Section 111 IEA: Proof of good faith in transactions where one party is in relation of active confidence

Indian Evidence Act, 1872

Section 111 IEA at a Glance

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

Section 111 IEA Bare Act Text

111. 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 attorney is in question in a suit brought by the client. The burden of proving the good faith of the transaction is on the attorney.

(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 111, Indian Evidence Act, 1872

Section 111 IEA in Simple Words

Section 111 of the Indian Evidence Act, 1872 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 Act gives illustrations where a party files a suit (a civil court case) questioning a sale. If a client questions a sale made to an attorney (a lawyer for the client), the attorney 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 111 IEA 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 111 IEA

In 2022 in Pune, Anita transfers a house to Ramesh, an estate manager who holds a position of active confidence toward the owner. Anita later brings a suit in court questioning the good faith of the house transfer. Because Ramesh holds the position of active confidence, the court places the burden of proof on the manager. Under Section 111 IEA, Ramesh must prove the good faith of the house transfer.

Section 111 IEA in the BSA

Section 111 IEA is now covered under Section 114 BSA.

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.

View detailed comparison (IEA 111 vs BSA 114) โ†’

FAQs on Section 111 IEA

What is Section 111 IEA?โ–ผ

Section 111 of the Indian Evidence Act, 1872 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 attorney under Section 111 IEA?โ–ผ

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

Who must prove good faith under Section 111 IEA 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 111 IEA in BSA?โ–ผ

Section 114 BSA. 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, Indian Evidence Act, 1872 ยท