Ship mortgage enforcement in Bangladesh: the full journey, step by step

by Barrister Tahmidur Rahman | Oct 24, 2026

Case Journeys/Admiralty & shipping

Ship mortgage enforcement in Bangladesh: the full journey, step by step

The route for ship mortgage enforcement in Bangladesh runs through the High Court Division, because section 43 of the Bangladesh Merchant Shipping Ordinance 1983 lets a registered mortgagee recover only by proceedings in that Division and forbids sale merely on the strength of the mortgage.

The bank files an admiralty suit in rem under section 3(2)(c) of the Admiralty Court Act 2000, arrests the ship and asks for a judicial sale, and the court then ranks the bank against crew, salvors and other creditors. The Artha Rin Adalat remains an alternative for personal recovery, but the courts have held it does not oust admiralty jurisdiction over a ship.

Step through it on the page
Register the mortgage correctly
▶Play full screen13 steps · 7 what-ifs · 7 courts & offices
Where it starts
High Court Division, Dhaka, sitting as the Admiralty Court (single-judge bench under s.8 Admiralty Court Act 2000); the…
Main law
Bangladesh Merchant Shipping Ordinance 1983, ss.39-46 and 477-479; Admiralty Court Act 2000, ss.3(2)(c), 3(5)(c), 4(2) and (7), 7…
Typical duration
Default notice: about 15-30 days. Filing and arrest: days. Sale pendente lite: about 3-9 months if sought. Contested…
Who can file
A bank or financial institution, or any other mortgagee, holding a mortgage or charge over a ship or shares in her…
Interactive journey · 13 steps

Ship mortgage enforcement in Bangladesh: walk through every stage

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  1. Ship mortgage enforcement in Bangladesh: step 1, Register the mortgage correctly
    Step 1 · Security and default

    Register the mortgage correctly

    Enforcement starts with good security. A mortgage of a registered Bangladesh ship, or of shares in her, must be in the prescribed form and produced to the Registrar at the ship's port of registry, who records it in the Register Book and endorses the day and hour of recording. Where more than one mortgage is recorded, they rank by date of recording, not by the date of the deed, whatever notice the later lender had. Banks usually also register a charge over the borrower company's assets with the RJSC.

    Where: Registrar of Ships (Mercantile Marine Department, Department of Shipping) · Time: 1-4 weeks at the time of lending · Law: s.40 Bangladesh Merchant Shipping Ordinance 1983; s.159 Companies Act 1994 (registration of charges) · Documents: Mortgage deed in the prescribed form, Registrar's endorsement and mortgage registration certificate, Certificate of registry, RJSC charge certificate

    Tip: Record the mortgage the same day the deed is signed. Priority between lenders depends on the date of recording in the Register Book, not the date of the deed.

  2. Ship mortgage enforcement in Bangladesh: step 2, Monitor the loan and the ship
    Step 2 · Security and default

    Monitor the loan and the ship

    A registered mortgagee is not treated as the owner of the ship, and the mortgage survives the borrower's insolvency. The bank therefore watches the loan and the asset together: repayment schedules, insurance, class and trading, and any unpaid crew wages, port dues or supplier claims, since some of these can rank ahead of the mortgage. Once the loan is classified, the bank prepares for enforcement before the ship leaves Bangladesh waters, is laid up or is sold for recycling.

    Where: Lender bank (legal department) · Time: Ongoing · Law: s.42 Bangladesh Merchant Shipping Ordinance 1983; s.44 Bangladesh Merchant Shipping Ordinance 1983 · Documents: Loan statement and classification record, Insurance policies with loss-payee clause, Vessel trading and location records

    Tip: Unpaid crew wages rank ahead of the mortgage, so arrears on board quietly erode the bank's security.

  3. Ship mortgage enforcement in Bangladesh: step 3, Demand and default notice
    Step 3 · Security and default

    Demand and default notice

    Before suing, the bank sends written reminders and then a legal notice to the borrower, the owner and any guarantors demanding payment of the outstanding sum within a stated period, often fifteen days. In the February 2026 Basic Bank case the court relied on the reminder, the legal notice and the loan statement as proof that the borrower had defaulted. The notice should state the total claimed, including interest and charges, as at a fixed date.

    Where: Lender bank (legal department) · Time: 15-30 days · Law: s.43(1) Bangladesh Merchant Shipping Ordinance 1983; Basic Bank Ltd v M.V. Crystal Sapphire, Admiralty Suit 29 of 2017 (26 February 2026) · Documents: Reminder letters, Legal notice with proof of service, Statement of loan account

    Tip: If the ship is about to sail or be scrapped, do not wait out the notice period; file and seek arrest at once.

  4. Ship mortgage enforcement in Bangladesh: step 4, Choose the forum: Admiralty Court or Artha Rin Adalat
    Step 4 · Forum choice and filing

    Choose the forum: Admiralty Court or Artha Rin Adalat

    The Artha Rin Adalat hears loan recovery suits by financial institutions, but the High Court Division has held that section 5 of the Artha Rin Adalat Ain 2003 restricts civil courts, not the Admiralty Court, so a bank can sue in admiralty against a mortgaged ship. Ship mortgage enforcement in Bangladesh usually goes there, because only the High Court Division can order the ship sold, and the bank cannot sell her itself, whatever its power of attorney says. The Artha Rin route remains useful for personal claims against the borrower and guarantors.

    Where: Lender bank (legal department) · Time: 1-2 weeks · Law: s.43 Bangladesh Merchant Shipping Ordinance 1983; s.3(2)(c) Admiralty Court Act 2000; s.5 Artha Rin Adalat Ain 2003; First Security Islami Bank Ltd v M.V. Javed, 69 DLR 408 · Documents: Forum memo, Power of attorney to sell (for record only)

    Tip: Do not try a private sale under the mortgage: section 43(2) says no mortgagee can sell merely by virtue of the mortgage.

  5. Step 5: File the admiralty suit in rem
    Step 5 · Forum choice and filing

    File the admiralty suit in rem

    The bank files a verified plaint in the Admiralty Court against the vessel in rem and the owner, master and manager in personam, with the port and maritime authorities as pro forma defendants. A mortgage claim is one for which section 4(2) expressly allows an action in rem, and section 3(5)(c) extends jurisdiction to foreign-law, unregistered and equitable mortgages. The plaint asks for a money decree, sale of the ship and payment from the proceeds. The court fee is capped at Tk 1,00,000, far below an ad valorem fee on a large loan.

    Where: High Court Division · Time: 1-3 days · Law: s.3(2)(c) and (5)(c) Admiralty Court Act 2000; s.4(2) Admiralty Court Act 2000; ss.6-7 Admiralty Court Act 2000 · Documents: Verified plaint, Sanction letters and mortgage documents annexed, Arrest application and affidavit, Court fee

    Tip: Ask in the same plaint for an injunction against transfer, re-flagging or demolition of the ship.

  6. Step 6: Arrest of the mortgaged ship
    Step 6 · Arrest and early sale

    Arrest of the mortgaged ship

    On admission, the single-judge Admiralty bench can order the ship's arrest, and the Marshal sends the order to the port, customs and the Department of Shipping so that port clearance is refused. The ship's certificate of registry may be deposited with the Marshal. Because the claim is under a mortgage, the arrest does not depend on proving a maritime lien. The owner can obtain release only by giving security, normally a bank guarantee in favour of the Marshal, which is rare in a mortgage default.

    Where: Marshal of the Admiralty Court · Time: Same day to a few days · Law: s.4(2) Admiralty Court Act 2000; s.8 Admiralty Court Act 2000; Admiralty Rules 1912 (warrant of arrest on affidavit) · Documents: Arrest order, Marshal's letters, Certificate of registry

    Tip: Check whether another creditor has already arrested the ship; if so, file quickly so the bank's claim is before the court when the fund is distributed.

  7. Step 7: Owner's objections to maintainability
    Step 7 · Arrest and early sale

    Owner's objections to maintainability

    Borrowers commonly argue that a bank's loan claim belongs only in the Artha Rin Adalat, that there is no maritime claim, or that the suit is bad for misjoinder. The Admiralty Court has rejected the forum objection repeatedly. In the 2026 Basic Bank case it held that its jurisdiction comes from Article 101 of the Constitution and the 2000 Act and turns on the nature of the asset, a ship, not on the identity of the claimant. That case was decreed after the defendants called no witness.

    Where: High Court Division · Time: 1-6 months · Law: Order VII rule 11 CPC; Bank Asia Ltd v M.T. Atlanta, 25 BLC 677; Article 101 Constitution of Bangladesh · Documents: Written statement, Objection or application under Order VII rule 11, Reply

    Tip: Plead the mortgage and the ship-specific security clearly; a bare unsecured loan to a ship-owning company is not, by itself, an admiralty claim.

  8. Step 8: Sale pendente lite
    Step 8 · Arrest and early sale

    Sale pendente lite

    An arrested ship loses value every week through port dues, crew costs and deterioration, so mortgagees often apply for her to be valued and sold before trial. The court can order the Marshal to sell by public auction pendente lite, with the proceeds held in the Marshal's account until the suit and any competing claims are decided. A judicial sale gives the buyer title free of the mortgage and all other claims, which then attach to the fund.

    Where: Marshal of the Admiralty Court · Time: 3-9 months · Law: s.4(7) Admiralty Court Act 2000; s.39 Bangladesh Merchant Shipping Ordinance 1983 · Documents: Sale application, Valuation report, Auction notice and terms, Sale confirmation order

    Tip: Push for realistic sale terms and wide advertisement; an under-priced auction hurts the mortgagee most, because costs and crew are paid first.

  9. Step 9: Prove the loan, mortgage and default
    Step 9 · Trial and decree

    Prove the loan, mortgage and default

    At trial the bank's officer proves the case, now through evidence-in-chief on affidavit under the 2026 amendments, and is cross-examined. In the Basic Bank case the exhibits were the authority letter, the letter of credit sanction, the sanction letter for the term loan, the ship registration certificate, the mortgage registration certificate, the RJSC charge certificates, the power of attorney, the legal notice and the loan account statement. Interest calculations must match the sanction terms.

    Where: High Court Division · Time: 3-18 months · Law: Order XVIII rule 4A CPC (as amended by Act XXXVI of 2026); Bankers' Books Evidence Act 1891 · Documents: Sanction letters, Mortgage registration certificate, Loan statement certified under the Bankers' Books Evidence Act 1891, Legal notice

    Tip: Choose a witness who can explain the account, not just produce it; cross-examination focuses on interest and charges.

  10. Step 10: Decree and order for sale
    Step 10 · Trial and decree

    Decree and order for sale

    If the claim is proved, the court decrees the outstanding amount with interest and directs that it be realised by execution and from the sale proceeds of the ship. Section 43(1) of the 1983 Ordinance allows the High Court Division, when passing the decree or later, to direct that the mortgaged ship or share be sold in execution. In February 2026 the court decreed about Tk 128.5 crore with 12% interest from filing, payable from the proceeds of a ship already sold in another admiralty suit.

    Where: High Court Division · Time: 1-3 months after hearing · Law: s.43(1) Bangladesh Merchant Shipping Ordinance 1983; Order XX rules 1 and 6 CPC; s.34 CPC · Documents: Judgment, Signed decree

    Tip: Ask the court to state the bank's mortgage priority expressly in the decree, to avoid a second fight at distribution.

  11. Step 11: Priority of claims against the fund
    Step 11 · Priority, title and recovery

    Priority of claims against the fund

    The same court decides who is paid from the sale money. The Marshal's commission and the costs of arrest and sale come first. Seamen's wages have statutory precedence over all other liens or charges, followed by the master's wages and disbursements. Other maritime liens, such as salvage and collision damage, generally rank ahead of mortgages under admiralty principles. Registered mortgages then rank by recording date, ahead of unsecured suppliers. For ship mortgage enforcement in Bangladesh, the court applies its own law to decide priorities.

    Where: High Court Division · Time: 2-12 months · Law: s.4(7) Admiralty Court Act 2000; ss.40(4) and 479 Bangladesh Merchant Shipping Ordinance 1983; Island Oil Ltd v M.T. Mandala, Admiralty Suit 21 of 2023 (27 January 2026) · Documents: Marshal's report on claims and balance, Priority application, Decrees of other claimants

    Tip: A supplier's lien recognised by foreign law is not automatically recognised here; challenge such claims at the priority stage.

  12. Step 12: Transfer of title and discharge of the mortgage
    Step 12 · Priority, title and recovery

    Transfer of title and discharge of the mortgage

    For a Bangladesh ship sold by the court, the sale order names a person entitled to transfer her, who can execute the transfer as if he were the owner. The Registrar registers the buyer and records the discharge of the mortgage on proof of payment. For a foreign-flag ship, the buyer uses the court's bill of sale and order to delete the old registration abroad and re-register. Buyers rely on the court's order to take free of earlier mortgages.

    Where: Registrar of Ships (Mercantile Marine Department, Department of Shipping) · Time: 1-2 months · Law: s.39 Bangladesh Merchant Shipping Ordinance 1983; s.41 Bangladesh Merchant Shipping Ordinance 1983 · Documents: Court order and bill of sale, Discharge of mortgage, New certificate of registry

    Tip: The bank should file its discharge promptly once paid; a stale mortgage entry can delay the buyer's registration.

  13. Step 13: Execution and any shortfall
    Step 13 · Priority, title and recovery

    Execution and any shortfall

    The bank files an execution case in the Admiralty jurisdiction for payment from the Marshal's account under the priority order. If the ship's proceeds do not cover the decree, the balance can be executed in personam against the borrower's other assets in Bangladesh under Order XXI. Where several decrees compete, the court may make a provisional, proportionate payment and keep the execution alive until pending suits against the ship are decided.

    Where: High Court Division · Time: 1-6 months · Law: Order XXI rules 10 and 11 CPC; Md. Yousuf Ali v M.V. Hearty Falcon, Execution Case 1 of 2025 · Documents: Execution application, Certified decree, Marshal's statement

    Tip: Claims against guarantors who are not parties to the admiralty suit may need a separate Artha Rin suit; take advice early so limitation does not run out.

Branches · appeal, revision, review, reference, remand

What if…? How the ship mortgage enforcement in Bangladesh can change course

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Route of this scenario
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Appeal · Admiralty Court → Appellate Division

What if the owner challenges the admiralty decree?

  1. 1
    Appellate Division of the Supreme Court

    Leave to appeal to the Appellate Division

    There is no appeal within the High Court Division, so the owner or a competing creditor must file a civil petition for leave to appeal under Article 103 within sixty days of the decree, or of a priority or sale order. Leave is granted on substantial questions of law, such as the reach of the Artha Rin Adalat Ain or the ranking of claims. A stay of the sale or of payment out must be sought separately from the Chamber Judge.

    60 days to file; 1-3 yearsArticle 103(3) Constitution of BangladeshOrder XIII rule 1 Appellate Division Rules 1988

Where it ends up: The Appellate Division's decision is final and the sale fund is paid out accordingly.

Revision · Artha Rin Adalat → District Judge → Admiralty Court

Is there a revision against the order?

  1. 1
    High Court Division

    No revision in admiralty; revision with deposit on the Artha Rin route

    Orders of the Admiralty Court cannot be revised under section 115 of the Code, because that court is the High Court Division itself; the remedies are review and leave to the Appellate Division. Revision matters only if the bank sued in the Artha Rin Adalat and the appeal went to the District Judge. A borrower can then seek revision in the High Court Division only after depositing 75% of the decretal amount, counting the 50% already deposited on appeal.

    File promptly; 6-18 monthss.115(1) CPCs.42 Artha Rin Adalat Ain 2003

Where it ends up: Admiralty orders go upward to the Appellate Division; Artha Rin appellate decisions can be revised only with a deposit.

Review · Admiralty Court → Admiralty Court → Appellate Division

Can the Admiralty Court reconsider its decree?

  1. 1
    High Court Division

    Review under Order XLVII

    A party can ask the same Admiralty bench to review its judgment, decree or priority order for an error apparent on the record, newly discovered evidence or another sufficient reason. For the High Court Division in its original jurisdiction the application must be made within twenty days. An owner who did not appear can apply instead to set aside an ex parte decree under Order IX rule 13. Review does not reopen the merits generally.

    20 days to file; 1-6 monthsOrder XLVII rule 1 CPCArticle 162 Limitation Act 1908Order IX rule 13 CPC

Where it ends up: The order is confirmed or corrected, and the case can still go to the Appellate Division.

Reference · Artha Rin Adalat → Admiralty Court → Artha Rin Adalat

Can a doubtful point of law be referred to a higher bench?

  1. 1
    High Court Division

    Reference of a question of law

    A reference under section 113 and Order XLVI of the Code is possible only in a suit or appeal whose decree is not subject to appeal. Artha Rin decrees are appealable under section 41, so a reference from the Adalat, for example on how its decree interacts with section 43 of the 1983 Ordinance, will rarely be available; the question is usually raised on appeal instead. In the Admiralty Court itself, the Chief Justice can form a larger bench for an important question under section 8 of the 2000 Act.

    6-18 monthss.113 CPCOrder XLVI rules 1-3 CPCs.8 Admiralty Court Act 2000

Where it ends up: The High Court Division answers the question and the lower court decides in line with it.

Remand · Artha Rin Adalat → Admiralty Court → Artha Rin Adalat → Admiralty Court

What if an appeal court sends an Artha Rin case back down?

  1. 1
    High Court Division

    Remand to the Artha Rin Adalat

    On an Artha Rin appeal over Tk 50 lakh, the High Court Division can set the decree aside and send the suit back if the Adalat decided only a preliminary point or ignored material evidence. Since the 2026 amendments, an appellate court that has enough evidence should decide the case itself, so remand is now the exception. A party who objects to a remand order challenges it by revision, not by appeal.

    With the appeal judgments.41 Artha Rin Adalat Ain 2003Order XLI rules 23-25 CPC (rule 24 as amended by Act XXXVI of 2026)
  2. 2
    Artha Rin Adalat

    Rehearing and the return trip

    The Adalat restores the suit and rehears it on the points set, keeping earlier evidence on record, then passes a fresh decree. The losing side can appeal again under section 41, and the borrower must keep the required deposit in place. If the ship is still under admiralty arrest meanwhile, the Admiralty Court's sale and priority orders continue to govern the ship itself.

    6-18 monthss.41 Artha Rin Adalat Ain 2003s.4(7) Admiralty Court Act 2000

Where it ends up: The Artha Rin claim is decided afresh and may climb back to the High Court Division.

Alternative route · Artha Rin Adalat → District Judge → Admiralty Court

What if the bank sues in the Artha Rin Adalat instead?

  1. 1
    Artha Rin Adalat

    Artha Rin suit, mediation and appeal

    A bank may instead sue the borrower and guarantors in the Artha Rin Adalat for the debt. Mediation under section 22 is the mandatory early step, the decree is executed through that court, and appeals go to the District Judge for decrees of Tk 50 lakh or less and to the High Court Division above that, after the borrower deposits 50%. The Adalat cannot override section 43 of the 1983 Ordinance, so ordering the ship sold still needs the High Court Division.

    2-6 years including executionss.5, 22 and 41 Artha Rin Adalat Ain 2003s.43 Bangladesh Merchant Shipping Ordinance 1983

Where it ends up: The bank obtains a personal money decree, while the ship itself is realised through the Admiralty Court.

Settlement · Admiralty Court → Bank → Admiralty Court

Can the loan be settled after arrest?

  1. 1
    Lender bank (legal department)

    Rescheduling or agreed sale

    Arrest often leads to rescheduling under Bangladesh Bank rules or to an agreed sale of the ship to a buyer who pays the bank directly. Because the bank cannot sell by itself, an agreed sale is placed before the Admiralty Court, which can record a compromise decree under Order XXIII rule 3, lift the arrest and direct how the price is paid, protecting the crew and other claimants.

    1-6 monthsOrder XXIII rule 3 CPCs.43(2) Bangladesh Merchant Shipping Ordinance 1983

Where it ends up: The loan is rescheduled or repaid from an approved sale, and the suit ends by compromise.

Lower court to higher court

How the ship mortgage enforcement in Bangladesh moves up the court hierarchy

Ship mortgage enforcement in Bangladesh starts at the top of the court system. Section 43 of the Bangladesh Merchant Shipping Ordinance 1983 gives a registered mortgagee the right to recover only by proceedings in the High Court Division, and section 3(1) of the Admiralty Court Act 2000 makes that Division the Admiralty Court, so there is no lower court and no pecuniary threshold. A single judge hears the suit, decides facts and law, orders arrest and sale, and settles priorities under section 4(7). There is no intra-court appeal and no section 115 revision.

The decree can be reviewed by the same bench and challenged only in the Appellate Division, by leave under Article 103, mainly on law. A parallel ladder exists for the personal debt: the Artha Rin Adalat, a Joint District Judge, hears it first, and appeals go to the District Judge for decrees up to Tk 50 lakh or to the High Court Division above that, both after a 50% deposit. A further revision then needs a 75% deposit.

  1. Appellate DivisionAppellate Division of the Supreme Court
  2. High Court DivisionHigh Court Division
  3. Appellate levelDistrict Judge's Court (Artha Rin appeals up to Tk 50 lakh)
  4. First instanceArtha Rin Adalat
  5. Start · outside courtLender bank (legal department) · Registrar of Ships (Mercantile Marine Department, Department of Shipping) · Marshal of the Admiralty Court
Courts & addresses

Where your case is heard

Addresses are for Dhaka. Every district has equivalent courts at its own district judgeship.

Appellate Division

Supreme Court of Bangladesh (Appellate Division and High Court Division)

Supreme Court of Bangladesh, Shahbag, Ramna, Dhaka-1000

Hears appeals, revisions, references, writ petitions under Article 102, company matters and death references (High Court Division), and appeals by leave from the High Court Division (Appellate Division).

Both Divisions sit in the Supreme Court complex; many High Court Division benches sit in the Annex Building. Check the daily cause list for the bench and court room. Postal contact is the Registrar General, Supreme Court of Bangladesh, Ramna, Dhaka-1000.

Appellate level

Court of the District and Sessions Judge, Dhaka (Dhaka Judge Court)

Dhaka Judge Court premises, 16 Johnson Road, Sadarghat, Dhaka

Seat of the Dhaka District Judge and Additional District Judges (civil appeals, probate, district-level civil and sessions work outside the metropolitan area) and the civil courts of first instance (Joint District Judge, Senior Civil/Assistant Judge courts).

Official judiciary portal gives '16 Johnson Road, Sadarghat, Dhaka'. Many civil courts (Additional District Judge courts, Joint District Judge and Senior Assistant Judge courts, Artha Rin Adalat No.1, insolvency court) are in the new 8-storey District Judge Court building in the same premises. The 2026 judgeship list names the first-instance civil courts 'Senior Civil Judge' / 'Civil Judge' (formerly Senior Assistant Judge / Assistant Judge); some pages still use the old names. Every district has an equivalent court at its district judgeship.

First instance

Artha Rin Adalat (Money Loan Courts), Dhaka

New 8-storey District Judge Court building, Dhaka Judge Court premises, 16 Johnson Road, Sadarghat, Dhaka

Tries suits by banks and financial institutions to recover loans, and execution cases, under the Artha Rin Adalat Ain 2003.

Dhaka has Artha Rin Adalat Nos. 1-7. The official floor plan places Artha Rin Adalat No. 1 on the 5th floor (office on the 6th floor) of the new District Judge Court building; the locations of Nos. 2-7 are not published. Every district has an Artha Rin Adalat (often a Joint District Judge holding additional charge).

Start · outside court

Lender bank (legal department)

Where this happens depends on your district or the office concerned. Ask us for the exact courtroom and address.

Start · outside court

Department of Shipping (DOS)

Motijheel, Dhaka

The maritime administration under the Ministry of Shipping: ship registration and surveys, seafarer certification, marine casualty inquiries and enforcement of merchant and inland shipping laws.

The official website could not be reached when checked, so the street address was not verified. Field offices include the Mercantile Marine Department and the Government Shipping Office in Chattogram, and Registrar and Surveyor of Inland Ships offices in Dhaka, Narayanganj, Khulna, Barishal, Bhairab and Chattogram. Check the current address before visiting.

Indicative timeline

How long each stage takes

These are indicative ranges based on typical Dhaka practice. Adjournments, case backlogs and appeals can stretch them.

Security and default
0.5–2 months
Forum choice and filing
0.25–1 months
Arrest and early sale
1–9 months
Trial and decree
9–36 months
Priority, title and recovery
2–18 months
Dark bar = faster cases · light bar = slower casesFirst-instance journey: 12.75–66 months · Overall: Default notice: about 15-30 days. Filing and arrest: days. Sale pendente lite: about 3-9 months if sought. Contested suit to decree: about 1-4 years. Distribution: months, longer if many claims compete (indicative ranges based on typical Dhaka practice)
Prepare

Documents checklist and key terms

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Registered mortgage
A ship mortgage in the prescribed form recorded in the Register Book at the ship's port of registry; it ranks by recording date.
Register Book
The official record of a ship's ownership and mortgages kept by the Registrar of Ships.
Action in rem
A suit against the ship itself, which allows the court to arrest and sell her.
Judicial sale
A sale ordered by the Admiralty Court and conducted by the Marshal, which passes title free of all claims.
Sale pendente lite
A court-ordered sale of an arrested ship before the suit is decided, to preserve her value.
Priority
The order in which claimants are paid from the sale fund, decided by the Admiralty Court under section 4(7).
Artha Rin Adalat
The special money loan court for recovery suits by banks and financial institutions under the Artha Rin Adalat Ain 2003.
Maritime lien
A privileged claim on the ship, such as crew wages, that can rank ahead of a registered mortgage.
Questions

Ship mortgage enforcement in Bangladesh: common questions

Can a bank sell a mortgaged ship itself?
No. Section 43(2) of the Bangladesh Merchant Shipping Ordinance 1983 says no mortgagee is entitled to sell or dispose of the ship merely by virtue of the mortgage. Even a power of attorney to sell does not change that. The bank must sue in the High Court Division, which can order the ship sold by the Marshal.
Which court handles ship mortgage enforcement in Bangladesh?
The High Court Division sitting as the Admiralty Court. A claim on a ship mortgage or charge is a maritime claim under section 3(2)(c) of the Admiralty Court Act 2000, and section 4(2) allows an action in rem against the ship. The suit is filed at the Supreme Court in Dhaka wherever the ship is lying.
Does the Artha Rin Adalat Ain stop a bank suing in admiralty?
No. The High Court Division held in First Security Islami Bank v M.V. Javed (69 DLR 408), and again in 2026, that section 5 of the Artha Rin Adalat Ain restricts ordinary civil courts, not the Admiralty Court. A bank can choose the admiralty route for the ship and still pursue other remedies against the borrower.
Who is paid before the mortgagee bank?
The Marshal's commission and the costs of arrest and sale come first. Seamen's wages have precedence over all other liens and charges under section 479 of the 1983 Ordinance, followed by the master. Other maritime liens such as salvage and collision damage generally rank ahead too. Among mortgages, the earliest recorded comes first.
Does a foreign or unregistered mortgage count?
Yes. Section 3(5)(c) of the Admiralty Court Act 2000 extends jurisdiction to all mortgages and charges, legal or equitable, including those created under foreign law and whether registered or not. Ranking against other creditors is a separate question, which the court decides under Bangladesh law.
How long does ship mortgage enforcement in Bangladesh take?
Arrest can be obtained within days of filing, and a sale pendente lite can follow within months if the bank presses for it. A contested suit typically takes one to four years to decree, and distribution can take longer where many claims compete. These are indicative ranges based on typical Dhaka practice.
What does the bank pay in court fees?
Section 7 of the Admiralty Court Act 2000 applies the Court Fees Act but caps the fee for admiralty claims at Tk 1,00,000, whatever the loan size. The bigger costs are the Marshal's commission, custody and port charges while the ship is under arrest, and lawyers' fees, most of which reduce the net recovery from the sale.
What if the sale does not cover the loan?
The bank keeps its decree for the balance and can execute it in personam against the borrower's other assets in Bangladesh under Order XXI of the Code. Claims against guarantors who were not parties to the admiralty suit may need separate proceedings, often in the Artha Rin Adalat, so limitation should be checked early.

Law and sources

  1. Bangladesh Merchant Shipping Ordinance 1983 — Laws of Bangladesh (laws.sayed.app mirror)
  2. Admiralty Court Act 2000 (Act 43 of 2000) — Laws of Bangladesh (laws.sayed.app mirror)
  3. Artha Rin Adalat Ain 2003 (Act 8 of 2003) — Laws of Bangladesh (laws.sayed.app mirror)
  4. Constitution of the People's Republic of Bangladesh — Laws of Bangladesh (laws.sayed.app mirror)
  5. High Court Division, Basic Bank Ltd v M.V. Crystal Sapphire, Admiralty Suit No. 29 of 2017 (26 February 2026)
  6. High Court Division, Island Oil Ltd v M.T. Mandala, Admiralty Suit No. 21 of 2023 (27 January 2026)
  7. High Court Division, Md. Yousuf Ali v M.V. Hearty Falcon, Execution Case No. 1 of 2025 (16 March 2025)
  8. High Court Division, Md. Zakir Hossain v M.V. Crystal Gold, Admiralty Suit No. 69 of 2015 (7 July 2026)

This Case Journey is a general guide to procedure in Bangladesh as of October 2026. It is not legal advice. Procedure, fees and time limits change, and every case turns on its own facts. Timelines are indicative. Speak to a lawyer about your own matter.

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