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2017 (8) TMI 1634 - HC - Companies LawMaintainability of suit - Period of limitation for filing a suit - whether Ext. A1 balance sheet and the profit and loss account is an acknowledgment of liability for the period ending 31.3.1995 to which it relates or on 26.3.1997 when it was signed? - Section 18 of the Limitation Act, 1963 - HELD THAT:- Mere entries in books of account shall not alone be sufficient evidence to charge any person with liability. There has to be further evidence to prove payment of the money which may appear in the books of account either by production of receipts and vouchers or other clinching evidence. The Commercial Documents Evidence Act, 1939 has not been extended to Part B States and therefore no presumption as to genuineness of documents or accuracy therein arises. The plaintiff contended that Ext. B11 balance sheet and the profit and loss account was filed two years after its due date and hence not kept in the regular course of business. The defendant contended that it could ill-afford to employ a Manager or Secretary and that the accounts were finalized by its directors themselves during the relevant time. But no explanation is forthcoming as to why the directors who made the entries were not examined or any voucher or receipt produced to prove discharge. The onus of proof is heavy on the defendant and we notice that neither parties have adduced any oral evidence in the case except marking the documents on consent. The defendant sought one more opportunity to adduce oral and documentary evidence to substantiate its contentions which we are inclined to grant in the peculiar circumstances of the case. The suit remanded to consider only the plea of discharge of liability put forth by the defendant and all other findings by the court below are confirmed - Appeal suit is allowed.
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