HC imposes status quo on Nagad administrator's activities
The bench of Justice Farah Mahbub and Justice Debasis Roy Chowdhury issued the order on Wednesday
The High Court has imposed a two-week status quo on all activities of Nagad, a leading mobile financial service provider, preventing the Bangladesh Bank-appointed administrator and management board from taking any new steps beyond regular business operations.
The bench of Justice Farah Mahbub and Justice Debasis Roy Chowdhury issued the order on Wednesday (18 December) following a writ petition filed by Nagad Director Md Shafayet Alam, according to court sources.
The final verdict on the matter is expected on 2 January 2025, after a final hearing.
Keep updated, follow The Business Standard's Google news channel
Shafayet's writ petition challenged the Bangladesh Bank's appointment of an administrator to Nagad on 10 September, alleging non-compliance with the Payment and Settlement System Act 2024.
The petition made several parties defendants, including the secretary, and director general of the Posts and Telecommunications Division, the Bangladesh Bank governor, the director of its Payment Systems Department, and the appointed administrator, Muhammad Badiuzzaman Didar.
The High Court had earlier issued a Rule Nisi, asking why the appointment of an administrator and the reconstitution of the management board should not be declared unlawful.
During Wednesday's hearing, Advocate Md Saiful Islam, representing the Bangladesh Bank governor, sought a stay on the matter, but the court did not grant it.
Instead, it issued the status quo upon the request of Barrister Muhammad Nawaz Jamir, representing Nagad.
The petition argued that the Bangladesh Bank had violated the Payment and Settlement System Act 2024, which outlines the procedures for appointing an administrator and restructuring the management board.
On 21 August, the central bank appointed Muhammad Badiuzzaman Didar as the administrator and sent six assistants to Nagad while dissolving its previous board and reconstituting a new one.
Barrister Muhammad Nawaz Jamir and Advocate Md Abul Kalam Khan Dawood represented Nagad, while Advocate Md Saiful Islam appeared for the Bangladesh Bank. Several deputy and assistant attorneys general were present on behalf of the government.
The High Court's order ensures that no new actions can be taken by the administrator or the board until the legal dispute is resolved.
