Recovery of debt: ledger reconciliation and business records upheld, award of outstanding balance with post filing interest.

Dispute concerned accounting of a running account and return of materials between parties; HC applied ledger reconciliation and company records to determine entitlements. On whether a balance was due on March 31, 1977 the court found ledger entries established a debit balance of Rs. 19,694.60 due from the respondents and rejected unproven pre petition interest practice, awarding the appellant recovery of that balance with interest at 12% per annum from date of filing. On whether materials worth Rs. 17,731.65 were returned the court accepted documentary ledger entries and allowed that set off in favour of the appellant.

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Issues: (i) Whether an amount of Rs. 34,071.22 inclusive of interest was due to the petitioners under the running account between the parties on March 31, 1977; (ii) Whether materials worth Rs. 17,731.65 were returned by the petitioner to the respondent.

Issue (i): Whether an amount of Rs. 34,071.22 inclusive of interest was due to the petitioners under the running account between the parties on March 31, 1977.

Analysis: Ledger entries and reconciliation evidence established a debit balance of Rs. 19,694.60 due from the respondents. No evidence supported entitlement to interest prior to filing of the petition; the claimed practice of charging 12% pre-petition was not proved. Post-filing default by respondents was established.

Conclusion: The appellant is entitled to a decree for recovery of Rs. 19,694.60 and to interest at 12% per annum from the date of filing of the petition. This conclusion is in favour of the appellant.

Issue (ii): Whether materials worth Rs. 17,731.65 were returned by the petitioner to the respondent.

Analysis: Documentary ledger entries and the reconciliation statement supported that materials relating to Bill No. 89 (dated April 4, 1977) had been returned. Absence of original vouchers did not undermine admissible company records maintained in the ordinary course of business; respondent's contradictory oral evidence did not displace the documentary proof.

Conclusion: Materials worth Rs. 17,731.65 were returned by the petitioner to the respondent. This conclusion is in favour of the appellant.

Final Conclusion: The appeal is allowed; the judgment and decree of the company judge are set aside and a decree is granted for recovery of Rs. 19,694.60 with interest at 12% per annum from the date of filing of the petition until realisation, together with proportionate costs, in favour of the appellant.

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