Application Within 30 Days and Mandatory Deposit of 10 Percent Within 15 Days Required to Set Aside Ex Parte Decree in Artha Rin Cases: High Court
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| Supreme Court of Bangladesh |
The court held that Sections 19(2) and 19(3) of the Artha Rin Adalat Ain, 2003, are complementary. Therefore, unless both conditions are fulfilled—filing an application to set aside the ex parte decree within the prescribed 30 days and depositing 10 percent of the decretal amount within the following 15 days—the court has no jurisdiction to entertain the application and set aside the ex parte decree.
A High Court bench comprising Justice Md. Riaz Uddin Khan and Justice Urmi Rahman delivered the judgment on 30 August 2026 in Civil Revision No. 4161 of 2016. The case was Md. Monir Chowdhury v. Uttara Bank Limited. A full copy of the judgment was published on the Supreme Court website on 18 October 2026.
Background of the Case
Uttara Bank Limited filed an Artha Rin case in 2015 before the Fourth Artha Rin Court of Dhaka. The bank claimed that the defendant had taken a loan of Tk 1.2 million from the bank against a mortgage of land. As the loan remained unpaid, the total amount due, including interest, stood at Tk 1,863,000.19 as of 23 March 2015.
Although the defendant filed a written statement, he subsequently remained absent, and the Artha Rin Court passed an ex parte decree on 24 February 2016. Challenging the decree, the defendant filed an application on 30 May 2016 under Section 19(2) of the Artha Rin Adalat Ain, 2003, seeking to set aside the ex parte decree and undertaking to deposit 10 percent of the decretal amount.
However, as the 10 percent amount was not deposited within the prescribed period, the court rejected the application. A miscellaneous appeal filed before the District Judge, Dhaka, was also dismissed. The District Judge noted that the applicant had not deposited 10 percent of the decretal amount either in the miscellaneous case or in the appeal.
High Court’s Observations
Analyzing Section 19 of the Artha Rin Adalat Ain, 2003, the High Court held that, where an ex parte decree is passed, the defendant may apply to set it aside within 30 days from the date of the decree or from the date on which the defendant became aware of the decree. Thereafter, within the 15 days following the date of filing the application, 10 percent of the decretal amount must be deposited in the prescribed manner.
The court found that, although the ex parte decree was passed on 24 February 2016, the applicant filed the application on 30 May 2016. Therefore, the application was not filed within the statutory period. In addition, the applicant failed to deposit 10 percent of the decretal amount within the prescribed time.
The court further observed that the Artha Rin Adalat Ain is a special law. It prescribes a specific procedure and time limit for setting aside an ex parte decree. Therefore, after expiry of the prescribed period, there is no scope to set aside an ex parte decree by depositing 10 percent of the amount pursuant to a court order.
Referring to the earlier decision in Pubali Bank Limited v. Bangladesh and Others, the High Court held that Sections 19(2) and 19(3) must be read together and that both conditions must be fulfilled. Similarly, the decisions in Osman Gazi Chowdhury v. Artha Rin Adalat and Prime Global Limited and Others v. Sonali Bank Limited and Others also clarified the mandatory requirements concerning the prescribed time limit and deposit of 10 percent of the decretal amount.
Order of the Judgment
The High Court discharged the rule issued at the instance of the applicant. The earlier order of stay was also vacated. The court allowed the Artha Rin Court to proceed with the execution case filed in 2016 without any further delay.
Legal Takeaway
To set aside an ex parte decree in an Artha Rin Court, filing an application alone is not sufficient. Both conditions must be fulfilled: the application must be filed within 30 days from the date of the decree or from the date on which the defendant became aware of the decree, and 10 percent of the decretal amount must be deposited within 15 days of filing the application. A court cannot set aside an ex parte decree by exercising general discretion in disregard of these conditions prescribed by the special law.
BD Law Post / Masum
