Welcome To Presentation

Presentation on
Money Loan Court Act-2003
Submitted By:
Group-13
Name Id no
Shomaila Nargis Saika 22-065
Jarin Tasnim Arnika 22-067
Md. Abdul Mazid 22-097
Masuma Binte Shakhawat 22-101
Saima Alam Nadi 22-139
 Introduction
Money Loan Court Act-2003
(Artha Rin Adalat Ain) is a
type of law which has been
enacted only to early recovery
of bad loans of the financial
institution and bank.
In 1990, Money loan court act was
enacted to sue the defaulters and
declared them insolvent.
Insolvency Act-1997 was also
dispute the bad loan cases.
The purpose of this act is
to help the banks and
financial institution in
recovery of classified loan.
 
But Money loan Court Act-1990
& insolvency Act-1997 was
found to be unsatisfactory and
the government come up with a
new law Money Loan Court
Act-2003.
 Chapter-2
Establishment of the Court
Section-4: Establishment of the court

• This section appears that the government , by gazette notification, will set
up in each district one or more money loan court.
• In the absence of such courts established by government, the Joint District
Judge court will be deemed to be Money Loan courts.
• The government will appoint judges for the money court from among Joint
District judges by consulting with supreme court.
 Chapter-3
Power and Jurisdiction of the Court
Section-5: Sole jurisdiction of the Court

• Money loan court will be deemed to be civil court having all the power of
such courts provided that those powers are not inconsistent with money loan
court.
• All suits relating to the realization of loan of a financial institutio (Bangladesh
Krishi Bank, Rajshahi Krishi Unnoyon Bank) including mortgage Suit for
foreclosure and sale and even public demand upto TK 50,0000 are triable by
the Artha Rin Adalat.
• A financial institution can not file a case before the court accusing its
employees for misappropriation of money.a
 Chapter-4
Filing of Suits and Judicial Procedure

Section: 6 Judicial Section: 7 Serving

Procedure Summons
Code of Civil procedure 1908 in Summons is required to be
absence of Money Loan Court Act returned within 15 days.
2003. If not, it is to be published in
Submission of fee. newspaper within next 15 days.
Submission of evidence and
affidavit.
File suit against principal debtor
including third party mortgagor.
 Chapter-4 (contd.)

Section: 8 Plaint Section: 9 Written

statement of Defense
File a suit with Name, address and
workplace of the defendant and Defendant will attend on fixed date
plaintiff. in the summons.
All occurrences related to the claims. Submission of written reply about
Place, date and time of originating the claims.
case. Submission of documentary
Amount of loan & advances, interests, evidence and source of evidence.
charges etc.
Schedule of property of defendant.
 Chapter-4 (contd.)

Section: 10 Time limitation for submission of

written statement
No statement will be accepted after 40 days of the appearance
of defendant.
On the basis of precondition of bearing expense of minimum
2000 to maximum 5000 the submission time can be extended.
 Chapter-4 (contd.)

Section: 12 provision for sale of securities

Financial institution are required to file a case only after selling
goods secured by lien, pledge and property under mortgage.
If case is filed before, they are required to sell with the help of
District Magistrate or first class magistrate.
If financial institutions fail to hand over the possession of the
property to buyer, they will seek for the help of court to
surrender the property to they buyer.
 Chapter-4 (contd.)
Section-13. Formation and settlement of the
issues of the case

•The court shall make the issue of the case, if any, after hearing the
written reply made by the defendant, on a fixed date, both
parties,.
•If either or both parties are absent, then the court, ARG and the
written description shall make the issue of the case.
•At the first date for the hearing of the case or at any stage of the
case if it appears to the court that there is no dispute between the
parties in the event or the legal matter, then the court will resolve
the case immediately.
 Chapter-4 (contd.)
Section-14. The hearing of the case adjourned

1. The date for the final hearing of any case of the loan
court shall not be adjourned more than once in the
context of the application of a party.
2. The Court, in the absence of the time-limit for the
disposal of the trial in this section. Payment – not less
than tk. 1000 up to tk. 3000
3. According to sub-section (2), the postponement of the
deferred expenditure, shall be deposited in the prescribed
area as public revenue.
 Chapter-4 (contd.)
Section-15. Provisions related to oral or written
arguments

The hearing of oral arguments before the judgment in the case

filed under this Act will not be required for the judge of the court.
the court may order a party or party to submit additional oral
arguments to the written arguments.

Section-16. Provisions related to the judgment

After the completion of the testimony of the case, the court shall
pass judgment within 10 (ten) days.
Maximum time limit is 60 days if the court doesn’t allow long
period.
 Chapter-4 (contd.)

Section- 17 Provisions related to the timing

Section-18 Special provisions relating to filing

suit and hearing

Section-20 Finalization of the order of loan

loan court
 Chapter-4 (contd.)

Section- 19. Provision of one-sided decree

If the defendant is absent in the court at the date fixed for the
hearing of the case then the court will decide the case unilaterally.

the defendant may apply for the same unanimous decree, within
30 days in case of one sided formula.

 the defendant shall be entitled for equal amount of 10% of the

amount of the claim within 15 days.

Money can not be dismissed because of any suit, plaintiff's

absence or failure in the loan court.
 Chapter-5
Settlement of Disputes in the Alternative
Methods
The provisions of alternative dispute resolution (ADR) is a unique feature
of the Artha Rin Adalat Ain, 2003. After filing the written statement, the
proceeding of ADR shall start by adjourning the next procedure of the
suit. Only two kinds of ADR are recognized by the Act:

1.Settlement Conference
2. Mediation
 Chapter-5 (contd.)
Section-21: Settlement Conference
Settlement Conference means a conference presided over by the judge of the Adalat in which the parties to the suits, their appointed lawyers and their representatives may be present. The judge shall play co-
operative role with a view to settle the dispute on the basis of cooperation, sympathy and mutual understanding in a informal, non-contesting, non-obligatory and confidential environment.
 Chapter-5 (contd.)
Section-21: Mediation
Instead of Settlement Conference, the Adalat may forward the suit to the appointed lawyers or the parties to the suits for resolving the dispute
through Mediation. The lawyers shall mutually appoint a mediator upon consultation of the parties to the suit among the following kinds of person:

1. Any lawyer who is not engaged by the parties

2. Any retired judge
3. Any retired officer of a Financial Institution
4. Any other competent person other than a person employed in the profitable service in the Republic.
 Chapter-5 (contd.)
Section-24: Delegation of Power
In order to make the provisions of ADR effective, the Financial Institution
may pass resolution by its Board of Directors empowering the central,
regional or local officer/mangers to take necessary action in this regard and
issue a circular to that effect. The Circular shall precisely contain

1. The limitation of delegated power or authority.

2. The principle and procedures to enforce that power.
 Chapter-6
Execution
Section-27: court of execution
• Any order or decree proclaimed by Artha Rin Adalat Ain shall be executed by the
court itself or another court where is sent for the purpose of executing by that
court.
Section-29: special provision subject to time limit
• If the court fixes any time for payment or decrial money at a time or in
installments the time limit is prescribed in the section 28(1) shall become into force
after expiring of the mentioned limit time
Section-30: provision as to notice servings
• decree holder shall deposit the requisite process fee in the court along with paint
or the purpose of serving summon through the process. If summons are not
returned back within 15 days of issuance, the court shall arrange for making
service through publication of advertisements
• Issuance of the notice in the newspapers
 Chapter-6
Execution
Section 33: Auction sale
• When the decree-holder filed an application as required under sub-section
(7) of section 33 of the said Ain the Court is at liberty to issue certificate
when application has been filed by the decree-holder.
• There is no illegality or infirmity in the order of issuance of the certificate
dated 15-9-2008,
Sections 33 and 34:
• Section 34 of the Ain, 2003 provides for ordering civil impri­sonment upto 6
months against a judgment-debtor for compelling to satisfy the decree.
• the law provides for simple civil imprisonment of the judgment-debtor to
compel to make the payment for satisfaction of the decree.
• Civil imprisonment will not exempt payment of the decrial amount.
 Chapter 6 (Contd.)
Section 33(5)(9)-
 
•When the certificate has been issued under section 33(5) in favor of the decree
holder, the execution procee­ding is disposed of as per section 33(9) of the Ain. 
Section 34—
 
•it manifests that the Adalat is empowered to pass an order of Warrant of
Arrest/Civil Imprisonment directly on the basis of an application filed by the
decree-holder bank
•It appears that the time-frame for disposal of the execution
•case has been provided for the installment an execution case can be extended
beyond 150 days and at least for the next three
 Chapter 7
Appeal and Revision
Section-41: Provisions of Filing Appeal and disposal

•Appeal will have to be filed on payment 50 percent of decretal amount in cash

to the decree holder financial institution.
•For exparte decree, appellant will have to deposit 10% of decreed money
under section 19(3). In case of filling appeal, 10% money shall be got minus
from 50% money.
•Plaintiff financial institutions don’t have to deposit any momey when any
apeal under this section.
•District judge can receive the appeal or he shall send it any additional district
judge.
 Chapter 7 (Contd.)
Section-42: Filing and Revision Provisions
•Any court shall not accept an application if,

Revision Doesn’t deposit During appeal,

against equivalent to 75% of doesn’t deposit
judgement or the decreed money 50% money
decree ordered.

•No need to deposit any security money when financial institutions files any
revision.
Application for
revision within
next 60 days
Settlement periods :
Extended up to
maximum 30
days
 Chapter 7 (Contd.)

Section-43: Appeal in the Appellate Division of Supreme

Court
•Appellate Division allows the debtor-defendant to file against decree passed
by High Court Division
•If the appeal of plaintiff is fit, the Appellate Division shall pass an order,

To deposit to the plaintif-financial institution

An order to the plaintiff to deposit rest of the

amount which was undeposited at the time of
appeal
 Chapter 7 (Contd.)

Section-44: Ad Interim Order.

•A Artha Rin Adalat may pass any ad interim order as it thinks necessary with
a view to ensuring proper trial and ends of justice
Section-44A: Arbitration atthe stage of appeal or revision.
•During the continuity of proceeding for appeal or revision, parties can settle
the dispute through Arbitration.
•At the end of Arbitration Procedure,

The Court will have to be confirmed

and pleased about the Arbitration
settlement

After the fulfilment of court, it will pass

final disposal order of the execution
suit.
THANK YOU…