Banks, FIs asked to follow HC order

Bangladesh Bank has asked all the scheduled banks and financial institutions to follow a High Court order stating that the holders of cheques issued in the name of ILFSL are now required to approach the company court first before presenting any cheque signed by the court-appointed directors.
The High Court (HC) said, "The governor of Bangladesh Bank shall notify all the scheduled banks and financial institutions to the effect that the holders of cheques issued in the name of International Leasing and Financial Services Ltd are required to approach the company court first before presenting any cheque signed by the court-appointed directors."
ILFSL is a non-banking financial institution which is in trouble due to loan irregularities.
The central bank issued the notification on Sunday, asking all the scheduled banks and financial institutions in the country to follow the HC order.
ILFSL sought an order from the court for ensuring immunity of the court-appointed board of directors from any legal actions against them in respect of the affairs of ILFSL while performing their duty as the court-appointed chairman and directors of the company.
Earlier, the High Court has reconstructed the board of directors of ILFSL.
Some of the creditors of ILFSL in December, 2019 filed an application with the High Court for winding up the company.

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