose by Tk.
10,167 crore.

Business activities had returned to normal since last year following a pandemic-led hiatus, but
default loans kept rising as banks moved for classifying accounts that were shown regular under
the moratorium package

When high Non-performing Loan levels upset an adequately large number of banks, the financial
system discontinues functioning typically, and banks can no longer deliver credit to the
economy. A quick recovery can be useful for the financial market which helps from not
functioning and it helps the bank from failing among banks. In such situations, Banks usually
step in to the crisis response. At this stage, bank authority tries to adopt strategies for the
resolution of Loan problems in the Bank.

NPL Account Management

There are lots of measures or techniques are being used by the bank to recover the NPL.
Generally these measures have been divided into two broad categories.
1. Non Legal Measure
2. Legal Measure.
Firstly a bank takes Non legal measures to recover the when a loan becomes classified or non-
performing loan. When non legal measure doesn’t work properly then Banks go for legal
measures to recover the loan.
Recovery of Banks’ NPL through Non-Legal Measures: As we discussed earlier that there are
lots of non-legal and legal measures have been used by the bank to recover the NPL amount. The
non-legal measures are given below:
Recovery through persuasion and follow up:
The prime objective of a banker is to collect the lending money from the borrowers with interest
amount. In this regards the banker continuously keep persuasion with the borrower. Persuasion
depends upon nature and merit of the loan and advances. In case of continuous and demand loan
the persuasion procedure will be different from the persuasion of fixed term loan. Persuasion
starts from as soon as the loan becomes unsatisfactory and it continues till the adjustment of the
loan. However persuasion may start at any time, if a loan accounts losses its merit for some
reasons appears becoming non performing for recovery in future.
Issuance letters/Reminders:
Issuance of letter/reminder is a very common non legal technique to recover the NPL amount
from the borrower. In case of continuous loan such as cash credit, overdraft, SOD the reminder
letter must be sent one or two month ahead from the expiry date. Also if any interest remains
unpaid the reminder letter must send to the borrower to adjust the excess over limit of that
particular loan. Also the letter/reminder letter must send to the borrowers to renew the
continuous loan as soon as the expiry of the loan. In case of term loan the letter/ reminder must
send to the borrower when any installment or part of installment remains unpaid three months or
more. Actually reminder letter indicates that the bank is very much worried about your behavior
regarding loan repayment system. it reminds the borrowers that he or she has a liability with the
bank which needs to be adjusted within a stipulated time frame otherwise the bank can take any
action against him or her.
Inspection/ Site Visit:
Inspection or site visit is also a fruitful non legal measure to recover the classified loan. The
Branch Manager or relationship manager credit will frequently visit the client business and
factory and they will try to identify what is the reason for default. The Branch Manager and
relationship manager will verify the stock report which was given by the borrowers. After
inspection the business or go down of the borrower the Branch manager can take the decision
how he can move to collect the default money. Also it will be easier to identify whether the
money has diverted to other place or not. Also it will clearly be identified whether the borrower
is a willful defaulter or not. Based on their inspection they will submit their report to the higher
management for taking decision.
Negotiation:
The Branch Manager or relationship manager tries to recover the NPL amount through
negotiation with the client. The negotiation includes the following matters:
 Possibility of adjustment of loan within a shorter period of time
 Reschedule of the existing loan or loan limit by realizing the required down payment.
 In some cases after negotiation with the clients the loan may be restructured to recover or
adjustment of the entire NPL amount.
 Additional time may be given to the borrower to adjust the loan on the basis of a concrete
negotiation with client.
Supervision, monitoring, Early alert process and reporting:
a) At every stage the NPL accounts must be closely supervised by the Branch manager or
relationship manager of credit. Monitoring and supervision create extra pressure to the
client to adjust the loan. Also by supervision the relationship manager can easily be able
to understand what the real condition of the borrower is whether the borrower has the
ability to adjust the classified amount or not. By proper supervision and follow up of the
loan the branch can be able to submit the proper statement to the recovery division.
Accordingly, Recovery and monitoring division can take the decision.

b) At the end of each month the relationship manager will sit with the client and discuss
about the recovery progress of the NPL amount. If the recovery process doesn’t go as per
commitment given by the client then the relationship manager will inform it to the higher
authority for taking proper action to adjust the loan.

c) In some cases, at the end of each month the divisional head or the zonal head will sit with
the client to know the actual reason for unpaid the installment or unadjusted loan amount.
Accordingly they will submit the report to the Credit Administration division for taking
necessary action.
 d) Early Alert process: Early alert process is also a very fruitful measure for recovery of
NPL amount. It may happen in two ways first of all early alert works before the loan
turns into a classified loan. Secondly early alert works after becoming a loan NPL or
classified. In that case after becoming a loan NPL the client has to give the opportunity to
adjust the loan. The client gets a stipulated time period to adjust the loan through a
certain sum of installments. The early alert process reminds the bank whether the client is
able to pay the due installment or not. Accordingly, the Branch manager or relationship
manager can take the further action.
Some other non-legal techniques or style to recover the NPL amount;
 a notice must be served to the client in case of failure or does not able to adjust the loan
within the expiry. In that case the borrower can feel pressure to adjust the loan amount.
 It is better persuasion by the relationship manager or desk officer rather than the Branch
Manager or the divisional head
 Consultation with the borrower and offer him how can we help you.
 Consult with the guarantors or third party who has given the security or guarantee to
adjust the loan
 Consult with the close relative such as father mother, wife, father in law brother and
sister and inform them the real history and present status of the loan
 If any kind of loan and advances allowed by the persuasion of any influential person then
consult with that person about the recovery of the loan
 Place the matter with request to local business forum.
 Apply political influence if possible
Rescheduling and Restructuring:
Rescheduling and restructuring are very common and popular method of reducing NPL or
recovery of classified loan. The regulatory body like Bangladesh Bank time to time has issued
circular regarding loan reschedule. According to the circular the borrower can apply for
reschedule the classified loan. By rescheduling the classified loan the bank can reduce its total
NPL. There are some certain steps for rescheduling the loan. The borrower must deposit a certain
sum of money as down payment before rescheduling any loan. Loan rescheduling means the
client has to be given more time for adjustment the loan.
Restructuring is commonly used for unclassified loan. When any borrower is unable to pay the
loan for valid reason then the borrower can apply for restructuring the loan. The bank can justify
the reason why the borrower is unable to pay the loan installment; if the reason becomes valid
then the bank goes for restructuring the loan. Restructuring of a loan means to give more time to
the client to adjust the loan. The main objective is to recover the loan as early as possible.
Position of reschedule loans are given table:
Table: Year Wise reschedule Loans
Source: Financial Stability Report-2021
The amount of loans rescheduled in the review year decreased compared to the preceding year.
However, proper monitoring is required for recovery of such assets. Total loans rescheduled in
the banking sector in 2021 were BDT 123.8 billion which is lower than that in 2020 (Chart 2.17).
It could be partly attributed to the better credit management by the banks and the BB’s policy
support. Due to the COVID-19 pandemic, Bangladesh Bank continued its relaxed loan class
cation and recovery policy14 in 2021 which allowed banks to keep loans regular against partial
payments.
Settlement by allowing waiver of interest:
Interest is the prime source of bank income. When a loan becomes classified it doesn’t generate
any income for the bank rather the bank has to keep extra provision for that loan. Extra provision
just reduces the total income of the bank. If the bank fails to recover the loan from the default
client or due installment the income reduces significantly. As such any waiver of interest is
bound to affect the profitability of the bank. However, in some instances Bank is compelled to
waive the interest which significantly increases the chances of recovery of NPL amount. In case
of allowing of waiver of interest bank must examine prudently and judicially whether the ground
is genuine or not. it should be kept in mind that the waiver facility must be given only in case of
having adequate reason. Waiver should be allowed in case to case basis rather than in general.
Waiver may be allowed in following manner:
 Portion or entire interest accrued but not in charged.
 Portion or entire post suit interest accrued but not in charged.
 Portion of charged interest amount kept in interest suspense account.
 While examining the proposal for waiver of interest, it must be ensured that the principal
amount and charge interest which has been credited to income account are not waived.
Grounds for waiver of interest must be genuine.
Following criteria may take into consideration for waiver of interest:
 Borrower or proprietor is dead or physically incapable to adjust the entire dues.
 Borrower has incurred huge loss in the business or out of business.
  Exposure is not covered by the collateral security or the adjustment possibility is zero.
 Inadequate collateral security.
 Disposal security is difficult the security is situated at very remote area.
 Security seems to be fake or fraud.
 Borrower is untraceable and the guarantor and the mortgagor have no means to adjust the
liability.
Approval authority:
Actually the Branch has no ability to allow the waiver of interest to any borrower. The borrower
should apply to waive the interest in order to adjust the entire liability. After getting application
from the borrower the branch manager and the relationship manager credit should justify the
actual condition of the borrower weather the borrower is really unable to adjust the loan with
interest and the real condition of the borrower business. If everything seems genuine to the
borrower and the relationship manager then the branch can send the proposal to the recovery and
monitoring division of the bank. Then recovery and monitoring division send it to the board of
directors for approval.
Recovery through disposal of primary/ collateral security:
Recovery through disposal of primary and collateral security is very common non legal
procedure to adjust the loan. When the borrower is unable to just the entire liability then the bank
can sell the primary stock or the collateral security if any. In that case the branch manager and
the relationship manager negotiate with the borrower about to sell the primary and collateral
security as he is really unable to pay the entire liability. There are some procedures to sell the
primary and collateral security which must be followed by the bank.
 Notice serve to the borrower 1 st 2nd and third
 Final notice serve to the client.
 Legal notice serve to the client
 Assessment of the price of stock and collateral security. If it is inadequate then how the
rest amount will be settled. In that case the borrower may apply for waiver of interest.
 Arrange a auction notice for selling primary and collateral security
 Arrange a tender box.
 Then the highest bidder will be allowed to by the security for adjustment the loan.
Recovery through recovery agent:
This is also a very much popular technique for recovery of the NPL amount from the borrower.
Now a day’s most of the bank is appointing the recovery agent for recovery purpose. It is very
much difficult for the bank manager and officer to look after the client in daily basis after
completion of day to day activities. In that case recovery agent plays a very vital role to recover
the classified loan from the default client. As he is appointed only for collection of NPL amount
from the customer then he is very committed to do his duty. Most of the bank now appoint third
party agent to recover the classified loan rather than going for suit file as the suit procedure is
very much expensive and time consuming.

NPL Recovery Measures and their Effectiveness:

First of all each and every bank wants to reduce its NPL amount much as possible. As a result
every bank should have some strategic plan which is very much effective for the loan recovery.
In most of the cases in Bangladesh the measures have been useful for loan recovery.
Effectiveness of measures includes:
1. Sufficient finance to viable economic activity with a Guarantee.
2. Proper appraisal and monitoring
3. Security and independent lending decision.
4. Proper pre-lending appraisal
5. Taking sufficient and realizable security
6. Accepting implementable corporate guarantee
7. Lending to the viable economic activity
8. Giving sufficient time to board members before approving the large loan
9. Avoiding undue influence by the external /insider party
10. Ensuring adequate financing amount as well as timely disbursement
11. Proper monitoring with ensuring end-use of funds
12. Stopping disbursement ‘Excess Over Limit’
Effective measures can also be taken by creating the following division and department in the
head office end to minimize the NPL loan. Also this division will help to recover the classified
loan.
 Recovery Division
 Special Asset management Department
 Separate Unit for Write-off Loan
 Legal Affairs
 Early Alert Division
 Collection Unit in Business End
All the above division is closely involved with the NPL recovery. As per circular given by the
Bangladesh Bank every schedule Bank is bound to create this division in the Head office for
effective motoring and recovery of the loan. Each division is closely involved with the recovery
of classified loan. Each division works separately from another division.
Recovery through Loan Write off:
One of the fruitful procedures of loan recovery is written off. When there is no chance to recover
the loan amount then bank can take the decision to write off the loan from the affairs. It doesn’t
mean that the borrower will be relief from the liability rather the persuasion will be going on till
the full and final adjustment of the loan amount. The present outstanding of write
(In Billion BDT)

Table: Year Wise Write Off Loans

Source: Bangladesh Bank Annual Report 2021
The cumulative amount of written-off loans by different categories of banks is illustrated on
above table. At the end of June 2022, PCBs held the highest portion of write-off loan totaling
BDT 354.73 billion. SBs had the lowest write-off loan amounting to BDT 6.06 billion at the end
of 30 June 2022. Table 5.07(b) demonstrates the total outstanding of written-off loan of SCBs,
PCBs, SBs and FCBs. It can be observed that SCBs, PCBs, FCBs and SBs had written-off loan
outstanding totaling BDT 175.52 billion, 243.68 billion, 10.83 billion and 3.56 billion
respectively at the end of June 2022.

Recovery through Outside the Court Settlement (OCS)

The opinions of the responding banks relating to the effectiveness of different outside the court
settlement process show that negotiation is a more effective tool of recovery than mediation.
Further, both negotiation and mediation were more effective after filling suits.
 Negotiation before filing suit
 Negotiation after filing suit
 Mediation before filing sui
 Mediation after filing suit
Limitations outside the Court Settlement (OCS)
The limitations and suggestions for improvement pointed out by the banks with regard to various
negotiation and mediation based NPL recovery measures have been discussed below:
1. Lack of regulatory standards
2. Hostility in client’s attitude
3. Clients’ preferences in settlement through legal procedure for getting enough space
4. The optimism of the borrowers in getting favorable verdicts from the court.
5. Losing interest by the borrowers in negotiating with the filing of the suit
6. Deterioration of the banker-customer relationship
7. Lack of agreement by the bank and the borrower with the mediator
8. Poor success rate
To overcome the above situation the bank can take initiative in improving effectiveness in out of
court settlement. In this regards the following manners keep in mind.
1. Specialized training for bank staff
2. Legal reforms to compel out of court settlement
3. Engaging specialized institution
4. Introducing time-bound and low-cost process
5. Formation of a specialized institution for NPL recovery
6. Mandatory incorporation of default settlement clause in all loan agreements
7. Adopting insolvency resolution plans through auctions
After COVID-19 situation the recovery process will be different from the pre COVID-19
situation. Because COVID-19 impacts a lots on the economic sector in Bangladesh as well as the
business have been severely affected. Most of the parties are incapable of adjust the loan timely.
In this context Bangladesh Bank has issued so many circulars for loan, so that the client will be
beneficial to adjust the loan.
Effect of recovery of NPL in Bangladesh:
Reduce CL Percentage: Recovery of NPL clearly reduces the CL percentage of a bank loan.
Percentage of CL impacts on CAMEL rating and other.
Increase interest income
No further charge on profit.
Bank can invest more.
Shorten the provision which increase the bank profit.
It will also increase the bank profit.

These are all about the non-legal measures of recovery the NPL amount from the defaulted
client. But in the context of Bangladesh things are little bit difficult to collect the money from the
default client through using Non legal measures. It will be more effective and fruitful if the
above issues have been followed by a bank meticulously. The status of the NPL amount will be
reduced significantly if the regulatory body of Bangladesh becomes more concrete in case of
defaulter.

CASE- 1
[The case is about a borrower lacking creditworthiness and getting credit as per the directive of
bank board. The borrower is very wicked who applied every means (including managing bank
board and filing a writ petition against the suit filed by the bank under MLC Act and filing a
suit to be declared as bankrupt) for getting loan and subsequently avoiding repayment. The bank
applied different possible measures including persuasion, negotiation, rescheduling, interest
waiver, debt restructuring, corporate restructuring, ADR to recover the loan.]

‘M Agro-processing Industry’, a sister concern of M Group of Companies, is a 100% export

oriented company located in Rupgang of Narayanganj district. The major operation of the
company is producing potato flakes. The sponsors of the company are established merchants in
other lines of business namely processing and dealing in ginger, garlic, honey, and
manufacturing readymade garments products.

The group started banking with ‘CBC Bank’ in 1995. In 2000 the group planned to expand its
business by establishing the aforesaid company and applied for a credit line of BDT 6118 lac
consisting of project loan, working capital finance (CC), and capital machinery finance
amounting to BDT 1183 lac, BDT 296 lac and BDT 4639 lac, respectively. The company
justified its credit proposal showing long-term experience of the group, well established channel
of distribution and ready market in agro-processing business. The bank sanctioned funded credit
facility amounting to BDT 1479 lac and non-funded credit facility of BDT 4639 lac for
importing machineries (L/C) with a grace period of 18 months. The credit facility includes BDT
450 lac of Equity and Entrepreneurship Fund (EEF) of Bangladesh Bank at an interest rate of 7%
per annum. The project cost was BDT 6440 lac and the debt equity ratio as shown by the bank
was 1: 3.35(excluding non-funded facility of BDT 4639 lac). The collateral security taken was
pledged goods, machineries, and project land. No personal or group guarantee was taken. It is
noteworthy that credit department did not find the borrower as creditworthy considering
unfavorable debt-equity ratio, overestimated project cost, overinvoicing of capital machineries
etc. However, the credit was sanctioned under the directive of the Board.

The machineries were imported through L/C and bank made the payment but the borrowers
failed to adjust the L/C amount. So, the bank created a forced loan equivalent to the values of
L/C. Subsequently BB inspection found that there were irregularities in sanctioning the loan.
Irregularities include understatement of debt equity ratio (1: 3.35 instead of 95:1), undue
influence in sanctioning process. Assessing the business condition of the borrower BB classified
the loan as bad. As to non-repayment of the loan the borrower blamed input (potato) price hike,
declining demand in international market. The bank found some merit in the borrower’s
argument. However, in addition to that, the bank found some other reasons including
inexperience of the borrower, fund diversion.

Bank filed a suit in August 2005 after serving a number of legal notices. The client also filed a
suit for winding up of the company under the Bankruptcy Act 1997 and filed a writ petition
urging the discontinuation of the suit filed in the MLC by the bank through highly reputed as
well as influential lawyers of the country. The company got verdict in its favor under the
Bankruptcy Act in 2008 and in the writ petition in 2010. Then the bank made an appeal to the
Appellate Division and Appellate Division gave the judgment that the MLC would prevail. The
bank also got a stay order issued by the Chamber Judge against the verdict of winding up. Finally
as a way out of the situation, the company was sold to another company based on a tripartite
agreement. The settled principal was BDT 6153 lac and interest BDT 640 lac. The outstanding
amount of BDT 6793 lac was rescheduled to be paid in 20 years in annual installment of BDT
284 lac without any interest. One General Manager of the bank is currently working asan ex-
officio of the company to oversee the policy matters and day-to- day operations of the company
to protect the interest of the bank.

Legal Measure

The magnitude of accumulation of default loan, among other things, depends on the existing
legal measures for loan recovery. A strong and effective legal system increases the possibility of
recovery of bad loan. Regulatory responses or reforms in our banking sector took definite shape
as regards to the credit discipline mainly in 1990s through the enactment of Money Loan Court
Act. A number of legal measures along with the Money Loan Court Act are in place that allows
the banks to go for legal action against the defaulted borrower. A number of amendments in
Money Loan Court Act have also been made at different time periods to make it befitting with
the current situation. The laws relating to lenders’ recourse that prevails in the banking sector of
Bangladesh is undoubtedly rigorous one. Historically, the problem lies rather with the
enforcement of laws in timely manner.

It is generally pointed out by the researchers that our judiciary system is cumbersome and time
consuming. Insufficient judicial capacity in terms of number of judges relating to inflow of the
suit filed in the court is also responsible for the accumulation of unsettled cases in various courts.
Taking legal actions to recover loan is expensive, time-consuming and unpleasant; these are the
worst ways to recover loan and that’s why should be used as the last resort. The legal system
allows defaulters to delay lenders’ recourse process indefinitely. Our legal system provides for
an elaborate system of appeals, references, reviews and revisions, which causes abnormal delays
in the legal process. The Legal measures for loan recovery include the Money Loan Court Act
2003, the Public Demands Recovery Act 1913, the Bankruptcy Act 1997, and the Civil
Procedure Code. Among them, the Money Loan Court Act 2003 is the most effective measure.

Legal Measures

The scale of buildup of standard loan, among other things, relies upon the current legal measures
for loan restoration, A strong and effective legal program boosts the potential for restoration of
bad loan. Regulating reactions or changes in our financial industry took certain shape as regards
to the cash self-discipline mainly in 90’s through the enactment of Cash Loan Court Act. Several
legal measures along with the Cash Loan Court Act are in place that allows financial institutions
to go for lawsuit against the late client. Several changes in Cash Loan Court Act have also been
made at different with regards to lenders’ options that dominates in the financial industry of
Bangladesh is certainly extensive one. Traditionally, the problem can be found rather with the
administration of rules in appropriate manner. It is generally indicated that our judiciary program
is complicated, and influx of the fit registered in a legal judge is also accountable for the buildup
of unsettled difficult. Inadequate legal capacity with regards to variety of most judges with
regards to situations in various legal courts, Taking legal activities to get better loan is costly,
time-consuming and unsightly, these are the most severe ways to get better loan and that’s why
should be used as the final option. The legal program allows defaulters to delay lenders’ options
procedure consistently

Legal measures: Filing suit under:

Artho Rin suit as per Artho Rin Adalat Ain-2003

Petition case under NI act-1881
Criminal case for breach of trust
Bankruptcy suit under the Deolia Ain -1997

Discussion some issue of Artho Rin Adalat-2003

 a. Sale of lien, pledge goods and mortgaged property before filing suit by the financial
institution
b. Procedure for auction sale and the position of financial institution and bidder
c. Banker roles in auction sale
d. Filing of suit and its follow up
e. Attendance in the courts
f. Filing of execution suit
g. Filing of execution in case the sale proceeds of security fails to meet decreed amount.
h. Filing of execution suit in case decreed property cannot be sold out through auction
i. Amicable settlement before filing suit
j. Amicable settlement after filing suit
k. Amicable settlement during execution through mediation ( Arbitration )

The Money Loan Court Act-2003:

In the backdrop of a huge amount of accumulated non-performing loan, special law related to
recovery was introduced in Bangladeshi banking sector in 1990. Before that banks had to file
cases in Sub-Judge Courts, Commercial Courts, Assistant Judge Courts, and Certificate Cases to
the authorized Certificate Officers in upazilla and districts under the Public Demands Recovery
Act, 1913 since there were no recovery related special laws. To get rid of innumerable pending
suits in the Civil Court, special Court was established under the Money Loan Court Act, 2003
and some privileges were allowed to default borrowers viz. if the defendant deposits an amount
equivalent to 10% of the decreed money within 15 days of submission of application, ex-parte
decree may be set aside. Aside from that, under section 46 of the Act, if default borrowers of
term loan deposit 10%, 15% and 25% of payable amount in the first one year, first two years and
first three years respectively after the commencement of the repayment of the loan as per
repayment schedule, they get time for one year more. According to the Act, the default
borrowers have the privilege of settlement of cases through mediation.

The Section 12 of this Act empowered financial institutions to sell mortgaged property of the
defendant to adjust the sale proceeds towards repayment of loan before filing of suits in the
Money Loan Court. Banks are required to publish sale notice (Section 33) in a widely circulated
national Bengali daily and, in addition to that, in another local paper, if any, if the court deems
that to be necessary, giving at least 15 days’ time for selling the mortgaged property of the
borrower.
Under Section 41 and 42 of the Money Loan Court Act, 2003, appeal and revision against a
judgment or decree have been discouraged. If an amount equivalent to 50% of the decreed
money is deposited, in cash, with the decree holder financial institution, appeal shall be admitted
for action. If 75% of decreed money is deposited, revision application will be accepted. If the
judgment debtor, detained in civil prison, repays, in cash, an amount equivalent to 25% of the
outstanding amount and executes a bond to the effect that he/she shall repay the rest of the
amount within the next 90 days; civil imprisonment under Section 34 of the Act up to 6 months
is relaxable. In the circumstances, for fear of losing property or honor in the society the default
borrowers in many instances tend to communicate with banks for settlement of suits.

On March 30, 2010 major amendments were made in the Money Loan Court Act of 2003.
Sections 12, 22, 28, 30, 32, 33, 50 of Money Loan Court Act (2003) were amended mainly to
address the prevailing situation in banking industry towards recovery of bank loan. Section 12(3)
of Money Loan Court Act, 2003 was amended deleting the words "Power of Attorney" which
provides financial institutions the right to sell the mortgaged property towards adjustment of
default loan without having Power of Attorney from the side of borrowers. Section 21 of Money
Loan Court Act, 2003 has been abolished. Section 25 of Money Loan Court has been amended
which require the approval of Chief Executive Officer or Managing Director of the financial
institution for settling of any suit above Tk. 5 crores under Alternate Dispute Settlement. Due to
amendment of Section 32 of Money Loan Court Act, 2003 the defendant shall submit security or
bond equivalent to 10% of unrealized amount instead of 25% earlier while filing written
objection against execution suit.

The Public Demands Recovery Act 1913:

The recovery of bank dues, particularly in small loan amounts through Sub-Judge Courts,
Commercial Courts, and Assistant Judge Courts are so lengthy and costly affair that the banks
generally feel discouraged to go to the above courts. On the other hand, dues of some
Government owned banks are treated as public demand, and legal remedies are available for
realization of bank dues as well. The PDR Act, 1913 was published in the gazette on 22 nd May,
1913. There are 59 sections and 84 rules in this Act, of which sections 1-33 relate to power and
functions of the Certificate Officer and the rest 38-59 are procedural. Under the Public Demands
Recovery Act, a Certificate obtained is deemed to be the decree of a Civil Court and the
execution proceeding may be started against the debtor forthwith.

Other Legal Actions:

A number of other legal measures are applicable in some cases such as filing criminal cases for
breach of trust under 406/420 BPC: for committing criminal breach of trust, unauthorized sale
for mortgaged property or assets created out of bank loan, migration to other places without
repaying bank dues, fake loan, etc. and through summery procedure suit. A summary suit is a
special procedure under the Civil Procedure Code (CPC) whereby the defendant is given a
limited time; say one month (as per CPC-37(i) to explain the reasons why he/she should be
allowed to defend the case. This suit can be filed for money decree on the strength of only those
documents such as Demand Promissory Note (DP note), Bill of Exchange, Cheque, etc., where
there is a prima-facie evidence of the defendant’s liability. It can be availed in cases where no
securities are available to be enforced.

Bankers’ grip over the defaulted borrowers has been made strengthened through an amendment
in the Money Loan Court Act, 2003 by allowing the banks to dispose the securities held as
collateral without resorting to the court. Even with all these amendments and incorporation of
new laws, recovery status of non-performing loan still remains at a low level. The above
discussion makes us believe that sole dependence on legal measures is not enough for speedy
disposal of default loan. Recognizing the difficulty of settling non-performing loan through debt
recovery related court, both policy makers and practitioners increasingly feel the necessity of
using non-legal measures for using loan recovery. Non legal measures i.e. ways of recovering
bad loan other than resorting to debt related court is expeditious, less expensive and upholds the
spirit of banker-customer relationship.

Legal Process for Filing Suit under Money Loan Court Act

With a view to helping the banks and financial institutions in recovery of Non-performing loans,
the Money Loan Court Act was enacted as early as in 2003 with the objective of speedy disposal
of loan cases. In addition, Insolvency Act was also enacted in 1997 as the last instrument in the
hands of the lending institutions. This Insolvency Act provided them with the ways to sue the
defaulters with a view to getting them declared as insolvents so that they cannot borrow further.
In other words, the Act was conceived of as a threat to the defaulters. Consequent upon these two
legislations, thousands of cases were filed by the lending institutions to cover the stuck-up
advances before the Money Loan Courts set up specially to try loan cases. Some cases were also
filed under the Insolvency Act. Before taking the Legal Measures the following matter should be
considered by the Banker

1. Whether personal contact made with the borrower and guarantors

2. How many letters written to the borrower
3. Whether notices served demanding full adjustment of the account giving a time limit
under advice to the controlling offices
4. Whether final notices is served on failure of the borrower to respond under intimation
to the higher controlling offices.
5. Is there any irregularity in sanctioning and disbursement of the credit.
6. Whether debit balance confirmation is obtained from the borrower.
 7. Date of last deposit in the account.
8. Is there any possibility of time-bared
9. Before serving legal notice, following are must
10. Documents are complete and in order,
11. Securities are in order and in marketable condition.

Steps of Filing Suit under Money Loan Court Act, 2003

Special Provision and Time Limit in Respect of Disposal of Suits (Section-46):

(1) Not withstanding anything contained, to the contrary, in the Limitation Act, 1908 (Act no. IX
of 1908), if the borrower does not repay- (a) A minimum 10% in the first one year; or (b) A
minimum 15% in the first two years; or (c) A minimum 25% in the first three years of the
amount, as will be payable during the period, after the commencement of the repayment of the
loan as per repayment schedule according to the contract or terms of the contract signed, the
financial institution shall, subject to the provision of sub-section (2), file suit within the next one
year thereafter.

(2) If the financial institution reschedules the schedule of loan repayment within the period
mentioned in sub-section (1), then, the provision of sub-section (1) shall, accordingly, be
effective afresh with necessary changes (mutatis mutandis).

(3) In case of the prescribed total period for repayment of loan as per loan repayment schedule
mentioned in sub-section (1) being less than 3 (three) years, if the total amount realization within
that fixed total period is less than 20%, then, the financial institution shall file suit within one
year next thereafter.

(4) If the financial institution reschedules the schedule of loan repayment within the period
mentioned in sub-section (3), then, the provision of sub-section (3) shall, accordingly, be
effective afresh with necessary changes (mutatis mutandis).

Restriction in Respect of Imposition of Claim (Section-47): Suit value will be the principal
amount of loan plus a maximum of 200 percent interest thereon. The court will entertain no suit
exceeding this amount. (100+200)

Duties and Responsibilities of the Banker for Recovery of Loans before Filing Suit under
MLCA-2003 (Section-12, 33, 46 & 47)

No case to be filed before sale of securities: Financial institutions are required to file case, if
there is power of attorney to this effect, only after selling goods secured by lien, pledge and
hypothecation or property under mortgage. If case is filed before that, they are required to sell it
as soon as possible under intimation to the court. If they fail to handover the possession of the
property to the buyer, on sale, the financial institutions will seek help from the court. The court,
if satisfied, will hand over the property to the buyer on behalf of the lending institutions
(Section-12).

Auction Sale: The MLC, while executing any decree or order, shall, in case of sale of any
property, invite at the expense of the plaintiff, sealed tenders giving 15 (fifteen) days’ time from
the date of publication of the notice, such notice shall be published in at least in one well
circulated national Bangla daily and, in addition to that, in another local paper, if any, if the court
deems that to be necessary in the interest of justice; and the notice shall also be published by
hanging in the notice board of the court and through beating of drums locally (Section-33).

Every bidder shall submit with the tender an amount equivalent to 20% for up to 10.00 lac, 15%
for more than 10.00 lac but up to 50.00 lac and 10% for exceeding 50.00 lac of the quoted price
in the form of bank draft or pay order in favor of the Court, the tender shall be dropped directly
in the tender box or sent to the prescribed authority through registered post within the prescribed
time; and the bidder shall pay the total price within 30, 60 and 90 days respectively for the
amount specified of acceptance of the price and, in case of failure, the court shall forfeit his
security money. Provided that, the court may cancel the tender, if the price offered for the
property appears to be unusually insufficient or low. If the security is forfeited, the money
thereof, shall be paid to the decree holder, the money shall be adjusted with the decree claim, and
then, the court, if the price quoted by the second highest bidder and the security forfeited
together, is not less than the price quoted by the highest bidder, shall invite the second highest
bidder to auction-purchase the property; and the second highest bidder shall pay the total price
within next 10 (ten) days of being so invited and if he fails to do that, his security shall be
forfeited and, the money thereof, shall be paid to the decree holder to be adjusted with the
decreed claim.

If any property cannot be sold the court shall again invite sealed tenders by publishing notice in
the same way and shall follow the procedures in respect of sale and forfeiture mentioned earlier.

If any property cannot be sold in the previous way that property shall vest in the decree holder
with rights of possession and enjoyment for as long as the decreed claim shall not be fully
realized, and the decree holder may realize the unpaid decreed claim by selling that property as
per provisions of sub-sections (1), (2), (3) and (4) of sec.33, and the court shall issue a
certificate to that effect.

If any money, in addition the decreed amount is realized through sale, that additional money
shall be refunded to the judgment debtor, and if the money realized through the sale is less than
the decreed claim, further execution case shall, subject to the provision of section 28, be
maintainable for the residuary amount.

In spite of the above, if the decree holder makes an application to the court, in writing,
expressing its intention to get that property with title, the court, without any prejudice to the
provisions of sub sections (1), (2), and (3) of section-33, shall refrain from following the
provisions of sub-sections (4) and (5) of section-33 and shall issue, as per prayer of the decree
holder, a certificate with declaration to the effect that the said property has vested with title in the
decree holder and such issued certificate shall deemed as a title deed; and the court shall send a
copy of that to the office of the relevant local sub registrar for registration. No duty or
registration fee shall be payable in respect of the certificate issued under sub-section 7 of
section-33. The said decree execution case shall, subject to the provision of section-28, be finally
disposed of, if the rights of possession and enjoyment of the property under sub-section (5) or the
title of the property under sub-section (7) of section-33 are vested in the decree holder.

Judicial Procedure:

The code of Civil Procedure-1908, if not inconsistent with this act, will also be applicable to
money loan cases. The financial institutions will file the plaint giving particulars of the case
along with documentary evidence and an affidavit against the defendant principal debtor and
third party mortgagor or third party guarantor, if any/the affidavit will be treated as substantive
evidence.

Similar will be the process of reply by the defendant (section- 6). The contents of the plaint will
include among others, the following (Section-8) a) Name, address and workplace of the plaintiff;
b) Name, address, workplace and residence etc. of the defendant; c) All occurrences related to
the claims; d) Place, date and time when the case originated and e) Relief sought from the court.

In addition, the plaint will also include a schedule which will contain: amount of loans and
advances given to the defendant, interest charged, penal interest, other charges, payment made
by the defendant prior to the filing of suit and a comparative position between claims by the
plaintiff and payment made by the defendant. A schedule of the securities showing particulars
against which loans were sanctioned will also be included in the plaint.

Serving Summons: The summons of the court upon the defendant is required to be returned
served within 15 days. If not, summons is required to be polished in the newspapers within next
15 days for which a sample of advertisement copy will be submitted to the court by the plaintiff
beforehand (Section-7).
Written Reply by the Defendant: The defendant will produce himself before the court on the date
specified in the summons. He will submit written reply about the claims of the plaintiff along
with any documentary evidence he has in his possession or indicate the source of those
documents if not in his possession (Section-9). No written reply will be acceptable to the court
later than 40 days of his producing himself before the court (Section-10). However, subject to the
expenses (Minimum Tk. 2000/- and not more than Tk. 5,000/-) as specified in the Act to be
borne by the defendant, the time may be extended by another 20 days by the Court (Section-10).

No Case to be Filed before Sale of Securities: Financial institutions are required to file case, if
there is power of attorney to this effect, only after selling goods secured by lien, pledge and
hypothecation or property under mortgage. If case is filed before that, they are required to sell it
as soon as possible under intimation to the court. If they fail to handover the possession of the
property to the buyer, on sale, financial institutions will seek help from the court. The court, if
satisfied, will hand over the property to the buyer on behalf of the lending institutions (Section-
12).

Formulation of the Case and Settlement: On submission of the written reply by the defendant, the
judge on the basis of plaint and written reply will formulate the case after hearing both sides, if
present. If there is no merit of the case, the judge will immediately award judgment or order
(Section-13).

Adjournment of Hearing: Subject to the time limit of settlement of the case given in the Act,
hearing will not be, on application by either party adjourned more than once provided that the
court, if satisfied, may adjourn proceedings for more than once (Section-14).

Judgment: Judgment will be awarded within 10 days on completion of hearing or written 10

days from the date of hearing verbal argument. The judgment debtor will be directed to pay the
decretal amount within 60 days, if more time is not considered (Section-16).

Settlement of the Case: A case under this Act is required to be settle within 30 days, if exparte
or within 90 days from the date of submission of written statement by the judgment debtor. The
court may, however, extend time limit by another 30 days stating the reasons thereof (Section-
17).

Finality of Judgment: No question will be entertained by any Court on the judgment, order or
decree of the loan court (Section-20).
Chapter VI, Execution (Section-26 to 39) The chapter on execution comprising fourteen sections
deals with the issues like: Court for execution, time limit for filing execution case, rules for
serving notice, objections against notice, rules regarding auction sale, rules regarding civil
imprisonment of debtor, recovery of money from third party and settlement during execution
case etc. the important ones are given below:

Time Limit for Execution Case: Execution case is required to be filed within 360 days of the
judgment or decree. Time limit will be effective in case of decree to pay in lump sum or in
installment, from the date of expiry of such payment dates (Section-28).

Auction Sale: Sale will have to be effected through open auction of 15 days’ notice Intending
bidder will deposit required percentage of the value in draft or pay order to the court The entire
money will have to be paid within the specified time of acceptance of bid, failing which the
deposited money will be forfeited (Section-33).

Case under NI act:

As security of the loan limit Borrower provide “A/C Payee Cheque”. In case of insufficiency of
fund upon the placing of that security cheque banker take action against the borrower to recover
the default payment of loan. In general, if the party is a person Bank file case under section 138
of NI act 1881. Again, if the party is company bank file the case under section 140 of NI act
1881. The process of the taking legal action under NI act to the recover the loan as follows:

If the cheque is placed for payment is returned due to “insufficient fund” or any other reason, a
legal notice to be sent to the party for making payment within 30 days from the date of bouncing
the cheque. If the party failed to pay amount due with in 30 days, a complaint registered with in
next 30 days under section 138 (in case of person) or section 140 (in case of company) of
negotiable instruments act with the concerned magistrate court within the jurisdiction.

Stage 1: Filing of Complaint:

In this stage, complaint will be registered in concerned magistrate court supported with Original
Cheque, Cheque Return Receipt, Copy of Legal Notice with receipt of delivery. If the court find
out the eligibility of the complaint, case will be registered.

Stage 2: Explanation of Complainant:

Here the complainant or his authorized agent need to present relevant details by appearing in the
witness box. If the court found relevance, it issued summon notice to the accused to appear
before the court. Sometime complainant may urge the court to issue summon through local or
national daily newspaper.

Stage 3: Appearance of accused:

After receiving the summon the accused should appear before the court in person or through his
lawyer. Despite receipt of summon notice, if the accused failed to appear before the court, an
arrest warrant will be issued against him. After verifying the summon notice whether it issued by
the court, court will enquire the accused whether he admits the charges arise against him. In case
of admission of guilty, court will go forward the matter for punishment. If the accused denies the
charges, then court will provide him chance to defense the charge with a copy of complaint.

Stage 4: Presentation of evidence & examination:

Appearing before the court, complainant shall produce all documents including original in
support his complaint and present it by way affidavit or orally. He may present witness in
support of his case.

Stage 5: Cross Examination:

Complainant will be cross examined by the lawyer of the accused in this stage. The other witness
will also be cross examined who appeared in support of the complaint.

Stage 6: Defense Evidence:

In this stage, court will be given opportunity to the accused to present his evidence. He will be
given opportunity to produce his documents as well as witness in support with his case. Both
the accused and witness will be cross examined by the complainants. After this the case will go
forward for arguments.

Stage 7: Hearing of Argument:

Both complainant and accused or their lawyers have to submit their arguments before the court.
They may give reference of the previous case of supreme court or high court in support of their
case. Generally a written statement of argument pertaining the gist of the oral argument need to
be submitted before the court.

Stage 8: Judgement Hearing:

In this stage court will find judgement in light of argument. If the court find in favor of the
complainant then the accused will be punished. If the court finds in favor of the accused, then the
court will acquit him. If the accused is convicted, he will be punished to pay the sum thrice the
amount of cheque or imprisonment for 06(Six) months which may extended to 01(one) year or
both. Accused may appeal to the session court in favor of stand with in 30 days of the judgement.
 Criminal Case for Breach of Trust:

A sanction is a contract between borrower and bank to comply the terms and condition
mentioned herein. Sometimes borrower breach that trust by way of fraudulent activities. In this
situation banker should take initiative to protect bank’s interest through filing criminal under
penal code, 1860 for breaching of contract. The steps taken in the criminal case procedure as
follows:

1. Complain register:
Banker should complain regarding the fraud in the concerned police station within the
jurisdiction.

2. Investigation:
Based on the complaint police officer will investigate the offence occurred as mentioned in
the FIR. In this regard police will try to break all possible outcomes of the event by formal or
systematic examination.

3. Charge sheet or Final Report:

After the all-possible examination police officer will submit a final report of the event.

4. Naraji Petition:
Bank may submit naraji petition if it seems police investigation become biased or influenced.

5. Taking Cognizance:
Based on the report provided by the police officer or upon information received from any
other person the fact of the offence being stablished in this stage.

6. Issuing Process:
This is the initial phase of prosecution where the charges are presented before court and the
accused are summoned to clarify the accusation. The case transfer to another court to
expedite the end of the justice.

7. Forming the Charge:

In this stage the charge are formed against the accused and the related evidence with
production of proper documents is presented to the court for further proceeding.

8. Plea & Conviction:

 In this stage court provide facility to the accused to accept or deny the charge, If accused
accepted the guilt court provide the judgement under penal. On the other hand, if the accused
deny the charge he will get chance to plead through his lawyer.

9. Hearing & Examination:

Both complainants and accused have to present their evidence as well as witness in support
with their arguments. Court will examine all the evidence and the cross examination will be
conducted in this stage.

10. Judgment:
Based on the statement of arguments and reference provide by the lawyer from both sides.
Court will declare its judgement. If court find the accused guilty, the accused will be
punished under The penal code, i.e. imprisonment which may extend to 03 years or fine or
both.

Case study -2

HRC Syndicate Limited was one of the leading companies in our country being involved with tea
business/exporting since 1991. They had been doing their business satisfactorily since 2000. But from
the last few years, their tea business was not running good. Due to price hike of tea during that period
their fund involvement in export consignment had also been increased. On the other hand, foreign
buyers offered them lower price. Resultantly, their volume of export had been decreased day by day.
Consequently, their transaction /turnover of the account became very poor even they were not
servicing /adjusting quarterly interest charge in their earlier Overdraft account regularly. Lastly the
overdraft liability was converted into a Five years Term loan with the permission of Bangladesh Bank
upto 26.12.2023 for adjustment purpose repayment of which had to be paid by 60 (sixty) monthly equal
installments that started for payment from January 2019. But in the meantime 12 (Twelve) nos. of
installment became overdue and that had been marked and reported as Bad and Loss in the CIB and CL
on March 2019. During that period, we had served letters and communicated through phone calls for
adjustment. As a result of our approach, the client came forward to adjust the overdue installments and
deposited Tk.12,840,641.00 on 06.08.2020 and Tk.10,272,513.00 on 09.08.2020 totaling
Tk.2,31,13,154.00 equivalent to 09 (Nine) instalments against 06 (six) nos of overdue instalments up to
December 2019. Accordingly, we have adjusted the same in the said term loan account as instalments
and the account was marked as unclassified. But in the meantime, 13.12 nos. of installment became
overdue and that has been marked and reported as Bad and Loss in the CIB and CL on March 2022.
We persuaded the defaulted borrower to adjust the overdue installments as per their commitment
in time but they failed to do so which hampered expediting the legal initiation against the borrower.
It is pertinent to mention here that we served a final Demand & Call back notice to the
borrowers/guarantors vide ref. no. SEBL/AGR/CR/2022/3416, date 21.04.2022 by giving 07 (seven)
working days as per terms of our Head Office approval letter before allowing more times to adjust
the loan liabilities.

Subsequently, as per Head Office approval letter reference no. HO/LAD/2022/1181 dated 19.05.2022,
we requested our panel lawyer to initiate legal action vide our letter SEBL/AGR/CR/5489 dated
26.07.2022. Accordingly, our lawyer served a legal notice to the defaulted borrower under Negotiable
Instrument Act, 1881 as on 31.07.2022 giving a period of 30 (thirty) days to make payment of the
outstanding of their lioabilities.

Meanwhile vide our letter no. SEBL/AGR/CR/2022/5794 dated 04.08.2022, we have also requested our
panel lawyer to initiate legal action against the said client under Artha Rin Adalat Ain, 2003 in due
course and submitted the documents as per requirement.

As the client doesn’t have any mortgaged securities with our bank against the facilities, we have
proceeded to file Artha Rin Suit except complying with section 12 (3) of Artha Rin Adalat Ain, 2003. We
served legal notice to the client prior to filing the suit under Artha Rin Adalat Ain, 2003. In connection of
this suit, we have filed a plaint claiming for Tk.12,38,90,924.10 in the court of Artha Rin Adalat,
Chattogram. Accordingly, the court has allowed the plaint in his cognizance and ordered for serving the
summons to the judgement debtors for submitting the written statement against our plaint. Besides, we
have also filed CR Case against the client under Negotiable Instrument Act, 1881 in the court of 1 st Class
Metropolitan Magistrate after the expiry of the legal notice period by filing a complaint against the
director of the company named Sayeed Hossain Chowdhury. This court passed an order to serve
summons to the accused and fixed the date as 07.02.2023 for their presence in the court. Branch is
meticulously monitoring the suits for the recovery of stuck up liabilities.