(1) Statements made by a party to the proceeding, or by an agent to any such party, whom the Court regards, under the circumstances of the case, as expressly or impliedly authorised by him to make them, are admissions.
(2) Statements made by—
(i) parties to suits suing or sued in a representative character, are not admissions, unless they were made while the party making them held that character; or
(ii) persons who have any proprietary or pecuniary interest in the subject matter of the proceeding, and who make the statement in their character of persons so interested; or
(iii) persons from whom the parties to the suit have derived their interest in the subject matter of the suit, are admissions, if they are made during the continuance of the interest of the persons making the statements.
Legal Commentary & Landmark Judgments: Section 16
Section 16 regulates admissions made by persons whose position or liability it is necessary to prove against any party to the suit, creating an exception to the privity rule where third-party status defines the legal dispute.
When pursuing guarantors or indemnifiers, tender formal admissions made by the principal debtor regarding loan disbursement or ledger confirmation during the currency of the debt under Section 16.