Section 114 BSA 2023: Proof of Good Faith Where One Party Is in Active Confidence
Section 114 of the Bharatiya Sakshya Adhiniyam, 2023 places the burden of proving good faith on the party who occupies a position of active confidence when the good faith of a transaction between the parties is questioned.
Text of Section 114 - Bharatiya Sakshya Adhiniyam, 2023
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
- 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.
- 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.
Meaning and legal effect of Section 114
The provision applies when the validity or fairness of a transaction is questioned and one party occupies a position of active confidence in relation to the other. In such a situation, the ordinary burden does not remain on the person alleging lack of good faith. Instead, the person who held the position of active confidence must establish that the transaction was entered into in good faith.
A relationship of active confidence may arise where one party is in a position of trust, influence, dependence or professional responsibility and the other party relies upon that position while entering into the transaction. The statutory illustrations specifically identify a client-advocate transaction and a transaction between a newly adult son and his father.
What must the party in active confidence prove?
- The transaction was fair and bona fide.
- Material facts relevant to the transaction were properly disclosed.
- The weaker or relying party acted with free and informed consent.
- The transaction was not procured by misuse of the position of confidence.
- The surrounding circumstances support the genuineness and fairness of the dealing.
Why Section 114 matters
Section 114 protects a person who enters into a transaction with someone occupying a position of confidence. It recognizes that in relationships involving trust or influence, evidence concerning the fairness of the transaction is often more readily available to the party holding the stronger or trusted position. The law therefore places the burden of proving good faith on that party once the good faith of the transaction is in question.
Official legal sources
For the authoritative text, commencement details and official publication of the Bharatiya Sakshya Adhiniyam, 2023, refer to the Government of India resources below.
Related provisions
Section 114 is located among the BSA provisions dealing with burden of proof and presumptions. Readers may also refer to the neighbouring provisions on proof of ownership, presumptions concerning specified offences, legitimacy, abetment of suicide, dowry death and other evidentiary presumptions.
This article is intended for general legal information. For the application of Section 114 to a particular dispute, the pleadings, evidence, relationship between the parties and surrounding facts must be examined.