CAIIB BRBL Module C Unit 17 : The Bankers’ Book Evidence Act, 1891

08/11/2023

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CAIIB Paper 4 BRBL Module C Unit 17 : The Bankers’ Book Evidence Act, 1891 (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Paper 4 (BANKING REGULATIONS AND BUSINESS LAWS) includes an important topic called “The Bankers’ Book Evidence Act, 1891”. Every candidate who are appearing for the CAIIB Certification Examination 2023 must understand each unit included in the syllabus.

In this article, we are going to cover all the necessary details of CAIIB Paper 4 (BRBL) Module C (IMPORTANT ACTS/LAWS & LEGAL ASPECTS OF BANKING OPERATIONS – PART B) Unit 17 : The Bankers’ Book Evidence Act, 1891, Aspirants must go through this article to better understand the topic, The Bankers’ Book Evidence Act, 1891 and practice using our Online Mock Test Series to strengthen their knowledge of The Bankers’ Book Evidence Act, 1891. Unit 17 : The Bankers’ Book Evidence Act, 1891

Introduction

Banks maintain accounts of their customers (including borrowers and other persons) and other details in various ledgers, registers, etc. When any claim of the bank is required to be established or proved in the Courts of Law or any other such forums, these books are required to be produced in original. It is difficult to do so. Therefore, its extracts and statement of accounts are produced.
To facilitate the production of such evidence in easy way and to have evidentiary value to the extracts and copies, ‘The Bankers’ Books Evidence Act, 1891 was enacted to amend the Law of Evidence with respect to bankers’ books.

Applicability & Definitions

The Act extends to the whole of India except the State of Jammu & Kashmir.
‘Bankers’ books’ include ledgers, day books, cash books, account books and all other records used in the ordinary business of a bank. These records may be kept in written form or stored in a micro- film, magnetic tape or any other form of mechanical or electronic data retrieval mechanism. Such record can be either on site or at any off site location and includes a back-up or disaster recovery site.

‘Legal proceeding’ means

Any proceeding or inquiry in which evidence is or may be given;
An arbitration; and
Any investigation or inquiry under the Code of Criminal Procedure, 1973
Certified copy’ means when the books of a bank;

If maintained in the written form, a copy of any entry in such books together with a certificate written at the foot of such copy mentioning that

It is a true copy of such entry
That such entry is contained in one of the ordinary books of the bank
That such entry was made in the ordinary course of business
That such book is still in the custody of the bank
And if the copy was obtained by a mechanical or other process that in itself ensures the accuracy of the copy, a further certificate to that effect.

If maintained in the electronic form

Consists of printouts of data stored in a floppy, disc, tape or any other electromagnetic data storage device, or
A copy of such printout; and it should contain the certificate having all the applicable contents

If maintained in the mechanical form

A printout of any entry in the books of a bank stored in a microfilm, magnetic tape, or
Any other form of mechanical or electronic data retrieval mechanism obtained by mechanical or other process, and it should contain the certificate having all the applicable contents.

Conditions In The Printout

As per Section 2A of the statute when the books of the bank are not handwritten and copies are taken by way of printout, the copy must accompany the following:

A certificate by the principal accountant or the manager to the effect that it is a printout of such entry or a copy of such printout; and
A certificate by a person in charge of computer system containing a brief description of the computer system and the particulars thereof
A further certificate required is from the person in charge of the computer system to the effect that, to the best of his knowledge and belief, such computer system is operated properly at the material time, he was provided with all the relevant data and the printout represents correctly and is appropriately derived from the relevant data.

Case In Which Officer Of Bank Not Compellable To Produce Books

According to Section 5 of the Act in any proceeding where the bank is not a party, no officer of a bank shall be compellable to produce any bankers’ book, contents of which can be proved, under this Act by production of certified copies.
Similarly, no officer of the bank shall be called as witness to prove the matters, transactions and accounts recorded in the certified copies. However, the Court may order otherwise for special cause.
Even where a Bank has itself filed a suit for recovery of dues, the original documents need not be produced in the court unless the documents are disputed. The requirement of filing original documents ought to be insisted upon only when the parties actually dispute the documents which are on record.

Inspection Of Books By Order Of Court Or Judge

In terms of Section 6 of the Act “(1) On the application of any party to a legal proceeding, the Court or a Judge may order that such party be at liberty to inspect and take copies of any entries in a banker’s book for any of the purposes of such proceeding,
or may order the bank to prepare and produce, within a time to be specified in the order, certified copies of all such entries, accompanied by a further certificate that no other entries are to be found in the books of the bank relevant to the matters in issue in such proceeding.
An order under this may be made either with or without summoning the bank, and shall be served on the bank three clear days (exclusive of bank holidays) before the same is to be obeyed.

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CAIIB 4 Module C Unit 17- The Bankers’ Book Evidence Act, 1891 ( Ambitious_Baba )