2022 Supreme(Online)(KER) 26211
HIGH COURT OF KERALA
P.SOMARAJAN, J
M/S.V.DASA PRABHU – Appellant
Versus
C.VENUGOPAL – Respondent
RFA 830 2009
SMT.R.RANJANIE
A handwritten admission by a party and proper business record-keeping are critical in commercial recovery suits.
Headnote:
Recovery - Commission Agent - N/A - The court evaluated the evidentiary value of a handwritten letter and accounts maintained by the plaintiff in business. The lack of proper consideration by the trial court led to a remand for fresh adjudication.
Fact of the Case:
The plaintiff's suit for recovery of Rs.6,44,855 was dismissed by the trial court, overlooking a letter (Ext.A14) in which the defendant, a commission agent, admitted an outstanding balance.
Finding of the Court:
The court found that the trial court failed to properly consider the admission in Ext.A14 and its correlation with entries in the plaintiff's ledger, warranting a remand for fresh adjudication.
Issues: Whether the trial court erred in dismissing the suit by not considering the admissibility and evidentiary weight of Ext.A14 and related documents.
Ratio Decidendi: The court stressed the importance of evaluating handwritten admissions and the maintenance of business accounts in determining the validity of the plaintiff's claim.
Final Decision: The trial court's dismissal of the suit is set aside; the matter is remanded for fresh adjudication.
JUDGMENT
A suit for recovery of money based on the accounts maintained by the plaintiff in due course of the business was dismissed by the trial court overlooking the admission made by the defendant in Ext.A14 letter. The defendant was acting as a commission agent under the plaintiff for the sale of goods. According to the plaintiff, an amount of Rs.6,44,855/- was due to the plaintiff on account of the sale of goods after deducting the commission, out of which an amount of Rs.2,50,000/- was paid by way of two cheques. The balance amount was not paid in spite of request, hence the suit.
2. Ext.A14 letter was brought under challenge mainly on the reason that it did not contain the signature of the defendant, but admittedly, it is a letter issued by the defendant to the plaintiff in his own handwriting. As such, there is no much merit in the contention that the said document cannot be accepted in evidence. Yet another case was also raised by the defendant that it was issued under compulsion, for which, no satisfactory evidence was adduced. On the other hand, the content of Ext.A14 letter and the admission thereunder would sanctify the entries in Ext.A3 ledger and Ext.A2 sale register. The payment made by way of two cheques which comes to Rs.2,50,000/- was also duly entered in the ledger and it has come out in evidence that it was maintained duly in the course of business done by the plaintiff. Since it is a ledger maintained by the plaintiff, unless it is proved that it is maintained duly in the course of business, no sanctity can be attached. But the admission made in Ext.A13 and the entries in accordance with Ext.A2 sale register and the payment effected by way of two cheques would sufficiently show that it was maintained in the ordinary course of business. The trial court has failed to appreciate the admission made under Ext.A14 letter and the evidentiary value of Ext.A13 statement properly in tune with Ext.A2 and A3 documents. It is submitted by the learned counsel for the respondent that the parties may be permitted to adduce additional evidence so as to adjudicate the dispute properly. It was not objected to by the learned counsel for the appellant. Hence, the decree and judgment of the trial court dismissing the suit is hereby set aside. The matter is remanded back to the trial court for fresh adjudication. The parties shall appear before the trial court on 31/01/2022. The trial court shall dispose of the matter within three months thereafter.
The appeal is allowed in part accordingly. No cost.