Over a decade ago, United Commercial Bank (UCB) faced a loan default of approximately BDT 29 crore from Modern Plastic and Accessories. Despite several rounds of rescheduling and restructuring, the loan recovery remained unsuccessful. Seven years ago, the bank filed a case in the Financial Loan Court regarding the matter.
However, instead of repaying the loan, the company’s owner continued using the mortgaged property. In a move to recover the outstanding loan, the court has appointed the Officer-in-Charge (OC) of Uttara West Police Station in Dhaka as the receiver for the mortgaged six-storey building. Based on UCB’s application, Judge Mujahidur Rahman of the Financial Loan Court-5 issued the order on Sunday.
It has been confirmed that the outstanding loan of Modern Plastic and Accessories at UCB’s Nayabazar branch amounts to BDT 28.78 crore. The company’s Managing Director, Md. Nasir Uddin, and Chairperson, Al-Amin Ara Khanam Chowdhury, are responsible for the default. The mortgaged property comprises a six-storey building located on a 5.38% plot of land. The bank filed a case for loan recovery in the Financial Loan Court in August 2018. However, by 2020, when the case was nearing resolution, it was delayed due to repeated time extensions and various tactics employed by the borrower, preventing its conclusion.
In its application, the bank stated that despite the company’s ability to repay, the borrower had failed to settle the debt. The mortgaged building generates significant monthly rental income, but the owner continues to live a luxurious life both in the country and abroad without paying any dues. In such circumstances, the bank requested the appointment of a receiver from the mortgaged property’s income to facilitate loan recovery.
The court order noted that while the Financial Loan Court Act stipulates a 120-day period for resolving cases, this has not been possible due to a backlog of cases. Despite the property owner collecting rent, no payments have been made to the bank. Therefore, appointing a receiver for the mortgaged property was deemed appropriate. The order also referenced a case from the Mumbai High Court in India, where the appointment of a receiver for mortgaged property was deemed the court’s responsibility in the case of State Bank of India vs. Trade Aid Paper and Allied Products.
As per the court’s directive, a signboard was put up at the building yesterday, and the appointed receiver will now collect the rent. After covering all expenses, the remaining funds will be deposited in the court through a pay order.