HC stays Bepza's lease termination move against Thianis Apparels in CEPZ

The High Court has issued a stay order on a recent move by the Bangladesh Export Processing Zone Authority (Bepza) to take physical possession of a factory unit operated by Thianis Apparels Ltd in the Chattogram Export Processing Zone (CEPZ), allowing the company to continue operations for the next two months.

The factory has remained closed since the first week of June this year following labour unrest over unpaid wages. The lawyer for Thianis Apparels claimed that despite the court order, Bepza has yet to take any steps to reopen the factory.

In a writ petition filed by Thianis Apparels Ltd, the court issued a Rule Nisi on 15 July, asking Bepza to explain why its letters dated 16 June and 3 July — which denied export-import permissions and ordered the handover of the premises — should not be declared illegal and without lawful authority.

The writ was heard by Justice Md Akram Hossain Chowdhury and Justice Foyej Ahmed. Senior Advocate Raghib Rouf Chowdhury represented the petitioner, while Deputy Attorney General Md Mahfuzur Rahman Milon and a team of assistant attorneys general appeared for the government.

Confirming the stay order today (23 July), Advocate Raghib Rouf Chowdhury told The Business Standard, "Pending the hearing of the rule, the court ordered a two-month stay on Bepza's directive to hand over possession of the premises and its withdrawal of the suspension of lease termination.

"The court also directed Bepza to allow Thianis Apparels Ltd to continue its regular operations, including the import of raw materials and export of finished garments, from the disputed premises until the disposal of Arbitration Case No 27 of 2024."

He added, "Bepza has no legal right to shut down a factory simply because they are owed rent. There are courts and legal procedures for such matters."

Advocate Rouf further stated, "The factory has ready-made garments worth over $2 lakh ready for export. As Bepza suspended the Export Permission, the factory has been unable to ship them. If they were allowed to export the goods, the company could have paid the workers' due wages."

He alleged that despite serving formal notice, Bepza has yet to take steps to reopen the factory, jeopardising his client's business.

When contacted, the executive director of CEPZ, Abdus Sobhan, acknowledged receiving the notice. He told TBS, "We have filed a petition challenging the stay order in the Appellate Division. The hearing is scheduled for Thursday."

The dispute stems from Bepza's recent decision to terminate the lease agreement of Thianis Apparels Ltd. and reclaim possession of its factory building in CEPZ over unpaid rent amounting to Tk28 crore.

The company challenged the move, arguing that it was unlawful and disrupted ongoing business operations.

The HC has given the respondents four weeks to reply to the rule and directed the petitioner to serve notices to all respondents within seven days.