Section 114 Bharatiya Sakshya Adhiniyam, 2023: Proof of good faith in transactions where one party is in relation of active confidence

Section 114 of Bharatiya Sakshya Adhiniyam, 2023: Proof of good faith in transactions where one party is in relation of active confidence

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

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.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Court Sec 2(1)(a) Fact Sec 2(1)(d)

Legal Commentary & Landmark Judgments: Section 114

Section 114 governs the proof of good faith in transactions where one of the parties stands in a relation of active confidence to the other, placing the burden of proving good faith on the party in active confidence.

Active Confidence Relationship: Applies to fiduciary relations: parent and child, advocate and client, doctor and patient, trustee and beneficiary, spiritual guru and devotee.
Reverse Burden of Good Faith: Where a transaction is challenged by the weaker party, the dominant party must affirmatively prove that the transaction was fair, voluntary, and without undue influence.
Protection of Vulnerable Parties: Inverts ordinary contract proof rules to safeguard pardanashin women, elderly citizens, and dependent wards.

Key Landmark Precedents:

Krishna Mohan Kul v. Pratima Maity (2004) 9 SCC 468: The Supreme Court held that where a settlement or gift deed is executed by an illiterate or elderly person in favor of a person in active confidence, the burden under Section 111 IEA (Section 114 BSA) lies on the dominant party to prove good faith and independent legal advice.
Mst. Kharbuja Kuer v. Jangbahadur Rai (AIR 1963 SC 1203): Affirmed that the burden of proving that a deed executed by a pardanashin woman was explained to and understood by her rests entirely on the propounder.

Courtroom Practice & Strategic Litigation Guidance:

When defending a gift deed or transfer executed by an elderly parent in your client's favor, call the independent lawyer who advised the parent and medical practitioners certifying mental capacity, discharging the heavy burden under Section 114.