High Court allows Beximco Group to operate independently, considering the interests of thousands of workers and employees. Also, as it was deemed unnecessary, the ruling lifts the interim order for appointing a receiver and attaching the company’s assets. After the final hearing of the writ petition on Wednesday (12 March), the verdict came from a High Court bench comprising Justice Farah Mahbub and Justice Debasish Roy Chowdhury.
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Along with scheduled banks and financial institutions, the court, citing a report from Bangladesh Bank, stated that the central bank had failed miserably in recovering classified and defaulted loans from Beximco Group’s companies. As a result, the financial stability would ultimately fall on the general public. However, the court raised over violations of banking regulations in approving loans to this company. For granting questionable loan facilities, it directed Bangladesh Bank to take legal action against any individual or institution found responsible. While advocate Muniruzzaman argued on behalf of Bangladesh Bank, senior lawyers Masud R. Sobhan and Fatema S. Chowdhury represented the petitioner. Senior lawyer Fida M. Kamal and advocate Anisul Hasan defended Beximco Pharmaceuticals in court. Bangladesh Bank’s lawyer Muniruzzaman told Prothom Alo that previously, the court had ordered the appointment of a receiver for 169 out of Beximco Group’s 188 public and private companies. Bangladesh Bank had appointed a receiver as per the court order in each of the companies. The judgment said that the receiver’s activities were valid. In the current context, a receiver is not necessary. Beximco Group will manage its own companies. In this case, Beximco Group will have to properly comply with the prevailing laws and regulations of the country and will be supervised by relevant agencies, including Bangladesh Bank. The court has ordered the necessary steps to be taken to recover the defaulted and classified debts of the Beximco Group.
Supreme Court lawyer Masud R. Sobhan filed the writ in September last year, seeking information on debt waivers after repayments in all other businesses of Beximco Pharmaceuticals Limited and related companies over the past 25 years. The High Court, after the initial hearing of the writ petition, issued an order along with a rule on September 5 last year. It directed Bangladesh Bank to attach all the properties of the Beximco Group and appoint a receiver to manage the group’s companies for six months. An application was filed on behalf of Beximco Pharmaceuticals Limited seeking a stay on the order appointing a receiver. After hearing it, the Appellate Division on November 12 stayed the matter of the receiver only in the case of Beximco Pharmaceuticals Limited. It also asked the High Court to settle the rule in this regard. The High Court began hearing on the rule on November 27 last year, which ended on February 27. After the hearing that day, the court set March 12 for the verdict. The court today disposed of the rule, mentioning nine points, including observations, decisions, and directions.
Source: Prothom Alo
