SONALI BANK Vs. QUADERIA PUBLICATIONS AND PRODUCTS LIMITED

JUDGEMENT

(1.) The petitioner seeks leave to appeal against the judgment and order dated 27.1.2000 passed by a Division Bench of the High Court Division in Writ Petition No.1370 of 1999 making the rule absolute.

(2.) The fact leading to the leave petition are that the respondent No.1 company opened a letter of credit on 7.10.1987 for importing machineries which were released by trust receipt. On 23.9.1989 it requested for conversion of trust receipt into a project loan. The petitioner, Sonali Bank by sanction letter dated 30.1.1990 granted the project loan by conversion of the Trust receipt facility for total outstanding of Tk. 2,16,55,000.00 of which Tk. 1,57,77,308.00 was principal and Tk. 58,77,692.00 was interest with a condition that the loan should be repaid in five years in two equal-half yearly installments. Against the loan securities were given by mortgaged land and building, hypothecation of machineries and the personal guarantees of directors.

(3.) In the meantime, Bangladesh Bank issued a memo dated 7.10.1991 directing all the banks to allow waiver of 75% of general interest and 100% penal interest where no suit has been filed. Accordingly, the petitioner, Sonali Bank published notice in the newspaper inviting application for availing waiver upon deposit of 10% of the outstanding.