Legal Question in Banking Law in India

I work as a manager in a bank,we have an account of an association and as per bye laws every two years the committee members are to be elected,it has come to our notice since present commitee members had not conducted elections,members of the association have formed a ad hoc committee and also they have approached court and court has directed the old committee noT To interfere in the functioning of day to day affairs of new elected committer till 24/02/2016,we have received new committee representation on 11/02/2016 but in the meanwhile cheque has been presented by old committee for payment and we have done payment as the signatories in the bank are still old committee members, the new committee members are threatening us that they will file section 420 as they think we have colluded with old signatories,my question is can anyone without any relationshIp with us can file section 420 for honouring the cheque


Asked on 2/11/16, 6:53 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

12.02.2016

Dear Sir / Madam,

The Bank is in no way concerned with the affairs of the Society. The Bank will continue to honour cheques signed by the authorized signatories on the Bank's record till such time the Bank receives intimation and all the formalities required in the process of change in signatories is authorized and completed on the Bank's record. The case if any filed by the Society being baseless, will not stand in the Court of law.

Regards,

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Answered on 2/11/16, 10:19 pm


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