HON’BLE SRI JUSTICE B.CHANDRAKUMAR C.C.C.A.No.355 of 2003 JUDGMENT: 1. This appeal is filed challenging the judgment and decree dated 18.08.2003 passed in O.S.No.1753 of 1994, by the II Senior Civil Judge, City Civil Court, Hyderabad. The defendant filed this appeal aggrieved by the judgment and decree passed against him in favour of the plaintiff in a money suit. The parties are referred to as they already referred in the lower court for the sake of convenience. 2. The case of the plaintiff M/s. Shankerlal Tarachand, represented by its Proprietor Sri V.K. Goyal, is that the defendant M/s. Mahendra Synthetics, represented by its Proprietor Sri Mahender Kumar, used to supply cloths of various varieties and regular statements of accounts were maintained by both the plaintiff as well as the defendant. The plaintiff alleges that during the course of business when the plaintiff was busy, the defendant collected a sum of Rs.3,00,000/- and the said amount was paid by the plaintiff with an intention to reconcile the accounts and when he approached the defendant for reconciliation of the accounts and for return of the excess amount paid to the defendant, the defendant using pressure tactics over the plaintiff, obtained his signatures on white papers and converted the same into a receipt acknowledging that full and final settlement of all the claims on supply of goods worth Rs.50,093/- to the plaintiff and the said receipt was obtained by the defendant under coercion. The plaintiff further alleges that the defendant is due of more than Rs.2,50,000/- and that the material supplied by it were not worth the amount mentioned in the invoices. It is the further case of the plaintiff that it got issued legal notice to the defendant on 29.8.1994 calling upon it to pay a sum of Rs.2,50,000/- and it exchanges the notices when the defendant denied its claim, the plaintiff filed the suit for recovery of Rs.3,00,000/-. 3. Sum and substance of the written statement of the defendant is that the suit filed by the plaintiff is not maintainable in law. The further case of the defendant is that the plaintiff has suppressed the true facts and filed the suit with false allegations. The defendant’s case is that it is the plaintiff who is due and liable to pay a total sum of Rs.2,25,000/- and that the plaintiff failed to pay the due amounts and the plaintiff is liable to pay interest at the rate of 21% p.a., as per the business understanding and that the defendant specifically denied that it has collected an amount of Rs.3,00,000/- from the plaintiff. The defendant has denied the alleged statement of account filed by the plaintiff. The further case of the defendant is that when he insisted for payment of the dues, the plaintiff pressurised the defendant through his relatives and compelled them to supply clothes worth of Rs.50,093/- in order to help the plaintiff and that the plaintiff even after receiving the goods worth of Rs.50,093/- became dishonest and failed to pay an amount of Rs.2,25,041/- which includes the value of the goods at Rs.50,093/-. The defendant further admitted the exchange of notices. With reference to his statement of the account, the specific case of the defendant is that the said statement of account is totally inconsistent and does not contain the true statement of fact and several entries in the said statement are incorrect. Thus, the defendant though did not file a separate counter claim, but made a claim that it is the plaintiff who has to pay an amount of Rs.2,25,041/- to it. 4. Basing on the pleadings, the lower court framed the following issues: 1. Whether the suit claim is true, valid and binding on the defendant? 2. Whether the defendant obtained the signatures of the plaintiff on blank papers as stated in the plaint? 3. To what relief? 5. On behalf of the plaintiff, the Proprietor of the plaintiff himself was examined as P.W.1 and Exs.A.1 to A.88 were marked. On behalf of the defendant, the Proprietor of the defendant was examined as D.W.1 and D.Ws.2 and 3 who are brothers-in-law of the plaintiff were examined on its behalf and Exs.B.1 to B.3 were marked. 6. On consideration of both oral and documentary evidence, the lower court decreed the suit mainly relying on Exs.A.85 and A.86. Further, the lower court came to the conclusion that there is no iota of evidence prove the alleged collection of the amount from it by the defendant or that both have agreed to reconcile the accounts. The lower court did not accept the evidence of D.Ws.2 and 3 mainly on the ground that they have not seen the account books or statement of accounts from either side and unaware of the business transaction between the parties. The lower court has also taken into consider the circumstances that D.W.1 was not present at the time of settlement of the accounts. So, basing on the statement of account, which shows an excess payment of Rs.2,25,041/-, the lower court decreed the suit for the said amount with costs and interest @ 12% p.a from the date of issuance of the legal notice till the date of judgment and thereafter @ 6% p.a till date of realisation. The remaining claim of the plaintiff has been dismissed. 7. Sri M.V.S.Suresh Kumar, learned counsel for the appellant submitted that the parties have settled their account and the plaintiff executed Ex.B.1 and the same is attested by the brother-in-law of the plaintiff and after settlement of the accounts, the plaintiff has filed the present suit. The defendant had collected an amount of Rs.3,00,000/- when the plaintiff was busy. It is his submission that D.W.2 is plaintiff’s wife’s brother and D.W.3 is plaintiff’s sister’s husband and both of them have signed Ex.B.1 and they have not disputed their signature. But the lower Court has not considered their evidence in proper perspective. It is also his submission that when the plaintiff alleged that an amount of Rs.3,00,000/- was obtained from him by coercion, the specific averments such as date, time and place of coercion have to be mentioned under Order 6 Rule 4 C.P.C. It is further submitted that the Lower Court failed to consider that the entire case of the plaintiff is that an amount of Rs.3,00,000/- was taken from the plaintiff but there is no iota of evidence placed by the plaintiff regarding the collection of Rs.3,00,000/- from the plaintiff by the defendant. It is also his submission that the plaintiff has not produced Day Book, Ledger Cash Book or Account Books in support of his contention. Referring to Section 34 of the Indian Evidence Act and Section 4 of Bankers Books Evidence Act, 1891, it is submitted that extract of entries in the books of accounts are not proved in terms of those sections and that the entries from books of account are mere copy thereof are not sufficient to charge any personal liability. When the defendant has specifically denied the statement of account furnished by the plaintiff, the plaintiff ought to have proved the same in accordance with law. He has also taken me through the evidence and the documents filed by both the parties and submitted that the statement of account said to have been furnished by the Bank shows that some of the cheques were passed on the same day and which is not possible since the defendant would normally been presenting his cheque for collection in his own bank and the said bank will send the cheque for collection and normally, 2 or 3 days time is required for collection and passing the cheque. He has referred to the cheque No.798184 dated 29.7.1991 and cheque No.313453 dated 14.10.92 in support of his contention. He has referred to the cheque No.313453 dated 14.10.1992 which is shown to have been passed on 2.3.1992 in support of his contention that statement of account is not the true statement of account and there are sufficient mistakes in the said statement of account. He also relied upon a decision reported in Rajesh Gothi vs. Grandhi Padmanabham[1] wherein this Court discussed as to how the entries in the books of accounts have to be verified and accepted. 8. The main submission of the learned counsel for the appellant is that the observations of the lower Court are self contradictory and inconsistent. It is also his submission that the lower Court failed to see that the plaintiff ought to have pleaded and proved as to when and how the excess payment was made. It is also his submission that the signature of the plaintiff was obtained on a white paper in full and final settlement of accounts. It is his submission that if it is excess payment arose out of the running transaction, a suit for accounts ought to have been filed and the present suit filed is not in proper frame and not maintainable. It is also his submission that the lower court failed to see that P.W.1 has admitted that excess payment Rs.3,00,000/- is not shown in the income tax returns. It is also his submission that the plaintiff has failed to produce the papers in support of his contention. It is also his submission that Exs.A.1 to A.83 in no manner establish that any excess payment was made by the plaintiff to the defendant. It is also his submission that the lower Court failed to see that there is no reference to Ex.A.85 in the plaint and it was filed all of a sudden eight years after the filing of the suit and the same has no evidentiary value. 9. Smt Manjari S. Ganu, learned counsel for the defendant submitted that the defendant used to supply cloth and raise bills and the plaintiff used to pay the amount through cheques. She has taken her through the statement of account and the evidence of all the witnesses and her submission is that the statement of account has been prepared basing on the bills raised by the defendant and on the basis of the statement supplied by the bank showing the encashment of cheques issued to the defendant. Her main submission is that even D.W.1 did not dispute any of the specific entries made in the statement of account and mere saying that it is not correct is not sufficient and it is also her submission that even D.W.1, when entered into the witness box, said that he has to verify as to which of the cheques he has not encashed. With reference to the discrepancy in Ex.A.84 her submission is that the cheque pertains to the bill dated 12.07.1991 and it being local cheque the possibility of passing cheque on the same day cannot be ruled out. With reference to the date of passing of the cheque bearing No.313453, dated 2.3.1992, it is her submission that the year is mistakenly mentioned as 1992 instead of 1993 and the same is clear from the entries made in Ex.A.86. She has also taken her through the evidence of all the witnesses and submitted that P.W.1 has categorically deposed that the entries in Ex.A.85 are reflected in their account books and also in the bank pass book. With reference to supply of cloth of Rs.50,093/-, it is her submission that in some places the defendant has shown as 50,093 meters of cloth and in other places he has shown as cloth worth of Rs.50,093/-, more over it is not clear as to when such cloth was supplied and no bills pertaining to that supply of cloth is filed by the defendant. With reference to Ex.B.1 her submission is that admittedly the plaintiff has been suffering with mental depression and therefore much value should not be given to the signature of P.W.1 on Ex.B.1. It is also her submission that the plaintiff in his notice has categorically stated that his signatures were obtained on blank paper. It is also her submission that the defendant himself did not sign on Ex.B.1 and the presence of the defendant at the time of execution of Ex.B.1 is not clear from the evidence and there is no reference to the supply of cloth of 50,093 meters or cloth worth of Rs.50,093/- in Ex.B.1. Referring to the evidence of D.Ws.2 and 3 it is her submission that both of them do not understand English and admittedly the contents of Ex.B.1 were not read over to them and their evidence clearly shows that they have not verified the books of accounts and the evidence of D.Ws.2 and 3 is contradicting one another with regard to the presence of D.W.1 at the time of alleged execution of Ex.B.1 and therefore though D.Ws.2 and 3 are related to the plaintiff no value can be attached to their evidence. Her only submission is that D.Ws 2 and 3 might have tried for settlement, but by that itself the statement of account supplied by the bank cannot be ignored and when documentary evidence is available preference has to be given to the documentary evidence rather the oral evidence of D.Ws.2 and 3, particularly with regard to accounts and admittedly when they have not seen the account books. It is also her submission that in the above circumstances the plea of the defendant that there was settlement of accounts cannot be believed. The sum and substance of her argument is that when the defendant has encahsed the cheques, he must specifically plead and let in evidence which cheque he has not encashed and in the absence of the same the plea of the defendant cannot be believed. It is also her submission that the trial court had an opportunity to examine the demeanour of the witnesses and therefore the findings of the trial court should not be normally reversed and in support of her contention she has relied on the judgment reported in Madhusudan Das v. Smt Narayani Bai[2]. For the same proposition she has also relied on a decision reported in Reddi Anjaneyulu v. Karra Anjamma[3]. 10. Sri M.V.S.Suresh Kumar, learned counsel for the appellant has relied upon the judgment of this Court in Rajmesh Gothi v. Grandhi Padmanabham[4]. His main submission is that, the plaintiff has not adduced sufficient evidence and that statement of account cannot be relied upon until the same is proved in accordance with law i.e., as per Section 34 of the Indian Evidence Act. It is also his submission that the statement of Bank account must be as per Section 4 of the Bankers Books Evidence Act, 1891. 11. The point that arises for consideration whether the plaintiff’s statement of account can be relied upon. 12. It is settled law that the appellate Court should not ordinarily interfere with the findings of the trial court which had the advantage of observing the demeanour of the witnesses, unless there are special features which escaped the attention of the trial court. Section 34 of the Indian Evidence Act, 1872 is as follows: “34. Entries in books of account when relevant - Entries in books of account, regularly kept in the course of business, are relevant whenever they refer to a matter into which the Court has to inquire, but such statements shall not alone be sufficient evidence to charge any person with liability.” 13. Thus, it is clear that the plaintiff has to produce books of account, regularly kept in the course of business. It is also made clear that such statements shall not alone be sufficient evidence to charge any person with liability. Now it has to be seen whether the plaintiff has furnished the entries in account books regularly kept in the course of business. It is also settled law that even when loose sheets of accounts purporting to be the entries of books of account are furnished, such unbind sheets or loose sheets cannot be relied upon. It is also not in dispute that the person who made such entries must enter into the witness box and depose before the court that he has made such entries in the regular course of business. 14. In the above referred decision 4th cited, this Court while dealing with a suit filed for recovery of rent for a particular period and when the tenant had taken a plea that the payments made by him were maintained in the books of account, referred to the earlier judgment in the case of Vijayalakshmi Tobacco Co. V. Kurmineni Koteswara Rao[5] wherein it is observed as follows: “To show that the account books are kept under the regular course of business one has to prove that the balances are struck at the end of each day or at some regular intervals. The entries are first made in the day book. From there they are carried on to the Khata or ledger. Unless the writer of the accounts comes in the witness box and proves that the entries in the account books were written by him at the time when the business transactions took place and that the Khata was based upon these entries in the day book and the books were written from day to day, it cannot be said that the person maintaining the account books has proved the accounts. If for any reason the writer of the accounts is not able to prove the entries in the account books some other person who is connected with the firm and who knows the writing of the accountant can prove the entries in the account books, saying that to his knowledge accounts or entries in the account books are made by his accountant. There is however no presumption attached to entries in account books. The law requires proof not only of account books generally but each of the items or entries have to be proved.” 15. Thus, this Court again in Rajmesh Gothi v. Grandhi Padmanabham (1 supra) observed as follows: “It is well known that entries in the ledger would be made from the entries in the day book. So mere production of the ledger, without day book would not suffice. Law requires proof not only of account books therein also.” 16. As seen from the evidence, no doubt, the plaintiff has got marked Exs.A.1 to A.83 and Exs.A.84 office copy of letter issued by plaintiff to Punjab National Bank, for issuance of statement of the cheques issued to the defendant. Ex.A.85 is the original reply issued by Punjab National Bank giving particulars of total number of cheques issued and encashed in the name of the defendant. Exs.A.1 to A.83 are the original credit bills issued by the plaintiff to the defendant during the relevant period from 22.4.1991 to 30.4.1993. It appears that the defendant supplied material worth of Rs.17,14,000/- during that period. The plaintiff has of course filed original bills issued by the defendant evidencing the supply of material by the defendant to the plaintiff. P.W.1. According to his own version, he has been in the filed of business for the last 20 years. His business turnover is around Rs.7.00 to Rs.8.00 lakhs per annum. He has categorically admitted that he has been maintaining books of account such as Ledger daily book, bank cash book and bank pass book etc. He further admitted that the transaction with the defendant are entered in the account books. Thus, admittedly, the said documents have not been filed. His version is that the entries in Ex.A.85 are entered in his account books and also in his bank. Admittedly he has not filed any bank pass book into the court. He has further admitted that the entries in enclosure of Ex.A.85 do not tally with the entries in Ex.A.86. According to P.W.1, he has shown in the returns about the excess amount paid to the defendant but immediately he changed his version and deposed that the excess amount paid to the defendant has not been shown in his income tax returns. Though he denied the suggestion that Ex.A.85 is not correct and the same is not in accordance with the Bankers Books Evidence Act 1891, but he himself is unable to say even from the entries in Ex.A.85 as to what is the excess amount paid to the defendant. P.W.1 further admitted that Ex.A.85 and its enclosures do not show the entire transaction with the defendant during the relevant period and that Ex.A.85 is not true extract of book of account of the plaintiff relating to the transaction with the defendant. Thus, admittedly, the plaintiff has not filed the day book, ledger cash book and the regular accounts books and thus the above referred admissions made by him are sufficient to say that the plaintiff has failed to prove its case. The lower court on appreciation of evidence gave a categorical finding that the excess payment of Rs.3,00,000/- as alleged by the plaintiff is not proved. It has to be seen that the D.Ws.2 and 3 are close relatives of the plaintiff. They have signed in Ex.B.1 and they have admitted their signatures. There is a recital in Ex.B.1 that there is an admission of P.W.1 in his evidence that the defendant has supplied Rs.50,093/- worth of material and this admission of P.W.1 shows that Ex.B.1 was acted upon. When the signature of plaintiff is available in Ex.B.1 and it is signed by none other than the close relatives of the plaintiff, the version of the plaintiff that his signature was obtained on a blank paper and subsequently the same was converted into Ex.B.1 cannot be accepted. It is not the case of the P.W.1 that D.Ws.2 and 3 are inimically deposed against him. As far as the statement said to have been supplied by the bank is concerned, it appears that the P.W.1 himself seems to have requested the bank by furnishing certain particulars seeking to furnish the date of passing of those cheques and accordingly the bank seems to have filled the last column and supplied the said statement. In the absence of filing of any day book or account books or ledger books in the lower court, merely basing on Ex.A.85 or Ex.A.86, I am of the opinion that the suit filed by the plaintiff cannot be decreed. There is no need to refer to other particulars in this matter. 17. Accordingly, the Appeal Suit is allowed setting aside the judgment and decree dated 18.08.2003, passed in O.S.No.1753 of 1994 by the II Senior Civil Judge, City Civil Court, Hyderabad. There shall be no order as to costs. _______________________ B.CHANDRAKUMAR,J Date:07.12.2011. Gk. HON’BLE SRI JUSTICE B.CHANDRAKUMAR C.C.C.A.No.355 of 2003 DATE:07.12.2011 Gk. [1] 2007 (3) ALT 397 [2] AIR 1983 SC 114 [3] 1997(6) ALD 158 [4] 2007 (1) ALT 397 [5] 1970-71 Lawyers Reference 2(SN)= C.R.P.No.354 of 1979 dated 25.9.1970