Lawyers on Thursday called for a reformation of the financial loan court act 2003 as bank clients who are victims of fraudulences face harassments because of loopholes in the law.
At a symposium held at the Bangladesh Institute of Law and International Affairs in Dhaka, they said there are many loopholes in the act (Artha Rin Adalat Ain 2003) and the financial conditions attached to the remedial provisions restrict the borrowers to file an application for challenging a decree or for appeal.
BILIA honorary director Shahdeen Malik said the act itself was controversial and required a revision because of its contradictions with the company act.
The slack financial loan court act is also a reason for the flourishing of so many banks in the country, he said.
International Crimes Tribunal prosecutor Barrister Tapos Kanti Baul, who presented a paper on the loopholes of the act at the symposium, said no remedy is mentioned in the act for the cases of fraudulences.
However, in most of the cases filed under the act it was seen that fraudulent persons deceived the victims by getting hold of their property but the victims were left out of the tribunal process, he added.
Bangladesh Supreme Court advocate Tasmiah Nuhiya Ahmed while presenting her paper on the limited rights of the borrowers in the loan recovery process said the strict restriction on the borrowers ultimately results in breaching of the fundamental rights of the borrowers.
She said as the act requires that a plaintiff deposit 50 per cent of the decretal amount, the victim (borrower) has very limited redress of genuine grievances when injustice is perpetrated on them.
Dhaka Judge Court joint district judge Md Shamsuddin Masum said the banks should take the responsibility of identifying if there is any fraudulence in the submitted documents.
The short jail term as mentioned as punishment in the law for the offences involving large scams also acts as an encouragement for the huge number of loan defaulters in the country, he added.
Former justice Md Nizamul Huq said the loopholes in the act are needed to be sorted out in order to decrease the backlog of the cases.
The judges are also giving opposing verdicts under the same act, which is also a problem, he added.
The symposium was participated by lawyers, researchers and academicians who all discussed reformation of the act.
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