Society not accepting cheque,
Querist :
Anonymous
(Querist) 22 August 2023
This query is : Resolved
Hello Experts,
Need help to understand. Ours is a newly formed society. The new members insists payment only through a specific app(no broker). Which some residents are not comfortable. When they present them with a cheque. It was told to directly deposit then in the co-op bank account of the society.
Is this legal. Shouldn't society have multiple channels to ensure the payments are made. This when we do have a society manager hired to look after the daily affairs.
kavksatyanarayana
(Expert) 22 August 2023
You can pay your payments in society's bank account if it is mentioned in the bylaws. The society Manager may be appointed by the Executive Body for daily affairs.
Sudhir Kumar, Advocate
(Expert) 22 August 2023
Actually Britisher were not able to easily gain sovereignty in India. At one point of time they acquired Diwani rights of Bengal and Bihar. Thereby they became revenue collectors of the kind Sirajuddaula and were thereafter able to penetrate fangs deeply.
Involvement of such apps gives an opportunity to have access to account Nos of all the members, the details of their visitors and suppliers, frequency of order of food outside, frequency of visit of plumber/ electricity etc. Such information people generally do not share.
Please see what is the provision of the constitution of the society. I believe that executive is not authorized to compel the members for be tech savvy and also to trust the outisde agency.
Further also see what the society constitution says about bank account. Keeping society money in Cooperative bank (with no RBI guarantee) is otherwise risky.
T. Kalaiselvan, Advocate
(Expert) 24 August 2023
The society has already provided alternative mode of payment instructing you to pay to the bank account of the society directly, if you want to avoid making payments through the digital mode, you can very well pay it to the bank account directly, do you have any problem for that?
Querist :
Anonymous
(Querist) 24 August 2023
Thankyou all for the advice and feedback. Yes, some of the people find it inconvenient to go to the bank and have asked the committee to accept the cheque at the society office. And have the society manager deposit it on given date. Are the residents justified in asking this.
P. Venu
(Expert) 30 August 2023
Paying online or depositing in the Bank are as efficacious as payment by cheque. However, you could take up the issue legally, if so inclined. However, it is not an issue worth fighting over. Even if you succeed, success would turn out to be too trivial.
