Beximco firms to operate independently as HC scraps receiver appointment order
Barrister Ruhul Quddus, who represented the central bank during the hearing, told journalists that the Beximco companies would now operate under their own management
All 169 companies of the Beximco Group will now be managed by their own administration as the High Court has annulled its previous order directing the Bangladesh Bank to appoint a receiver.
A bench of Justice Farah Mahbub and Justice Debashish Roy Chowdhury passed the order today (12 March), considering the interests of thousands of workers and employees of the Beximco companies.
In its observations, the court, referring to a report from the central bank, said the Bangladesh Bank, commercial banks and the financial institutions concerned have failed to recover defaulted and classified loans from companies belonging to Beximco Group, and the consequences will ultimately be borne by the common people.
Barrister Ruhul Quddus, who represented the central bank during the hearing, told journalists that the Beximco companies would now operate under their own management.
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"However, these companies will need to comply with the law and operate under supervision and monitoring while conducting their business activities," he said.
On 19 September, the High Court had directed the Bangladesh Bank to appoint a receiver to manage the operations and seize all assets of the companies.
The court had also instructed the central bank to recover money allegedly laundered abroad by the group's vice-chairman Salman F Rahman – now in jail after being arrested on various charges following the fall of the Awami League government last year. Subsequently, the Bangladesh Bank appointed a receiver.
A receiver, in legal terms, is an independent and impartial person appointed to oversee a person or entity's property, finances, general assets, or business operations. Receivers can be appointed by courts, government regulators, or private entities. Their role is to manage assets according to the law, typically to repay debts or oversee business operations in the best interests of creditors.
Barrister Quddus further explained that after the ousting of prime minister Sheikh Hasina in August last year in the wake of an uprising, the High Court had ordered the Bangladesh Bank to appoint receivers for all Beximco companies by 5 September.
Beximco Pharma later appealed, and the Appellate Division modified the order, allowing only Pharma to operate independently, while Bangladesh Bank appointed receivers for the remaining companies.
The lawyer added that after a hearing, the High Court disposed of the rule yesterday with nine observations. As a result, the receivers no longer exist, and the companies will now manage themselves.
However, the court directed regulatory bodies, including Bangladesh Bank, to supervise and monitor them in accordance with the law.
Senior lawyer Fida M Kamal and lawyer Anisul Hasan represented Beximco Pharmaceuticals at the hearing yesterday.
Barrister Muniruzzaman, who also attended the High Court hearing on behalf of the central bank, said the court upheld the legality of all actions taken by the receiver.
Senior Supreme Court lawyer Masud R Sobhan had filed a writ petition, and after the hearing, a High Court bench comprising Justice AKM Asaduzzaman and Justice Muhammad Mahbub-ul Islam issued the order on 5 September.
The order directed the appointment of a receiver to oversee all Beximco Group properties and attach them for six months. The Bangladesh Bank was instructed to recover funds from various banks linked to Salman and repatriate money from abroad, with a report due within four weeks.
Additionally, the rule required all Beximco companies to provide details on unpaid loans, their current status, and the appointment of a receiver to oversee and attach the group's properties.
Bangladesh Bank's governor, the finance secretary, Beximco Pharmaceuticals, and Salman F Rahman were asked to respond within four weeks.
Beximco Pharmaceuticals Limited filed a leave to appeal in the Appellate Division seeking a stay on the order.
On 12 November, the Appellate Division stayed the receiver's appointment only for Beximco Pharmaceuticals and directed the High Court bench, led by Justice Farah Mahbub, to dispose of the rule.
The High Court hearing began on 27 November and was recently concluded.
