MISCELLANEOUSCentral

Section 10 of The Industrial Reconstruction Bank (Transfer of Undertakings and Repeal) Act, 1997

The Company shall be deemed to be a bank for the purposes of the Bankers' Books Evidence Act, 1891.

Summary

The Company is treated as a bank under the Bankers' Books Evidence Act, 1891.
This legal status makes it much easier for the Company to present its account books and records as evidence in court.
Instead of bringing original physical account ledgers to court, the bank can submit certified copies of its book entries.
This avoids disrupting daily banking operations by keeping the original books safely at the bank's office.

Practical examples

1In 1998, the Company goes to court to recover an unpaid loan of 150,000 rupees from a borrower named Vikram Singh. Instead of dragging its massive, original physical accounting ledgers and computer logs to the courtroom, the Company's branch manager provides certified printouts of Vikram's account statement, which the judge accepts as valid evidence under the 1891 Act.

2A court in Mumbai is investigating a financial dispute involving a firm that received assistance from the Company. The court requests to inspect the Company's transaction records from October 1997. Thanks to Section 10, the bank can provide a certified copy of the specific ledger page, allowing the original books to stay secure at the bank's headquarters.

FAQ

1. What is the main purpose of Section 10?

It deems the Company to be a bank for the purposes of the Bankers' Books Evidence Act, 1891, making its certified book entries admissible as court evidence.

2. Why is the Bankers' Books Evidence Act, 1891, important for the Company?

This Act allows banks to prove transactions in court using certified copies of their books instead of presenting the actual original records.

3. Does this provision apply to electronic or digital records?

Yes, books under the Bankers' Books Evidence Act, 1891, include all forms of ledgers, daybooks, and modern electronic records kept by a bank in its ordinary course of business.

Test yourself

Q1.Which specific act is applied to the books of the Company under Section 10?

Q2.For the purposes of the Bankers' Books Evidence Act, 1891, the Company is deemed to be what?

Q3.What year is associated with the Bankers' Books Evidence Act mentioned in Section 10?

Q4.What is the practical legal benefit of applying the Bankers' Books Evidence Act, 1891, to the Company?

Q5.Does Section 10 list any other acts besides the Bankers' Books Evidence Act, 1891?

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