Lease termination endeavor by Bepza against Thianis Apparels in CEPZ halted by High Court
In a significant turn of events, the High Court of Bangladesh has issued a stay order against the Bangladesh Export Processing Zone Authority (Bepza) taking physical possession of a factory unit operated by Thianis Apparels Ltd in the Chattogram Export Processing Zone (CEPZ). This judicial stay temporarily halts Bepza's lease termination action and their attempt to seize the factory premises from Thianis Apparels Ltd.
The dispute between Thianis Apparels and Bepza stems from Bepza's decision to terminate the lease agreement and reclaim possession of the factory building over unpaid rent amounting to Tk28 crore. Thianis Apparels has challenged the move, arguing that it is unlawful and disrupts ongoing business operations.
Senior Advocate Raghib Rouf Chowdhury, who represented Thianis Apparels Ltd, stated that Bepza has no legal right to shut down a factory simply because they are owed rent. He further emphasised that there are courts and legal procedures for such matters.
In response to the stay order, the court also directed Bepza to withdraw the suspension of export-import permissions and allow Thianis Apparels Ltd to continue its regular operations, including the import of raw materials and export of finished garments, from the disputed premises until the disposal of Arbitration Case No 27 of 2024.
However, the current situation on the ground remains tense, as nearly 700 workers of Thianis Apparels Ltd staged a daylong protest at the CEPZ demanding unpaid wages, highlighting ongoing labor unrest amid the dispute. Advocate Rouf alleged that Bepza has yet to take steps to reopen the factory, jeopardising his client's business.
The hearing for the petition is scheduled for Thursday. The court issued a Rule Nisi on 15 July, asking Bepza to explain why its letters dated 16 June and 3 July - which denied export-import permissions and ordered the handover of the premises - should not be declared illegal and without lawful authority.
Meanwhile, the executive director of CEPZ, Abdus Sobhan, acknowledged receiving the notice and mentioned that they have filed a petition challenging the stay order in the Appellate Division.
In summary, the High Court's stay order temporarily halts Bepza's lease termination and possession move, allowing Thianis Apparels to continue operations for the next two months. The dispute remains unresolved legally and operationally, with the court process ongoing and direct factory control contested. The next hearing will determine the final legal outcome concerning the factory's lease and possession.
The manufacturing industry is at a standstill due to the legal dispute between Thianis Apparels and the Bangladesh Export Processing Zone Authority (Bepza), as the court's stay order prevents Bepza from taking possession of the factory unit and terminating the lease agreement. Financial implications are looming for both parties, as Thianis Apparels is yet to pay a rent amount of Tk28 crore to Bepza.
