HC questions legality of Bank Resolution Ordinance

Staff Reporter :

The High Court has issued a rule questioning the legality of certain provisions in the Bank Resolution Ordinance-2025 concerning bank mergers.

A bench of Justice Md Habibul Gani and Justice Sk Tahsin Ali passed the order on Thursday after holding a primary hearing on a writ petition.

The petition was lodged by several secondary shareholders of Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank.

Senior Advocate Asanul Karim and Barrister Mustafizur Rahman stood for the petitioners, while Barrister Arshadur Rouf appeared on behalf of Bangladesh Bank.

Speaking to reporters, Barrister Mostafizur Rahman said the court issued a rule asking the government to explain why Sections 28(6) and (7), along with Section 16(M) and Sections 30, 31, 33, 34, 36, 48, 49, 50, and 51 of the Bank Resolution Ordinance-2025, should not be declared unconstitutional.

The petitioners argued that these provisions conflict with Articles 27, 31, 40, and 42 of the Constitution and therefore lack legal validity.

The rule has been directed to the secretary of the Ministry of Law, Justice and Parliamentary Affairs; the secretary of the Cabinet Division; the governor of Bangladesh Bank; and other relevant authorities, who have been asked to submit their replies within four weeks.

Barrister Mustafizur Rahman also mentioned that the writ was filed by Md Shah Alam Babu, Md Afsar Uddin Sarkar, Md Siddiqur Rahman (Liton), Md Mustayen Billah, Mark Lloyd Gomes, Md Abdul Kader Sarker, and MA Saidur Rahman – all secondary shareholders of the five banks.