Section 111 of IEA : Section 111: Proof of good faith in transactions where one party is in relation of active confidence.
IEA
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Explanation using Example
Example 1:
Ravi, a young man who just turned 18, sells a piece of land to his father, Mr. Sharma. A few months later, Ravi feels that the sale was not conducted fairly and files a lawsuit against his father, claiming that he was pressured into selling the land at a price much lower than its market value. According to Section 111 of The Indian Evidence Act 1872, the burden of proving that the transaction was conducted in good faith lies on Mr. Sharma, as he is in a position of active confidence (being Ravi's father).
Example 2:
Ms. Priya, a client, sells her jewelry to her attorney, Mr. Kapoor, during the course of a legal representation. Later, Ms. Priya believes that Mr. Kapoor took advantage of his position and did not pay a fair price for the jewelry. She files a lawsuit against him, questioning the good faith of the transaction. Under Section 111 of The Indian Evidence Act 1872, Mr. Kapoor, being in a position of active confidence as Ms. Priya's attorney, has the burden of proving that the transaction was conducted in good faith.
Example 3:
An elderly woman, Mrs. Gupta, transfers a significant portion of her savings to her financial advisor, Mr. Verma, for investment purposes. Later, Mrs. Gupta's family suspects that Mr. Verma might have manipulated her into making the transfer for his own benefit. They file a suit questioning the good faith of the transaction. According to Section 111 of The Indian Evidence Act 1872, Mr. Verma, being in a position of active confidence as Mrs. Gupta's financial advisor, must prove that the transaction was conducted in good faith.
Example 4:
A teacher, Mr. Rao, convinces his student, Anil, to sell him a valuable antique at a price much lower than its market value. Anil later realizes that he might have been taken advantage of and files a lawsuit against Mr. Rao. Under Section 111 of The Indian Evidence Act 1872, Mr. Rao, being in a position of active confidence as Anil's teacher, has the burden of proving that the transaction was conducted in good faith.