Parttnership Bank Account Freezed by Bank on request of one partner .

subodh (Querist) 11 July 2008 This query is : Resolved
Parntership Firm is having three partners. The bank accounts are to be operated by the signature of any two partners jointly as per partnership deed clause. One partner writes to banks mentioning that their is some misunderstanding and requests to stop account operations. The banks immediately freezes the accounts, accepts the deposits of cheques but dishonors the issued cheques with the signature of two partners. The bank intimates the other two partners after lapse of 3, 4, days period. The partner who writes to bank do not intimate the other partners.

Under the circumstances whether bank has acted correctly?

Will the firm be liable for 138 acion?

What is the legal remedy?

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anantha krishna n.v. Advocate (Expert) 11 July 2008
You may not find fault for freezing,but certainly YES for the delayed intimation.
You wont get attracted by 138 action because you are entitled for a notice with 15 days period pay the same. Only when you fail to pay on demand 138 NI Act attracts.

If the notice of the partner is not a reasonable one, issue him a notice for his actions, including claim of damages if you so choose.

anantha krishna n.v. (Advocate AP High Court, Hyderabad, 9246531895)

Guest (Expert) 12 July 2008
Civil litigation may be started.

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