An account stated is a transaction involving mutual agreement on items of account and the balance payable, and it can take the form of a mere acknowledgement of a debt.

( 1 ) THIS appeal is from the judgment of Law, J. dated 21st September, 1964 by which the appellant's suit was dismissed.

( 2 ) THE appellant filed the suit against the defendants and claimed a decree of Rs. 8602. 00. The defendants are Fatehchand Kanoi and Abirchand Kanoi. They are described as residing and/or carrying on business at Sujangarh in the State of Rajputana. The appellant and his eldest brother Manickchand Saraogi in their business of Manickchand Durgaprosad had dealings and transactions with the defendants. The transactions are alleged to relate to buying and selling of jute and other goods. The transactions are alleged to be prior to S. Y. 2015 corresponding to 1957-1958. The further allegations of the appellant are that the accounts between the appellant and his brother Manickchand Saraogi on the one hand and the defendants on the other were gone into and finally settled and adjusted. Fatehchand Kanoi for himself and as agent of his son Abirchand Kanoi is alleged by the appellant to have agreed at Calcutta to pay to the plaintiff one half of the amount due together with interest. The appellant alleged in the plaint that the defendant Fatehchand Kanoi for himself and as authorized agent of his son Abirchand Kanoi acknowledged and/or entered the sum due as alleged in the plaint to the plaintiff unconditionally in a writing signed by him for self and as authorized agent of Abirchand Kanoi. In paragraph 4 of the plaint the appellant alleged that the sum of Rs. 8602. 00 was due and owing on the basis of the accounts adjusted or settled.

( 3 ) THE defendants filed separate written statements. The defendants appeared at the trial. Various issues were raised on behalf of the defendants. The defences will appear from the issues raised. Broadly stated, the defence were first that there was no transaction between the appellant and his brother on the one hand and the defendants on the other as alleged in the plaint. Secondly, that there was no settlement or adjustment of account. Thirdly, that Fatehchand did not agree to pay to the appellant the share. Fourthly that there was no consideration for the writing referred to in the plaint. Fifthly, that Fatehchand did not have any authority. Sixthly, the authority of Fatehchand was questioned and the dissolution of the firm Manickchand Durgaprosad was also questioned in the written statement. Seventhly, it was pleaded that according to the practice or usage of the firm of Manickchand Durgaprosad, accounts used to be sent to the business of defendants for signature for submission to the income-Tax and Sales Tax Authorities and further, it was the practice and usage of the defendants to sign such papers.

( 4 ) ORAL evidence was adduced by the plaintiff. The defendants did not adduce any oral evidence.

( 5 ) THE learned Judge came to the conclusion that there was no transaction between the appellant and the appellant's brother on the one hand and the defendants on the other. Assuming there was transaction, the learned Judge came to the conclusion that there was no adjustment of accounts. The learned Judge came to the conclusion that the evidence did not establish that there was any settlement between the parties and that at best it could be said to be an acknowledgement by Fatehchand Kanoi. The learned Judge further came to the conclusion that Ext. A, namely, the document relied on in the plaint could not be accepted as account stated. If it were not an account stated but a mere acknowledgement, the learned Judge came to the conclusion that it did not amount to promise to pay and it fell within the mischief of the provisions contained in Section 25 (3) of the Contract Act.

( 6 ) THE only contention which was advanced on behalf of the respondent in this appeal was whether Ext. A in the present case could form the basis of the plaintiff's suit. Counsel on behalf of the respondent contended that Ext. A was not an account stated within the meaning of the words "account s