2008 (11) TMI 734 - HC - Indian Laws

Summary

Issues Involved:
1. Validity of the statement of account (Ex.P-13) certified under the Bankers' Book Evidence Act.
2. Justification of specific debit entries in the statement of account.
3. The appellant's right to challenge the plaintiff's case despite not filing a written statement.

Summary:

Validity of the Statement of Account (Ex.P-13):
The appellant, a guarantor for a loan, challenged the decree based on Ex.P-13, a statement of account certified under the Bankers' Book Evidence Act. The court noted that such certification raises a presumption of correctness but is not conclusive proof. The Supreme Court in Chandradhar Goswami & Ors. vs. Gauhati Bank Ltd. held that entries in bank books require further evidence to charge liability.

Justification of Specific Debit Entries:
The appellant contested two debit entries: Rs. 42,480/- and Rs. 7,84,415/-. The bank's witness (PW-1) could not provide adequate justification for these entries. The court found that the bank failed to produce supporting documents for the Rs. 42,480/- entry and could not substantiate the Rs. 7,84,415/- entry, which was recorded after the account was closed with a credit balance of Rs. 1,114/-. The court observed inconsistencies in the periodicity and amounts of interest debited, casting doubt on their correctness.

Appellant's Right to Challenge:
Despite not filing a written statement, the appellant cross-examined the bank's witness, challenging the credibility of the entries in Ex.P-13. The court acknowledged that a defendant without a written statement could still succeed by undermining the plaintiff's evidence.

Conclusion:
The court concluded that the bank failed to prove the disputed debit entries, particularly the Rs. 7,84,415/- entry, which was crucial to the suit. The appeal was allowed, and the impugned judgment and decree dated 23.8.2007 were set aside, dismissing the suit filed by the respondent against the appellant.