HC issues contempt rule against Bepza chairman, executive director over Thianis auction

The High Court has issued a contempt rule against the chairman and executive director of the Bangladesh Export Processing Zones Authority (Bepza) for allegedly proceeding with the auction of Thianis Apparels Ltd in the Chattogram Export Processing Zone (CEPZ) despite a court stay order.

The bench of Justice Farid Ahmed and Justice Mahmud Hasan issued the rule on Tuesday (14 October), responding to a contempt petition filed by Canadian apparel manufacturer Groupe Trium Inc.

The court asked why continuing with the auction in defiance of its order should not be considered a punishable offence.

The rule was issued against former Bepza chairman Maj Gen (retd) AKM Ziaur Rahman and CEPZ Executive Director Abdus Sobhan.

Confirming the development, Groupe Trium's lawyer Advocate Shamsuddin Babul told The Business Standard that Bepza's panel lawyer Barrister Quamrun Nahar Mahmud appeared before the court on behalf of the accused officials. "However, the court still issued the contempt rule," he said.

Barrister Quamrun told TBS, "This is not a big issue. We have already challenged the case in the Appellate Division. Similar cases have been vacated before, and this one will likely be vacated too."

She added that the court's concern was over non-compliance with its earlier order.

The dispute

Groupe Trium accused Bepza of violating a High Court order that barred the auction of its imported goods and factory assets. The company warned that such defiance of judicial directives would erode investor confidence and breach protections under the Bepza Private Investors Protection Act 1980.

On 4 September 2025, the High Court bench of Justice Md Akram Hossain Chowdhury and Justice Foyej Ahmed stayed Bepza's move to auction the machinery, equipment, raw materials, and goods belonging to Thianis Apparels in the CEPZ.

The stay order, valid for two months, halted an auction scheduled for 16 September as advertised in The Daily Azadi on 4 August.

Despite the stay, Groupe Trium alleged that Bepza officials displayed its goods on 8 and 9 September as part of auction preparations, calling it a direct violation of the court order.

The firm's vice president, Alain Gauthier, issued a letter on 15 September describing the move as "a final formal demand" for compliance and warned of legal action for contempt if Bepza continued with the auction process.

Advocate Shamsuddin Babul said, "Bepza appealed against two earlier stay orders and managed to have them vacated, but the one in favour of Groupe Trium is still in effect. Any attempt to proceed with the auction would clearly amount to contempt of court."

When contacted, CEPZ Executive Director Sobhan acknowledged receiving Groupe Trium's letter via email. "Our panel lawyers are handling the matter. I cannot make any comment at this stage," he said.

Troubled history of Thianis

Founded in 2007 as a Bangladesh-UK joint venture, Thianis Apparels was once the country's first specialised suit manufacturer, exporting nearly $10 million annually.

Its decline began after a devastating fire in 2017 and worsened during the pandemic, leaving it unable to clear rent and utility arrears that reached $1.34 million by April 2025.

Though the High Court directed Thianis to pay $55,000 monthly towards arrears, the company alleged Bepza ignored arbitration and moved to auction the property instead.

The dispute has since drawn complaints from Thianis' foreign partners, including Norway-based Nordic Textile and Groupe Trium, both of whom claim ownership of materials and fabrics stored in the factory.