Section 85 of Bharatiya Sakshya Adhiniyam, 2023: Presumption as to electronic agreements

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

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Act 2023
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Legal Commentary & Landmark Judgments: Section 85

Section 85 creates a mandatory presumption that every electronic agreement purporting to have been concluded through secure electronic signatures was so concluded by the parties.

  • Secure Digital Contracts: Applies to e-commerce, banking, and commercial contracts executed via secure digital signatures under the IT Act, 2000.
  • Presumption of Consent: The court shall presume that the parties affixed their digital signatures with intention to bind themselves.
  • Protection of Electronic Commerce: Underpins commercial transactions across online payment gateways, loan apps, and corporate electronic procurement.
Key Landmark Precedents:
  • Trimex International FZE v. Vedanta Aluminium Ltd. (2010) 3 SCC 1: The Supreme Court recognized that contracts concluded over electronic mail and digital channels carry full legal binding force.
  • Arjun Panditrao Khotkar v. Kailash Kushanrao Gorantyal (2020) 7 SCC 1: Highlighted the legal sanctity and technological presumptions attaching to electronic transactions under statutory evidence provisions.
Courtroom Practice & Strategic Litigation Guidance:

In digital debt recovery suits against online borrowers, place on record the digital contract timestamp, hash value, and Aadhaar e-Sign or DSC authentication certificate to trigger the mandatory presumption under Section 85.