The main legal point established is the reliance on the Bankers books evidence act 1977, Section 4, as a basis for considering certified copies of entries in a banker's book as prima facie evidence in legal proceedings.

Headnote:
Bank - Loan Recovery - Bankers books evidence act 1977, Section 4
Fact of the Case:

The respondent sought settlement of a loan amount before the Registrar Cooperative Societies, claiming to have repaid a substantial portion of the loan. The bank objected, stating a larger outstanding amount. The court directed the respondent to deposit a remaining loan amount with the bank.
Finding of the Court:

The court found that the respondent did not dispute the bank's statement of accounts, and the order of the court below was mysterious and not according to law. The court set aside the order and remanded the case for a fresh order under the law.
Issues: The issues revolved around the settlement of the loan amount, the respondent's repayment claims, and the court's jurisdiction in adjudicating the matter.
Ratio Decidendi: The court relied on the Bankers books evidence act 1977, Section 4, which establishes that a certified copy of entry in a banker's book shall be considered as prima facie evidence with regard to accounts in all legal proceedings.
Final Decision: The court set aside the order and remanded the case for a fresh order under the law, directing the parties to appear before the court below on a specified date.

1. This revision petition has been filed by bank against the order of Registrar dated 27.3.2010,by virtue of which it has been directed by the Court below that,respondent shall deposit Rs. 30,000/- with bank as remaining loan amount.

2. Petitioners have challenged the impugned order on the grounds that,Officer below has completely failed to exercise jurisdiction vested to him. That despite the facts that an amount of Rs.1,99,717 /- was outstanding against the respondent, Court below directed respondent to dopiest Rs,. 30,000/-. That Court below failed to appreciate that money lying in the bank was public money and respondent can not be absolved from paying interest. That statement of account of bank clearly shows that, up to 30.32009 an amount of 1,99,717 was outstanding against respondent.

3. I have heard both the counsels at length and perused the records.

4. From the perusal of records it reveals that, respondent filed a petition seeking settlement of loan amount before Registrar Cooperative Societies on 28.2.2009. In the petition, respondent stated that he obtained housing loan of Rs. 1.5 lacs from bank and it was obtained on 3.10.2001. That while taking loan, he mortgaged his plot on which respondent raised construction. That he got seriously ill and some default were occurred, while paying the installments. That as per his calculations, a total amount of Rs. 1.65 has been repaid in regular installments. That he made a detailed representation with bank, but no response has been shown by bank. That he hardly earns Rs. 1500/- per month.

5. On this petition, bank filed objections and stated that numbers of default has been made by borrower ad as on 29.2.2009,an amount of Rs. 1.79144 is outstanding against the petitioner. Court below after appreciating the all facts of the case passed the impugned order. The concluding Para of orders reads as under:

The account turned NPA on 31.3.2003. As per the account statement submitted by the bank an amount of Rs. 199717/- of which Rs. 1,80,644/- and Rs. 19073 principal and interest respectively was outstanding against the petitioner as on 30.9.2009.

6. The account statement indicating the position of credits and debits duly sealed and signed by the authorized signatory of the Bank refers to the amount of outstanding and Rs, 179769/- and Rs. 31.3.2003 the date of NPA. The petitioner has repaid an amount of Rs. 1, 70,000/- till date besides willing to pay Rs. 30,000/- more, thus aggregating the total repayments 9to Rs. 2.00 lacs.

7. The petitioner shall, therefore, fulfill his commitment and pay an amount of Rs. 30,000/- to the respondent bank, which shall be credited to the amount outstanding against the petitioner as on 31.3.2003. The amount of Rs. 30,000/- shall be paid in one statement within one month from the date the copy of this Order is served upon the petitioner by respondent bank.

50% of Rs. 19073/- interest recoverable as per the account statement of the bank shall also be paid by the petitioner to he respondent bank within three months, beginning from the date of remittance of Rs. 30,000/-. The file to go to the records after due completion and interim orders if any, shall be deemed to have been withdrawn.

8. I have given my thought consideration to whole aspects of matter.

9. All money lying in the banks and financial institution are public money and banks and other financial institutions, survive on the interest gathered on loan amount given to barrowers. The Courts, where litigations are filled with regard to recovery of loan, have to keep this aspect in mind, while adjudicating upon the matter.

10. In the present case, respondent approached the Court below on 28.2.2009 and so he was duty bound to pay all outstanding including interest up to that date and till its liquidation. It was not the case of respondent that, he will pay the loan amount, which have become due on 31.3.2003 the date on which his account was turned NPA. The Court below while deciding the matter has himself, take

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