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Banker’s Book Evidence Act & Law Of Limitations

Made By: Drishya Trivedi Arohi Dave

Pooja Waghamare Sayali Chodankar

Sameep Singh Vaibhav Kabra

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Bankers Book of Evidence 1891Contents:-

Introduction

Definition

Example

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Introduction Bankers keep their accounts & its

various details by maintaining various ledgers & journals . When any claim on the bank needs to be established or proved in court these books need to be produced in court.

As it is difficult to do so & to give the account statements & extracts evidentiary value this act was enacted.

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The Bankers’ Books Evidence, 1891.The Bill was passed by the legislature on 1st October 1891.

The object of the bill was to apply to India the provisions of The English Bankers’ Books Evidence Act , 1879, under which copies of entries in bankers’ books are made receivable in evidence under certain conditions.

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SignificanceThe Bankers Book evidence is the

real guidelines for any banking institutions that will get the clear idea about the legal proceedings which relates to banking records. Any discrepancy in the records will amount to violation of the act. In India the Act has a strong impact on the banking institutions and they are bound by the act in production of records in litigation.

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Evolution and ammendments in the Act.

 After the invention of paper and printing the transactions in a financial institution were recorded on papers or books. Gradually book keeping or recording of the transactions were made in bank books like registers, ledgers, account books, cash books etc.

“I want to deposit Rs 10000 in bank”

Madan Lal(Customer)

Banker

“I will help you deposit it in your account”

An Example: On 12-July-2012

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Customer Banker

Cash is given to the bank

Bank acknowledges the successful deposit with a receipt

Banker makes the proper entry in the his books (ledger,cash books, etc)

An Example: On 12-July-2012

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After some time

I had deposited Rs 12000 on 12-July-12, but only Rs 10000 were credited to my account

Let me check in my books and get back to you

Madan Lal Banker

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According to Bank’s Record

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After the verification

“We verified our records and there has been credit of only Rs.10000 ”

Banker

“No that is not possible, I will take this to Court”

Madan Lal

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In the trial of the courtUnder the Banker Book of Evidence Act 1891

If the bank’s book has been a certified copy* thenthe bank would get acquitted in this case.

*certified copy- means when the books of a bank;If maintained in the written form, a copy of any entry in such books together with a certificate written at the foot of such copy mentioning that, It is a true copy of such entry, 

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Terms Under Banker’s Evidence Act‘Legal proceeding’ -any proceeding or inquiry in which evidence is or may be given. -an arbitration

-any investigation or inquiry under the Code of Criminal Procedure, 1973 or under any other law for the time being in force for the collection of evidence, conducted by a police officer or any other person authorized for the purpose by the magistrate or by any law. Such other person to be authorized should not be a magistrate

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Meaning of “Banker’s Books”

“Banker’s book’s” include ledgers daybooks ,cash-books, account-books and all other records used in the ordinary business of a bank.

These records may be kept in written form or in an electronic data retrieval mechanism.

Records are kept On Site & Off site along with a back up or recovery mechanism.

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Meaning of “Banker’s Books”(1-A) "Corporation" means any

body corporate established by any law for the time being in force in India and includes the Reserve Bank of India and any subsidiary banks as defined in the State Bank of India and any subsidiary bank as defined in the State Bank of India (Subsidiary 'Banks) Act, 1959 (38 of 1959;)

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Meaning of “Banker’s Books”(cont)2) "Bank" and "banker" :-(a) Any company or corporation

carrying on the business of banking;

(b) Any partnership or individual to whose books the provisions of the Act shall have been extended as hereinafter provided;

3(c) Any post office savings bank, office savings bank or money order office;

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More Terms

‘Court’-means the person or persons before whom a legal proceeding is held or taken.

‘trial’-means any hearing before the Court at which evidence is taken

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Meaning Of Certified Copy‘Certified copy’-means when the books

of a bank;If maintained in the written form, a copy

of any entry in such books together with a certificate written at the foot of such copy mentioning that,

It is a true copy of such entryThat such entry is contained in one of

the ordinary books of the bankThat such entry was made in the

ordinary course of businessThat such book is still in the custody of

the bank.

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Bank Books In ComputersWhen the books of the bank are

not handwritten and copies are to be taken away, the printout of the copy must be accompanied by the following:

1. a certificate by the principal accountant or the manager to the effect that it is a print out of such an entry or a copy of such printout.

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A certificate by a person in-charge of computer system containing a brief description of the computer system and it’s particulars regarding :

a) the safe guards adopted by the system to ensure that entry of data or any other operation is performed only by authorized personnel.

b) Further safeguards adopted to prevent and detect unauthorized change of data.

c) Safe guards available for retrieval of data due to systemic failure or any other reason.

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d) The manner in which data is transferred from system to removable storage devices like floppies, DVD’s & pen drives.e) The mode of verification in order to to ensure data has been transferred accurately to any removable device. f) The arrangements made for storage & custody of such storage devices.g) The safeguards to prevent & detect tampering with the system, other safeguards to vouch for integrity & accuracy of system.

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Certificate From System In charge

In addition to the above, a further certificate required is from the person in-charge of the computer system to certify that to the best of his knowledge and belief, the computer system is operated properly at any point of time, he was provided with all the relevant data and the printout in question represents correctly and is appropriately derived from the relevant data.

Case Of State Bank Of India V/s Yumnam Gouramani Singh

It states that if entries on the book of accounts is corroborated by Branch Manger & other officials it is sufficient proof of a loan transaction.

No further proof is required by the court of law

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Evidence By Certified Copy

A certified copy of any entry in a banker’s book shall in all legal proceedings be received as prima-facie evidence of the existence of such entry.

It shall be admissible as evidence of all the matters, transactions and accounts therein recorded in every case as the original entry itself.

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Bank Officer’s Attendance can’t be Compelled

In any proceeding where the bank is not a party, no officer shall be compelled to produce any banker’s book contents which can be provided under this Act by production of certified copies.

Similarly no officer of the bank shall be called as witness to prove the matters or the transactions and accounts recorded in the certified copies.

However, the Court may order otherwise for a special cause.

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Court Order Required For Inspection

On application of any party during legal proceeding, the Court may order that,

I. Such a party is at liberty to inspect and take copies of any entry in a banker’s book for any of the purposes of the proceeding.

II. the bank may prepare and produce, within a specified time period, certified copies of all such entries, accompanied by a further certificate.

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Court Order To Produce Books

The order so passed shall be served on the bank at least three clear working days before the same is to be obeyed.

The bank may at any time before the time limited for obedience to any such order either offer to produce their books at the trial or give notice of their intention to show cause against the order.

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Court Order To Produce Books (cont)

If the bank choose to give show cause against the order then the order passed by the Court or Judge can not be enforced without further order.

Awarding Of Costs Incurred as a result of any delay or fault of bank can be granted by the courts presiding over the case.

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LAW OF LIMITATION 1963

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INDEX INTRODUCTION HISTORY OBJECTIVES AND FEATURES PROVISIONS ELEMENTS OF ACT PROCEDURE REQUIREMENTS OF ACT PERIOD OF LIMITATIONS

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INTRODUCTIONLimitations act of 1963 fixes the

limitation period of debts and obligations including bank loans and advances.

If the period for the particular debts or loan expires, one cannot file the suit for its recovery, but the fact of the debt or loan is not denied.

It is said that law of limitation bars the remedy but does not extinguish the right

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DEFINATIONThe “Law of Limitation” prescribes

the time limit for different suits within, which an aggrieved person can approach the court for redress or justice.

If the suit is filed after the exploration of time limit, then it is struck by the law of limitation.

It is a Statutory Law which is founded on the Latin Maxim.

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HISTORY OF LIMITATION ACT1523 AD – James Statute introduced the

Law of Limitation in London.1793 AD – Regulations were passed on now and then for fixing the law.1858 AD – There were two types of Law of Limitations that were followed as shown in the figure

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1956 AD – Various Recommendations were made to introduce the Law.

1960 AD – A bill was passed in Parliament regarding it but it lapsed on account of dissolution of Lok Sabha.

1962 AD – The bill was again introduced in the Parliament.

1964 AD – The Limitation Act, 1963 came into force.

HISTORY OF LIMITATION ACT(CONT.)

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OBJECT OF THE LAW OF LIMITATIONTo make sure that there should be an

end of Litigation.

To provide a statute of Repose, Peace and Justice.

To make sure it is a Sound Policy and it is followed by everyone.

To make sure that the parties do not follow Dilatory Tactics but seek their remedy promptly.

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FEATURES OF LAW OF LIMITATION

Suits, Appeals and Applications made after the limitation period are liable to be dismissed.

Exclusion of Time in Certain Cases like : When court is closed on last day of limitation. Any suit or petition filed for the first time in

court. If the person is a minor or under legal disability.

But if there is no time limit fixed for repayment, no subsequent disability or inability can stop it.

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Provisions Of The ActIn India, the Limitation Act, 1963 is the

legislation that governs the period within which suits are to be filed, with relevant provisions for delay, thereof etc.

The principle that pervades statutes of limitation at common law is that ‘limitation extinguishes the remedy, but not the right' this means that the legal right itself is not defeated, but only the right to claim it in a court of law is extinguished.

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• An exception to this general rule is the law of prescriptive rights, whereby the right itself is destroyed. Section 27 of the limitation Act, 1963 proclaims:

•“Section 27: Extinguishment of Right to Property at the determination of the period hereby limited to any person for instituting a suit for possession of any property, his right to such property shall be extinguished.”

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Elements Of Act

One must note that the law of adverse possession is no longer what it used to be, a tool of a powerful squatter buttressed by the lack of awareness on part of the true owner and an ancient law.

Today, the law of adverse possession is viewed with great circumspection by the judiciary, and this is a trend that commenced abroad.

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•The Act created exceptions to the normal statute of limitations in addition to the previous ones of fraud and mistake.

•It introduced an exception if for example; the permission of the court had been gained to bring a case or the "material facts" of the case included "facts of a decisive character" which the claimant was not aware of until after the expiry of the statute of limitations.

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Procedure of Limitation Act

The Limitation Act, 1963, prescribed limitation with a view to see that a litigant does not drag on the litigation. Section 5 gives an opportunity to a litigant to file applications beyond the prescribed period of limitation provided; he is able to establish that he was prevented by sufficient cause from approaching the Court within the said period. Even though explanation for day- to-day delay is not being insisted by the Courts, the litigant has to nevertheless furnish the satisfactory explanation for filing the application beyond the prescribed period of limitation.

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Effect of Acknowledgment in Writing An Acknowledgment letter is the one which is been written by the party before the limitation period ends, from where the period of limitation is been renewed further.

For e.g. : A loan taken on 1st January 2004, becomes time barred on 1st January 2007. However if the debtor, executes an Acknowledgement Letter before the Limitation period say 24th November 2006, the period of limitation will be further renewed up to 24th November 2009. But if the Acknowledgment is made after the period then there is no chance of extending the limitation period.

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Effect of payment on account of Debt Instead payment is been done before the limitation period is expired, the period of limitation is been renewed, but should be acknowledged in Hand written or signature of that particular party

For e.g. : In the Illustration given in the previous slide, instead of acknowledgment, part of the payment is made on 24th December 2006 , still the limitation will be extended upto 24th December 2009. However the payment must be acknowledged in hand written or signature of that person.

REQUIREMENTS FOR LAW OF LIMITATIONSEVERY AGREEMENT/PROMISE IS

SUBJECT TO LAW OF LIMITATION-BEYOND THAT IT IS TIME-BARRED

IN BANK THE ACT HAS RELEVANCE TO VARIOUS TRANSACTIONS.

IN CASE OF BILLS OF EXCHANGE OR PROMISSORY NOTE WHICH ARE PAYABLE AT SIGHT-IT IS 3 YEARS FROM THE DATE OF PRESENTATION.

IN CASE OF BILLS/PROMISSORY NOTE PAYABLE ON A FIXED DATE IT IS 3 YEARS FROM THE DUE DATE.

LOANS PAYABLE IN INSTALMENTS – 3 YEARS FROM THE DATE ON WHICH RELATIVE INSTALMENT FALLS DUE.

MONEY REPAYABLE BY A MORTGAGOR ON DEMAND-12 YEARS FROM THE DATE OF MORTGAGE.

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PERIOD OF LIMITATIONS

PART I - Suits Relating to Accounts

SL.NO.

DESCRIPTION OF SUIT PERIOD OF LIMITATION

TIME FROM WHICH PEROID BEGINS TO RUN

1. For the balance due on a mutual, open and current account where there have been reciprocal demands between the parties.

3 years The close of the year in which the last item admitted or proved is entered in the account; such year to be computed as in the account.

2. Against a factor for an account 3years When the account is during the continuance of the agency, demanded and refused or, where no such demand is made, when the agency terminates.

3. By a principal against his agent for movable property received by the latter and not accounted for.

3 years When the account is during the continuance of the agency, demanded and refused or, where no such demand is made, when the agency terminates.

4. Other suits by principals against agents for

3 years When the neglect or misconduct becomes known to the plaintiff.

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PERIOD OF LIMITATIONS

PART II - Suits Relating to Contracts

SL.NO.

DESCRIPTION OF SUIT PERIOD OF LIMITATION

TIME FROM WHICH PEROID BEGINS TO RUN

1. For a seaman's wages 3 years The end of the voyage during which the wages are earned.

2. For wages in the case of any other person.

3years When the wages accrue due.

3. For the price of food or drink sold by the keeper of a hotel, tavern or lodging house.

3 years When the food or drink is delivered.

4. For the price of lodging. 3 years When the price becomes payable.

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PART III - Suits relating to Immovable Property

Sr. no.

Description of Suit

Time Period Time from which Period begins to Run

1. To enforce payment of money secured by a mortgage or otherwise charged upon immovable property.

Twelve years When the money sued for becomes due.

2. By a mortgage    

 (a) for foreclosure; Thirty years When the money secured

by the mortgage becomes due.

 

(b) for possession of immovable property mortgaged.

Twelve years When the mortgagee becomes entitled to possession.

3. For possession of immovable property based on previous possession and not on title, when the plaintiff while in possession of the property has been dispossessed.

Twelve years The date of dispossession.

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PART VIII - Suits relating to trust and trust property

Sr. No.

Description of Suit Time Period

Time from which Period begins to Run

1. To recover possession of immovable property conveyed or bequeathed in trust and afterwards transferred by the trustee for a valuable consideration.

Twelve years When the transfer becomes known to the plaintiff.

2. To recover possession of movable property conveyed or bequeathed in trust and afterwards transferred by the trustee for a valuable consideration.

Three years When the transfer becomes known to the plaintiff.

3. To set aside a transfer to immovable property comprised in a Hindu, Muslim or Buddhist religious or charitable endowment, made by a manager thereof for a valuable consideration.

Twelve years When the transfer becomes known to the plaintiff.

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ConclusionLimitation and compensation of Delay are

two effective implementations in the quick disposal of cases and effective litigation.

The law on limitation keeps a check on pulling of cases and prescribes time period  within which the suit can be filled and the time available within which the person can get the remedy conveniently.

The law of compensation of delay keeps a check on the pulling of cases and prescribes a time period within which the suit can be filed and the time available within which the person can get the remedy conveniently.

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Bibliography

www.indiankanoon.orgPkkulkarni.nic.inWikepedia.comFindlaw.com

Thank You

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