The genesis of the entire situation is as follows:
Firstly: When a Joint Account was opened with a bank i.e A B C with anyone or survivor clause/mandate in the year 2005. The sole/ joint account holder (A) left for Uk and never returned to India. The operations of the said accounts were continued to be operated by (B) and the official of the bank.
Secondly: In the year 2007, the sole joint account holder expired in Uk and the rest of the account holders did not informed the banker of his demise and continued to operate the account same as ABC.
Thirdly: There were some investments made in the name of A in other banks (the deceased account holder) thereafter B and C closed the said investments in the year 2010 and received the amounts through crossed named cheques made in the favour of A. And subsequently depositing the said cheques in the Joint Account still ruining in the name of ABC and latter swindled away the amounts, so received.
My question is :-
Once the Sole/Joint Account holder has already expired in the year 2007, can the operation of the said Joint account continued by the other account holders in a case of anyone or survivor mandate?
As they kept the banker in shadow regarding the death of the sole account holder, does the other account holders attract any any penal charges and depositing cheques from other financial institutions that were made in the favour of A after his death?
24 June 2015
In this transaction, the banker cannot be made liable. He acted according to the instructions of the account holders.
However, as per KYC norms periodical updation is required depending on the risk perception of the bank. KYC is required to be done at least every two years for high risk customers, at least every eight years for medium risk customers and ten years for low risk customers. This exercise would involve all formalities normally taken at the time of opening the account. If the banker, fails to comply the same, it can be questioned.
Moreover, no one can be unjustly enriched at the expense of the other. If done so is required to make restitution to the other.
Misappropriation committed by B to be restituted to the legal heirs of A. Moreover, B under an obligation to repay the same to the legal heirs of A under quasi contract.
A's legal heirs has several remedies under IPC / law of torts etc. That means choice of filing criminal as well as civil cases are available.
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