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Issues Involved:
1. Suit barred by limitation. 2. Validity of confirmation of balance documents. 3. Evidence based on certified copies of bank statements. 4. Grant of subsidy and its impact on loan repayment liability. Issue 1: Suit barred by limitation The appellant, a nationalized bank, filed a suit for loan recovery against the respondents. The trial court dismissed the suit, holding it barred by limitation. The appellant argued that the suit was not time-barred as per Sections 18 and 19 of the Limitation Act, 1963. The court noted that the loan amount for construction and other purposes was repayable within 5 years, and partial payments were made within the limitation period. The court referred to legal precedents emphasizing that acknowledgment of liability extends the limitation period. Ultimately, the court held that the suit was not time-barred, allowing the appeal and directing the respondents to pay the outstanding amount with interest. Issue 2: Validity of confirmation of balance documents The trial court raised concerns about the confirmation of balance documents covering multiple accounts and discrepancies in disbursed amounts. The appellant argued that the confirmation of balance documents, although combined for different accounts, met the legal requirements. The court agreed, stating that procedural irregularities did not affect the extension of the limitation period. The court emphasized that the focus should be on whether the balance confirmation was executed, not on the number of documents. The court found the confirmation documents legally sufficient, supporting the appellant's case. Issue 3: Evidence based on certified copies of bank statements The appellant presented certified copies of bank statements as evidence, relying on the Banker's Books Evidence Act, 1891. The court examined the legal provisions regarding certified copies and their admissibility as prima facie evidence. The court accepted the certified bank statements as valid evidence, noting the absence of any reason to doubt their accuracy. The court emphasized that the entries in the certified statements were legally admissible and considered them as reliable proof of the transactions. This evidence played a crucial role in establishing the appellant's case. Issue 4: Grant of subsidy and loan repayment liability The respondents raised concerns about the non-receipt of a government subsidy affecting the loan repayment. The court clarified that the grant of subsidy was not the bank's responsibility, and the absence of subsidy did not absolve the borrower from repaying the loan. The court emphasized that the borrower remained liable for the loan amount regardless of external factors like subsidy availability. This clarification reinforced the appellant's position regarding the loan repayment obligation. In conclusion, the High Court of Madhya Pradesh, in the judgment delivered by N.K. Mody, J., addressed various issues related to the suit filed by a nationalized bank for loan recovery. The court ruled in favor of the appellant, setting aside the trial court's decision, and directed the respondents to repay the outstanding amount with interest. The judgment highlighted legal principles regarding limitation, validity of documents, evidentiary value of certified bank statements, and borrower's repayment liability irrespective of subsidy availability.
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