Summary
The Court decreed a supplier’s recovery suit on invoices, debit notes and ST-1 forms bearing the purchaser’s admitted stamps and signatures. The purchaser failed to prove its allegations that the transactions were fictitious or the documents signed under duress. A witness producing regularly maintained business records did not have to be their signatory where execution was admitted. The High Court had also relied on grounds not raised in the defence. Its dismissal was set aside and Rs.96,41,765.31 decreed, with interest at 9% per annum on the principal Rs.71,82,266 from institution until realisation.
Issues
- Whether admitted invoices, debit notes and ST-1 forms established the supplier’s claim despite allegations of fictitious transactions and duress.
- Whether production through a business-records witness was insufficient because the witness had not signed or witnessed execution of the documents.
Held
- The purchaser admitted execution of the invoices, debit notes and ST-1 forms, disputing signatures only on delivery challans. The accepted documents, including forms identifying invoice dates and values, supported receipt of goods and the unpaid claim. (¶¶ 12-14, 16, 21)
- The purchaser alleging fraudulent or fictitious transactions and acceptance of bills without delivery bore the burden of proving those issues. Its failure to produce its own books warranted an adverse inference, while the supplier’s claim rested on transaction documents rather than account entries alone. (¶¶ 13, 15-16)
- The documents came from regularly maintained business records, and the purchaser admitted their execution. In that setting, the producing witness need not have signed them or been present at execution. This was not merely a case of marking unproved documents as exhibits. (¶¶ 14, 20)
- The uncorroborated duress allegation was inconsistent with repeated signing over three months and absence of contemporaneous complaint. The appellate court also erred in relying on registration-related grounds outside the pleaded defence. (¶¶ 9-10, 19-21)
- The suit was decreed for Rs.96,41,765.31, with interest at 9% per annum on principal Rs.71,82,266 from filing until realisation. (¶ 22)
Result
Appeal allowed; Division Bench dismissal set aside; recovery of Rs.96,41,765.31 decreed with 9% annual interest on Rs.71,82,266 from suit filing until realisation.