Statements made by persons whose position or liability, it is necessary to prove as against any party to the suit, are admissions, if such statements would be relevant as against such persons in relation to such position or liability in a suit brought by or against them, and if they are made whilst the person making them occupies such position or is subject to such liability.
Illustrations
A undertakes to collect rents for B. B sues A for not collecting rent due from C to B. A denies that rent was due from C to B. A statement by C that he owed B rent is an admission, and is a relevant fact as against A, if A denies that C did owe rent to B.
Legal Commentary & Landmark Judgments: Section 17
Section 17 creates a statutory exception to the doctrine of privity, admitting statements of third parties whose legal position or liability must be established against a party to the suit.
In commercial debt recovery and insolvency litigation, Section 17 is indispensable. Creditors pursuing guarantors or indemnifiers can prove admissions made by the principal debtor—such as balance confirmations or settlement emails—without needing to examine the debtor as a witness, establishing the underlying debt obligation.