CR cases push banks, FIs into risk of huge debt burden
Sunday, 22 March 2009
Non-settlement of a huge backlog of Complaint Registrar (CR) cases involving loan default under the Negotiable Instruments Act (NIA) has pushed the country's banks and financial institutions (FIs) into a risk of huge debt burden, reports UNB.
In the magistrate courts in Dhaka alone, as many as 16,400 CR cases have been pending for long without hearing, on ground of lack of adequate number of magistrates, informed sources said.
The magistrate courts that deal with other ordinary cases are also overburdened with the CR cases, as the filing of such cases is on the upturn, said an official in the magistracy.
"Generally, after the filing of a CR case due to loan default, it takes at least four years to dispose of the entire judicial process," said a top official of a leading FI.
He said it takes as long as four months to get a next date for hearing on a case after it is lodged, and summons are issued at least after four months.
In the magistrate courts in Dhaka alone, as many as 16,400 CR cases have been pending for long without hearing, on ground of lack of adequate number of magistrates, informed sources said.
The magistrate courts that deal with other ordinary cases are also overburdened with the CR cases, as the filing of such cases is on the upturn, said an official in the magistracy.
"Generally, after the filing of a CR case due to loan default, it takes at least four years to dispose of the entire judicial process," said a top official of a leading FI.
He said it takes as long as four months to get a next date for hearing on a case after it is lodged, and summons are issued at least after four months.