1) bank would honour resolution passed by AGM
2) in case of dispute open a freesh bank account . resolution cna be passed in managing committee for opening bank account and name of the sigantories
Association bank account
Good Evening, I live in Pune and member of an apartment association registered under "The Maharashtra apartment ownership act, 1970". Our association has a bank account in which builder is a signatory as well. We have recently passed a resolution through majority of quorum present to remove him as signatory. My question is 2 fold 1) Can builder or bank refuse to hounour the resolution passed through AGM? 2) In case of dispute, Can the new BOM open a new bank account through a board resolution or it would need an Special general meeting to be conducted? Warm Regards, Ajay S
Asked 8 years ago in Property Law
Religion: Hindu
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6 Answers
1. What does the bye laws say with regard to the removal of the builder as a signatory in the bank account? A special resolution should be passed to remove him and then given to the bank. Most likely the bank will refuse to accept the resolution, in which a suit for mandatory injunction will have to be filed against it.
2. The new bank account can be opened through a SGM alone.
Bye law is silent on the matter. However Deed of declaration does mention that granter 2 (Builder) in capacity of holder of flats (unsold) is bound by provisions of the deed, byelaws etc. It again further explicitly mentions in deed of declaration that all owners are bound by provisions of deed, bye laws, resolutions etc. Also, By virtue of the procedure laid out with respect to the method of resolution, undivided share voting through ballot on resolution by the quorum, 1) shouldn't he be bound to hounour the same along with bank? 2) what set of documents must be submitted to bank in order for it to be eligible for it to escalated to ombudsperson in case of refusal by bank. Warm Regards, Ajay
Asked 8 years ago
1) builder is bound by resolution passed in AGM
2) if bank refuses to honour resolution you have to move court for necessary reliefs
1. The association should pass a special resolution in this regard and give a copy of it to the bank with an application. If the bank refuses to concede to the demand of the association the only remedy will be to file a suit for mandatory injunction against it in the civil court.
2. Going to ombudsman will be an exercise in futility.
1) Can builder or bank refuse to hounour the resolution passed through AGM?
The builder or the bank is bound by the resolution properly passed in the general body meeting and it conforms to the bye laws in this regard and also to the rules or law in vogue.
2) In case of dispute, Can the new BOM open a new bank account through a board resolution or it would need an Special general meeting to be conducted?
The bankers do not have a reason to refuse to accept the decision of the GB and if they insist on the basis of any external pressure, then the GB can decide about cancelling the bank account and open a fresh account with some other banker.
1) shouldn't he be bound to hounour the same along with bank?
2) what set of documents must be submitted to bank in order for it to be eligible for it to escalated to ombudsperson in case of refusal by bank.
If the bye law is silent about this then you should follow the general rule or law meant for this purpose.
The general law is that any decision taken in the general body meeting by passing proper resolutions, and if it is within law then it is valid and binding all involved.
The solution before you for this is that the bank account with this bank may be cancelled by a resolution passed in a special meeting and new account may be opened in another bank with the copy of the resolution and all other requisite documents.
Any action taken against bank may not yield desired result hence it would be a waste exercise and time consuming.