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HC stays Accord decision to cut business with 4 RMG units

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The High Court has stayed the decision of European buyers group Accord on Fire and Building Safety in Bangladesh for terminating business relations with four readymade garment factories in Bangladesh. The separate benches of High Court division of the Supreme Court have issued the orders in February and March after hearing separate writ petitions filed by the factory owners. The High Court Benches also issued Rule Nisi calling upon the Accord to show cause as to why decision of termination of the businesses would not be declared as illegal. Bangladesh’s readymade garment factory owners started seeking legal protection since last year terming some of the Accord’s initiatives illegal.  A High Court Division bench comprising Justice Syed Muhammad Dastagir Husain and Justice Md Ataur Rahman Khan on March 28 stayed Accord’s decision of terminating business relations with Civic Apparels Ltd. The Accord had issued business termination letter to the factory on March 19 this year. The Civic Apparels Ltd and Tivoli Apparels Ltd filed a writ petition against the Accord decision. After hearing, the High Court stayed the Accord’s termination for three months and issued rule as to why the notification of Accord directing two of its signatory companies to terminate their business with the factory shall not be declared to have been issued without any lawful authority. The higher court also issued rule calling upon the Accord to show cause why the provision of terminating all Accord covered factories owned by the same supplier in case of remediation of any of the factories under the same supplier group as contained in the Operation Procedure Implementing Article 21 Escalation Protocol shall not be declared to be illegal. The High Court Division bench on March 29 stayed Accord’s decision of terminating business relations with Knit and Knitwear Ltd.  The High Court bench issued rule calling upon to show cause as to why its SOP for implementation of escalation stages under Article 21 shall not be declared illegal. Another High Court bench of Justice Syed Refaat Ahmed and Justice Md Salim on March 7 issued a stay order on termination of business relations by the Accord with Interloop BD Ltd for 8 weeks. The higher court also asked factory authorities (petitioner) to conduct soil test by Bangladesh University of Engineering and Technology within the time. A High Court Bench of Justice Tariq ul Hakim and Justice Md Faruque on February 28 issued a stay order on reactivation of termination of business relations by the Accord with Heasong Knitwears Limited. The higher court ordered to receive and review the detailed engendering assessment and retrofitting design developed under the Accord’s building standard. After the Rana Plaza building collapse, which killed more than 1,100 people, mostly garment workers, in April 2013, the EU retailers formed the Accord undertaking a five-year plan which set timelines and accountability for inspections and training and workers’ empowerment programme.