SC upholds appointment of receivers for all Beximco Group companies except pharma

The Appellate Division of the Supreme Court on Tuesday (12 November) upheld the High Court's order to appoint a receiver to oversee the properties and assets of all Beximco Group companies, except for Beximco Pharmaceuticals Ltd.

A three-member Appellate Division bench, headed by Justice Md Ashfaqul Islam, passed the order after disposing of Beximco Group's petition seeking a stay on the High Court's ruling.

The apex court also directed a division bench, led by High Court Justice Farah Mahbub, to resolve the rule it issued earlier regarding the appointment of a receiver to the troubled conglomerate within two weeks.

Following the court order, Beximco's legal counsel, Mustafizur Rahman Khan, told reporters that while the High Court bench, led by Justice Farah Mahbub, resolves the rule through hearing, no receiver will be appointed for Beximco Pharmaceuticals Ltd for now.

Earlier on 4 September, senior Supreme Court lawyer Masud R Sobhan filed a writ petition with the High Court seeking various details, including information on loans over the past 25 years for Beximco Pharmaceuticals Limited and other businesses within the Beximco Group. 

After hearing the petition on 5 September, the High Court bench of Justice AKM Asaduzzaman and Justice Muhammad Mahbub-ul Islam directed the Beximco Group to provide details on unpaid loans across its affiliated entities, including the current status and repayment information. 

The HC also issued a rule asking why a receiver should not be appointed to oversee all assets of Beximco Group for six months.

Later, on 19 September, the High Court directed the Bangladesh Bank to appoint a receiver to conduct the functions of the Beximco Group 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 central bank was also instructed to submit a report to the court within four weeks regarding the implementation of the order.

BB appoints receiver to Beximco Group

On Sunday, the Bangladesh Bank appointed Md Ruhul Amin, executive director of the central bank, as the receiver for Beximco Group. 

Dr Sumanta Shaha, additional director; Nahim Uddin, joint director; and Atiqur Rahman, deputy director, were also appointed as deputy receivers.

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.