No bank allowed to file cheque dishonour case: HC, The High Court (HC) issued an order today stating that no bank or financial institution will be permitted to launch a case for cheque dishonor while trying to recover a debt. The ruling was issued by a single judge court of Justice Md Ashraful Kamal, accepting the appeal of a Brac bank client who had been found guilty and given a six-month prison sentence in a case involving a dishonored check.
No bank allowed to file cheque dishonour case: HC
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 dishonor case filed by any bank or financial institute from now on.
According to BRAC Bank lawyer Saifuzzaman Tuhin, who confirmed the situation to BSS, banks or financial institutions can only file cases with Artha Rin Adalat in accordance with the procedures outlined in the Money Loan Court Act, 2003, in order to collect loans.
The court issued its ruling after hearing an appeal submitted by one Md Ali, who had been given a six-month prison term and a fine of Taka 2.95 lakh.
The court granted the convict’s appeal and mandated that he return half of the security deposit during the following 10 days. While Saifuzzaman Tuhin represented the Brac Bank, attorney Abdullah Al Baki presented the case on behalf of the appellant. Ashek Momin, deputy attorney general, represented the state.