NEUTRAL CITATION
C/FA/5228/2019                                     CAV JUDGMENT DATED: 07/01/2022
                                                                                                                     2022:GUJHC:884-DB
                                       IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
                                                      R/FIRST APPEAL NO. 5228 of 2019
                        FOR APPROVAL AND SIGNATURE:
                        HONOURABLE MR. JUSTICE J.B.PARDIWALA                                           Sd/-
                        and
                        HONOURABLE MR. JUSTICE NIRAL R. MEHTA                                          Sd/-
                        ================================================================
                        1      Whether Reporters of Local Papers may be allowed                         YES
                               to see the judgment ?
                        2      To be referred to the Reporter or not ?                                  YES
                        3      Whether their Lordships wish to see the fair copy                        NO
                               of the judgment ?
                        4      Whether this case involves a substantial question                        NO
                               of law as to the interpretation of the Constitution
                               of India or any order made thereunder ?
                               CIRCULATE THIS JUDGMENT IN THE SUBORDINATE
                               JUDICIARY
                        ================================================================
                                  JAY AMBE INDUSTRIES PROPRIETOR SHRI DINESHKUMAR
                                                 BAJRANGLAL SOMANI
                                                        Versus
                                             GARNET SPECIALTY PAPER LTD.
                        ================================================================
                        Appearance:
                        MR. ZALAK B. PIPALIA, ADVOCATE for the Appellant(s) No. 1
                        RULE UNSERVED for the Defendant(s) No. 1
                        ================================================================
                            CORAM:HONOURABLE MR. JUSTICE J.B.PARDIWALA
                                  and
                                  HONOURABLE MR. JUSTICE NIRAL R. MEHTA
                                                     Date : 07/01/2022
                                                     CAV JUDGMENT
                                       (PER : HONOURABLE MR. JUSTICE NIRAL R. MEHTA)
                        1)        This first appeal is at the instance of an unsuccessful
                        plaintiff and is directed against the judgment and decree dated
                                                                 Page 1 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                     Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                         NEUTRAL CITATION
                             C/FA/5228/2019                                          CAV JUDGMENT DATED: 07/01/2022
                                                                                                                          2022:GUJHC:884-DB
                        18.07.2012 passed by the Principal Senior Civil Judge, Vapi, in
                        the Special Civil Suit No.62 of 2016 (Old No.72 of 2014), whereby
                        the suit for recovery of money came to be dismissed.
                        2)        The facts emerging from the records are that the Special
                        Civil Suit No.62 of 2016 (Old No.72 of 2014) was instituted by
                        the plaintiff (a proprietory concern) for recovery of an amount of
                        Rs.29,36,211/- (Rupees Twenty-Nine Lakh Thirty-Six Thousand
                        Two        Hundred            Eleven   Only)        from    the   respondent-original
                        defendant with 15% interest. The aforesaid suit was instituted
                        by the plaintiff through his Power of Attorney Holder.
                        3)        It is the case of the plaintiff that there was a commercial
                        transaction of sale & purchase between the plaintiff and the
                        respondent-defendant.                  The     respondent-defendant              purchased
                        papers from the plaintiff to the tune of Rs.42,31,167/- (Rupees
                        Forty-Two Lakh Thirty-One Thousand One Hundred Sixty-Seven
                        Only), out of which only Rs.12,64,950/- (Rupees Twelve Lakh
                        Sixty-Four Thousand Nine Hundred Fifty Only) was paid. Thus,
                        for the recovery of the balance amount of Rs.29,36,211/-
                        (Rupees Twenty-Nine Lakh Thirty-Six Thousand Two Hundred
                        Eleven Only), the aforesaid suit was instituted before the court of
                        the Principal Senior Civil Judge, Vapi.
                                                                     Page 2 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                          Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                NEUTRAL CITATION
                            C/FA/5228/2019                                  CAV JUDGMENT DATED: 07/01/2022
                                                                                                                 2022:GUJHC:884-DB
                        3.1      Despite the service of summons, the respondent-defendant
                        thought fit not to appear before the trial court. Therefore, the
                        suit was ordered to be proceeded ex-parte.
                        3.2 Having regard to the pleadings in the plaint, the trial court
                        framed the following issues :
                                 (1)      Whether the plaintiff proves that, the defendants has
                                 purchased the Ambesize 15 of Rs.42,31,167/- from the
                                 plaintiff?
                                 (2)      whether the plaintiff proves that, the Rs.29,36,211/-
                                 is legal and recoverable debt from the Defendants?
                                 (3)      Whether the plaintiff is entitled to get interest? If yes,,
                                 at what rate?
                                 (4)      Whether the plaintiff is entitled to get reliefs as
                                 prayed?
                                 (5)      what order and decree?
                        3.3      The trial court answered all the aforesaid issues in the
                        negative and dismissed the suit mainly on the following
                        grounds :
                                                             Page 3 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                 Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                    NEUTRAL CITATION
                            C/FA/5228/2019                                      CAV JUDGMENT DATED: 07/01/2022
                                                                                                                     2022:GUJHC:884-DB
                                 (I)      The plaintiff failed to prove service of a valid demand
                                 notice to the defendant before the institution of the suit.
                                 The cover containing the demand notice returned unserved
                                 with an endorsement ‘Door Locked’.
                                 (II)     No independent witness has been examined so as to
                                 prove the contents and genuineness of the invoices and the
                                 delivery challans.
                                 (III)    Out of the total dues of Rs.42,31,167/- (Rupees
                                 Forty- Two Lakh Thirty-One Thousand One Hundred Sixty-
                                 Seven         Only),   the   plaintiff       failed   to     specify         how
                                 Rs.12,64,950/- (Rupees Twelve Lakh Sixty-Four Thousand
                                 Nine Hundred Fifty Only) was paid to him and in
                                 connection with which particular invoice. No cogent
                                 evidence to establish and prove that Rs.29,36,211/-
                                 (Rupees Twenty-Nine Lakh                    Thirty-Six Thousand              Two
                                 Hundred Eleven Only) is legally recoverable.
                                 (IV)     The suit was instituted through the Power of Attorney
                                 Holder and in the Examination-in-Chief, nothing has been
                                 said by the Power of Attorney Holder as to how he derived
                                 knowledge of the various transactions.
                                                              Page 4 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                     Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                           NEUTRAL CITATION
                             C/FA/5228/2019                            CAV JUDGMENT DATED: 07/01/2022
                                                                                                            2022:GUJHC:884-DB
                        4)        Therefore, being aggrieved by the aforesaid, the plaintiff
                        has approached this Court by way of this Appeal under Section
                        96 of the Civil Procedure Code, 1908.
                        5)        It appears that on 12.12.2019, this Court issued notice to
                        the respondent-defendant, making it returnable on 23.01.2020.
                        The appellant was permitted to serve the said notice directly to
                        the respondent. The service of notice could not be effected
                        despite the efforts put-forth by the appellant. It also appears that
                        as the fresh address of the respondent-defendant could not be
                        procured, the appellant sought for public notice to be published
                        in the newspaper. On 12.03.2020, this Court permitted the
                        appellant to issue public notice in the newspaper ‘Sandesh’,
                        Surat Edition.
                        6)        It appears that on 21.10.2020, this Court once again
                        issued notice for final disposal of the Appeal by making it
                        returnable on 07.12.2020, wherein, the appellant was directed to
                        serve the notice of the order by publishing the same in the daily
                        newspaper having wide circulation in the area. Accordingly, once
                        again the public notice in the newspaper ‘Sandesh’, Surat
                        Edition came to be published.
                                                        Page 5 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                            Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                           NEUTRAL CITATION
                             C/FA/5228/2019                            CAV JUDGMENT DATED: 07/01/2022
                                                                                                            2022:GUJHC:884-DB
                        7)        On 16.09.2021, this Court admitted the Appeal and further
                        directed to notify the same on 11.10.2021 for final disposal.
                        Lastly, this Appeal came up for final hearing on 19.10.2021.
                        However, on that date also, the defendant failed to appear either
                        in person and/or through any advocate.
                        8)        In view of the aforesaid, this Court was left with no other
                        option but to proceed with the matter on merits in absence of the
                        respondent-original defendant.
                        9)        We have heard Mr.Zalak Pipalia, the learned counsel
                        appearing for the appellant.
                        9.1       Mr.Pipalia, the learned counsel appearing for the plaintiff
                        submitted that the judgment and decree passed by the court
                        below is erroneous and not sustainable in the eye of law. He
                        submitted that the trial court committed a serious error in not
                        looking into the oral as well as the documentary evidence
                        produced on record.
                        9.2       Mr.Pipalia submitted that the trial court committed a
                        serious error in applying the principles of law as laid down in the
                                                        Page 6 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                            Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                         NEUTRAL CITATION
                            C/FA/5228/2019                                           CAV JUDGMENT DATED: 07/01/2022
                                                                                                                          2022:GUJHC:884-DB
                        case of Ajay Kiritkant Ghelani and others vs. Mathureshnagar
                        Co-Operative, reported in 2008(1) GLR 213.
                        10)      We have considered the oral evidence of the plaintiff led on
                        oath by way of affidavit and have also looked into the relevant
                        documents            such     as   the     Power        of     Attorney        (Exh:        21),
                        Examination-in-Chief on behalf of the plaintiff (Exh: 19), copy of
                        the ledger account maintained by the plaintiff (Exh: 156) and
                        copies of the different invoices along with its delivery chalan
                        (Exh: 22 to 152).
                        ANALYSIS :
                        11)      The short question that falls for our consideration is,
                        whether the trial court was justified in dismissing the suit
                        instituted by the plaintiff, despite there being no denial and/or
                        no rebuttal evidence led by the respondent-original defendant.
                        12)      So as to answer the aforesaid question, we should look into
                        the provisions of Sections 34, 59, 61 and 62 respectively of the
                        Indian Evidence Act, 1872 :
                                 Section 34. [Entries in books of account including those
                                 maintained in an electronic form] when relevant.—
                                                                 Page 7 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                          Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                            NEUTRAL CITATION
                            C/FA/5228/2019                              CAV JUDGMENT DATED: 07/01/2022
                                                                                                             2022:GUJHC:884-DB
                                 [Entries in books of accounts including those maintained in
                                 an electronic form], regularly kept in the course of business,
                                 are relevant whenever they refer to a matter into which the
                                 Court has to inquire, but such statements shall not alone be
                                 sufficient evidence to charge any person with liability.
                                 Section 59: Proof of facts by oral evidence.—All facts, except
                                 the [contents of documents or electronic records], may be
                                 proved by oral evidence.—All facts, except the [contents of
                                 documents or electronic records], may be proved by oral
                                 evidence.
                                 Section 61: Proof of contents of documents.—The contents of
                                 documents may be proved either by primary or by
                                 secondary evidence.
                                 Section 62: Primary evidence.—Primary evidence means the
                                 document itself produced for the inspection of the Court.
                                 Explanation 1.—Where a document is executed in several
                                 parts, each part is primary evidence of the document;
                                 Where a document is executed in counterpart, each
                                 counterpart being executed by one or some of the parties
                                 only, each counterpart is primary evidence as against the
                                 parties executing it.
                                 Explanation 2.—Where a number of documents are all made
                                 by one uniform process, as in the case of printing,
                                 lithography, or photography, each is primary evidence of the
                                                         Page 8 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                             Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                            NEUTRAL CITATION
                            C/FA/5228/2019                              CAV JUDGMENT DATED: 07/01/2022
                                                                                                             2022:GUJHC:884-DB
                                 contents of the rest; but, where they are all copies of a
                                 common original, they are not primary evidence of the
                                 contents of the original. Illustration A person is shown to
                                 have been in possession of a number of placards, all printed
                                 at one time from one original. Any one of the placards is
                                 primary evidence of the contents of any other, but no one of
                                 them is primary evidence of the contents of the original.
                        13)      It is also profitable to refer to the provisions of Order VIII
                        Rules 1, 3, 4 and 5 as well as Order XII (2-A) of the CPC, which
                        are reproduced as under:-
                                 ORDER-VIII
                                 (1)      WRITTEN STATEMENT : The defendant shall, at or
                                 before the first hearing or within such time as the Court may
                                 permit, present a written statement of his defence.
                                 (3) DENIAL TO BE SPECIFIC : It shall not be sufficient for a
                                 defendant in his written statement to deny generally the
                                 grounds alleged by the plaintiff, but the defendant must
                                 deal specifically with each allegation of fact of which he
                                 does not admit the truth, except damages.(4) EVASIVE
                                 DENIAL : Where a defendant denies an allegation of fact in
                                 the plaint, he must not do so evasively, but answer the point
                                 of substance, Thus, if it is alleged that he received a certain
                                 sum of money, it shall not be sufficient to deny that he
                                 received that particular amount, but he must deny that he
                                 received that sum or any part thereof, or else set out how
                                                         Page 9 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                             Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                        NEUTRAL CITATION
                            C/FA/5228/2019                                         CAV JUDGMENT DATED: 07/01/2022
                                                                                                                         2022:GUJHC:884-DB
                                 much he received. And if an allegation is made with diverse
                                 circumstances, it shall not be sufficient to deny it along with
                                 those circumstances.
                                 (5) SPECIFIC DENIAL : Every allegation of fact in the plaint,
                                 if not denied specifically or by necessary implication, or
                                 stated to be not admitted in the pleading of the defendant,
                                 shall be taken to be admitted except as against a person
                                 under disability:
                                 Provided that the Court may in it discretion require any fact
                                 so     admitted      to   be   proved          otherwise      than       by     such
                                 admission.”
                                 ORDER XII RULE- 2A. DOCUMENT TO BE DEEMED TO BE
                                 ADMITTED IF NOT DISPUTED AFTER SERVICE OF NOTICE
                                 TO ADMIT DOCUMENTS : (1) Every document which a party
                                 is called upon to admit, if not denied specifically or by
                                 necessary implication, or stated to be not admitted in the
                                 pleading of that party or in his reply to the notice to admit
                                 documents, shall be deemed to be admitted except as
                                 against a person under a disability:
                                 Provided that the Court may, in its discretion and for
                                 reasons to be recorded, require any document so admitted to
                                 be proved otherwise than by such admission.
                                 (2) Where a party unreasonably neglects or refuses to admit
                                 a document after the service on him of the notice to admit
                                                                Page 10 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                         Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                           NEUTRAL CITATION
                            C/FA/5228/2019                             CAV JUDGMENT DATED: 07/01/2022
                                                                                                            2022:GUJHC:884-DB
                                 documents, the Court may direct him to pay costs to the
                                 other party by way of compensation.
                        14)      At the outset we may take notice of the fact that the
                        respondent-original defendant had not appeared before the trial
                        court as well as before this Court so as to put-forth his defense.
                        In other words, the pleadings of the plaint and evidence so
                        adduced remained uncontroverted all throughout. Thus, the suit
                        for recovery of dues based on documentary evidence such as
                        invoices, duly signed and acknowledged delivery chalan and
                        ledger account, has not been disputed by the respondent-
                        defendant.
                        PRINCIPLES OF LAW APPLICABLE TO THE PRESENT CASE :
                        15)      In Chandi Ram vs. Jamind Kanta Deka, reported in AIR
                        1952 Assam 92, the Assam High Court held that if a ledger is
                        not supported by any Day-book or Roznama, it would not fulfill
                        the requirement of Section 34 of the Evidence Act and cannot be
                        regarded relevant under that section. In the opinion of the
                        Assam High Court there is no daily opening or closing balance in
                        the ledger accounts which is maintained in some other books
                        and ledger can be prepared at any time. Therefore, it cannot be
                        regarded as relevant.
                                                       Page 11 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                            Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                      NEUTRAL CITATION
                            C/FA/5228/2019                                        CAV JUDGMENT DATED: 07/01/2022
                                                                                                                       2022:GUJHC:884-DB
                        16)      In Hira Meher vs. Birbal Prasad Agarwal, reported in AIR
                        1958 Orissa 4, the Orissa High Court held that if the plaintiff
                        relies on the entries in his credit ledger which he himself has
                        scribed out, the plaintiff does not assert that the transaction on
                        credit took place actually the credit register cannot be relied
                        upon because there will be no corroboration of the entries made
                        therein.
                        17)      In Sohan Lal vs. Gulab Chand, reported in AIR 1966 Raj.
                        229, the Rajasthan High Court held that Bahi Khata is an
                        account book if maintained in regular course of business and
                        entries       therein         are   not   admissible      if   not     supported           by
                        corresponding entries on Rokam or Nagal Behi.
                        18)      In Zehna Sorabji vs. Mirabella Hoter Col. (Pvt.) Ltd.,
                        reported in AIR 1981 Bom 446, the Bombay High Court held
                        that a ledger by itself cannot be a book of account of the
                        character contemplated by Section 34 of the Evidence Act unless
                        it is corroborated by the entries in the cash-book.
                        19)      In Beni vs. Bisan Dayal, reported in AIR 1925 Nag. 445,
                        the Nagpur High Court held that, the entries in the books of
                                                                  Page 12 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                       Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                           NEUTRAL CITATION
                            C/FA/5228/2019                             CAV JUDGMENT DATED: 07/01/2022
                                                                                                            2022:GUJHC:884-DB
                        account by itself are not sufficient to charge any person with
                        liability unless there is independent evidence of the transaction
                        to which the entries relate.
                        20)      The proposition laid down in the above referred authorities
                        about the admissibility of ledger without the corroborative
                        evidence being led in support of the entries in the ledger cannot
                        be disputed. It is well settled that a ledger, though an account
                        book, has no evidenciary value unless the entries made therein
                        are proved by independent evidence which, in other words,
                        would mean that there must be corroboration of entries which
                        corroboration can be supplied by proving the transaction or by
                        proving the entries in the Daily cash book or Roznama. Without
                        corroboration, entries in the ledger cannot be brought within the
                        purview of Section 34 of the Evidence Act. In the instant case, it
                        is, therefore, to be seen, whether apart from the entries in the
                        ledger, there was corroborative evidence in support of the entries
                        in the ledger. This matter would largely depend on the facts of
                        each case.
                        21)      The plaintiff led oral evidence on oath by way of affidavit
                        through his Power of Attorney. The Power of Attorney, in his oral
                        evidence, has stated that the plaintiff-firm had supplied goods in
                                                       Page 13 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                            Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                          NEUTRAL CITATION
                            C/FA/5228/2019                            CAV JUDGMENT DATED: 07/01/2022
                                                                                                           2022:GUJHC:884-DB
                        the form of papers to the defendant for an amount mentioned in
                        the plaint; out of which, part payment was made by the
                        defendant and part payment was due from him on account of
                        supply of those goods. There is no rebuttal by the defendant with
                        respect to the statement given by the plaintiff. This, in our
                        opinion, would constitute sufficient corroboration within the
                        meaning of law about the entries made in the ledger.
                        22)      In Balmukand vs. Jagan Nath, reported in AIR 1963 Raj.
                        212, the Rajasthan High Court that Section 34 of the Evidence
                        Act does not require any particular form of corroborative
                        evidence. Even a witness, in support of entries made in the
                        books of account, would be sufficient compliance with Section 34
                        of the Evidence Act. In Balmukand (supra), the Rajasthan High
                        Court relied on AIR 1938 All. 353 (Narain Das and others vs.
                        Firm Ghasi Ram Gojar Mal and others), wherein the Allahabad
                        High Court held that a single witness can corroborate the entries
                        made in the books of account.
                        23)      In Gopasunder Sabathao vs. Chunilal, reported in AIR
                        1955 Orissa 6, the Orissa High Court held that the evidence of a
                        party himself was substantial compliance with the provisions of
                        Section 34 of the Evidence Act in so far as corroboration of the
                                                      Page 14 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                           Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                             NEUTRAL CITATION
                            C/FA/5228/2019                               CAV JUDGMENT DATED: 07/01/2022
                                                                                                              2022:GUJHC:884-DB
                        entries in the account book were concerned. These authorities do
                        not dispute the proposition of law laid down by the authorities
                        submitted by the learned counsel for the appellant.
                        24)      After scrutinising the law on the point, it is to be held :
                                 i)       that ledger by itself may not be the proof of
                                 transaction and no liability can be fastened on the basis of
                                 an entry in the ledger alone unless it is corroborated by
                                 some other evidence;
                                 ii) ledger can be taken into consideration and would
                                 become relevant u/s 34 of the Evidence Act only when
                                 there is corroborative evidence on record in support of the
                                 entries made therein or in support of the transaction
                                 between the parties;
                                 iii) that what form of evidence is to be led to corroborate
                                 the entries in the ledger would largely depend on the facts
                                 of each case. If the entries in the ledger are not denied by
                                 the defendant, it may not require any corroboration.
                                 Therefore the nature of proof would vary from case to case.
                        25)      The Allahabad High Court decision in the case of Narain
                                                         Page 15 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                              Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                             NEUTRAL CITATION
                            C/FA/5228/2019                               CAV JUDGMENT DATED: 07/01/2022
                                                                                                              2022:GUJHC:884-DB
                        Das (supra) should be considered closely by us. We quote the
                        relevant observations made in paragraphs 4, 5 and 6 therein :
                                 “4. The next question argued by learned Counsel for the
                                 appellants is that the plain, tiff entirely failed to prove the
                                 amount of damages suffered by him. It is contended that the
                                 plaintiff merely produced the ‘bahis’ of his firm and did not
                                 produce any corroborative evidence of the relevant entries
                                 proving the claim of the plaintiff. Under Section 34, Evidence
                                 Act entries in books of account regularly kept in the course
                                 of business are relevant but such statements shall not alone
                                 be sufficient evidence to charge any person with liability. It
                                 is obvious that it was the duty of the plaintiff to have
                                 produced corroborative evidence in support of the entries in
                                 his account books. Legislature however does not require any
                                 particular form of evidence in addition to entries in books of
                                 account and any relevant fact which can be treated as
                                 evidence within the meaning of the Evidence Act would be
                                 sufficient corroborative evidence furnished by the entries in
                                 books of account if true. The question is whether in the
                                 present case there is any such corroboration. On behalf of
                                 the plaintiff, Kishan Gopal has been produced to corroborate
                                 the entries in the account books. This witness is employed
                                 as 'munim' of the plaintiff's firm. He proved the entries in the
                                 account books and stated that the plaintiff had spent Rs.
                                 1982-1-3 on account of the defendants in the purchase of
                                 Bejhar and shop rent, etc. Out of this amount, the witness
                                 stated that the defendants had paid only Rs.400. No cross-
                                 examination has been directed on behalf of the defendants
                                 to question the accuracy of this statement. It is perfectly true
                                                         Page 16 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                              Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                NEUTRAL CITATION
                            C/FA/5228/2019                                  CAV JUDGMENT DATED: 07/01/2022
                                                                                                                 2022:GUJHC:884-DB
                                 that this witness does not say in so many words that he
                                 has personal knowledge of what he states but it appears
                                 that the parties were satisfied with the statement made by
                                 this witness and the defendants did not consider it
                                 necessary to pursue the matter further and cross-examine
                                 this witness with respect to his personal knowledge of the
                                 facts he was stating.
                                 5. In Dwarka Das v. Sant Baksh, (1895) 18 All 92, the facts
                                 were very much similar. In this case the plaintiff sued for
                                 the recovery of money due on a running account and
                                 produced his account books, which were found to be books
                                 regularly kept in the course of business in support of his
                                 claim. One of the plaintiffs gave evidence as to the entries in
                                 the account books but in such a manner that it was not clear
                                 whether he spoke from his personal knowledge of the
                                 transactions entered in the books, the entries in which were
                                 largely in his own hand-writing, or simply as one describing
                                 the state of affairs that was shown by the books. He was
                                 cross, examined but no questions were asked him to show
                                 that he was not speaking as to his personal knowledge. On
                                 these facts it was held that:
                                      The evidence given as above should be interpreted in the
                                      manner most favourable to the plaintiff and might be
                                      accepted in support of the entries in the plaintiffs' account
                                      books which by themselves would not have been
                                      sufficient to charge the defendants with liability. [Head
                                      note of 18 All 98.]
                                                            Page 17 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                 Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                             NEUTRAL CITATION
                            C/FA/5228/2019                               CAV JUDGMENT DATED: 07/01/2022
                                                                                                              2022:GUJHC:884-DB
                                 6. It may be noted that in the present case also, the
                                 defendants did not choose to cross-examine the plaintiff.
                                 The fact that he was the ‘munim’ of the plaintiff's firm was
                                 not questioned nor was his knowledge of the facts tested in
                                 cross-examination. Under these circumstances, I see no
                                 reason to differ from the learned Civil Judge in holding that
                                 the plaintiff has succeeded in establishing his claim with
                                 regard to the amount of money invested by him on be-half of
                                 the defendants. Learned Counsel for the appellants has
                                 relied on Khunni Mal Narain vs. Dwarka Das Baijnath,
                                 (1930) 17 AIR All. 710. The facts of this case appear to be
                                 entirely distinguishable. In this case the oral evidence
                                 produced by the plaintiff consisted mainly of his own
                                 statement and that of his ‘munim’. The Court below had
                                 reasons for rejecting the statements of these witnesses. The
                                 learned Judges in deciding this case did not examine the
                                 evidence but accepted the view expressed by the lower
                                 Appellate Court. Eliminating the oral evidence, there was
                                 nothing left but the bare entries in the account books in
                                 support of the plaintiff's case which under Section 34,
                                 Evidence Act, were considered insufficient to base a decree
                                 upon it. There is nothing in this case which runs counter to
                                 the opinion expressed in the case reported in Dwarka Das
                                 vs. Sant Baksh, (1895) 18 All 92, mentioned above. Having
                                 regard to all the circumstances in my judgment there is
                                 sufficient evidence on the record to corroborate the entries in
                                 the account books.”
                        26)      One more infirmity we have noticed in the impugned
                        judgment of the trial court is with regard to the notice issued by
                                                         Page 18 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                              Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                            NEUTRAL CITATION
                            C/FA/5228/2019                              CAV JUDGMENT DATED: 07/01/2022
                                                                                                             2022:GUJHC:884-DB
                        the plaintiff demanding the requisite amount prior to the
                        institution of the suit. The trial court has taken the view that
                        such demand notice issued by the plaintiff has not been proved
                        in accordance with law. The question is, is it mandatory for a
                        plaintiff to first issue a demand notice and only thereafter file a
                        suit for recovery of money ?          We may clarify that there is no
                        such law which obliges the plaintiff to first issue a demand
                        notice and only thereafter institute a suit for recovery of money.
                        Ordinarily, such notice is issued only for the purpose of
                        limitation. If the plaintiff is apprehensive about the issue of
                        limitation that may be raised by the defendant before the trial
                        court, in the facts and circumstances of the case, only with a
                        view to meet with such contingencies, the plaintiff would first
                        issue a notice and then institute the suit. Demand notice is
                        mandatory only under Sections 12(3)(a) and 12(3)(b) respectively
                        of the Bombay Rent Act, or if it is a suit against the State, in
                        such circumstances, notice under Section 80 of the CPC is
                        required.
                        27)      It appears that the trial court proceeded on the footing that
                        since the plaintiff has not examined any independent witness so
                        as to prove the demand notice served upon the defendant and
                        the delivery chalans, the respondent could not be said to have
                                                        Page 19 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                             Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                          NEUTRAL CITATION
                            C/FA/5228/2019                            CAV JUDGMENT DATED: 07/01/2022
                                                                                                           2022:GUJHC:884-DB
                        received the goods, and accordingly is not entitled to recover the
                        amount towards the sale transaction with the defendant.
                        28)      To hold that a particular document is not admissible for
                        proof of its contents unless the writer is called, is to denude the
                        documentary evidence of all its value and is clearly contrary to
                        certain express statutory provisions to be found in the Evidence
                        Act, more particularly, Section 59 of the Evidence Act. In our
                        opinion, the documentary evidence becomes meaningless if to
                        prove it in every case by way of oral evidence of its contents. If
                        that is the position, it would mean that, in the ultimate, the
                        analysis of the evidence must be oral and that the oral evidence
                        would virtually be the only kind of evidence recognized by law,
                        however, that is not the position under the Evidence Act. The
                        definition of the term ‘evidence’ in Section 3 of the Evidence Act
                        lays down that evidence means and includes statements made
                        by the witnesses, which are called oral evidence, and documents
                        produced before the court, which are called documentary
                        evidence. A bare perusal of Section 59 of the Evidence Act states
                        that all facts, except the ‘contents’ of documents, may be proved
                        by oral evidence. Needless to say, that once the documents is
                        proved in the manner provided under the provisions of the
                        Evidence Act, the contents of that documents are also proved. It
                                                      Page 20 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                           Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                                         NEUTRAL CITATION
                            C/FA/5228/2019                                           CAV JUDGMENT DATED: 07/01/2022
                                                                                                                          2022:GUJHC:884-DB
                        is for that reason that the Evidence Act advisedly lays down that
                        the contents of a document can be proved by proving the
                        document in the usual manner, a proposition that emerges
                        unequivocally from a combined reading of Sections 59, 61 and
                        62 of that Act. Thus, according to us, the trial court should have
                        believed the documents of invoices, such as invoices of the
                        delivery chalan and ledger account, in absence of any dispute or
                        rebuttal         evidence         submitted          by     the   respondent-original
                        defendant. Once the document has been exhibited, the initial
                        burden of proof could be said to have been discharged by the
                        original plaintiff. The original defendant was expected to deny
                        the same with cogent rebuttal evidence, but having failed in
                        submitting the rebuttal evidence, the trial court could not have
                        ignored the exhibited evidence/undisputed evidence merely
                        because there was no oral evidence in the form of examination of
                        any evidence by the witness in support of the documentary
                        evidence.
                        29)      In our view, when the appellant-original plaintiff has
                        produced the copies of the invoices and the delivery chalans duly
                        stamped          and          signed   by     the     respondent-defendant,               more
                        particularly, when there is no denial whatsoever on behalf of the
                        respondent-original defendant, in view of Section 59 of the Act,
                                                                    Page 21 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                                          Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                          NEUTRAL CITATION
                            C/FA/5228/2019                            CAV JUDGMENT DATED: 07/01/2022
                                                                                                           2022:GUJHC:884-DB
                        1872, the trial court should not have held that no oral evidence
                        in the form of examining any evidence about the delivery of
                        goods should have been made. When the initial burden of proof
                        has been discharged by the plaintiff, it is for the respondent-
                        defendant to rebut such evidence.
                        30)      The trial court only kept one thing in mind, i.e. the
                        provisions of 34 of the Act, 1872, which says that, the statement
                        made during the course of business shall not alone be sufficient
                        evidence to charge the person with any liability. This means that
                        the production of only a ledger account would not be sufficient to
                        establish the case. Some corroborative material should be
                        adduced in support of such documents. The trial court should
                        not have been oblivious of the evidence, such as, the statement
                        at Exhibit 156 read with the documents produced at Exhibits 22
                        to 152, i.e. the invoices and the delivery chalans, which are
                        undisputed.
                        31)      In view of the aforesaid facts and circumstances of the
                        case, in our considered opinion and even as per Section 34 of the
                        Act, 1872, the plaintiff could be said to have complied with the
                        requirements of producing the other evidence to substantiate the
                                                      Page 22 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                           Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                           NEUTRAL CITATION
                            C/FA/5228/2019                             CAV JUDGMENT DATED: 07/01/2022
                                                                                                            2022:GUJHC:884-DB
                        ledger account. The trial court has committed serious error in
                        holding that the plaintiff has failed to establish that a sum of
                        Rs.29,36,211/- (Rupees Twenty-Nine Lakh Thirty-Six Thousand
                        Two Hundred Eleven Only) is due and recoverable from the
                        defendant out of the total dues of Rs.42,31,167/- (Rupees Forty-
                        Two Lakh Thirty-One Thousand One Hundred Sixty Seven Only).
                        32)      According to us, the trial court ought not have ignored the
                        evidence led by the plaintiff through his Power of Attorney. In
                        our view, the Power of Attorney Holder certainly can depose in
                        the proceedings to the extent of his personal knowledge about
                        the transactions. In the instant case, the date of the Power of
                        Attorney is 15.07.2011 and this Power of Attorney was executed
                        for a special reason to institute legal proceedings on behalf of the
                        firm. The Power of Attorney Holder appears to have been acting
                        on behalf of the firm since long and thereby it would not be
                        appropriate to presume that the Power of Attorney Holder has no
                        personal knowledge as regards the transactions in question,
                        more so, when there was no cross examination of the Power of
                        Attorney Holder disputing, inter-alia, his personal knowledge of
                        the transaction in question. Thus, in our considered opinion, the
                        view taken by the trial court as regards not having personal
                        knowledge is erroneous. We say so because there cannot be any
                                                       Page 23 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                            Downloaded on : Sat Apr 26 13:06:26 IST 2025
                                                                                                           NEUTRAL CITATION
                            C/FA/5228/2019                             CAV JUDGMENT DATED: 07/01/2022
                                                                                                            2022:GUJHC:884-DB
                        general presumption that the Power of Attorney Holder would
                        not possess any personal knowledge. The defendant has to
                        confront the Power of Attorney as regards his personal
                        knowledge. However, in the instant case, as noted above, the
                        Power of Attorney Holder was not cross-examined. Thus, there is
                        no dispute about his personal knowledge.
                        33)      In the result, this Appeal succeeds and is hereby allowed.
                        The impugned judgment and decree passed by the Principal
                        Senior Civil Judge, Vapi, dated 18.07.2012, in the Special Civil
                        Suit No.62 of 2016 (Old No.72 of 2014) is hereby quashed and
                        set-aside. The Special Civil Suit No.62 of 2016 (Old No.72 of
                        2014) is hereby allowed. The defendant is directed to pay an
                        amount of Rs.29,36,211/- (Rupees Twenty-Nine Lakh Thirty-Six
                        Thousand Two Hundred Eleven Only) with running interest @
                        6% per annum from the date of the institution of the suit.
                        34)      Registry to draw the decree accordingly.
                                                                            (J. B. PARDIWALA, J.)
                                                                             (NIRAL R. MEHTA, J.)
                        /MOINUDDIN
                                                       Page 24 of 24
Uploaded by M.A. SAIYED(HC00172) on Fri Jan 07 2022                            Downloaded on : Sat Apr 26 13:06:26 IST 2025