HC dismisses Channel 1 challenge over auction

Dhaka, Apr 8 (bdnews24.com)—The High Court dismissed on Wednesday two writ petitions filed by One Entertainment Limited challenging the legality of private satellite TV Channel 1's equipment and accessories auctioning.

Mahmudul Islam, counsel for the auctioneer Prime Bank Ltd, told bdnews24.com that the verdict removed all barriers to taking any steps subsequent to the auctioning of Channel 1's equipment and accessories.

Sabbir Hamza Chowdhury, a counsel for the petitioners, told bdnews24.com that an appeal will be filed against the HC verdict given by the bench of justices Khademul Islam Chowdhury and Miftahuddin Chowdhury.

Giasuddin Al Mamun, managing director of One Entertainment Limited, had filed the petitions in 2008, one challenging the legality of auctioning Channel 1's equipment and accessories, and the other seeking Prime Bank's instructions for loan rescheduling.

On hearing the petitions, the court on July 30 and Aug 25 last year asked the BTRC chairman, commerce secretary, Prime Bank managing director and Prime Bank Motijheel branch manager to explain the matters..

The court also stayed the auction for three months. The matter subsequently was referred to the Appellate Division for disposal, when the regular Appellate Division bench ordered the High Court to dispose of the two petitions.

On June 13, 2008, Prime Bank published auction notice to dispose of Channel 1 equipment and accessories inviting parties to submit bids.

People's Entertainment Ltd, the only bidder, quoted Tk 24 crore on June 29 as the price of the equipment and got the merchandise.

The petition challenging the legality of the auction and purchase contended that One Entertainment Company had invested Tk 44 crore to telecast Channel 1 programmes, the present market value of which is Tk 50 crore.

The writ appeal said, following the arrests of the company's MD, chairman and a director in January 2007 in the wake of the emergency rule, the usual business of the firm was disrupted.

It also said the company had borrowed Tk 23 crore in 2006 from Prime Bank on condition of repaying it in seven and a half years.

Accordingly, Tk 2.94 crore was deducted as repayment instalment from the two accounts opened in the company's name, it said.

On April 5, 2008, Prime Bank notified One Entertainment to repay the remainder of the Tk 30.30 crore loan within 15 days of serving the notice.

The company MD requested the bank to reschedule the repayment of the loan over a period of 15 years, which the bank turned down.

On April 28, the company again asked the bank for rescheduling the loan repayment and committed at the same time to pay Tk 1.5 crore by June.

The petition mentioned that without issuing any rejoinder, the bank invited auction bids on June 13 and sold the equipment and accessories on June 29.

The appeal also mentioned that People's Entertainment, the buyer of Channel 1 equipment, had been registered only days before the auction.

The writ appeal mentioned that Prime Bank's rejecting the financially weakened and indebted company's appeal for loan rescheduling was a glaring example of trashing central bank's orders.

It also said the auction was hastily executed.

Shamsuddin Chowdhury, assisted by Sabbir Hamza Chowdhury, represented the writ petitioners in the hearing.

Prime Bank's counsels were former attorney general Mahmudul Islam and Prabeer Niyogee.

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