Section 114 BSA: Proof of good faith in transactions where one party is in relation of active confidence

Bharatiya Sakshya Adhiniyam, 2023

Section 114 BSA at a Glance

Section 114 BSA deals with proof of good faith in transactions where one party is in relation of active confidence. It replaced Section 111 IEA on 1 July 2024.

Section 114 BSA Bare Act Text

114. Proof of good faith in transactions where one party is in relation of active confidence

Where there is a question as to the good faith of a transaction between parties, one of whom stands to the other in a position of active confidence, the burden of proving the good faith of the transaction is on the party who is in a position of active confidence.

Illustrations

(a) The good faith of a sale by a client to an advocate is in question in a suit brought by the client. The burden of proving the good faith of the transaction is on the advocate.

(b) The good faith of a sale by a son just come of age to a father is in question in a suit brought by the son. The burden of proving the good faith of the transaction is on the father.

Source: Section 114, Bharatiya Sakshya Adhiniyam, 2023

Section 114 BSA in Simple Words

Section 114 of the Bharatiya Sakshya Adhiniyam, 2023 sets the rule for proving good faith (honest dealing) in certain transactions. In some relationships, one party holds a position of active confidence (trust and reliance) toward the other party. When the good faith of their transaction is questioned, the party holding active confidence must prove good faith.

The burden of proof (the duty to prove a fact in court) rests on the trusted party. The party who placed trust in the other does not have to prove bad faith.

The Adhiniyam gives illustrations where a party files a suit (a civil court case) questioning a sale. If a client questions a sale made to an advocate, the advocate must prove good faith. If a son who has just reached adulthood questions a sale made to a father, the father must prove good faith.

When Section 114 BSA Applies

  • A transaction takes place between parties where one party holds a position of active confidence toward the other.
  • The good faith of that transaction is called into question in a proceeding.
  • The party holding the position of active confidence must prove that the transaction was made in good faith.

Example of Section 114 BSA

In August 2024 in Jaipur, Priya sells a plot of land to Farhan, a wealth adviser who holds a position of active confidence toward the landowner. Priya later files a suit in court questioning the good faith of the land sale. Because Farhan holds the position of active confidence, the court places the burden of proof on the adviser. Under Section 114 BSA, Farhan must prove the good faith of the land sale.

Section 114 BSA in the IEA (Previous Law)

Section 114 BSA replaces Section 111 IEA from the old criminal code.

Section 111 of the Indian Evidence Act, 1872 became Section 114 of the Bharatiya Sakshya Adhiniyam, 2023 on 1 July 2024. No substantive change. "Attorney" reads "advocate" in the illustrations.

FAQs on Section 114 BSA

What is Section 114 BSA?โ–ผ

Section 114 of the Bharatiya Sakshya Adhiniyam, 2023 is the rule on proving good faith in transactions where one party holds a position of active confidence. When the honesty of the transaction is questioned, the party holding active confidence must prove good faith.

Does a client have to prove bad faith when questioning a sale made to an advocate under Section 114 BSA?โ–ผ

No. When a client brings a suit questioning the good faith of a sale made to an advocate, the burden of proving good faith is on the advocate.

Who must prove good faith under Section 114 BSA when a son who has just reached adulthood sues over a sale to a father?โ–ผ

The father. When the son brings a suit questioning the honesty of that sale, the father must prove that the transaction was made in good faith.

What is Section 114 BSA in IEA?โ–ผ

Section 111 IEA. Section 111 IEA became Section 114 BSA on 1 July 2024 with no substantive change, and the word attorney reads advocate in the illustrations.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Bharatiya Sakshya Adhiniyam, 2023 ยท