Gulam Rabbani :
The High Court on Thursday said that the loan defaulters must pay back the money of the People’s Leasing and Financial Services Limited (PLFSL), a non-bank financial institution, in installments, otherwise they would be sent to jail.
The court also said, “People’s Leasing and Financial Services Limited is a listed company. So the money deposited in the PLFSL is not the money of thieves or robbers, but the money of the common people.”
The HC bench of Justice Muhammad Khurshid Alam Sarkar passed the observation while holding hearing on a petition filed by provisional liquidator of PLFSL Md Asaduzzaman Khan.
Addressing the borrowers the HC said, “You (the defaulters) have taken huge amount of money from the PLFSL, while its depositors are roaming around without having meal.”
The court also asked the borrowers to pay the money at first and not to use any ministers’ influence to this effect.
The HC bench said, “The defaulters will have to pay the due installments first and then they will get opportunity to bargain and negotiate with the liquidator of PLFSL, and those who will fail to do it will be sent to custody.”
The HC bench in November last year sought a list of the loan defaulters from PLFSL which is on the process of winding up. Then the provisional liquidator of the company submitted a list before the HC bench on November 23.
After holding hearing on the list the HC on January 20 summoned 280 loan defaulters from PLFSL and directed 143 of them to appear before it on February 23 and other 137 to appear on February 25 to place their explanations on this issue.
Complying with the court order 45 borrowers came to the court on Thursday. The borrowers who didn’t come on Tuesday will face arrest warrant if they fail to appear in the court on March 9, said the court.
During yesterday’s (Tuesday) hearing the High Court also said, “A court cannot operate a financial institution bypassing its regular judicial duties. I have been waiting for two years to see what the Bangladesh Bank and Security and Exchange Commission do in this regard.”
The court said now either the company will run with its board or it will be amalgamated with other company or the body which is running present functions will continue their duties with a little bigger in size.
“If a committee of at least 10 people is set up to run the company then they will have to be paid monthly. An office will be needed. So, first duty of the borrowers is to pay some money” added the court.
Borrowers could be able to make payments to PLFSL from their frozen accounts but will not be able to withdraw money for personal purpose, said the court adding that it had already given the same direction to the Bangladesh Bank.
Barrister Mejbahur Rahman took part in the hearing on behalf of the provisional liquidator of the People’s Leasing and Financial Services Limited.
