RE: Legal Opinion regarding letter dated 26.02.2008 of Mr. X about appropriation of dividend against attached shares A/c. COMPANY 1., a defaulting borrower of BANK 1.
Please refer to your letter dated 09 March 2008 on the above subject.
On perusal of your letter it appears that BANK 1 (the Bank) has received a letter-dated 26.02.2008 (the Letter) from Mr. x, a shareholder of the Bank. Vide Court Order dated 21.10.2002 and 20.04.2004, 79,422 nos. of shares of the Bank owned by Mr. X and others were attached. The Bank has appropriated dividend of the attached shares declared in A.G.M. for the year of 2003, 2004 and 2005 for partial adjustment of the liabilities of COMPANY 1. Although the Bank has not appropriated the dividend for the year of 2006 on our advice.
Now in the Letter by referring to the Court Order No. 65 dated 29.08.2005 (the Order) Mr. x stated “Learned Artha Rin Adalat, 2nd Court, Dhaka vide order no.65 dated 29.08.2005 in Title Execution Case No. 391 of 2003 ordered you (i.e. the Bank) to keep our cash dividends in separate account.” and requested the Bank to furnish him with the details of the said separate account and account balances.
In these circumstances, you have requested us to give our legal opinion on the steps/course of action to be taken by the Bank.
It appears that according to our opinion dated 31.07.2004 the Bank has filed an application to the Court thereby informed the Court of the partial adjustment of the outstanding liabilities by dividend warrants of the said shares. However by the Order the Court has stated the followings:
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Therefore as per court order the Bank should keep the dividends of the said share in a separate account and we are of the opinion that the Bank should do the same. With regard to the Letter, the Bank may inform Mr. Y that the said dividends are being kept in a separate account according to the court order and shall disclose the details of the account and its balance to the court if necessary.
All papers/documents referred to us are returned herewith.
If you have any further query, please do not hesitate to contact the undersigned.
For: “The Lawyers & Jurists”