Bank not honoring payment despite sufficient balance.

Frank (Querist) 30 May 2018 This query is : Resolved
Sir/s,
Authorised Officer (AO) appointed to handle day-to-day affairs and to arrange for election of a cooperative premises society. Socy has two independent saving bank accounts. AO thus appointed submitted his KYC to 1st bank (only) for account operation.
Thereafter a status-quo was obtained against the appointment of AO. The AO has not submitted his KYC and therefore is not on the records of 2nd bank as a signatory to operate the 2nd account. Existing signatories of the socy issued cheque from 2nd bank account but the bank refused to clear the payment saying since there is a dispute they will not pass the cheques.
[1]. IS THE STAND TAKEN BY THE 2ND BANK CORRECT?
[2]. IF NO, WHAT OPTIONS AND REMEDY LIE BEFORE THE EXISTING SIGNATORIES AGAINST THE 2ND BANK?

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Kishor Mehta (Expert) 31 May 2018
It depends on what legal instructions and/or orders are forwarded to the other Banker by the authorities.

Guest (Expert) 01 June 2018
Better get the existing dispute settled, instead of seeking and working on theoretical advice on presumption basis. If the problem is serious one, take the help of local lawyer by getting the case related documents examined by him in detail.

Ms.Usha Kapoor (Expert) 07 July 2018
ii AGRE WITH dHINGRA ji

Ms.Usha Kapoor (Expert) 12 July 2018
I agree with Dhingra Ji.

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