Legal opinion regarding non-encashment of a payment order no. 5651653, dated 28-01-08, Tk. 40,00,000.00.

Mr.x Z

Address….

Dear Sir,

RE:      Legal opinion regarding non-encashment of a payment order no. 5651653, dated 28-01-08, Tk. 40,00,000.00.

We refer to your letter dated 25.03.08 on the above subject.

We have perused the papers/documents referred to us. We understand that upon the application of Company 1 (‘Company 1’), Bank 1 (‘BANK 1’) have issued a payment order No. 5651653, dated 28-01-08 (the ‘Payment Order’) for Tk. 40,00,000.00 in favour Company 2 (‘COMPANY 2’) as tender security money.

COMPANY 2 served notice upon Company 1 with a copy to BANK 1 vide their Memo No. Pur/Fert/MOP/Re-Tender/40/30/2007-08/803(5) dated 24.03.2008 (“the Forfeiture Notice”), to forfeit the Payment Order and to encash the same for COMPANY 2’s account.

In the meantime, BANK 1 have received a letter dated 24.03.2008 from Mr.x, from which it appears that the High Court Division of the Supreme Court in Writ Petition No. 2533 of 2008 has passed an order upon COMPANY 2 not to forfeit or encash the aforesaid tender security money for non Submission performance bank guarantee.

In the circumstances stated above, you require our legal opinion regarding what shall be the next course of action for BANK 1.

OUR OPINION:

If we accept the authenticity of the information provided by the letter dated 24.03.2008 of Mr.x, then the Honourable High Court Division of the Supreme Court in Writ Petition No. 2533 of 2008 passed an order upon COMPANY 2 not to forfeit or encash the aforesaid tender security money for non submission of performance bank guarantee.

BANK 1 should immediately send a letter to Company 1 asking them to provide BANK 1 with the certified copy of the order of  the Honourable Court given in Writ Petition No. 2533 of 2008 within 3 (three) working days failing which BANK 1 shall encash the Payment Order in favour of COMPANY 2. However, BANK 1 should ensure that Company 1 actually receives this letter and are allowed 3 (three) working days to provide the said certified copy of the order, or else BANK 1 may be liable for contempt of court.

BANK 1 should also inform the COMPANY 2 that BANK 1 has received a letter from Mr. X, the lawyer of Company 1, from which it appears that the High Court Division  has passed an order upon COMPANY 2 not to forfeit or encash the aforesaid tender security money for non Submission of  performance bank guarantee. BANK 1 should inform COMPANY 2 that since there apparently is an order of the High Court Division, BANK 1 is unable to encash the Payment Order until BANK 1 receives the certified copy of the court order, for the production of which, BANK 1 has given Company 1 3 (three) working days time.

Please note that the above opinion is given on the basis of information given in the letter of Mr. X, the lawyer of Company 1. However, a complete opinion can only be given upon perusal of certified copy of the order of the Honourable Court given in Writ Petition No. 2533 of 2008.

If you have any further query, please do not hesitate to contact us.

Thanking you.

Yours faithfully,

………………….

For: “The Lawyers & Jurists”

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.