Order XXVI Rule 11 CPC - Commission to Examine or Adjust Accounts

Order XXVI Rule 11 of the Code of Civil Procedure, 1908 empowers a civil court to appoint a commissioner where examination or adjustment of accounts is necessary in a suit. The provision enables systematic scrutiny of financial records under the court's supervision.

Text of Order XXVI Rule 11 CPC

Source: Code of Civil Procedure, 1908, official India Code text. Check applicable state amendments and court rules.

Meaning of the legal terms

Commission: A direction by the court authorising an appointed person to perform a defined task and report to the court. Examination of accounts: Checking books, statements, receipts, payments and supporting documents relevant to the dispute. Adjustment of accounts: Reconciling entries and calculating balances, credits, debits or amounts due, as directed by the court.

When can a commission be issued?

The court may appoint a commissioner if scrutiny or adjustment of accounts is necessary to decide a question arising in a civil suit. Examples may include partnership accounts, agency transactions, commercial dealings, estate administration or disputes involving extensive financial records. Appointment is discretionary; the court must consider whether the proposed work is relevant and necessary.

Who can be appointed?

Rule 11 permits the court to issue the commission to such person as it thinks fit. Depending on the complexity of the task, the court may select a suitably qualified person, including someone with accounting expertise. The appointment order should specify the scope of inquiry, records to be examined, questions to be answered and the deadline for submitting the report.

Procedure and report under Order XXVI Rule 12

Order XXVI Rule 12 governs the commissioner's procedure in examining or adjusting accounts. The commissioner is to proceed as directed by the court, and the report and proceedings are submitted to the court. The court considers the report in accordance with the applicable procedural rules; it is not a substitute for the court's final decision on the parties' rights.

Related provisions of the CPC

• Section 75 CPC: Enables a court, subject to prescribed conditions and limitations, to issue commissions for specified purposes, including examining or adjusting accounts.
• Order XXVI Rule 11: Provides the specific power to appoint a commissioner for examination or adjustment of accounts.
• Order XXVI Rule 12: Deals with the procedure of the commissioner and the court's consideration of the resulting proceedings and report.
• Order XXVI Rule 10: Addresses reports of commissioners conducting local investigations; it should not be confused with the separate accounts-commission procedure under Rule 12.

Practical example

Suppose former business partners disagree about receipts, expenses and the closing balance of their partnership accounts. Where detailed reconciliation is necessary, the court may direct a commissioner to examine specified books and supporting records and report the calculations and findings. The court remains responsible for resolving disputed legal and factual issues.

Frequently asked questions

Is the appointment of a commissioner mandatory?

No. Rule 11 says the court may issue a commission when examination or adjustment of accounts is necessary.

Can the commissioner decide the lawsuit?

No. The commissioner's role is limited to the tasks authorised by the court; adjudication remains with the court.

Can parties raise objections to the accounting report?

Parties may raise objections in accordance with the applicable procedure and the court's directions. The report does not automatically determine the outcome of the suit.

Official legal source

Read the Code of Civil Procedure, 1908 (Act 5 of 1908), on India Code, particularly Section 75 and Order XXVI Rules 11 and 12.

This article is general legal information. The applicable court rules and current amendments should be checked for the relevant jurisdiction.