Acknowledgment and part payment extend limitation, while certified bank records can prove outstanding loan liability.

A written acknowledgment of liability signed before expiry of limitation, together with part payment made within time, renews the limitation period for recovery of a bank loan; the term loan repayable in instalments was therefore not time-barred. Certified bank ledger and account statements, supported by the statutory certificate, were admissible as prima facie evidence under the Bankers' Books Evidence Act and were accepted as reliable proof of the outstanding liability. On these grounds, the suit for recovery was maintained and the borrowers were held liable for the decretal amount, interest and costs.

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Issues: (i) whether the suit for recovery was barred by limitation in view of the loan transactions, balance confirmation and part payment; (ii) whether the certified statements of account from the bank were sufficient proof of the outstanding liability.

Issue (i): whether the suit for recovery was barred by limitation in view of the loan transactions, balance confirmation and part payment.

Analysis: The question turned on the operation of acknowledgment in writing and payment on account of debt under the Limitation Act. A written acknowledgment signed before expiry of limitation gives rise to a fresh period of limitation, and a payment made before expiry of the prescribed period has the same effect. The term loan was repayable in instalments over five years, so it could not be treated as time-barred on the date of suit. The balance confirmation executed by the borrower was sufficient for the purpose of extending limitation, and the part payment recorded in the accounts further supported the bank's claim.

Conclusion: The suit was not barred by limitation and the finding of the trial court on this aspect was set aside.

Issue (ii): whether the certified statements of account from the bank were sufficient proof of the outstanding liability.

Analysis: The bank produced certified copies of the ledger and account entries, accompanied by the statutory certificate that the copies were true copies of entries in the ordinary books of the bank made in the usual course of business. Under the Bankers' Books Evidence Act, a certified copy of an entry is admissible as prima facie evidence of the existence of the entry and the matters recorded therein. As the statements were duly certified and there was nothing on record to disbelieve them, they were accepted as reliable proof of the accounts and the amounts due.

Conclusion: The certified statements of account were held to be sufficient evidence of the bank's claim.

Final Conclusion: The appeal succeeded, the dismissal of the suit by the court below was overturned, and the respondents were held liable for the decretal amount with interest and costs.

Ratio Decidendi: A written acknowledgment of liability or a qualifying part payment made before expiry of limitation renews the limitation period, and duly certified bank account entries are admissible as prima facie proof of the debt under the Bankers' Books Evidence Act.

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