Bank account entries as prima facie evidence can rebut a deposit claim when best evidence is withheld.

Certified bank account entries made in the ordinary course of business were treated as prima facie evidence and, when supported by surrounding circumstances, could rebut a depositor's claim on a preponderance of probabilities. The alleged cash deposit was not proved, as the plaintiff withheld the best available evidence and an adverse inference was drawn from the delay and lack of corroboration. The limitation plea was not entertained in appeal because it had not been raised below and depended on mixed questions of fact and law. On that evidentiary basis, the decree under review was set aside and the claim failed on the merits.

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Issues: (i) Whether the suit was barred by limitation; (ii) whether the bank's statement of accounts under the Bankers' Books Evidence Act displaced the plaintiff's claim; (iii) whether the bank had rebutted the claim and the burden had shifted back to the plaintiff; and (iv) whether the decree of the Single Judge called for interference.

Issue (i): Whether the suit was barred by limitation

Analysis: The plea of limitation had not been raised in the written statement or tried as an issue below. Determining the effect of the relevant limitation article required factual findings on the nature of the deposits, the demand, and the alleged renewal or consolidation. A pure limitation bar was therefore not apparent on the face of the plaint, and the question involved a mixed question of fact and law that was not fit to be decided for the first time in appeal.

Conclusion: The suit was not rejected on the ground of limitation in appeal.

Issue (ii): Whether the bank's statement of accounts under the Bankers' Books Evidence Act displaced the plaintiff's claim

Analysis: Certified entries in the ordinary course of business constitute prima facie evidence of the matters recorded in the bank's books. The statement of accounts showed reversal of the two earlier deposits and reflected only one consolidated deposit. The entry was consistent with the bank's stand before the other forums and was not effectively challenged in cross-examination. The letter relied upon by the plaintiff merely conveyed information and did not outweigh the contemporaneous account entries.

Conclusion: The bank's statement of accounts carried greater evidentiary weight and supported the defence.

Issue (iii): Whether the bank had rebutted the claim and the burden had shifted back to the plaintiff

Analysis: Once the bank produced material showing consolidation of the earlier deposits and denial of any cash deposit of Rs. 30 lakhs, the burden shifted to the plaintiff to establish the alleged cash payment. The plaintiff did not produce the income-tax returns that could have corroborated such a substantial cash transaction and remained silent for years despite the short maturity periods. The plaintiff's conduct, the surrounding circumstances, and the absence of the best available evidence justified an adverse inference and rebutted any presumption in his favour.

Conclusion: The plaintiff failed to prove the alleged cash deposit and the bank successfully rebutted the claim.

Issue (iv): Whether the decree of the Single Judge called for interference

Analysis: The Single Judge had not given due weight to the contemporaneous account entries, the respondent's delayed conduct, and the relevance of the inquiries made by the statutory authorities. Since the evidentiary appreciation below was found to be unsustainable, the decree could not stand.

Conclusion: The judgment and decree of the Single Judge were set aside.

Final Conclusion: The appeal was allowed, the suit decree was reversed, and the respondent's claim failed on the merits.

Ratio Decidendi: Certified bank account entries made in the ordinary course of business constitute prima facie evidence, and when supported by surrounding circumstances and adverse inference from withholding best evidence, they can rebut the opposing party's claim on a preponderance of probabilities.

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