RE: Legal opinion regarding non-encashment of a payment order no. 5651653, dated 28-01-08, Tk. 40,00,000.00 issued in favour of Company 1 by the foreign exchange branch of Bank 1.
We refer to your letter dated 25.03.2008 and your letter dated 06.04.2008 and our letter dated 25.03.2008 on the above subject.
Now, you have sent us a certified copy of the order dated 24.03.08 of the High Court Division of the Supreme Court of Bangladesh passed in Writ Petition No. 2533 of 2008.
We have perused the certified copy of the order of the Court and it appears that, a Rule Nisi has been issued by the Court whereby the Court has directed the respondents of the said Writ Petition, during hearing of the Rule, not to encash the pay orders submitted by the petitioner (i.e.Company 2) being No. 5651653, dated 28-01-08 for Tk. 40,00,000.00 issued by the Bank 1, (“BANK 1”) and another pay order issued by National Bank Ltd. subject to the condition that these pay orders shall remain in force till disposal of the Rule.
As Bangladesh Agricultural Development Corporation (‘COMPANY 1’) is a respondent of the said Writ Petition, COMPANY 1 is under an obligation not to encash the said pay orders. Accordingly, since BANK 1 has been informed by Mr. x we are of the opinion that, the Bank should not allow COMPANY 1 to encash the said pay order issued by BANK 1 till disposal of the Rule.
BANK 1 should forward a copy of this Rule Nisi to COMPANY 1 and inform them that since there is an order of the High Court Division directing COMPANY 1 not to encash the said pay orders, BANK 1 is unable to encash the said pay orders till disposal of the Rule.
If you have any further query, please do not hesitate to contact us.
For: “The Lawyers & Jurists”