The Justice Corner is a leading law firm in Bangladesh, offering specialized legal services to both local and international clients. We serve as trusted advisors to prominent businesses, companies, and banks.

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Banking & Finance

Banking Litigation & Strategic Debt Restructuring

Protecting business continuity. Leveling the playing field.

When liquidity tightens, financial institutions shift from partners to adversaries. We provide effective  legal services for corporate borrowers and guarantors facing aggressive recovery actions, asset auctions, or criminal liability.

We do not just defend lawsuits; we scrutinize the bank’s claims for regulatory violations, interest miscalculations, and procedural errors to force favorable settlements and keep your business operational.

Core Legal Services for the defaulter Borrowers: 

1. Asset Protection & Auction Stays We intervene immediately when your assets are threatened:

  • Challenging Auctions initiated under  Section 12 or  Section  33 of the Artho Rin Adalat Ain: Filing writ petitions for seeking stay of  the illegal or undervalued sale of mortgaged properties.
  • Injunctions: Securing stay orders against public auction notices that damage market reputation.
  • Mortgage Review: Challenging the validity of mortgage creation and power of attorney execution.

2. CIB Classification & Writ Jurisdiction A 'Classified' status cripples your ability to trade. We fight to keep your credit lines open:

  • Challenging CIB Status: Filing Writ Petitions before the Hon’ble High Court Division  to stay premature or arbitrary classification as a defaulter.
  • Stay on LC Restrictions: Ensuring your ability to open Letters of Credit (LC) remains intact during ongoing disputes.
  • Regulatory Defense: Contesting non-compliance with Bangladesh Bank BRPD circulars regarding down payments and classification norms.

3. Defense in Recovery Suits We provide aggressive representation in Artha Rin Adalat and Criminal Courts:

  • Artha Rin Adalat Defense: Contesting the validity of the bank’s claim, limitation periods, and liability of guarantors.
  • Cheque Dishonour Defense (NI Act): defending directors and signatories against criminal proceedings under Section 138/140 of the Negotiable Instruments Act 1882,  focusing on technical defenses and consideration failure.
  • Forensic Account Audit: Challenging the bank’s ledger for imposition of penal interest, compound interest on unapplied interest, and hidden charges not authorized by the sanction letter.

4. Restructuring & Exit Strategy Litigation is often a tool to bring the bank to the negotiating table on your terms:

  • Negotiating Settlements: Structuring One-Time Settlements (OTS) and waivers of penal interest.
  • Rescheduling Strategy: Leveraging legal pressure to secure sustainable rescheduling terms that align with your actual cash flow.
  • Liability Limitation: Strategies to protect the personal assets of directors and personal guarantors.

Our Promise: We understand that a default is often a business reality, not a crime. We ensure that the bank follows due process and that you are not forced into liquidation by procedural aggression.

 

Strategic Advisory: What to Do When the Bank Sends a Legal Notice

For corporate borrowers, receiving a Legal Notice is often the first signal that the bank is shifting from "relationship mode" to "recovery mode." Whether it is a notice for Cheque Dishonour or Mortgage Enforcement, your immediate reaction will determine the trajectory of the next 2-3 years of your business.

At the Justice Corner, we defend borrowers against procedural aggression. Here is our strategic advice on how to handle the initial notice phase.

1. The "Ostrich Effect" is Fatal

The biggest mistake borrowers make is ignoring the notice, hoping to resolve it verbally with the branch manager.

  • The Reality: The notice is usually triggered by the Bank’s Head Office or Legal Wing. The local branch often loses the power to stop the process once the notice is sent.
  • The Risk: If you ignore a Section 138 (Cheque) notice, a criminal case will be filed. Once filed, you face arrest warrants and bail hearings, which damage your business reputation.

2. The Reply Is Your Defense

Your written reply to the Legal Notice is not just a letter; it is the foundation of your future defense in court.

  • Trap: Sending a reply saying, "I accept I owe this money, please give me 6 months."
  • Consequence: You have just handed the bank a "summary judgment." You cannot later claim in court that the interest was miscalculated because you already admitted the amount in writing.
  • Solution: A legal reply should challenge the specifics—calculation errors, lack of consideration, or violation of BRPD circulars—while keeping the door open for settlement.

3. Audit the Ledger

Before you accept the amount claimed in the notice, ask: Is this amount real? Banks frequently:

  • Capitalize penal interest (charging interest on interest).
  • Impose charges not agreed upon in the Sanction Letter.
  • Fail to adjust payments made during the moratorium period.
  • We contest these figures. Reducing the claim amount is the fastest way to force a One-Time Settlement (OTS).

4. Protect Your Collateral (Section 33)

If the notice mentions selling your mortgaged property (under Section 12 or 33 of Artha Rin Adalat Ain), you must act immediately.

  • We can file for an injunction or Writ Petition to stop the auction if the bank has not followed due process or has grossly undervalued your property.

The Bottom Line

A Legal Notice is not the end of your business; it is the beginning of a negotiation. By responding with strength and legal precision, you shift the power dynamic.

Need an urgent review of a notice? Contact our Banking Litigation Team today.