Loan Recovery Case (Artha Rin Adalat) Bangladesh: Legal Guide

The Artha Rin Adalat (Money Loan Court) is a specialized civil court established under the Artha Rin Adalat Ain 2003 to handle loan recovery suits by banks and financial institutions. Before this law, lenders had to pursue recovery through regular civil courts — a process that could take decades. The Artha Rin Adalat creates a faster, streamlined procedure specifically for financial institutions.

If you are a defaulting borrower served with an Artha Rin Adalat summons — or a creditor considering filing a suit — consult an experienced civil lawyer in Dhaka without delay.

Only specific entities can file suits in Artha Rin Adalat:

• Scheduled banks (all commercial banks licensed by Bangladesh Bank)
• Financial institutions licensed under the Financial Institutions Act 1993
• Non-banking financial institutions (NBFIs)
• Leasing companies

Regular businesses and individuals cannot file in Artha Rin Adalat even if owed money. For personal loans between individuals, the remedy is a regular Money Suit in the Civil Court under the Code of Civil Procedure.

The Artha Rin Adalat process from filing to decree:

1. Pre-suit notice: The bank must serve a demand notice to the borrower before filing.
2. Filing the plaint: The bank files a suit in the Artha Rin Adalat of the district where the defendant resides or the contract was executed.
3. Summons issued: The court issues summons to all defendants (borrower and guarantors).
4. Written statement: The defendant must file a written statement within 8 weeks of receiving summons — failure to do so results in the suit proceeding ex parte.
5. Interim orders: The court may order attachment of assets at this stage.
6. Trial and evidence: Both parties present evidence. The Artha Rin Adalat Ain limits frivolous adjournments.
7. Decree: If the claim is proven, the court passes a money decree for the principal plus interest.
8. Execution: The bank executes the decree through sale of attached property.

One of the most powerful (and feared) provisions of the Artha Rin Adalat Ain is the power to attach the borrower's property before passing the final decree. The court can order:

• Attachment of bank accounts
• Attachment of land and buildings (prevents sale during proceedings)
• Attachment of vehicles, machinery, and business assets
• Receiver appointed over a business to protect assets

Attachment orders can be applied ex parte (without hearing the borrower first) in urgent cases. A defendant facing attachment must respond immediately — contact a civil lawyer to apply to vacate the attachment order.

Borrowers have legitimate defences — but these must be raised promptly in the written statement:

• Dispute the loan amount: Challenge the calculation of interest, penalties, and charges.
• Payment already made: Produce receipts for payments that were not credited by the bank.
• Procedural defects: Missing pre-suit notice, wrong court jurisdiction, or wrong party named.
• Limitation period: The bank's claim may be time-barred if filed too late.
• Execution of security: Argue that the mortgaged security was sufficient to cover the loan and demand its execution first.

Important: Under the Artha Rin Adalat Ain, a defendant who wants to defend the suit may be required to deposit a portion of the claimed amount in court as a condition for filing a written statement. An experienced lawyer can challenge this requirement where appropriate.

A decree or order of the Artha Rin Adalat can be appealed to the High Court Division of the Supreme Court within 60 days of the order. However:

• An appellant (borrower) may be required to deposit 50% of the decreed amount before the appeal is admitted.
• This deposit requirement can be waived in exceptional circumstances — an experienced Supreme Court lawyer can apply for this.

Appeals in Artha Rin matters are handled exclusively by the High Court Division. Advocate Md. Shah Alam represents clients in both Artha Rin Adalat proceedings and High Court appeals. Contact us for urgent assistance.

No. Artha Rin Adalat exclusively handles suits by scheduled banks and licensed financial institutions. For individual-to-individual loan recovery, file a Money Suit in the Civil Court.

If you fail to file a written statement within the time limit, the court will proceed ex parte — hearing only the bank's side — and is likely to pass a decree against you. Respond to summons immediately.

Yes. The Artha Rin Adalat Ain allows pre-judgment attachment of the defendant's assets. A lawyer can apply to vacate or limit an attachment order.

Yes. Banks must file within the limitation period — generally 3 years from the date of default for most loan types. A lawyer should check if the bank's suit is time-barred.

Yes. Settlement is possible at any stage of Artha Rin proceedings. Many banks prefer negotiated settlement over lengthy litigation. A lawyer can negotiate on your behalf.