Limitation extended by loan account payments and certified bank records, keeping the recovery suit within time.

Payments entered in a loan account can extend limitation where they are proved before expiry of the prescribed period, because Section 19 of the Limitation Act, 1963 gives a fresh period from the date of payment. A certified bank statement is admissible as prima facie evidence under the Banker's Books Evidence Act, 1891, and in a mutual, open and current account limitation runs from the close of the year in which the last admitted or proved item is entered. On the proved record, the last payment was made on 16-4-1996 and the suit was filed on 12-2-1997, so the claim was within limitation.

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Issues: Whether the suit for recovery was barred by limitation, or whether the payments made in the loan account extended the period of limitation.

Analysis: The loan account statement showed multiple deposits by the borrower towards repayment, and the certified bank statement was admissible as prima facie evidence under the Banker's Books Evidence Act, 1891. In a mutual, open and current account, the limitation period runs from the close of the year in which the last admitted or proved item is entered. Payments made before expiry of the prescribed period attracted Section 19 of the Limitation Act, 1963, with a fresh period of limitation computed from the date of payment. On the proved record, the last payment having been made on 16-4-1996 and the suit having been filed on 12-2-1997, the suit could not be treated as time-barred.

Conclusion: The suit was within limitation and the finding dismissing it as barred by limitation was set aside.

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