Important aspects of Bankers’ Book Evidence Act, 1891 :
(a) The Act extends to the whole of India except the State of Jammu & Kashmir.
(b) ‘Bank’ and ‘banker’ means
(i) any company or corporation carrying on business of banking;
(ii) any partnership or individual to whose books, provision of this Act are made applicable;
(iii) any post office saving bank or money order office.
(c) Bankers’ books include all books like ledgers, day books, cash books and all other records used in the ordinary business of a bank. These can be maintained in any form such as manual records, computer printouts, stored in a micro-film, magnetic tape or any other form of mechanical or electronic data. Such record can be kept either on site or at any off site location including a back-up or disaster recovery site
(d) Court means the person or persons before whom a legal proceeding is held and the ’Judge’ refers to a Judge of a High Court.
(e) Legal proceeding means (i) any proceeding or inquiry in which evidence is or may be given; (ii) an arbitration;
(iii) any investigation or inquiry under Code of Criminal Procdure,1973 or under any other law as applicable for collection of evidence, conducted by a police officer or by any other person (not being a magistrate) authorised in this behalf by a magistrate or by any law for the time being in force.
(f) “certified copy” means when the books of a bank, –
(a) are maintained in written form, a copy of any entry in such books together with a certificate written at the foot of such copy that it is a true copy of such entry, that such entry is contained in one of the ordinary books of the bank and was made in the usual and ordinary course of business and that such book is still in the custody of the bank, and where the copy was obtained by a mechanical or other process which in itself ensured the accuracy of the copy, a further certificate to that effect, but where the book from which such copy was prepared has been destroyed in the usual course of the bank’s business after the date on which the copy had been so prepared, a further certificate to that effect, each such certificate being dated and subscribed by the principal accountant or manager of the bank with his name and official title; and
(b) consist of printouts of data stored in a floppy, disc, tape or any other electro-magnetic data storage device, a printout of such entry or a copy of such printout together with such statements certified in accordance with the provisions of section 2A.
(c) a printout of any entry in the books of a bank stored in a micro film, magnetic tape or in any other form of mechanical or electronic data retrieval mechanism obtained by a mechanical or other process which in itself ensures the accuracy of such printout as a copy of such entry and such printout contains the certificate in accordance with the provisions of section 2A.
If the records are maintained in written form, a copy of any entry along with a certificate certifying at the foot of such copy clearly indicating that;
(i) it is a true copy of such entry/entries;
(ii) the extract is taken from one of the ordinary books of the bank;
(iii) such entry was made in the ordinary course of business;
(iv) such record is still in the custody of the bank;
(v) if the copy was obtained by a mechanical or other process a certificate is required for the authenticity of the information/data.
The certificate mentioned above should bear date and should be signed by the principal accountant or manager of the bank with his name and official designation/title.
If the records are maintained in the electronic or mechanical form (computer printouts, floppy, disc, tapes etc.,) a copy of print out and a certificate as mentioned for the manual records:
(a) By the principal accountant or the manager stating that it is a printout of such entry or a copy of such printout
(b) In addition to the above another certificate by a person who is in charge of computer furnishing a brief description of the computer system and other particulars like (i) the safety features adopted by the bank to protect the date integrity; (ii) prevention of unauthorized entry into the system, (iii) checks and balancing system of verification of authenticity of input and output,(iv) if the data is retrieved and transformed, details of control system, and (v) in case of micro film and similar manner in which the data are stored, then the details of the arrangement for the storage and custody of such storage systems and practices.
In short, the certificate should be certified by the person in charge of the computer system certifying about the integrity, accuracy and security of the computer system and the data/ records.
A certificate of any entry in a banker’s book should in all legal proceedings be received prima facie evidence of the existence of such entry, and should be admissible as if original is produced. On production of certified copy, no further evidence is required.
Section 6 deals with the inspection of books by order of Court or Judge. It states that –
(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, and such further certificate shall be dated and subscribed in manner hereinbefore directed in reference to certified copies.
(2) An order under this or the preceding section 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, unless the Court or Judge shall otherwise direct.
(3) The bank may at any time before the time limited for obedience to any such order as aforesaid either offer to produce their books at the trial or give notice of their intention to show cause against such order, and thereupon the same shall not be enforced without further order.