Banking Matter

Querist : Anonymous (Querist) 31 July 2011 This query is : Resolved
Dear Sir,

Our society at mumbai is having bank account with one nationalised bank in our locality. The account has been managed by three committee member and mode of operation is 'any two of three'. Till now, two person were signing all the cheques. But from 01/04/2011, two of three has resigned from the committee and stoped signing any cheques. No intimation has been given to the bank by the third committee member and no required changes has been made in bank record. Howevevr, bank manager has been clearing all the cheques on the basis of one signature only. Is it right? If not, what action can we take against the bank. Can we ask for reimbursement?

Please advise.

Thanks.

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ajay sethi (Expert) 31 July 2011
!)for operation of bank account a resolution must be passed by the managing committee specifiying the names of persons who are authorised to operate the bank account .
2) i presume your society has furnished a copy of the resolution passed in managing committee meeting and duly intimated to bank that mode of opeartion of bank account is when any 2 authorised signatories sign the cheque
3)when 2 of 3 authorised signatories have resigned an intimation is required to be sent to the bank by the society .
4)in your case it appears that only one authorised signatory has been signing the cheque and bank in contavention of written intimation forwarded to it has been clearing the cheque
5) please immediatedly address a letter to bank informing them about the developments . forward a copy of the said letter to Registrar of cooperative societies .
6) iam sure that when bank receives a letter from the society it will immeidateldy stop honouring the cheques signed by only one member

Chanchal Nag Chowdhury (Expert) 31 July 2011
The bank has failed to adhere to instructions. U can take action against the bank but will also have to rope the lone signatory in.

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