The Artha Rin Adalat Ain 2003 (Money Loan Court Act) provides a special fast-track procedure for the recovery of bank loans in Bangladesh. The Artha Rin Adalat (Money Loan Court) has exclusive jurisdiction over suits filed by banks and financial institutions for recovery of loans. TRW — Tahmidur Rahman Remura Wahid Law Associates represents both banks (in loan recovery) and borrowers (in defending Artha Rin suits) with expertise and efficiency.
Legal Framework: Artha Rin Adalat Ain 2003
The Artha Rin Adalat Ain 2003 was enacted to provide a fast-track mechanism for the recovery of non-performing loans (NPLs) by banks and financial institutions. Key features of the Act include: exclusive jurisdiction of the Artha Rin Adalat over loan recovery suits; a simplified procedure with strict timelines; the right of the bank to attach the mortgaged property at the beginning of the suit; and the right of the bank to sell the mortgaged property by auction after obtaining a decree.
The Act also provides for the borrower's right to defend the suit and to raise defences such as payment, set-off, and counterclaim. TRW advises borrowers on the defences available and represents them in Artha Rin proceedings.
Defending an Artha Rin Suit
TRW defends borrowers in Artha Rin suits on the following grounds. The loan has been fully or partially repaid. The bank's calculation of the outstanding amount is incorrect. The mortgage was not validly created. The bank failed to comply with the terms of the loan agreement. The suit is barred by limitation. The bank has not followed the required pre-suit procedure. TRW also applies for a stay of the auction sale of the mortgaged property pending the hearing of the defence.
TRW also advises borrowers on restructuring and settlement negotiations with the bank, which can often result in a more favourable outcome than litigation.
How Barrister Tahmidur Rahman Can Help
Barrister Tahmidur Rahman and TRW's commercial litigation team handle Artha Rin cases across Bangladesh. Contact TRW at https://tahmidurrahman.com/contact/.
Frequently Asked Questions
Q: Can a borrower get a stay of the Artha Rin decree?
A: Yes. TRW can apply for a stay of execution of the Artha Rin decree pending appeal or revision.
Q: Can the borrower's personal assets be attached in an Artha Rin suit?
A: Yes, if the borrower has given a personal guarantee or if the mortgage is not sufficient to cover the outstanding loan.
Q: What is the limitation period for an Artha Rin suit?
A: Generally 6 years from the date the loan became due.
