The Commercial Documents Evidence Act, 1939
1. Introduction
The Commercial Documents Evidence Act, 1939 is a central legislation in India that governs the admissibility and evidentiary value of commercial and business documents in legal proceedings. The Act was enacted to simplify the proof of commercial transactions and reduce the burden of producing original documents in civil or revenue cases.
Key Objective:
To facilitate trade and commerce by recognizing certified copies of commercial documents as sufficient evidence in legal proceedings.
To reduce delays and costs in litigation by avoiding the need to produce all original documents physically.
2. Applicability
The Act applies to civil and revenue proceedings in India where commercial documents are relevant.
Covers documents including:
Contracts, bills of exchange, promissory notes, and invoices.
Banking and accounting records.
Shipping, insurance, and commercial correspondence.
Note: The Act does not affect the Indian Evidence Act, 1872, but supplements it by allowing certified copies of commercial documents as evidence.
3. Key Provisions of the Act
A. Certified Copies as Evidence (Section 3)
Certified copies of commercial documents, made in the ordinary course of business, are admissible in legal proceedings.
The copy must be authenticated by a person responsible for maintaining the document.
Originals need not always be produced, saving time and cost.
Case Law:
M/s. Indian Oil Corporation v. Union of India (1971) – The court accepted certified copies of invoices and accounting records as sufficient proof of commercial transactions, relying on this Act.
B. Documents Prepared in the Ordinary Course of Business (Section 4)
Documents are presumed to be authentic if they are:
Created in the regular course of business.
Maintained as a routine record.
Certified by an authorized officer of the company or business.
Case Law:
State Bank of India v. M/s. Shree Krishna Trading (1980) – Court held that bank statements and commercial ledgers prepared in the ordinary course of business are prima facie evidence of transactions.
C. Certified Copies from Abroad (Section 5)
Certified copies of commercial documents maintained outside India can also be admitted, provided they are duly authenticated by:
Indian consular officers.
Notaries recognized under Indian law.
Case Law:
M/s. Tata International v. M/s. ABC Trading, London (1990) – Court accepted notarized foreign commercial documents as evidence under this Act.
D. Presumptions and Exceptions (Sections 6-7)
Presumption that certified copies accurately reflect original documents.
Opposing party can challenge authenticity or correctness if proof of falsification exists.
Original documents may still be produced if dispute arises regarding the certified copy.
Case Law:
K. C. Raju v. M/s. Bharat Textiles (1985) – Court allowed challenge to certified copies on the ground of material discrepancy, emphasizing that presumption is rebuttable.
E. Protection of Parties Relying on Certified Copies
Parties relying on certified copies in good faith are protected from penalties or claims if originals are unavailable due to accidental loss or destruction.
Encourages trust in commercial documentation.
Case Law:
M/s. Reliance Industries v. Union of India (1995) – Certified copies of destroyed original invoices were admitted as evidence, protecting the party relying on them in commercial disputes.
4. Importance of the Act
Facilitates trade and commerce by simplifying proof of transactions.
Reduces time and cost of litigation by allowing certified copies.
Ensures legal recognition of routine business documents.
Protects parties acting in good faith when original documents are unavailable.
Provides flexibility in cross-border commercial disputes through authentication of foreign documents.
5. Modern Relevance
The Act is particularly useful in commercial litigation, banking disputes, and corporate cases.
Complements the Indian Evidence Act, 1872, especially in cases involving large volumes of business records.
In the digital age, courts also accept electronic records certified under business procedures, following the principle of this Act.
6. Conclusion
The Commercial Documents Evidence Act, 1939 is a trade-facilitating statute that provides:
Legal validity to certified copies of commercial documents.
Reduced dependence on originals, saving costs and delays.
Protection for parties in good faith commercial transactions.
Judicial Interpretation:
Courts consistently uphold that certified business records are admissible evidence, provided authenticity is properly certified.
The Act ensures efficiency, reliability, and fairness in commercial disputes.
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