This is Mr.Rajurkar from Thane, Maharashtra.
Question :
A Registered. Credit Co op society has failed to honour the FD of the depositors on Maturity.
Can a direct police case be filed against the Managing Committee at the Police Station ?
Dose the complainant need a sanction from the DDR ?
There is no negative report of the Auditor in the yearly Balance Sheet
Can the police entertain a criminal case on failure of honouring
the FD’s ?
If there is no direct failure of the Managing Committee to recover the outstanding loans, does it attract a criminal case ?
Sir, please be kind enough to reply to my queries and if possible please provide us with the Sections and provisions and if possible any case law.
I C Naik
Failure to pay funds on maturity of a fixed deposit is a breach of contract by the Credit Society. Breach of contract is a civil wrong. Affected party can approach Civil Court for specific performance of the Contract. Credit Society will have to prove its inability to pay up in which event Society will have to go under liquidation.