Section 121 of BSA : Section 121: Estoppel.

Explanation using Example

Example 1:

Ravi owns a piece of land and tells his friend, Suresh, that he also owns the adjacent plot, which actually belongs to someone else. Ravi convinces Suresh to buy the adjacent plot from him. Suresh, believing Ravi's claim, pays Ravi for the plot. Later, the actual owner of the adjacent plot sells it to Ravi. Ravi then tries to claim that the sale to Suresh was invalid because he did not own the plot at the time of the sale. Under Section 121: Estoppel, Ravi cannot deny his earlier claim and must honor the sale to Suresh.

Example 2:

Priya, a businesswoman, tells her supplier, Anil, that she has the necessary government permits to operate a factory. Based on Priya's statement, Anil supplies her with machinery worth ₹10 lakhs. Later, it is discovered that Priya did not have the permits at the time of the transaction. Priya then tries to avoid paying Anil by claiming she did not have the permits. Under Section 121: Estoppel, Priya cannot deny her earlier statement and must pay Anil for the machinery supplied.

Example 3:

Meera, a tenant, tells her landlord, Raj, that she has paid the electricity bill for the month. Raj, believing Meera, does not check the bill and later finds out that the bill was not paid. Meera then tries to claim that she never said she paid the bill. Under Section 121: Estoppel, Meera cannot deny her earlier statement and must be held responsible for the unpaid bill.

Example 4:

Arjun, a car dealer, tells his customer, Neha, that a car has never been in an accident. Neha buys the car based on this information. Later, Neha finds out that the car had been in a major accident before she bought it. Arjun then tries to claim that he was not aware of the accident. Under Section 121: Estoppel, Arjun cannot deny his earlier statement and must compensate Neha for the misrepresentation.