The Appellate Division on Monday stayed an earlier order of the chamber court that had suspended the Bangladesh Bank’s decision to appoint an administrator to oversee operations at the mobile financial service (MFS) provider Nagad.
A five-member bench led by Justice Md Ashfaqul Islam of the Appellate Division passed the order following a hearing on a petition filed by Bangladesh Bank seeking withdrawal of the Chamber Judge’s stay order.
Following the court order, Bangladesh Bank’s counsel BM Elias Kachi told reporters that the Chamber Court had stayed the central bank’s decision to appoint an administrator at Nagad.
“That order has now been stayed by the Appellate Division. The administrator appointed earlier remains in place and with this order there is no legal bar to the continuation of his functions,” he said.
On August 21 last year, Bangladesh Bank issued an internal order appointing an administrator to Nagad.
Later, Md Shafayet Alam, an independent director of Nagad, challenged the legality of the appointment filing a writ petition with the High Court.
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After a primary hearing on September 17 last year, the High Court issued a rule asking why the August 21 memo appointing an administrator without complying with Sections 31(1) and 31(2) of the 2004 Payment and Settlement Systems Act should not be declared ultra vires.
Upon completion of the final hearing, the High Court dismissed the rule on February 16 this year declaring the writ petition not maintainable.
Challenging the verdict, Shafayet Alam later filed a petition with the Appellate Division which was placed before the Chamber Judge on May 7.
The Chamber Court then stayed the High Court verdict for eight weeks and also stayed the administrator appointment, allowing the petitioner to file a regular leave to appeal.
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Bangladesh Bank subsequently filed a petition seeking withdrawal of the Chamber Court’s stay order.
Senior lawyer Jamalur Rahman appeared for the petitioner during the hearing.