Commission to examine or adjust accounts
Full Text
In any suit in which an examination or adjustment of the accounts is necessary, the Court may issue a commission to such person as it thinks fit directing him to make such examination or adjustment.
Plain English Summary
Enables trial courts in complex accounting litigations (such as partnership dissolution, principal-agent disputes, or mortgage redemptions) to appoint an accountant or advocate commissioner to examine ledgers and adjust accounts following a preliminary decree.
Key Legal Elements
- Scope of Inquiry: Examination, reconciliation, audit, and adjustment of disputed accounts.
- Applicable Suits: Suits for dissolution of partnership (O. 20 R. 15), principal and agent (O. 20 R. 16), administration, and mortgage redemption.
- Discretionary Appointment: Court may appoint a Chartered Accountant, retired judicial officer, or practicing advocate.
- Subordinate Role: Commissioner assists the court by analyzing figures; cannot adjudicate substantive legal liability.
Practical Note
Strategic Accounting Inquiries: 1. Preliminary Decree as Prerequisite: In suits for rendition of accounts, the court must first pass a preliminary decree under Order XX Rule 16 fixing the period of accountability and liability before issuing a commission under Rule 11. Issuing a commission to examine accounts prior to determining liability is premature and appealable. 2. Involving a Chartered Accountant: Where complex GST, multi-year balance sheets, or tax ledgers are in dispute, joint application should be made to appoint a certified CA rather than an advocate commissioner to ensure professional audit standards.
हिंदी पाठ
किसी भी ऐसे वाद में, जिसमें लेखाओं (Accounts) की परीक्षा या उनका समायोजन आवश्यक है, न्यायालय ऐसे किसी व्यक्ति को, जिसे वह ठीक समझे, यह निदेश देते हुए कमीशन निकाल सकेगा कि वह ऐसी परीक्षा या समायोजन करे।