Account stated in balance confirmations can sustain a summary suit and imply payment of agreed interest.

An unconditional written confirmation of a closing balance can constitute an account stated and support a summary suit under Order XXXVII Rule 2 CPC, because the law implies a promise to pay from the admitted settled balance even without an express promise. On the same reasoning, where the parties' conduct showed prior payment and acceptance of interest on the balance, the confirmation letters could also imply a promise to continue paying interest at the stipulated rate unless a contrary intention appeared. The matter was directed to proceed with conditional leave to defend, subject to furnishing security or a bank guarantee.

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Issues: (i) Whether a suit based on balance confirmation letters and an account stated was maintainable as a summary suit under Order XXXVII Rule 2 of the Code of Civil Procedure, 1908; (ii) Whether the balance confirmation letters, on their true effect, implied a promise to pay the confirmed balance together with interest at the stipulated rate.

Issue (i): Whether a suit based on balance confirmation letters and an account stated was maintainable as a summary suit under Order XXXVII Rule 2 of the Code of Civil Procedure, 1908.

Analysis: An unconditional confirmation of the closing balance, signed and acted upon by the debtor, amounted to an account stated. Such an acknowledgment was not a mere recital of past dealings but a written admission of liability from which the law implies a promise to pay. A summary suit can be founded on a written obligation containing such an implied promise, and the absence of an express promise does not defeat maintainability where the writing itself evidences a settled balance due.

Conclusion: The suit was maintainable as a summary suit.

Issue (ii): Whether the balance confirmation letters, on their true effect, implied a promise to pay the confirmed balance together with interest at the stipulated rate.

Analysis: The parties' conduct showed that interest had in fact been paid and accepted at 18% per annum for the relevant period, and the confirmation of the balance was made against that background. Where accounts are stated or settled and interest has been paid without demur, the law implies a promise to continue payment of interest on the confirmed balance unless the writing or surrounding circumstances show a contrary intention. To deny such implication would deprive commercial balance confirmations of efficacy.

Conclusion: The balance confirmation letters implied a promise to pay interest on the confirmed balance, and the plaintiff's claim on that basis was accepted.

Final Conclusion: The defendant was granted conditional leave to defend on furnishing security or a bank guarantee, and the suit was directed to proceed accordingly.

Ratio Decidendi: An unconditional acknowledgment of a settled balance in writing constitutes an account stated and implies a promise to pay, including continued interest where prior conduct shows interest was being paid and accepted on the balance.

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