HC orders appointing receiver to manage Beximco Group, attach all properties

The High Court has directed the Bangladesh Bank to appoint a receiver to conduct the functions of the Beximco Group of Companies and attach all its assets.

The court also asked the central bank to repatriate money allegedly laundered by Salman F Rahman, the group's owner. The bank has been instructed to submit a report to the court within four weeks regarding the implementation of the order.

The bench of Justice AKM Asaduzzaman and Justice Muhammad Mahbub Ul Islam gave the order along with a ruling after hearing a writ petition on 5 September.

A receiver, in legal terms, is an independent and impartial person appointed as a custodian of a person or entity's property, finances, general assets, or business operations. Receivers can be appointed by courts, government regulators, or private entities.

The receiver's role is to manage assets in accordance with the law, typically to repay debts or oversee business operations in the best interest of creditors.

The copy of the written order, which was published today, contains the issues of the appointment of a receiver and the attachment of all assets of the Beximco Group of Companies.

Advocate Masood R Sobhan moved the writ in the court, accompanied by Barrister Fatema Chowdhury, while Deputy Attorney General Redwan Ahmed Ranjib appeared for the state.

"Pending hearing of the rule, Bangladesh Bank is hereby directed to recover the money obtained by respondent No 4 [Salman, who is now in jail in connection with multiple criminal cases] from different banks and bring the money back to Bangladesh from abroad and give compliance within four weeks by respondent No 1 [Bangladesh Bank] about the steps taken," the bench said in the three-page full text of order.

At the 5 September hearing, the petitioner said it was necessary to attach all of Salman F Rahman's properties to settle the company's Tk5,000cr debts. 

"Let a Rule Nisi be issued calling upon the Bangladesh Bank to provide information regarding Beximco Pharmaceuticals Limited and all other business concerns of Beximco Group of Companies of Salman F Rahman and in addition to that how much unpaid loans he obtained from all financial institutions and the present status of loans and repayments and to appoint a receiver to manage the companies of Beximco Group of Companies and attach all the belongings to Beximco Group of Companies and/or pass such other or further order or orders as to this court may seem fit and proper. The rule is made returnable within four weeks," the bench further stated in the order. 

An attachment is basically a court order seizing specific property or properties. Such an order prevents a defendant from selling, transferring, or otherwise disposing of assets to make it judgement proof or to avoid paying its obligations. 

Courts often attach debtors' property to help pay their creditors, either by directly transferring the property to the creditors, or by selling it and giving the creditors the proceeds.