Legal Question in Banking Law in India

Question relates to operation of a society bank account � bye laws states joint operation �management committee resolution states singly operation by treasurer or president.

We are a society registered under society act 1960 and have a saving bank account in a bank. At the time opining of bank account the bye laws/ rules were submitted to the bank which speaks �Treasurer is empowered to operate the bank account jointly with the president or secretary.� Whereas management committee submitted the resolutions to the bank contrary to the bye laws from time to time. The resolution submitted by the president/ treasurer bye passing the secretary speaks �the account will be singly operated by the treasurer/ president.� Even the resolution are not attested/ signed by the secretary.

This way the bank debited a huge amount to the customer�s account by way of cheques/instructions.

Now the questions are:-

1. The bye laws/ rules submitted to the bank at the time of opening the bank account is ignored by the bank and operation in the account is allowed as per resolution-If the debit made in the account will be termed as unauthorized and customer (new committee) can ask the bank/ ombudsman to made good the amount debited to the account contrary and in contradiction of the bye laws.

2. I think the bye laws/ rules can be amended only in general body meeting and not in management committee meeting. Can the management committee resolution supersede the bye laws/ rules without amendment in the bye laws/ rules?

3. If it makes any change in your advice as we never submitted list of new committee members to the registrar of society.


Asked on 6/05/15, 2:54 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

05.06.2015

Dear Sir / Madam,

The Bank A/c of a Co-operative Society has to be compulsorily operated by minimum two Office bearers comprising of the Treasurer (compulsory) with either the Secretary or in his / her absence the Chairman. The Society cannot pass a resolution authorizing single operation of the Bank A/c and it will be deemed null and void, More than the Bank, the Office bearers who have submitted the false resolution to the Bank, should be taken to task and asked to make good the loss, if any, incurred by the Society.

Regards,

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Answered on 6/05/15, 3:12 am


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