From now on, HC, High Court ordered no Bank or any financial institution can file cheque dishonor case against any person for loan recovery.
On Wednesday 23, Judge Md Ashraful Kamal on a single HC bench dismissed the Brac Bank cheque dishonor case against a person for loan recovery.
A bank or financial institution can file a case in the Court of Debt only in the process detailed in the Loan Act, 2003 for recovery of loan. Besides, all cheque dishonor cases filed by banks or financial institutions presently pending in the court will be closed, the judgment stated.
According to the Judgement, the court stated, the cheque that bank takes against the loan is guarantee. Not a negotiable instrument. A cheque dishonor case cannot be filed against the cheque held as collateral.
The court said that a loan from a bank or financial institution is taken through a concord. Some corrupt, dishonest officers of the bank misuse cheques for their own interests, to implement their hidden agendas. Their behavior is similar to that of merchants.
The court has also said that taking a blank cheque against a loan is illegal. Banks and financial institutions have been doing this illegal thing for a long period of time.
HC gave instructions to the lower court and responded that if any bank or financial institution files a cheque dishonor case from today, the court will directly dismiss it. At the same time send them to the debt collection court.
HC says, banks were supposed to be the poor’s friends, instead, the bank and other financial institution are sucking the blood of the poor people. This can’t be. I hear about the bank drop the loans of those who are in default with thousands of crores of takas. But I never heard of a poor man’s loan being forgiven.
Banks and financial institutions are filing cheque dishonor cases without filing cases under the Money Lending Act for recovery of loans. That’s why our criminal system has become almost ineffective. Hence, from now on, banks or financial institutions can file cases only in credit court. Not in any other law.
The court said that banks were supposed to be friends of the poor, but instead of that, banks and various financial institutions are sucking the blood of the poor. It can’t be. I hear about the bank waiving off the loans of those who are in default with thousands of crores of takas. But I never heard of a poor man’s loan being forgiven. Like sapphire farmers, their aim is to collect debts, like advance traders. Banks and financial institutions are filing cheque dishonor cases without filing cases under the Money Lending Act for recovery of loans. Due to this our criminal system has become almost ineffective. Therefore, from now on, banks or financial institutions can file cases only in the credit court. Not in any other law.
The court has directed the Governor of Bangladesh Bank to issue instructions in the light of the HC’s verdict to banks and other financial institutions.
