The Artha Rin Adalat Ain, 2003 (Money Loan Court Act, 2003) is the primary legal instrument dealing with bank and non-bank financial institutions’ (NBFI) loan defaulters, which prescribes mechanisms for the banks and financial institutions (FIs) to get reimbursed. The Act provides for the establishment of a separate court for dealing with money loan cases, which can only be filed by a bank or an NBFI. The Act obliges the banks and NBFIs to auction the mortgaged property before approaching the Money Loan Court and empowers the Court to give ex parte decrees (by hearing only one party) provided that summons have been duly served. The whole legislation carries the spirit of resolving loan default matters as quickly as possible since the objective of this law is to ensure fast repayment.

lthough I agree that the legislation is far from perfect, I do not think amending the law is the only available way of redress in this situation. We live in a common-law system where the judgments of the Judges of the Supreme Court are binding. One attractive characteristic of the common law system is the adaptability it offers. The legislative process is rigorous and in Bangladesh, they are enacted by a unicameral body. The lack of adaptability of legislation is compensated by the decision-making power of the judiciary. The Judges have the power to develop the legal system. Noting the propensity of filing writs against the special provisions of the Artha Rin Adalat Ain, 2003, the Supreme Court, from time to time has given judgments to limit the scope of misusing the legal technicalities regarding loan repayment methods. If they are followed stringently, amending the law will become unnecessary.