SC stays order to appoint receiver for Beximco pharma

The Appellate Division of the Supreme Court yesterday stayed a part of the High Court order that instructed Bangladesh Bank to appoint a receiver to manage Beximco Pharmaceuticals Limited.
The apex court also asked the HC bench led by Justice Farah Mahbub to hear and dispose of, in two weeks, the rule issued by another bench earlier in this regard.
A three-member bench of the Appellate Division headed by Justice Md Ashfaqul Islam passed the order following an appeal filed challenging the High Court directive that asked Bangladesh Bank to appoint a receiver to manage the companies of Beximco Group and attach their properties.
Writ petitioner Barrister Masood R Sobhan told The Daily Star that the receiver appointed by Bangladesh Bank can function for other organisations of Beximco Group except for Beximco Pharmaceuticals Limited following the SC order.
Beximco Pharmaceuticals Limited has filed the leave to appeal petition with the Appellate Division of the SC in September this year seeking scrapping of the HC directive.
In the appeal, the company (Beximco Pharmaceuticals Limited) said the HC has committed error of law fact in failing to take into account that there is no specific allegation of mismanagement or damage to any property of the company and without allegation of jeopardy, wastage or destruction to property, the court cannot direct for appointment of receiver and attachment of property based on mere apprehension and therefore, the “impugned order” is liable to be set aside.
On Monday, the Appellate Division bench headed by Justice Md Ashfaqul Islam fixed today (Tuesday) for passing order on the leave to appeal petition after concluding hearing on the matter.       
Following a writ petition filed by Supreme Court lawyer Masood R Sobhan, the HC on September 5 this year that directed the Bangladesh Bank to appoint a receiver to manage the companies of Beximco Group and attach all the properties belonging to the companies for six months.
The HC also ordered the central bank to recover the money obtained by Salman F Rahman, founder of Beximco Pharmaceuticals Limited, from different banks and bring the money back to Bangladesh from abroad and issued a rule to this effect.
According to Investopedia, a receiver is a person appointed as 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.
In compliance with the HC directive, the central bank on November 10 appointed its Executive Director Md Ruhul Amin as receiver to Beximco Group in order to manage the financial affairs and assets of the troubled conglomerate.