High Court dismisses Penjore’s constitutional case against BNBL

High Court dismissed a Paro businessman’s constitutional case against the Bhutan National Bank (BNBL) last month.

The High Court Chief Justice’s order stated that the case was already decided and could not be reopened.

The High Court’s order stated that the case was ‘res judicata’ meaning reopening a case that was already decided.

The businessman, Penjore, who lost the case over seized mortgaged properties to BNBL filed a constitutional case citing a violation of his constitutional rights.

The Supreme Court passed two judgements on the case in favour of BNB, the last one in November last year.

Penjore submitted to the High Court that Bumthang dzongkhag court and BNBL breached his right and asked the court to revisit the case from a different perspective.

Bumthang dzongkhag court passed a verdict in April last year after the bank lodged a loan default case against Penjore. The court ordered the bank to take over the property mortgaged with the bank if Penjore failed to pay the entire principal amount with interest to the bank. Subsequently, the property, a three-star hotel, was advertised for public auction.

The businessman is seeking the High Court to look at legal issues with the bank related to the loan he availed from it and compensate him for the losses he suffered in the process.

He claimed that as the bank had stopped loans indefinitely, he could not do any business for the past three years for which he suffered loss.

Since the bank did not issue a clearance letter, he could not avail loans from any other bank and thus suffered loss amounting to Nu 62.4M, Penjore claimed in his letter to the High Court.

Staff Reporter

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