Court Reporter:

The Appellate Division’s Chamber Court has declined to stay a High Court order requiring Grameen Kalyan, a social business enterprise founded by Nobel Laureate Dr. Muhammad Yunus, to pay Tk 666.91 crore in outstanding income tax for five assessment years between 2012 and 2017.

On Tuesday, Chamber Judge Justice Farah Mahbub dropped the petition from the cause list, observing that the apex court cannot interfere with the High Court’s ruling without examining the full written verdict.

The development follows a September 10 verdict by a High Court bench comprising Justice Md. Mojibur Rahman Miah and Justice Rezaul Karim, which dismissed a rule challenging the legality of the tax demand made by the National Revenue Board (NBR). The High Court’s dismissal effectively validated NBR’s claim of Tk 666,91,52,370 in unpaid income tax.

Following the ruling, Grameen Kalyan Managing Director A.K.M. Mohiuddin Chowdhury filed a petition with the Chamber Court seeking a stay on the verdict’s execution.

Senior Advocate Abdullah-Al-Mamun represented Grameen Kalyan, while Deputy Attorney General Mohammad Abdus Samad Azad appeared on behalf of the state.

Speaking to reporters after the hearing, Advocate Mamun explained that the petition sought temporary relief from tax collection procedures until a leave-to-appeal could be formally lodged once the High Court publishes its complete written verdict.

“Since the full text of the High Court’s verdict has not been released yet, we were unable to file a leave-to-appeal,” Mamun said. “We applied for a stay to prevent any immediate enforcement actions. However, the Chamber Judge ruled that no order would be passed without the full written judgment.”

Deputy Attorney General Azad confirmed the outcome, stating that the Chamber Court effectively removed the civil miscellaneous petition (CMP) from the court’s daily list.

A Seven-Year Legal Battle

The tax dispute traces back to September 2017, when Taxes Zone-14 in Dhaka issued two separate notices claiming Tk 666.91 crore in unpaid income tax from Grameen Kalyan for the assessment years spanning 2012 to 2017.

Although the tax authority scheduled a hearing for September 21, 2017, Grameen Kalyan sought a one-month extension to gather necessary documentation. The tax office rejected the extension request on September 26, 2017, and subsequently dismissed a review petition filed by the organization on November 14, 2017.

Grameen Kalyan then challenged the tax office’s decisions by filing two writ petitions with the High Court. On November 26, 2017, the High Court issued a rule questioning the legality of the tax office’s orders and granted a temporary stay on the tax demand notice, which was later extended in several phases.

The litigation has since navigated a complex series of judicial proceedings:

October 2023: A High Court bench disposed of the 2017 rule with observations and set aside the order issued by Taxes Zone-14.

March 2024: Following a leave-to-appeal by the NBR, the Appellate Division directed the High Court to rehear the matter on its merits.

August 2024: The High Court initially dismissed the rule on August 4, though that order was recalled on October 4.

September 2024: The Chief Justice assigned a new bench to rehear the matter, culminating in the September 10 judgment that dismissed the rule and cleared the path for tax collection.

With the Chamber Court declining to step in, Grameen Kalyan must wait for the full certified copy of the High Court’s judgment before it can file a formal leave-to-appeal before the Appellate Division.