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November 2, 2023

Loan Recovery Process in Bangladesh: Execution, and Related Revision Writ in Bangladesh

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Loan Recovery Process in Bangladesh-

Exploring Loan Recovery, Execution, and Related Revision/Writ in Bangladesh: A Legal Perspective

The process of loan recovery and execution in Bangladesh is an intricate legal domain that involves multiple stages and often necessitates adherence to specific laws and regulations. In this article, we delve into the comprehensive legal framework governing loan recovery, execution, and related revision/writ in Bangladesh.

Loan Recovery Process in Bangladesh

Loan recovery involves the procedures employed by lending institutions to retrieve unpaid loans from borrowers. In Bangladesh, financial institutions, including banks and non-banking financial institutions (NBFIs), follow a systematic process for loan recovery.

1. Demand Notice:
  • The initial step in the loan recovery process involves issuing a demand notice to the borrower, requesting repayment of the outstanding loan amount.
2. Negotiation and Settlement:
  • If the borrower fails to comply with the demand notice, negotiations might occur to reach a settlement or restructured payment plan.
3. Legal Action:
  • When negotiations fail, lenders may resort to legal measures, initiating legal proceedings against the defaulting borrower.

Legal Framework for Loan Recovery in Bangladesh

The legal framework governing loan recovery in Bangladesh primarily involves statutes and regulations that facilitate the execution and revision processes. Key legal provisions include:

Loan Recovery Process in Bangladesh
1. Artha Rin Adalat Ain, 2003:
  • The Artha Rin Adalat Ain, or the Money Loan Court Act, 2003, governs the procedures and mechanisms for loan recovery in specialized tribunals known as Artha Rin Adalats.
2. Bank Companies Act, 1991:
  • The Bank Companies Act outlines regulations for banking companies and provisions related to loan recovery and legal actions against defaulting borrowers.
3. Limitation Act, 1908:
  • The Limitation Act prescribes a time limit for initiating legal action for the recovery of debts, ensuring that claims are brought within a specified period.
4. Civil Procedure Code, 1908:
  • The Civil Procedure Code lays down the procedural rules for civil cases, including those related to loan recovery and execution.

Execution Procedures for Loan Recovery

The execution process involves enforcing court orders for loan recovery. Upon obtaining a judgment from the Artha Rin Adalat or other relevant courts, creditors may seek execution of the judgment to recover the outstanding dues. The execution process includes:

1. Issuance of Warrants and Orders:
  • The court issues warrants and orders to execute the judgment, allowing the creditor to take necessary steps to recover the debt.
2. Attachment and Sale of Property:
  • Creditors may attach and sell the borrower’s property or assets to recover the outstanding debt as per the court’s directives.
3. Recovery through Bank Accounts:
  • Courts may order the recovery of loan amounts from the borrower’s bank accounts or any other financial instruments.

Revision and Writ in Loan Recovery Cases

In cases where one party is aggrieved by the judgment or order of the lower court, the process of revision and writ comes into play. This involves seeking a review or challenging the decision of the lower court through higher judicial authorities.

1. Revision:
  • The revisional jurisdiction allows parties to approach higher courts, such as the High Court Division of the Supreme Court, to review and revise judgments passed by lower courts.
2. Writ:
  • Writ jurisdiction permits the High Court Division of the Supreme Court to issue writs, such as writs of certiorari, mandamus, or prohibition, to ensure legality and fairness in the lower courts’ decisions.

Challenges and Case Precedents

The process of loan recovery, execution, and related revision/writ in Bangladesh faces challenges, including lengthy legal procedures, delays, and complexities in executing court orders. Several landmark cases have set legal precedents, emphasizing the need for adherence to legal procedures and the timely execution of court orders in loan recovery matters.

Mitigation and Compliance Strategies

To mitigate challenges in loan recovery and execution, it is crucial for creditors to ensure compliance with legal procedures, maintain accurate documentation, and seek legal advice from experienced professionals. Additionally, exploring alternative dispute resolution mechanisms and negotiation strategies can often aid in resolving loan recovery disputes without resorting to prolonged legal battles.


The legal framework surrounding loan recovery, execution, and related revision/writ in Bangladesh demands a comprehensive understanding of the applicable statutes and procedural guidelines. Navigating the loan recovery process requires meticulous compliance with the Artha Rin Adalat Ain, the Bank Companies Act, and other relevant laws. Employing proper execution procedures and, if necessary, seeking revision or writ through higher judicial authorities ensures fair and lawful resolution of loan recovery disputes.

Understanding the legal landscape and procedural intricacies of loan recovery, execution, and related revision/writ in Bangladesh is vital for individuals and institutions involved in the borrowing and lending process. Adherence to the legal framework and seeking expert legal counsel can facilitate a smoother and more effective resolution of loan recovery disputes.

(Please note: The information provided is based on the legal framework and statutes up to the knowledge cutoff in January 2022. It’s recommended to consult legal experts for the most current and specific legal advice concerning loan recovery, execution, and related revision/writ in Bangladesh.)


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