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The Bangladesh Shilpa Rin Sangstha Order, 1972 (President's Order)

( PRESIDENT'S ORDER NO. 128 OF 1972 )

[ 31st October, 1972 ]

33. 1[(1) Where] the Sangstha becomes entitled to require the immediate payment of any loan before the due date under Article 32 or by reason of the breach of any condition of any agreement between the Sangstha and an industrial concern to which any loan has been granted or any person liable for payment of that loan, or where an industrial concern to which any loan has been granted or any person liable for payment of that loan fails to repay the loan by the due date or in compliance with the notice under Article 32, an officer of the Sangstha generally or specially authorised by the Board in this behalf, may apply to the District Judge within the local limits of whose jurisdiction the industrial concern carries on the whole or a substantial part of its business, or the office or Branch of the Sangstha from which the loan was disbursed is situated, for one or more of the following reliefs, namely:-
 
 
(a) an order for the sale of the property pledged, mortgaged, hypothecated or assigned to the Sangstha as security for the loan or any other property of the industrial concern or of any person liable for payment of the loan or for payment of other sum relating thereto; or
 
 
(b) transfer of the management and administration, including the authority to operate the bank accounts, of the industrial concern to the Sangstha or to a person specified by the Sangstha; or
 
 
(c) an order for injunction ad interim where there is apprehension that the machinery or equipment or other assets may be removed from the premises of the industrial concern without the permission of the Sangstha or the properties of any other person who is liable for payment of the loan or any other sum relating thereto may be transferred, removed or destroyed; or
 
 
(d) an order for payment of the loan or any other sum relating thereto.
 
 
(2) An application under clause (1) shall state the nature and extent of the liability of the industrial concern to the Sangstha, the ground on which it is made and such other particulars as the Sangstha may consider necessary.
 
 
(3) When the application is for the relief mentioned in sub clause (a) or sub clause (c) of clause (1), the District Judge shall pass an order ad interim, attaching the property referred to in sub clause (a) as aforesaid or such other property of the industrial concern or of the persons liable for payment of the loan or of both as is likely in his estimation to fetch, on being sold, an amount equivalent to the outstanding liability of the industrial concern to the Sangstha 2[, together] with the costs of the proceedings taken under this Article, with or without an order of injunction ad interim restraining the industrial concern from transferring or removing any machinery or equipment or any other assets without the consent of the Sangstha or restraining the persons from transferring, removing or destroying the same.
 
 
(4) Where the application is for the relief mentioned in sub clause (b) of clause (1), the District Judge shall pass an order for injunction ad interim restraining the industrial concern from transferring or removing its machinery, equipment or any other assets and shall issue a notice calling upon industrial concern to show cause on a date to be specified in the notice why the management and administration, including the authority to operate the bank accounts, of the industrial concern, should not be transferred to the Sangstha or to a person specified by the Sangstha.
 
 
(5) Where the application is for the relief mentioned in sub-clause (d) of clause (1), the District Judge shall issue a notice calling upon the industrial concern or the person who is liable to make the payment to show cause on a date to be specified in the notice why an order for payment of the loan or any other sum relating thereto shall not be passed.
 
 
(6) Before passing any order under clause (3), (4) or (5), the 3[District] Judge may, if he thinks fit, examine the person making the application.
 
 
(7) At the time of passing an order under clause (3), the District Judge shall issue to the industrial concern 4[or to] the persons liable for payment of the loan or any other sum relating thereto a notice accompanied by a copy of the order, the application and evidence, if any, recorded by him calling upon it or him to show cause on a date to be specified in the notice why the order of attachment ad interim should not be made absolute or the injunction be not confirmed.
 
 
(8) If no cause is shown on or before the date specified in the notice 5[under] clause (4) or (7), the District Judge shall forthwith make the order ad interim absolute and direct the sale of the attached property or transfer the management and administration, including the authority to operate the bank accounts, of the 6[industrial] concern to the Sangstha or to the person specified by the Sangstha or confirm the 7[injunction].
 
 
(9) If no cause is shown on or before the date specified in the notice under clause (5), the District Judge shall pass an order for payment of the loan or any other sum relating thereto.
 
 
(10) If cause is shown, the District Judge shall proceed to investigate into the claim of the Sangstha and the provisions of the Code of Civil Procedure, 1908 (Act V of 1908), shall, as far as practicable, apply to such proceedings.
 
 
(11) On completion of the investigation under clause (10), the District Judge shall pass an order-
 
 
(a) confirming the order of attachment or directing the sale of the attached property; or
 
 
(b) varying the order of attachment so as to release a portion of the property from attachment and directing the sale of the 8[remainder] of the attached property; or
 
 
(c) releasing the property from attachment, if he is satisfied that it is not necessary in the interests of the Sangstha to retain it under attachment; or
 
 
(d) confirming or vacating the injunction; or
 
 
(e) transferring or refusing to transfer the management and administration, including the authority to operate the bank accounts, of the industrial concern to the Sangstha or to the person specified by the Sangstha; or
 
 
(j) directing the payment of the loan or any other sum relating thereto:
 
 
Provided that when making any order under sub clause (c), the District Judge may make such further orders as he thinks necessary to protect the interests of the Sangstha and may also allow the cost of the proceedings:
 
 
Provided further that unless the Sangstha intimates to the District Judge that it will not appeal 9[against] any order releasing any property from attachment, such 10[order] shall not be executed until the expiry of the period mentioned in clause (13), or if any appeal is preferred, unless the 11[High Court Division] otherwise directs, until the appeal is disposed of.
 
 
(12) An order under this Article for the attachment or sale of property or payment of the loan or any other sum relating thereto shall be carried into effect as far as may be in the manner provided in the Code of Civil Procedure, 1908 (Act V of 1908), for the attachment or sale of property in execution of a decree or for the execution of a decree as if the Sangstha were the decree holder.
 
 
(13) Any party aggrieved by an order made under clause (8), (9) or (11) may, within thirty days from the date of the 12[order, appeal] to the 13[High Court Division] and upon such appeal, the 14[High Court Division] may, after hearing the parties, pass such orders as it thinks proper.
  • 1
    The brackets, figure and word “(1) Where” was substituted for the word “where” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 2
    The comma and word “, together” were substituted for the word “together” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 3
    The word “District” was substituted for the word “Disrict” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 4
    The words “or to” were substituted for the word and letter “or o” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 5
    The word “under” was substituted for the word and comma “, under” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 6
    The word “industrial” was substituted for the word “Industrial” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 7
    The word “injunction” was substituted for the word “injuction ” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 8
    The word “remainder” was substituted for the word “reminder” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 9
    The word “against” was substituted for the word “agaist” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 10
    The word “order” was substituted for the word and comma “order,” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 11
    The words “High Court Division” were substituted for the words “High Court” by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)
  • 12
    The words and comma “order, appeal” were substituted for the words “order appeal” by section 14 of the Bangladesh Shilpa Rin Sangstha (Amendment) Ordinance, 1977 (Ordinance No. XIV of 1977)
  • 13
    The words “High Court Division” were substituted for the words “High Court” by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)
  • 14
    The words “High Court Division” were substituted for the words “High Court” by section 2 and the Schedule of the Banks and Financial Institutions Laws Amendment Act, 1980 (Act No. IX of 1980)
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