6,000 CR
88,734 CR
1,25,258 CR
666.95 Billion Tk
6.2% of outstanding
605.01 Billion Tk
23.04% of outstanding
44.77 Billion Tk
11.80% of outstanding
29.70 Billion Tk
4.77% of outstanding
Money Loan Court Act-2003 (Artha Rin Adalat Ain)
is a type of law that has been enacted only to early
recovery of bad loans of the financial institution
and banks.
In 1990, Money loan court act was enacted to
sue
the
defaulters
and
declared
them
insolvent. Insolvency Act-1997 was also dispute
the bad loan cases
The purpose of this act is to help banks and.
financial institutions in the recovery of
classified loan
But Money loan Court Act-1990 & insolvency
Act-1997 was found to be unsatisfactory and
the government come up with a new law Money
Loan Court Act-2003.
Establishment of the court
1
This section appears that the
government, by gadget notification,
will set up in each district one or more
money loan court
2
In the absence of such courts
established by the government, the
joint district judge court will be
deemed to be money loan courts
3
The government will appoint judges
for the money court from among joint
district judges by consulting with the
supreme court
Power and Jurisdiction
of the court
1
2
Money loan court will be deemed to
All suits relating to the realization of loan of
A financial institution can not file a case
be a civil court having all the power
a financial institution ( Bangladesh Krishi
before the court accusing its employees
of
such courts provided that
Bank, RAJSHAHI KRISHI UNNOYON BANK)
of misappropriation of money
powers are not inconsistent with
including mortgage suit for foreclosure and
money loan court
sale and even public demand up to TK
5,00,000 are triable by the Artha Rin Adalat
3
Filling of Suits and Judicial
Procedure
1
Code of civil procedure 1908 in absence of
Money Loan Court Act 2003
2
Submission of fee
3
Submission of evidence and affidavit
4
File suits against principal
including third party mortgage
debtor
1
Summons is required to be returned within
15 days
2
If not, it is to be published in newspaper
within next 15 days
1
File a suit with Name, address and
workplace of the defendant and plaintiff
1
Defendant will attend on fixed date in the
summons
2
All occurrences related to the claims
2
Submission of written reply about the
claims
3
Place, date, and time of the originating case
3
Submission of documentary evidence and
source of evidence
4
Amount of loan & advances, interests,
charges etc.
5
Schedule of property of defendant
1
2
No statement will be accepted after 40 days of
the appearance of the defendant
On the basis of the precondition of bearing the
expense of a minimum 2000 to a maximum 5000
the submission time can be extended
1
Financial institutions are required to file a case
only after selling goods secured by a lien, pledge,
and property under a mortgage
2
If a case is filed before, they are required to sell
with the help of the district magistrate or first
class magistrate
3
If the financial institution fails to hand over the
possession of the property to buyer, they will seek
the help of the court to surrender the property to
the buyer
1
The court shall make the issue of the case, if
any, after hearing the written reply by the
defendant, on a fixed date, and both parties
2
If either or both parties are absent, then the
court, ARG, and the written description shall
make the issue of the case.
3
At the first date of the hearing of the case or
at any stage of the case if it appears to the
court that there is no dispute between the
parties in the event or the legal matte, then
the court will resolve the case immediately.
1
The date of the final hearing of any case of the
loan court shall not be adjourned more than
once in the context of the application of a party
2
The court, in the absence of the time limit for the
disposal of the trial in this section. Payment- not
less than TK 1000 up to the 3000
3
According to sub-section (2), the postponement of
the deferred expenditure shall be deposited in the
prescribed area as public revenue.
1
2
The hearing of oral arguments before the
judgment in the case filed under this at will
not be required for the judge of the court.
1
After the completion of the testimony of the case,
the court shall pass judgment within 10 days
The court may order a party to submit
additional oral arguments to the written
arguments.
2
maximum time limit is 60 days if the court
doesn’t allow a long periods.
Provision related to the timing
Social provision relating to filing suit
and hearing
Finalization of the order of loan court
1
If the defendant is absent in the court on the
date fixed for the hearing of the case then
the court will decide the case unilaterally.
3
the defendant shall be entitled to an equal
amount of 10% of the amount of the claim
within 15 days
2
the defendant may apply for the same
unanimous decree, within 3 days in case of
one-sided formula
4
Money can’t be dismissed because of any suit,
plaintiff’s absence, or failure in the loan court.
Settlement of Disputes in the alternative
methods
The provision of alternative dispute resolution is a unique
feature of the Artha Rin Adalat Ain 2003. After filling the
written statement, the proceeding of ADR shall start by
adjourning the next procedure of the suit.
A settlement conference means a conference presided over
Instead of the settlement conference, Adalat may forward the
by the judge of the Adalat in which the parties to the suits,
suit to the appointed lawyers or the parties to the suits for
their appointed lawyers, and their representatives may be
resolving the dispute through mediation. The lawyers shall
present. The judge may play a cooperative role with a verse
mutually appoint a mediator upon consultation of the parties to
to settle the dispute on the basis of corporation, sympathy,
the suit among the following kind of person
and mutual understanding in an informal, non-contesting,
non-obligatory and confidential environment.
•
Any lawyer who is not engaged in the parties
•
Any retired judge
•
Any retired officer of a financial institution
•
Any other competent person other than a person employed in
the profitable services in the republic
In order to make the provisions of ADR effective, the financial institutions may pass a resolution by its board of
directors empowering the central, regional, and local officers/managers to take necessary action in this
regard and issue a circular to that effect. The circular shall precisely contain
1.
The limitation of delegated power or authority
2. The principle and procedure to enforce that power
Any order or decree proclaimed by Artha Rin Adalat Ain shall be executed by the court itself or another court where is sent for the purpose
of executing by that court
If the court fixes any time for payment or decrial money at a time or in installment the time limit is prescribed in the sction 28(1) shall become
into force after expiring of the mentioned limit time
•
The decree holder shall deposit the requisite process fee in the court along with paint or the purpose of serving summon through
the process. If summon are not returned back within 15 days of issuance, the court shall arrange for making service through the
publication of an advertisement
•
Issuance of the notice in the newspaper
1
1
When the decree-holder filed an application as required
under subsection (7) of section 33 of the said Ain the
court is at liberty to issue certificate when application
Section 34 of the Ain, 2003 provides for ordering civil
imprisonment up to 6 months against a judgment-debtor for
compelling to satisfy the decree
has been filed by the decree-holder
2
The law provides for simple civil imprisonment of the judgment
2
debtor to compel them to make the payment for the satisfaction of
the decree
There is no illegality or infirmity in the order of issuance
of the certificate dated 15-9-2008
3
Civil imprisonment will not exempt payment of the decrial amount
Appeal and Revision
1
3
The appeal will have to be filed on payment of 50 percent
Plaintiff financial institutions don’t have to deposit any
of the decretal amount in cash to the decree holder’s
money when any appeals under this section.
financial institution.
2
4
For the ex-parte decree, the appellant will have to deposit
District judge can receive the appeal or shall send it to any
10% of decreed money under section 19(3). In case of filling
additional district judge district.
appeal, 10% money shall be got minus 50% money
Any court shall not accept an application if
1
•
Revision against judgment or decree
•
Doesn’t Deposit equivalent to 75% of the decreed money ordered
•
During appeal doesn’t deposit 50% money
No need to deposit any security money when financial institutions file any revision
2
•
Application for revision within the next 60 days
•
Extended up to a maximum of 30 days
1
2
Appellate Division allows the Debtor-defendant to file against decree passed by the high court Division
If the appeal of the plaintiff is fit, the appellate decision shall pass an order,
•
To deposit to the plaintiff- financial institutions
•
An order to the plaintiff to deposit the rest of the amount which was undeposited at the time of appeal
A Artha Rin Adalat may pass any ad interim order as it thinks necessary with a view to ensuring proper trial and ends of
justice.
1
During the continuity of proceeding for appeal or revision, parties can settle the dispute through arbitration
At the end of the arbitration procedure:
2
•
The court will have to be confirmed and pleased with the arbitration settlement
•
After the fulfillment of the court, it will pass the final disposal order of the execution suit.