Disallowance under section 40a(3)

Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction. 

I have a dout, when a company transfer some amount to employees imprest A/c and employees makes the payment in cash for expenses of the co. in excess of Rs. 20,000/. 

Will it be allowed or disallowed??