Bank Company Act, 1991

 

 

Bank Company Act, 1991

[XIV of 1991]

 

Section 2(ga) (ga)-

Defaulting borrowers themselves form a separate and distinct class and legislature can make stringent law against them and such law is not violative of the fundamental rights.

Anwar Karim and others vs Bangladesh Bank and others 52 DLR 1.

 

Section 15 Ka Ka-

Bank Companies (Amendment) Act 2003 introduced prospectively will have no bearing upon the AGMs for the years in question but ignoring this aspect the contemner opposite parties repeatedly hammered upon the Chairman designate to give his opinion as to the interpretation of this new section and the circular of the Bangladesh Bank. It appears in the name of seeking advice or guideline from the Chairman designate the opposite parties have obstructed the course of justice and flouted this court's order.

Akhteruzzaman Chowdhury vs Hamidul Huq, MD, UCBL and another (Statutory) 56 DLR 73.

 

Section 17-

In issuing the notices under section 17 of the Act the lender Bank acted neither as a substantive authority nor as a Court nor as a tribunal. It acted purely in an executive capacity under an authority granted by a statute.

ASF Rahman and others vs Bangladesh Bank and others 52 DLR (AD) 61.

 

Sections 17, 45 and 49-

The Bank Companies Act clearly invests Bangladesh Bank with a strong regulatory power over the functioning and business of banking companies.

ASF Rahman and others vs Bangladesh Bank and others 52 DLR (AD) 61.

 

Section 17(1)-

Bank director-default of payment-when entire loan money is not paid within the specified time the directorship of the defaulter loanee is vacated on the expiry of the period of two months notwithstanding the subsequent rescheduling of the loan and payment of 10% thereof.

Yaqub Mohammad and another vs Bangladesh Bank and others 52 DLR (AD) 159.

 

Section 27(Ka)-

It is not the intention of the law to classify a director who was not instrumental in taking the loan and responsible for mismanagement of the affairs of the company to classify him as the defaulting borrower.

Anwar Karim and others vs Bangladesh Bank and others 52 DLR 1.

 

Sections 29 and 45-

If a director of a Bank or a relation of such a director is a defaulter in respect of his personal or corporate loan then he or the enterprise in which he has vested interest is not entitled to any reschedulement of loan and a "No objection" in that case by the Bangladesh Bank for reschedulement will be illegal.

KM Zakir Hossain vs Bangladesh Bank and others 52 DLR 577.

 

Section 37-

Publication of outstanding dues -Bangladesh Bank's competence to make publication-The argument that since the Banking Companies Act came into force at a later time the statement regarding the position of outstanding dues of an account-holder as on 31.12.90 has no substance as section 37 without putting any time-limit has empowered the Bank to publish the information in public interest.

Paul and Co vs Bangladesh Bank 45 DLR 8.

 

Section 45—

When a bank claims interest in excess of what is permitted by circular/direction of the Bangladesh Bank, the Court can always give relief to the aggrieved party.

Uttara Bank Ltd vs Aysha Siddiqua and others 56 DLR 253.

 

Section 45(2)-

Under section 45(2) of the Bank Companies Act the Bangladesh Bank has discretion to modify its own order or circular on a representation made to it or on its own motion.

KM Zakir Hossain vs Bangladesh Bank and others 52 DLR 577.

 

Section 45(1)(d)-

The Bangladesh Bank has power to give directions under the Bank Companies Act to secure proper management of any bank company generally.

KM Zakir Hossain vs Bangladesh Bank and others 52 DLR 577.

Section 46-

In view of the existence of the report and recommendation it cannot be said that there was no material before the respondent No.I to form the opinion concerning the appellant or that the said opinion was merely fanciful.

Abdur Rahim Chowdhury vs Bangladesh Bank and others 52 DLR (AD) 71.

Section 46-

Bank Companies Act has given power to Bangladesh Bank for removal of the Chairman, Directors and the Chief Executive of the bank in public interest or to prevent detrimental conduct of the company by any of the directors or the Chairman.

Bangladesh Bank and others vs Zafar Ahmed Chowdhury and another 53 DLR (AD) 70.

Section 46-

When Bangladesh Bank was fully aware of the purport of the order passed by this Division they ought not to have taken recourse to section 46 of the Act.

Bangladesh Bank and others vs Zafar Ahmed Chowdhury and another 53 DLR (AD) 70.

Sections 46 and 47-

Whether there was sufficient good reason to form an opinion cannot be looked into by the court as that would be substituting the opinion of the Bangladesh Bank. The Court cannot accept the contention that the Bangladesh Bank could not have arrived at an opinion or satisfaction to suspend the petitioner on a single transaction.

Abdur Rahim Chowdhury vs Bangladesh Bank, Dhaka and others 51 DLR 231.

Section 103-

When a joint account is opened and there is specific direction that any of the joint account-holders or survivors may operate the account then the bank is bound to follow it in case of death of one of the account-holders.

Arab Bangladesh Bank Ltd vs Ziauddin and others 52 DLR 36.

Section 103-

No injunction can be granted against operation of bank account and withdrawal of the money in deposit as per terms of contract. The account being opened with a specific condition setting the act of operation of payment, the Bank is bound to comply with the condition on which it has accepted the deposit.

Ziauddin Ahmed and others vs Arab Bangladesh Bank and others 53 DLR (AD) 107.

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