The Appellate Division on Monday set 1 December for hearing a petition filed by Brac Bank seeking a stay on a High Court judgment that said no bank or financial institute is allowed to file cheque dishonour case while recovering loan.
Justice M Enayetur Rahim of Appellate Division Chamber Judge Court on Monday passed the order, Sending the petition to the apex court full bench, headed by the chief justice, for further hearing.
Attorney General AM Amin Uddin moved for the petition filed by the Brac Bank authorities.
The High Court on 23 November ordered banks and financial institutions not to file cheque dishonour cases against borrowers to realise their default loans after disposing of an appeal by Mohammad Ali, who was sued by Brac Bank and received a sentence of six-month imprisonment and a Tk2.95 lakh penalty in a trial court.
It also instructed the lower courts to dismiss such cases or transfer them to the Artha Rin Adalat (Money Loan Court) directly.
The High Court in its order further said insurance coverage is needed against all kinds of loans. The court asked Bangladesh Bank authorities to issue directives in this regard and requested the National Parliament to amend the laws concerned.