RE: Legal opinion regarding on MTDR (Fixed Deposit) for Tk. 20.00 lac on account of deceased Mr. X.
We refer to your letter dated 26.04.2007 on the above subject matter.
We have perused all the documents sent to us with regards to the captioned subject. It appears that due to the death of Mr. X, his legal heirs became the owner of the legal estate of the deceased and as such are owner of the Mudaraba Term Deposit Receipt (MTDR) for Tk. 20.00 lac which presently stands at Tk. 59,53,340.67. The heirs of Late Mr. X are Directors of the Company 1(the “Borrower”) and the Borrower has liability with the Bank 1. In such situation the matter has been referred to us and we are requested to provide legal opinion whether the Bank can adjust the liability of Company 1 Limited by encashing the said MTDR.
From the papers/document sent to us it appears that the Company 1availed loan from the Bank 1 and the heirs of Mr. X are simply the directors of the Borrower. Since the death of Mr. X, his legal heirs became the owner of the legal estate of the deceased and as such are owner of the Mudaraba Term Deposit Receipt (MTDR) for Tk. 20.00 lac which presently stands at Tk. 59,53,340.67. As the heirs of Mr. X are not the Borrower/debtor, Bank can not set-off money directly by encashing the said MTDR. However, it is advisable that the Bank may file Artha Rin Suit against the defaulters i.e. Borrower/guarantor(s)/mortgagor(s) and accordingly attach the said MTDR by filing an application restraining the heirs of Mr. X to withdraw the said amount.
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For: “The Lawyers & Jurists”