BPRD
Circular Letter No. 10 |
April 21, 2000 |
The
Chief Executives,
All Banks/NBFIs,
Dear
Sirs,
LOAN
DEFAULTS-RECOVERY THEREOF
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In order to expedite recovery of stuck up
loans/advances the Banking Companies (Recovery of Loans, Advances,
Credits and Finances) Act, 1997 was promulgated on 31st May,
1997. In terms Section 8(1) of the said Act, a banking company
may, within three years from the date of coming into force
of this act, file a suit for recovery of loans written off
under any compromise, agreement contract, etc. inclusive of
adjustment of a decree made on or after 1st January, 1990,
if such write off, compromise or adjustment was found to be
based on political reasons or considerations other than bonafide
business consideration. It may be appreciated that time limit
of three years stipulated in the act to file such type of
suit as envisaged above is going to expire shortly. It is
a high time for banks/NBFIs to take stock of all such type
of cases and make suitable arrangements in their institution
to file such suits in order to take full advantage of opportunity
provided in the Act before it is elapsed. You are, therefore,
advised to ensure that all such cases are searched out and
suits filed with the relevant Banking Court or High Court,
if not already done, within the prescribed time frame. A list
of all cases filed by your bank/NBFI by the above deadline
may kindly be sent to us on or before 8th June, 2000.
Please acknowledge receipt.
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Yours
faithfully,
(KAZI ABDUL MUKTADIR)
Director |
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