WHAT CERTIFICATE IS REQUIRED TO PROVE YOUR BOOKS OF ACCOUNT!!

Name of the Case: Kiran Rameshlal Bhandari v. Narayan Purushottam Sarada

Facts: Appellant had friendly relations with the respondent and therefore, he advanced the amount of Rs. 15,00,000/- and Rs. 6,00,000/- to the respondent. In the discharge of such liability, the respondent gave two cheques bearing no. 442364 and 442365 for Rs. 15,00,000/- and Rs. 6,00,000/- respectively. Appellant deposited the cheques in his bank account, which were dishonored with the remarks “refer to drawer”. Thereafter, appellant issued two separate notices, which were not replied by the respondent. Appellant filed a complaint against the respondent beforethe trial court and the trial court acquitted the accused after taking into consideration the evidence on record. Hence, the appellant filed the present appeal.

Issues: Whether a certificate under Indian Evidence Act is required for the book of accounts generated electronically? When a cheque, which bears signatures of the accused but is filled by the complainant, can it be said as an issued cheque under the provisions of NI Act?

Conclusion:- The court in the first issue held that electronic certificate under Indian Evidence Act is not required, as the provisions of Banker Books Evidence Act, 1891 states there is no need of an electronic certificate for electronically generated books of accounts. The court in the second issue held that even when the disputed cheques were blank, the accused admits his/her signatures on the disputed cheque, the complainant would get an authority under Section 20 NI Act to complete the incomplete cheque and cited the judgment in the case of “Bir Singh vs. Mukesh Kumar” to support its contention. The court further held that if payee fill up the amount in the cheque, it would not invalidate the cheque itself. The onus is on accused to show that the cheque was not in discharge of debt or liability. The court therefore, convicted the respondent under Section 138 NI Act.