HC questions legality of certain provisions in Bank Resolution Ordinance-2025 on bank merger
The petition was filed by some secondary shareholders of Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank
The High Court has issued a rule asking why specific provisions of the Bank Resolution Ordinance-2025 on bank mergers should not be declared illegal and unconstitutional.
The HC bench comprising Justice Md Habibul Gani and Justice Sk Tahsin Ali issued the rule today (September 4) following a preliminary hearing on a writ petition.
The petition was filed by some secondary shareholders of Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank.
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Senior Advocate Asanul Karim and Barrister Mustafizur Rahman represented the petitioners, while Barrister Arshadur Rouf appeared for Bangladesh Bank.
Barrister Mostafizur Rahman told The Business Standard that the court issued a rule asking the government why Sections 28(6) and (7), read with Section 16(M) and Sections 30, 31, 33, 34, 36, 48, 49, 50, and 51 of the Bank Resolution Ordinance-2025 should not be declared unconstitutional.
According to the petition, the provisions violate constitutional Articles 27, 31, 40, and 42, and thus have no lawful effect.
He said the secretary of the Ministry of Law, Justice and Parliamentary Affairs; secretary of the Cabinet Division; the governor of Bangladesh Bank; and other concerned parties have been asked to respond to the rule within four weeks.
Barrister Mustafizur Rahman added that the writ petition was filed by Md Shah Alam Babu, Md Afsar Uddin Sarkar, Md Siddiqur Rahman (Liton), Md Mustayen Billah, Mark Lloyd Gomes, Md Abdul Kader Sarker, and MA Saidur Rahman, who are secondary shareholders of the five banks.
Correction: This report was initially filed incorrectly under the headline "HC questions legality of merger of five Islamic banks", which has been corrected to "HC questions legality of certain provisions in Bank Resolution Ordinance-2025 on bank merger"
