Loan defaulters cheer as SC stays HC order

The Supreme Court (SC) on Monday stayed the High Court (HC) order for two more months, thus allowing loan defaulters to enjoy the central bank's privileges.

Earlier on July 02, the chamber judge had stayed the HC order that halted the Bangladesh Bank (BB) guidelines on special facilities for loan defaulters.

With the latest SC order, defaulted borrowers will be able to reschedule loans by paying a 2.0 per cent down payment for a maximum period of 10 years in line with BB guidelines issued on May 16.

However, the apex court in its order barred these defaulters from getting fresh loans from any bank during the period.

Headed by chief justice Syed Mahmud Hossain, a four-member bench of the Appellate Division of the SC passed the order following a petition filed by the ministry of finance on July 2 seeking the stay on the HC order.

The bench also sent the petition to the HC bench led by Justice JBM Hassan and asked it to dispose the petition filed by Human Rights and Peace for Bangladesh (HRPB) within next two months.

On July 2 chamber judge Justice Md Nuruzzaman stayed for a week the High Court order which earlier halted special policy guidelines of BB offering privileges to loan defaulters.

The BB special guidelines had also given scope to avail a "one time exit" facility by clearing all dues within 360 days after getting it approved by the banks concerned.

After the guidelines were issued, the Human Rights and Peace for Bangladesh (HRPB) filed a writ petition with the HC and on May 21 the court stayed the guidelines until June 24.

Later on June 24, the HC extended its order for two more months.

As soon as the guidelines for benefiting bad borrowers were issued, the measure drew strong criticism from economists and bankers who warned of a possible disastrous outcome.

Attorney General Mahbubey Alam appeared for the Finance Ministry while Advocate Manzill Murshid argued for the petitioner.

syful-islam@outlook.com