S K GOWRIKUTTY AMMA Vs. DHANALAKSHMI BANK LTD

JUDGEMENT

(1.) THE appeal is directed as against the final Order passed by the DRT, Ernakulam, allowing the claim of the Bank. THE appellants challenge the Order passed by the Tribunal on the grounds that no documents were placed before the Tribunal in connection with the Statement of Account for the period prior to 6.8.1980 from 1973 and the Tribunal also did not ascertain the interest applicable as per the guidelines of the Reserve Bank of India and the appellant had made one-time payment of Rs. 9 lakhs which was accepted by the Bank in full settlement of the liability. With regard to the case of the appellant that no documents were placed before the Tribunal in connection with the Statement of Account for the period prior to 6.8.1980 from 1973, the Bank has filed only the Statement of Account for the period from 6.8.1980. THE defendant availed OD facility from the year 1973 and then the OD facility was enhanced to Rs. 9 lakhs on 30.10.1980. THE Statement of Account reveals that it is a running OD A/c and the defendant was availing the OD A/c prior to 30.10.1980 and the OD limit was enhanced to Rs. 9 lakhs on 30.10.1980 and he has executed the relevant document to that effect.

(2.) Counsel for the appellant submits that only for Rs. 9 lakh OD A/c the defendants are liable and for the previous balance as on 30.10.1980 where a sum of Rs. 3,49,764.24 p is shown to be outstanding, the defendants are not liable as there are no documents to prove that. The Bank has filed its Statement of Account with regard to the availing of the OD facility showing the debit balance credit and the balance amount and it is a running account and since it is a OD A/c the Rs. 9 lakh OD limit sanctioned on 30.10.1980 would not have been given on the same day and the appellant was availing the OD facility and drawing the A/c as per the Statement filed by the Bank. The Statement of Account filed by the Bank reveals that it is a running account and the enhancing of the OD limit to Rs. 9 lakhs is only a running account and the appellant has been availing the OD facility as per the Statement of Account filed by the Bank. The Statement of Account filed clearly reveals with regard to the OD facility availed by the appellant. Counsel for the appellant relies upon the evidence of PW1 and submits that evidence of PW1 does not clinchingly establish with regard to the previous balance as on 30.10.1980. The Bank witness PW1 in his evidence has stated that the entries in Ex. A13 are not legible and he cannot read the entries and the transaction in question relates back to 301.10.1980 and as per Ex. A13 the grant of loan of Rs. 9 lakhs to the borrowers cannot be seen though it bears an entry that loan enhanced to Rs. 9 lakhs and he cannot see the details of accounts prevailing prior to 10.10.1980 and Ex. A13 relates to the period 6.8.1980 and thereafter. He says that it is correct to say that the plaintiff has not produced any documents to prove any amount is outstanding on 6.8.1980 as suggested by him and he has made any inquiry with the Bank whether any statement produced prior to 30.10.1980 was available with the Bank and he could not say why the accounts relating to the previous period was not produced and he could not say that if there is any document with the Bank to prove the transactions prior to 30.10.1980. Relying upon these facts, Counsel for the appellant argued that there are no documents to prove the transactions with the Bank prior to 30.10.1980 and that Statement of Account alone cannot be a proof.

(3.) IN the case on hand, the appellant availed OD facility. That availing of OD facility i.e. drawal of the amount has been clearly reflected in the Statement of Account filed by the Bank. After availing of the OD facility, the OD facility was enhanced in the year 1980 and the appellant has availed the OD facility which has been reflected in the Statement of Account filed by the Bank. The Bank has produced the copy of the Statement of Account maintained by the Bank. Section 4 of Bankers' Books Evidence Act, 1891 reads as follows--