Signatories to a Public Trust Bank Account

Querist : Anonymous (Querist) 21 November 2010 This query is : Resolved
A Public Trust approved Rule states that the signature of the Hon Treasurer is compulsory and that of the Hon Secretary is the scond signatory to all Trust cheques.
But the President got himself and one more Trustee as alternative signatories.
We are told that bypassing both the Treasurer & the Seceatary the President and the other Trustee have been issuing cheques, enashing cheques in bearer form
(cash across the counter).
We spoke to a bank official who has said that the bank is only concerned with the operating mandate filed and not the Trust rules.

What do the members do when they know (but cannot get proof) of this siphoning out of funds.
Trust banks with a co-operative bank and they say they not covered by the RTI Act in Maharashtra.

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Devajyoti Barman (Expert) 21 November 2010
I think Bank is not doing the legal things as it should also follow the mandates of the Trust Rules. Anyway if the bank continues to do so then any member of the Trust or the public can go to the Princpal court of Civil jursdiction of that area for injunction so that no more public fund be siphoned off.

Advocate. Arunagiri (Expert) 21 November 2010
The bank is bound by the rules of the trust. Operating mandate is based on the rules of the trust only.

Querist : Anonymous (Querist) 21 November 2010
Bank was told that the Trust Rules are paramount but they say that they only go by Resolutions given to them and if the Resolution is faulty or illegal then they are not responsible- this from bank Legal manager.
Bank also added that they cannot show the Resolution passed or even given to them by the Trust as confidential.
Since CoOp Bank they refuse to even reply to RTI Act applications

s.subramanian (Expert) 22 November 2010
The bank is wrong. The first important thing is that the Trust has no legal entity of its own. All the trustees are presumed in law to represent the trust. For the sake of convenient working only such postsa or offices are created in a trust. They do not have any legal sanction excepting practical convenience. You are,as a trustee,legally entitled to claim and get the information from the bank. If the same is not furnished,approach the consumer court for deficiency in service.

Querist : Anonymous (Querist) 22 November 2010
Shri S Subramanian Sir
Thanks for your input but the problem is that I am not a Trustee but a life member of the Trust.
We had elected 4 Trustees but 3 of them have already resigned.
The one remaining Trustee together with those who he has illegally co-opted to fill the places of the resigned Trustees are merrily siphoning out funds of the Trust.
This is criminal but we cannot get access to documentary proof till we have access to the accounts.
Nothing happens in the office of the Charity Commissioner as they only deal with the big fish cases promptly; rest are just kept pending for years.

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