Entries in business accounts are relevant but insufficient alone to establish liability; plaintiffs must provide credible evidence to support their claims.

JUDGMENT

1. This appeal under Section 13 of the Commercial Courts Act read with Section 96 CPC is directed against judgment and decree dated 08.11.2019 passed by Commercial Court, Udaipur, whereby the suit filed by the appellant-plaintiff for recovery of a sum of Rs.5,17,286/-, has been dismissed.

2. The suit was filed by the plaintiff, inter alia, with the submissions that the plaintiff-firm was a proprietorship concern and was involved in business of sale of cattle feed; the defendant was dealing with the plaintiff-firm since 2012, he always purchased the goods on credit, for which, bills were issued and the same were entered into the account in defendant's name in the ledger maintained by the plaintiff, which contains all the details pertaining to purchases made by the defendant and the amount paid. It was claimed that the defendant made last purchase on 29.06.2015 and also paid Rs.30,000/- towards the previous out standings and on the said date, a sum of Rs.3,67,286/- was outstanding. Despite repeated reminders, the out standing were not paid and the defendant stopped purchasing goods and visiting the plaintiff-firm.

3. A notice dated 26.05.2017 was sent, which was refused. It was further reiterated in the suit that the account of the defendant was being maintained in the ledger, which shows outstanding of Rs.3,67,286/- and in terms of the indications made in the bills, for the delayed payment, the plaintiff was entitled to interest @ 2% and, therefore, from 29.06.2015 till the date of issuing notice, the amount of interest comes to Rs. 1,50,000/-, as such a total sum of Rs. 5,17,286/- has been outstanding.

4. Based on the above submissions, it was prayed that the decree for a sum of Rs. 5,17,286/- be granted alongwith contractual interest.

5. After service, written statement was filed by the defendant denying the averments contained in the plaint. It was contended that no goods were purchased on credit and all the goods were purchased in cash.

6. Further submissions were made that all the bills have been paid and no amount is outstanding. Ultimately, it was prayed that the suit be dismissed.

7. The commercial court framed three issues. On behalf of the plaintiff, Proprietor-Rodi Lal Nagda was examined as PW-1 and he exhibited 34 documents. On behalf of the defendant, sole defendant-Kanhaiya Lal was examined, however, he did not produce any documentary evidence.

8. After hearing the parties, the commercial court came to the conclusion that the suit was based on the bills (Exhibits- 6 to 34) and the ledger (Exhibit-4), Exhibits-6 to 34 i.e. the bills did not contain any signatures of the person, who had prepared the bill, proprietor of the firm or the plaintiff, except for four bills, none of the bills contained, signatures of the defendant or his representative. The court also noticed that the fact that the amount being outstanding against the defendant, the said aspect was not reflected in the returns filed with the Income-tax Department despite the plaintiff being an income-tax payer, the ledger account produced was found suspicious and as the petty cash book, cash book and various vouchers, which formed the basis for the entries in the ledger were not produced, the entries were found to be unreliable.

9. The commercial court also noticed the contradictions in the statement of the plaintiff regarding the entries made in the ledger and found that the ledger (Exhibit-4) was nothing more than a waste paper and, consequently, decided the issue No.1 against the plaintiff.

10. The issue No.2 pertaining to lack of cause of action was decided against the defendant and in view of its finding on issue No.1, the suit was dismissed.

11. Learned counsel for the appellant made vehement submissions that the commercial court was not justified in dismissing the suit based on the findings recorded by it.

12. Submissions were made that there were contradictions in the pleadings and proof on part of the defendant, inasmuch as, while in the written stat