Issuance of cheque signed by expired person

Pramod Ramatmajan (Querist) 21 September 2012 This query is : Resolved
A company's staff union's account is mandated to be operated by General Secretary and Treasurer jointly.

The Treasurer expires, post which the Secretary uses blank cheque leaves already signed by the treasurer prior to his death and issues them for some payments.

These cheques are dated after the date of death of the treasurer.

Can a criminal case be made out against the Secretary ?

Also is the bank culpable because it has honoured the cheque ?

Kindly advise

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ajay sethi (Expert) 21 September 2012
how would the bank know that treasurer has expired unless written intimation is given by company? the treasuere was negligent in signing blank cheques and leaving it with the secretary .

the secretary ought not to have presented these cheques when he was aware that treasueer is already died

V R SHROFF (Expert) 21 September 2012
Inform bank the fact of death .

ratify the mistake. Let co-opted treasurer sign the earlier check issued by mistake.

There is no cheating, unless fund syphoned illegally to one's personal benefit, at the cost of staff union.

It must be bona fide/ genuine mistake.

malipeddi jaggarao (Expert) 22 September 2012
Any mandate given by a dead person before his death is invalid (post dated mandates of dead person). Bank should not accept such cheques . However, unless it is informed to the Bank, or Bank comes to know the fact, you can not hold the bank responsible for payment of such cheques. The Secretary committed a mistake. Treasurer is to be elected/nominated and a resolution signed by the secretary intimating the death of the treasurer to be sent the bank requesting the bank to accept the new treasurer's signature in lieu of the earlier one. If you feel that some embuzzlement is committed by secretary, it has to be taken at proper forum depending upon the seriousness.

Guest (Expert) 22 September 2012
Bank is not liable on any count till the death of any operator of the account is formally notified to bank.

The secretary, if uses the cheque with the signature of treasurer and dates of issue put after the date of death of the treasurer, is definitely accountable for the offence.

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