FAIRTECH LIMITED Vs. BANGLADESH SHILPA BANK

JUDGEMENT

(1.) This petition is from the judgment and order dated 6 June, 1989 passed by the High Court Division Dhaka discharging the Rule in Writ Petition No. 74 of 1989.

(2.) Material facts of the case, briefly, are that the petitioners acquired two cargo carrying vessels Fairtech I and II, from Japan having taken foreign currency loan of US $ 6,30,000,00 from the Bangladesh Shilpa Bank, respondent no. 1 on 30.12.78 for the said purpose. Under an agreement with the Bank, the vessels were mortgaged/hypothecated with it and the petitioners undertook to repay the entire foreign and local currency loans in 16 equal half-yearly installments commencing from 13.9.81. The vessels arrived in Bangladesh and started operating from 1980-81. It appears that the petitioners paid the Bank a total amount of Tk. 72,10,349 but then there were defaults made in making the payment. On 10.11.87 the Bank issued notice to the petitioners under Article 34 of the Bangladesh Shilpa Bank Order, 1972 (PO 129/72) stating that as on 13.9.87 the outstanding amount due to the Bank was Tk. 2,22,53,815 and that the Bank had decided to take over possession of the vessels and sell them on 5.12.87. The petitioners sent a reply to the said notice which was found to be unsatisfactory by the Bank. The petitioners offered an amount of Tk.85 lakh by a post dated cheque and asked for final adjustments.

(3.) On 8.1.88, the Bank issued sale notice as provided in the Bangladesh Shilpa Bank (direct sale of Mortgaged Property) Rules 1980 by publication in the daily newspapers inviting lenders to be submitted by 27.1.88. The response to the calling of tenders in spite of a second publication was not satisfactory. The Bank informed, the petitioners in reply to their approaches for an amicable settlement that if they made a payment of Tk. 30 lakhs by 30.4.88 their proposal for adjustment of the outstanding amount might be considered, but the petitioners made no response to the same.