Co-operative act
subhomoy chakraborty
(Querist) 18 June 2012
This query is : Open
As per section 59 of West Bengal Co-Operative Societies Act,2006, the co-operative bank is entitled to deduct the defaulting amount/debt/other demand of the borrower from the salary, wages or gratuity payment by the employer and in this respect an undertaking agreement generally is entered between the borrower and the bank in order to secure such demand. In addition, the employer is legally liable as a Deemed surety to pay the debt as demanded by the bank, failing which necessary interest may be imposed by the bank to such employer.
1) Whether the employer statutorily will be binding for such payment/demand as made by the bank as the concerned employer is not a party to the undertaking agreement ?
2) Whether the bank can touch the gratuity payment of the borrower in case recovery of loan amount?
3) Whether SARFASI Act will be applicable for co-operative bank ?
4) Your views.
