Section 18 of Bharatiya Sakshya Adhiniyam, 2023: Admissions by persons expressly referred to by party to suit

Bharatiya Sakshya Adhiniyam, 2023 • Official Statutory Text & Practice Guide

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Act 2023
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Legal Commentary & Landmark Judgments: Section 18

Section 18 codifies the doctrine of referee admissions, holding that when a party refers another person to a third party for information on a disputed matter, the third party's statement binds the referring party.

  • Core Legal Standard: This provision is founded upon the principle of chosen agency: when a litigant expressly directs an inquiring counterparty to a third person with the assurance that the third person possesses the relevant information, the litigant effectively adopts whatever representation the referee makes.
  • Operational Mechanism: The statutory illustration provides a clear paradigm: where a purchaser asks whether a horse is sound and the seller replies, 'Go and ask C, C knows all about it', whatever C states regarding the horse's condition constitutes an admission against the seller.

The reference must be express and specifically intended to resolve a matter in dispute. A casual remark or general recommendation to consult an expert does not satisfy the statutory threshold; there must be an unequivocal indication that the referring party agrees to be informed through or bound by the third party's factual statement.

Key Landmark Precedents:
  • K.M. Rajendran v. Arul Prakasam (AIR 1998 Mad 336): Held that where a party to a property transaction specifically refers a purchaser to a third party for title verification, the representation made by that referee constitutes an admission against the referring party under this section.
  • Hirabai v. Bhagirath (AIR 1946 Bom 174): The High Court affirmed that referee statements made pursuant to an express referral are substantive admissions, shifting the burden onto the referring party to prove that the referee's statement was collusive or mistaken.
Legal Commentary:

Commercial negotiators and corporate advisors should counsel clients to exercise vigilance in correspondence. Stating in an email, 'Please confirm the figures with our accountant, who has complete knowledge of the account', converts the accountant's subsequent response into a binding admission against the client under Section 18.