Administrator returns to Delta Life as IDRA secures stay order

The Insurance Development and Regulatory Authority (IDRA) has secured a stay order from the Appellate Division against the High Court judgment on 6 January declaring the suspension of Delta Life Insurance board of directors and appointment of an administrator illegal.

Following the stay order on Monday, Kuddus Khan, IDRA-appointed administrator at the life insurer returned to his duty.

"As law-abiding citizens, we are complying with the court decisions," Khan told The Business Standard regarding the restoration of his position at the company.

The stay order has come based on a civil miscellaneous petition by IDRA and will remain valid till 16 January.

The chamber bench has also set 16 January for a hearing by the full bench of the Appellate Division.

Meanwhile, the chamber bench also directed the parties not to interfere with the internal affairs of the insurance company, said Delta's lawyer Barrister Mustafizur Rahman Khan.

In February last year, IDRA suspended the insurer's board of directors citing irregularities and failure to protect policyholders' interest and appointed Sultan-Ul-Abedine Molla, a former IDRA member, as the administrator for four months.

The ousted entrepreneurs approached the High Court to challenge the regulator's move. They also filed an anti-corruption case against IDRA Chairman Dr M Mosharraf Hossain alleging he demanded bribes.

Later, IDRA changed administrators at the company twice.

Meanwhile, the row between IDRA and Delta Life became intense until the Ministry of Finance had a meeting with both parties in presence of senior officials of the ministry and the chairman of the Bangladesh Securities and Exchange Commission last week.

The ministry reportedly wants to end the dispute and see an inclusive board of directors in the company. Delta Life and IDRA have several counter litigations against each other.