ASF RAHMAN Vs. BANGLADESH BANK

JUDGEMENT

(1.) This petition for leave to appeal by the Writ petitioners, namely, ASF Rahman, Salman F Rahman, Iqbal Ahmed and MA Qasem is from the judgment and order dated 9 May 1999 of a Division Bench of the High Court Division in Writ Petition No. 463 of 1998 discharging the Rule Nisi and awarding a cost of Taka 5000.00 to each of the contesting respondents.

(2.) The salient facts over which there is little dispute are as follows. The leave petitioners, Messrs ASF Rahman, Salman F Rahman, Iqbal Ahmed & MA Qasem are all Directors of Beximco Investment Company Limited, now Beximco Holding Limited. Of them ASF Rahman and Salman F Rahman are also three Directors of IFIC Bank while Iqbal Ahmed and MA Qasem are the Directors of Arab Bangladesh Bank Limited (brief AB Bank) All of them undertook by personal guarantee in favour of AB Bank to repay the outstanding loans taken therefrom by Satkhira Fisheries Limited, Pharmatek Chemicals Limited, Khulna Fisheries Limited and Mrittika Limited. According to payment re schedule the loans were to be repaid in ten half-yearly installments starting from 30 June 1996. The Borrowers failed to pay the installment that fell due on 30 December 1997. On 31 December 1997 the borrowers requested AB Bank for granting extension of time upto 31 January 1998 for repayment of the said instalment. On 4 January 1998 AB Bank wrote to the guarantors about the default bringing to their notice that as per condition of Bangladesh Bank (respondent No. 1), entire outstanding amount became due and they were asked to arrange for adjustment of the entire outstanding amount of Taka 210.64 crore immediately. On 20 January 1998 the petitioners replied thereto stating that they had been pursuing the borrowers to ensure payment as early as possible. On 3 February 1998 AB Bank informed Bangladesh Bank of the default in repayment of the instalment which was due on 30 December 1997. Bangladesh Bank, by their letter dated 4 February, 1998 advised AB Bank that they might proceed against the guarantors, the present petitioners, in accordance with section 17 of Bank Companies Act, 1991 as amended by Act XI of 1997. Thereupon the AB Bank issued notices on 9 February 1998 under section 17(1) of the said Act to all the petitioners individually through respondent No. 2 General Manager, Bangladesh Bank who forwarded the same under a covering letter dated 12 February 1998 (Annexure A series). One of the notices is quoted below for proper appreciation of the contents and the effect of the notice as the dispute centers round third notice which is in similar terms:

(3.) M/s Khulna Fisheries Ltd. -do- Tk. 35.93 crore