Bankers keep their accounts & its various details by maintaining various ledgers & journals . When any claim on the bank needs to be established or proved in court these books need to be produced in court.

1. Banker‟s Book Evidence Act
& Law Of Limitations
Made By: Drishya Trivedi
Arohi Dave
Pooja Waghamare
Sayali Chodankar
Sameep Singh
Vaibhav Kabra
1

2. Bankers Book of Evidence
1891
 Contents:-
 Introduction
 Definition
 Example
2

3. Introduction
 Bankers keep their accounts & its
various details by maintaining various
ledgers & journals . When any claim
on the bank needs to be established
or proved in court these books need to
be produced in court.
 As it is difficult to do so & to give the
account statements & extracts
evidentiary value this act was enacted.
3

4. The Bankers‟ Books
Evidence, 1891.
 The Bill was passed by the
legislature on 1st October 1891.
 The object of the bill was to apply
to India the provisions of The
English Bankers‟ Books Evidence
Act , 1879, under which copies of
entries in bankers‟ books are
made receivable in evidence
under certain conditions.
4

5. Significance
 The Bankers Book evidence is the real
guidelines for any banking institutions
that will get the clear idea about the
legal proceedings which relates to
banking records. Any discrepancy in
the records will amount to violation of
the act. In India the Act has a strong
impact on the banking institutions and
they are bound by the act in
production of records in litigation.
5

6. Evolution and ammendments in
the Act.
 After the invention of paper and
printing the transactions in a financial
institution were recorded on papers or
books. Gradually book keeping or
recording of the transactions were
made in bank books like
registers, ledgers, account
books, cash books etc.
6

7. “I want to deposit Rs
10000 in bank”
Madan Lal
(Customer)
Banker
“I will help you
deposit it in your
account”
An Example: On 12-July-2012
7

8. Customer Banker
Cash is given to the bank
Bank acknowledges the successful
deposit with a receipt
Banker makes the proper entry in the his books (ledger,cash
books, etc)
An Example: On 12-July-2012
8

9. After some time
I had deposited Rs 12000
on 12-July-12, but only Rs 10000 were
credited to my account
Let me
check in my
books and
get back to
you
Madan Lal Banker
9

10. According to Bank‟s Record
10

11. After the verification
“We verified our
records and there
has been credit of
only
Rs.10000 ”
Banker
“No that is not
possible, I will take
this to Court”
Madan Lal
11

12. In the trial of the court
Under the Banker Book of Evidence Act 1891
If the bank‟s book has been a certified copy* then
the bank would get acquitted in this case.
*certified copy- means when the books of a bank;
If maintained in the written form, a copy of any entry in
such books together with a certificate written at the foot
of such copy mentioning that, It is a true copy of such
entry
, 12

13. Terms Under Banker‟s Evidence
Act „Legal proceeding‟
-any proceeding or inquiry in which
evidence is or may be given.
-an arbitration
-any investigation or inquiry under the
Code of Criminal Procedure, 1973 or
under any other law for the time being
in force for the collection of
evidence, conducted by a police officer
or any other person authorized for the
purpose by the magistrate or by any
law. Such other person to be authorized
13

14. Meaning of “Banker‟s Books”
 “Banker‟s book‟s” include ledgers
daybooks ,cash-books, account-books
and all other records used in the
ordinary business of a bank.
 These records may be kept in written
form or in an electronic data retrieval
mechanism.
 Records are kept On Site & Off site
along with a back up or recovery
mechanism.
14

15. Meaning of “Banker‟s Books”
 (1-A) "Corporation" means any body
corporate established by any law for
the time being in force in India and
includes the Reserve Bank of India
and any subsidiary banks as defined
in the State Bank of India and any
subsidiary bank as defined in the
State Bank of India (Subsidiary
'Banks) Act, 1959 (38 of 1959;)
15

16. Meaning of “Banker‟s
Books”(cont)
 2) "Bank" and "banker" :-
 (a) Any company or corporation
carrying on the business of banking;
 (b) Any partnership or individual to
whose books the provisions of the Act
shall have been extended as
hereinafter provided;
 3(c) Any post office savings
bank, office savings bank or money
order office; 16

17. More Terms
 „Court‟-means the person or persons
before whom a legal proceeding is
held or taken.
 „trial‟-means any hearing before the
Court at which evidence is taken
17

18. Meaning Of Certified Copy
 „Certified copy‟-means when the books
of a bank;
 If maintained in the written form, a copy
of any entry in such books together with
a certificate written at the foot of such
copy mentioning that,
 It is a true copy of such entry
That such entry is contained in one of
the ordinary books of the bank
That such entry was made in the
ordinary course of business
That such book is still in the custody of
the bank. 18

19. Bank Books In Computers
 When the books of the bank are not
handwritten and copies are to be
taken away, the printout of the copy
must be accompanied by the
following:
1. a certificate by the principal
accountant or the manager to the
effect that it is a print out of such an
entry or a copy of such printout.
19

20.  A certificate by a person in-charge of
computer system containing a brief
description of the computer system
and it‟s particulars regarding :
a) the safe guards adopted by the
system to ensure that entry of data or
any other operation is performed only
by authorized personnel.
b) Further safeguards adopted to
prevent and detect unauthorized
change of data.
c) Safe guards available for retrieval of
data due to systemic failure or any
other reason. 20

21. d) The manner in which data is
transferred
from system to removable storage
devices like floppies, DVD‟s & pen
drives.
e) The mode of verification in order to
to ensure data has been transferred
accurately to any removable device.
f) The arrangements made for storage
&
custody of such storage devices.
g) The safeguards to prevent & detect
tampering with the system, other 21

22. Certificate From System In charge
 In addition to the above, a further
certificate required is from the person
in-charge of the computer system to
certify that to the best of his
knowledge and belief, the computer
system is operated properly at any
point of time, he was provided with all
the relevant data and the printout in
question represents correctly and is
appropriately derived from the relevant
data.
22

23. Case Of State Bank Of India V/s
Yumnam Gouramani Singh
 It states that if entries on the book of
accounts is corroborated by Branch
Manger & other officials it is sufficient
proof of a loan transaction.
 No further proof is required by the
court of law
23

24. Evidence By Certified Copy
 A certified copy of any entry in a
banker‟s book shall in all legal
proceedings be received as prima-
facie evidence of the existence of
such entry.
 It shall be admissible as evidence of
all the matters, transactions and
accounts therein recorded in every
case as the original entry itself.
24

25. Bank Officer‟s Attendance can‟t
be Compelled
 In any proceeding where the bank is
not a party, no officer shall be
compelled to produce any banker‟s
book contents which can be provided
under this Act by production of
certified copies.
 Similarly no officer of the bank shall be
called as witness to prove the matters
or the transactions and accounts
recorded in the certified copies.
 However, the Court may order 25

26. Court Order Required For
Inspection
 On application of any party during
legal proceeding, the Court may order
that,
I. Such a party is at liberty to inspect
and take copies of any entry in a
banker‟s book for any of the
purposes of the proceeding.
II. the bank may prepare and
produce, within a specified time
period, certified copies of all such
entries, accompanied by a further 26

27. Court Order To Produce
Books
 The order so passed shall be served
on the bank at least three clear
working days before the same is to be
obeyed.
 The bank may at any time before the
time limited for obedience to any such
order either offer to produce their
books at the trial or give notice of their
intention to show cause against the
27

28. Court Order To Produce
Books (cont)
 If the bank choose to give show cause
against the order then the order
passed by the Court or Judge can not
be enforced without further order.
 Awarding Of Costs Incurred as a
result of any delay or fault of bank can
be granted by the courts presiding
over the case.
28

29. LAW OF LIMITATION 1963
29

30. INDEX
 INTRODUCTION
 HISTORY
 OBJECTIVES AND FEATURES
 PROVISIONS
 ELEMENTS OF ACT
 PROCEDURE
 REQUIREMENTS OF ACT
 PERIOD OF LIMITATIONS
30

31. INTRODUCTION
 Limitations act of 1963 fixes the limitation
period of debts and obligations including
bank loans and advances.
 If the period for the particular debts or loan
expires, one cannot file the suit for its
recovery, but the fact of the debt or loan is
not denied.
 It is said that law of limitation bars the
remedy but does not extinguish the right
31

32. DEFINATION
 The “Law of Limitation” prescribes the
time limit for different suits within, which
an aggrieved person can approach the
court for redress or justice.
 If the suit is filed after the exploration of
time limit, then it is struck by the law of
limitation.
 It is a Statutory Law which is founded
on the Latin Maxim.
32

33. HISTORY OF LIMITATION
ACT
 1523 AD – James Statute introduced the
Law of Limitation in London.
 1793 AD – Regulations were passed on
now and then for fixing the
law.
 1858 AD – There were two types of
Law of Limitations that
were followed as shown
in the figure
33

34.  1956 AD – Various Recommendations were
made to introduce the Law.
 1960 AD – A bill was passed in Parliament
regarding it but it lapsed on account of
dissolution of Lok Sabha.
 1962 AD – The bill was again introduced in
the Parliament.
 1964 AD – The Limitation Act, 1963 came into
force.
HISTORY OF LIMITATION
ACT(CONT.)
34

35. OBJECT OF THE LAW OF
LIMITATION
 To make sure that there should be an end of
Litigation.
 To provide a statute of Repose, Peace and
Justice.
 To make sure it is a Sound Policy and it is
followed by everyone.
 To make sure that the parties do not follow
Dilatory Tactics but seek their remedy
promptly. 35

36. FEATURES OF LAW OF
LIMITATION
Suits, Appeals and Applications made
after the limitation period are liable to be
dismissed.
Exclusion of Time in Certain Cases like :
When court is closed on last day of limitation.
Any suit or petition filed for the first time in
court.
If the person is a minor or under legal
disability.
But if there is no time limit fixed for36

37. Provisions Of The Act
 In India, the Limitation Act, 1963 is the
legislation that governs the period
within which suits are to be filed, with
relevant provisions for delay, thereof
etc.
 The principle that pervades statutes of
limitation at common law is that
„limitation extinguishes the remedy, but
not the right' this means that the legal
right itself is not defeated, but only the
right to claim it in a court of law is
37

38. • An exception to this general rule is
the law of prescriptive rights, whereby
the right itself is destroyed. Section 27
of the limitation Act, 1963 proclaims:
•“Section 27: Extinguishment of Right to
Property at the determination of the
period hereby limited to any person for
instituting a suit for possession of any
property, his right to such property shall
be extinguished.”
38

39. Elements Of Act
 One must note that the law of adverse
possession is no longer what it used
to be, a tool of a powerful squatter
buttressed by the lack of awareness
on part of the true owner and an
ancient law.
 Today, the law of adverse possession
is viewed with great circumspection by
the judiciary, and this is a trend that
commenced abroad.
39

40. •The Act created exceptions to
the normal statute of limitations in
addition to the previous ones of
fraud and mistake.
•It introduced an exception if for
example; the permission of the
court had been gained to bring a
case or the "material facts" of the
case included "facts of a decisive
character" which the claimant
was not aware of until after the
expiry of the statute of limitations. 40

41. Procedure of Limitation Act
 The Limitation Act, 1963, prescribed
limitation with a view to see that a litigant
does not drag on the litigation. Section 5
gives an opportunity to a litigant to file
applications beyond the prescribed period
of limitation provided; he is able to establish
that he was prevented by sufficient cause
from approaching the Court within the said
period. Even though explanation for day- to-
day delay is not being insisted by the
Courts, the litigant has to nevertheless
furnish the satisfactory explanation for filing
the application beyond the prescribed
period of limitation.
41

42. Effect of Acknowledgment in Writing
An Acknowledgment letter is the one which is
been written by the party before the limitation period
ends, from where the period of limitation is been
renewed further.
For e.g. : A loan taken on 1st January
2004, becomes time barred on 1st January 2007.
However if the debtor, executes an
Acknowledgement Letter before the Limitation
period say 24th November 2006, the period of
limitation will be further renewed up to 24th
November 2009. But if the Acknowledgment is
made after the period then there is no chance of
extending the limitation period.
42

43. Effect of payment on account of Debt
Instead payment is been done before
the limitation period is expired, the period of
limitation is been renewed, but should be
acknowledged in Hand written or signature of
that particular party
For e.g. : In the Illustration given in the
previous slide, instead of
acknowledgment, part of the payment is
made on 24th December 2006 , still the
limitation will be extended upto 24th
December 2009. However the payment must
be acknowledged in hand written or
signature of that person.
43

44. REQUIREMENTS FOR LAW OF
LIMITATIONS
 EVERY AGREEMENT/PROMISE IS
SUBJECT TO LAW OF LIMITATION-
BEYOND THAT IT IS TIME-BARRED
 IN BANK THE ACT HAS RELEVANCE
TO VARIOUS TRANSACTIONS.
 IN CASE OF BILLS OF EXCHANGE OR
PROMISSORY NOTE WHICH ARE
PAYABLE AT SIGHT-IT IS 3 YEARS
FROM THE DATE OF PRESENTATION.

45.  IN CASE OF BILLS/PROMISSORY
NOTE PAYABLE ON A FIXED DATE
IT IS 3 YEARS FROM THE DUE
DATE.
 LOANS PAYABLE IN INSTALMENTS
– 3 YEARS FROM THE DATE ON
WHICH RELATIVE INSTALMENT
FALLS DUE.
 MONEY REPAYABLE BY A
MORTGAGOR ON DEMAND-12

46. PERIOD OF LIMITATIONS
PART I - Suits Relating to Accounts
SL.NO
.
DESCRIPTION OF SUIT PERIOD OF
LIMITATION
TIME FROM WHICH PEROID BEGINS TO RUN
1.
For the balance due on a
mutual, open and current
account where there have
been reciprocal demands
between the parties.
3 years
The close of the year in which the
last item admitted or proved is
entered in the account; such year to
be computed as in the account.
2.
Against a factor for an account 3years
When the account is during the
continuance of the agency,
demanded and refused or, where no
such demand is made, when the
agency terminates.
3.
By a principal against his
agent for movable property
received by the latter and not
accounted for.
3 years
When the account is during the
continuance of the agency,
demanded and refused or, where no
such demand is made, when the
agency terminates.
4.
Other suits by principals
against agents for
3 years
When the neglect or misconduct
becomes known to the plaintiff.
46

47. PERIOD OF LIMITATIONS
PART II - Suits Relating to Contracts
SL.NO
.
DESCRIPTION OF SUIT PERIOD OF
LIMITATION
TIME FROM WHICH PEROID BEGINS TO RUN
1.
For a seaman's wages 3 years
The end of the voyage during which
the wages are earned.
2.
For wages in the case of any
other person.
3years
When the wages accrue due.
3.
For the price of food or drink
sold by the keeper of a hotel,
tavern or lodging house.
3 years
When the food or drink is delivered.
4.
For the price of lodging. 3 years
When the price becomes payable.
47

48. PART III - Suits relating to Immovable Property
Sr.
no.
Description of
Suit
Time Period Time from which Period
begins to Run
1. To enforce payment of
money secured by a
mortgage or otherwise
charged upon
immovable property.
Twelve years When the money sued for
becomes due.
2. By a mortgage
(a) for foreclosure; Thirty years When the money secured by
the mortgage becomes due.
(b) for possession of
immovable property
mortgaged.
Twelve years When the mortgagee
becomes entitled to
possession.
3. For possession of
immovable property
based on previous
possession and not on
title, when the plaintiff
while in possession of
the property has been
dispossessed.
Twelve years The date of dispossession.
48

49. PART VIII - Suits relating to trust and trust property
Sr.
No.
Description of Suit Time
Period
Time from which
Period begins to
Run
1. To recover possession of
immovable property conveyed or
bequeathed in trust and
afterwards transferred by the
trustee for a valuable
consideration.
Twelve years When the transfer becomes
known to the plaintiff.
2. To recover possession of
movable property conveyed or
bequeathed in trust and
afterwards transferred by the
trustee for a valuable
consideration.
Three years When the transfer becomes
known to the plaintiff.
3. To set aside a transfer to
immovable property comprised in
a Hindu, Muslim or Buddhist
religious or charitable
endowment, made by a manager
thereof for a valuable
consideration.
Twelve years When the transfer becomes
known to the plaintiff.
49

50. Conclusion
 Limitation and compensation of Delay are
two effective implementations in the quick
disposal of cases and effective litigation.
 The law on limitation keeps a check on
pulling of cases and prescribes time
period within which the suit can be filled
and the time available within which the
person can get the remedy conveniently.
 The law of compensation of delay keeps a
check on the pulling of cases and
prescribes a time period within which the
suit can be filed and the time available
within which the person can get the remedy
conveniently.
50

51. Bibliography
www.indiankanoon.org
Pkkulkarni.nic.in
Wikepedia.com
Findlaw.com
51

52. Thank You
52