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Financial Loan Court Act, 1990

Act NO.4, 1990

An Act to make special provision for the recovery of loans given by financial institutions.

Whereas it is expedient to make special provisions for the recovery of loans given by financial institutions;

Therefore the following Act is hereby passed.

1. Short title.- This Act may be called the Financial Loan Court Act, 1990.

2. Definitions:- In this Act, unless there is anything repugnant in the subject or context,-

(a) "Financial Institution" means-
(1) banks established under the Bangladesh Banks (Nationalisation) Order, 1972 (P.O.No.26 of 1972);
(2) banking companies defined by section 5(c) of the Banking Companies Ordinance, 1962(LVII of 1962);
(3) house building finance corporations established under the Bangladesh House Building Finance Corporation Order, 1973 (P.O.No.7 of 1973);
(4) Bangladesh Investment Corporations established under the Investment Corporation of Bangladesh Ordinance, 1976 (XL of 1976);
(5) the Bangladesh Industrial Loan Institution and the Bangladesh Industrial Bank;
(6) financial institutions defined by Chapter V of the Bangladesh Bank Order, 1972 (P.O.No.127 of 1972);
(7) banks managed according to islamic law (Islami Shariyat);

(1) advances, debts, cash loans, overdrafts, banking credits, discount or purchasing bills, or any other financial accomodations or benefits, whatever they may be called;
(2) guarantees, indemnities, instruments of debt or any other financial arrangement that any financial institution grants any borrower or accepts as a debt.

4. Establishment of Financial Loan Courts.- (1) In order to fulfil the purpose of this Act, the Government shall, by notification in the official Gazette, establish one or more Financial Loan Court in every Zila.
(2) The Government, after taking the advice of the Supreme Court, shall appoint a judge of the Financial Loan Court out of the sub-judges.
(3) If it appears necessary, one sub-judge may be appointed as judge of one or more Financial Loan Courts, or he may be appointed as judge of a Financial Loan Court additionaly to his duties.
(4) The Financial Loan Court shall be situated in the Zila Headquarters.

5. Powers of the Financial Loan Court.- (1) Notwithstanding anythingcontained in any other law, any case concerned with the recovery of loans by financial institutions shall be brought before the Financial Loan Court and shall be settled there:
Provided that, if any financial institution is established by any law, and if by that law it is bound to any special rules or methods of the recovery of loans, these rules or methods shall not become obsolete by the provisions of this section.
(2) If in any Zila there is one or more than one Financial Loan Court, their powers to entertain suits shall be determined by the Zila judge.
(3) The Zila judge may, by his own will or when considering it useful in view of the application of any side, transfer any current suit from any Financial Loan Court to any other Financial Loan Court within the area of his supervision, and the Zila judge may transfer such a transferred suit again.
(4) The Financial Loan Court shall be deemed a Civil Court, and the powers of the Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908) shall be those of the Financial Loan Court, according to this Act.
(5) Save as otherwise provided in this Act, the Financial Loan Court shall, in conduct of its procedures, follow the provisions concerning the conduct of procedures of the Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908).
(6) The proceedings of the Financial Loan Court shall be deemed judicial proceedings as mentioned in sections 193 and 228 of the Penal Code (Act XLV of 1860).

6. Decisions of the Financial Loan Court to be final.- Subject to the provisions of section 7, the proceedings, orders, judgements and decrees of the Financial Loan Court may not be questionned in any court or authority.

7. Appeal.- (1) If any person is aggrieved by any judgement or decree of the Financial Loan Court, he may appeal to the High Court Division within thirty days from the date when the judgement or decree has been given;
Provided that no appeal shall lie from any interim order of the Financial Loan Court.
(2) If anyone wants to appeal against any decree, he shall deposit at least half of the sum decreed against him at the decreeing court; without deposing the said sum his appeal shall not be admissible.

8. Instalments.- If the Financial Loan Court decides to have the decreed money paid in instalments, it shall not be competent to extend the period of recovery to more than one year without the consent of the holder of the decree.

9. Pending suits.- Notwithstanding anything contained in any law for the time being in force, if any suit concerning the recovery of loans by any financial institutions was pending before the commencement of this Act, it shall be settled in that court, and this Act shall not be applicable.

10. Power to make rules.- The Government may, by notification in the official Gazette, make rules for the purpose of this Act.

11. Repeal.- The Financial Loan Coart Ordinance, 1989 ( Ordinance No. 16, 1989 ) is hereby repealed.