Liability of an ex-employee of a co-operative bank.
kishorchandra p mehta
(Querist) 11 September 2018
This query is : Resolved
Sir,
One of my friend was an employee of a Bank who resigned from the Bank in the
year 2006.
Thereafter, in the year of 2007 an audit by a chartered accountant was entrusted to
carryout an audit for the year 2006-07( 1.4.06 to 31.3.07) by District Registrar of
Co-operative Banks, and accordingly the auditor submitted his report on
30.7.07, wherein he questioned about some outstanding re-conciliation entries which were outstanding & that amount was to be recovered from another co-operative bank,as per their established procedure But since the amount was not forthcoming from another co-operative bank and the said bank even did not say that it was not their liability, eventhen, it was interpreted by auditor and Registrar that it is a loss to this bank for which the employees concerned are liable personally for the outstanding entries. (The employees had discharged their duties as per laid down procedure).
Thereafter Member of Board of Nominees, passed an order on 29.8.2017 asking the bank (whose audit was carried out ) to recover the amount from liable persons and accordingly Bank wrote to employees concerned on 18.5.18 about the above order to pay the amount jointly.
Under the circumstances can the LIMITATION clause ( Sec.97 ( 1-(B) ) can give protection employees or the Board of Nominees can take advantage of
Sec,97(2-(3)).
Kindly guide me in the matter.
Thanks.
K.P.Mehta.
Guest
(Expert) 11 September 2018
Being CEO of some company, as your profile suggests, what concern exactly you have with the problem of an ex employee of the cooperative bank?
Dr J C Vashista
(Expert) 12 September 2018
1. It is barred by limitation, in terms of statement made by you.
2. Which state and statute is referred in the query?
3. What is your locus standie?
4. The Bank has its own team of lawyers what is their opinion/advise?
5. Obligation of experts FREE OF COST on this platform shall be improper and inadequate qua advise. Therefore, you have no alternative but to seek professional services of a prudent lawyer for better appreciation of facts, analyse with documents/records, guide and proceed.
Isaac Gabriel
(Expert) 12 September 2018
The society is at liberty to file an arbitration with the Deputy Registrar since the dispute touches two cooperative societies. Further, the limitation for recovery from you had lapsed.
Sudhir Kumar, Advocate
(Expert) 11 October 2018
AGreed with experts above.
I however feel taht the givne facts indicate that the Management has accepted that some employee of the bank has shown "no dues" whereas dues were there.
Thereby there was no action for recovery of the dues and dues were shown as nil.
In this case the civil suit may be time barred but criminal action against your friend may not be time barred.
