HC stays auction of Thianis Apparels’ goods in CEPZ, issues rule to show cause
The court issued a rule asking Bepza and its officials to explain within four weeks why their 30 July notification announcing the auction, scheduled for 16 September, should not be declared illegal.
The High Court recently stayed a move by the Bangladesh Export Processing Zone Authority (Bepza) to auction machinery, finished products, raw materials and other assets of Thianis Apparels Ltd, a specialised suit-making factory at the Chattogram Export Processing Zone (CEPZ).
A bench of Justice Md Akram Hossain Chowdhury and Justice Foyej Ahmed passed the order on 12 August after hearing a writ petition filed by AHC Bangla Fashion Proprietor Md Ali Hossain.
Senior advocate Shamsuddin Babul, who appeared for the petitioner, confirmed the order to The Business Standard today (28 August).
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Deputy Attorney General Md Mahfuzur Rahman Milon, assisted by state counsels, represented the respondents.
The court issued a rule asking Bepza and its officials to explain within four weeks why their 30 July notification announcing the auction, scheduled for 16 September, should not be declared illegal.
The auction notice, published in The Daily Azadi on 4 August, listed goods worth an estimated retail value of $734,800, including a ready export consignment destined for Spain under Invoice No TAL/EXP/2025/008.
Pending disposal of the rule, the court stayed the auction notice for two months and ordered that the petitioner's export-ready goods remain protected.
CEPZ authorities, however, said they were yet to receive the order. "We have not received any order from the High Court. Once we receive it, we will take action accordingly," said Abdus Sobhan, executive director of CEPZ.
Earlier, on 16 June this year, Bepza sealed Thianis' factory, cancelled its lease, suspended export permissions and announced the auction.
The closure left about 700 workers unpaid and some $200,000 worth of export-ready garments stranded inside the premises. Workers later staged protests at CEPZ gates demanding their wages.
In July, the High Court stayed Bepza's lease termination move and export restrictions for two months, criticising the authority for what it called an overreach that bypassed due legal process.
Troubled history of Thianis
Thianis Apparels, launched in 2007 as a Bangladesh-UK joint venture, was the first specialised suit-manufacturing unit in Chattogram. At its peak, the factory exported about $10 million annually, producing tens of thousands of trousers and suits each month.
The company's decline began after a devastating fire in 2017 destroyed machinery and forced a move to a larger facility. The Covid-19 pandemic then halted production for nearly two years, leaving the factory unable to clear mounting rent and utility bills.
By late 2023, arrears with Bepza stood at around $1 million, which rose to $1.34 million by April 2025 with accumulated interest. Although the High Court directed Thianis to pay $55,000 monthly towards rent and arrears, the company alleged that Bepza ignored arbitration proceedings and instead pursued closure.
