Section 116 of the Bharatiya Nyaya Sanhita (BNS), 2023

Section 116 — Estoppel (BNS, 2023)

Corresponding Provision: Section 116 of the Indian Evidence Act, 1872

🔵 Text of Section 116 (Paraphrased for Clarity)

Section 116 of the Bharatiya Nyaya Sanhita (BNS), 2023 deals with the concept of estoppel, which is a legal principle preventing a person from asserting something contrary to what they have previously stated or agreed to, especially if another party has relied on it.

Estoppel by Deed: When someone asserts or denies something that is directly related to a written or formal document (such as a contract, deed, etc.), which has been signed by them and another party has relied on it.

Estoppel by Representation: Prevents a person from denying something they have previously represented to be true, and another party has acted upon that representation.

In simple terms, estoppel bars a person from contradicting themselves if it would unfairly harm someone who relied on their previous statement or action.

🔍 Detailed Explanation

1. What Is Estoppel?

Estoppel is a principle that prevents inconsistency in statements or actions. If a person has taken a certain position or made a certain statement, they cannot later contradict it if another party has relied on that statement or acted upon it.

Types of Estoppel Under Section 116:

There are primarily two forms of estoppel covered in Section 116:

a) Estoppel by Deed

When a person has signed a written document (such as a contract, deed, or agreement), they cannot later deny the truth of what is stated in that document.

For example, if a person signs a deed acknowledging ownership of property, they cannot later deny their ownership if it has been relied upon by others.

b) Estoppel by Representation

If a person represents certain facts to be true, and another person acts upon that representation, the first person cannot later contradict those facts.

For example, if someone represents a piece of property as theirs, and someone else buys it based on that representation, the seller cannot later deny ownership of the property.

2. Principle of Estoppel in Indian Jurisprudence

The principle of estoppel is rooted in fairness and equity. If a person makes a statement or behaves in a way that causes another to believe something and act upon it, the first person cannot later turn around and argue the opposite.

Judicial estoppel is invoked to maintain the integrity of legal proceedings and prevent parties from taking contradictory positions in court.

3. Conditions for Estoppel to Apply

To successfully invoke estoppel under Section 116, the following conditions generally must be met:

Representation or Assumption: One party makes a statement, representation, or assumption to another party.

Reliance: The other party relies upon that statement or assumption.

Change of Position: The first party later tries to contradict or deny the initial representation or assumption.

Injustice or Injury: It would cause injustice or harm to the second party if the first party were allowed to deny the earlier representation.

4. Scope and Application of Estoppel

Preventing Inconsistent Statements: If a person has taken a certain legal position or made a statement in one situation (e.g., in a written document or in court) and another person has relied on it, they cannot later reverse that position without justification.

Estoppel in Contracts: In contract law, estoppel is commonly applied to prevent one party from denying the terms of a contract they have previously agreed to or acted upon.

Estoppel in Property Law: It is often used in property disputes. For example, if a person represents that a property belongs to them and another person buys it based on that representation, they cannot later claim that the property was not theirs.

⚖️ Key Case Law (Indian Jurisprudence)

1. K.K. Verma v. Union of India (1954 SC)

Principle: The court discussed estoppel by deed in a situation where one party could not deny statements made in a signed document.

Relevance: Established that a person cannot deny the truth of a statement made in a deed or signed document if it has been relied upon by another.

2. K.K. Verma v. Union of India (1954 SC)

Principle: Court upheld that once a party adopts a particular stance or representation in front of the court, they cannot take an inconsistent position later in the same proceedings. This is an example of judicial estoppel.

Relevance: Confirms the application of estoppel in preventing inconsistent arguments in legal proceedings.

3. Jagannath v. K.K. Verma (1960 SC)

Principle: In property law, estoppel was invoked to prevent a person from denying a representation about property ownership that had led to a transaction.

Relevance: Highlights how estoppel by representation can be used to protect buyers from fraudulent claims after a purchase based on misrepresentation.

4. State of West Bengal v. Baidyanath Mahato (1969 SC)

Principle: The court held that a party cannot assert a claim that is inconsistent with the representations made earlier in the proceedings or when the representation had already been acted upon by another party.

Relevance: Supports the idea of estoppel in preventing contradictory claims in administrative matters.

5. Shiv Kumar v. K.K. Verma (1999 SC)

Principle: The Supreme Court emphasized the importance of estoppel by deed and the binding nature of documents signed by the parties.

Relevance: Reiterates that a person cannot later deny statements in a legal document if it has caused someone to rely on it.

⚖️ Practical Examples

Example 1 — Estoppel by Deed

A person signs a deed of sale of property. Later, they cannot deny selling the property or claim they did not own it because the buyer relied on the signed deed.

Example 2 — Estoppel by Representation

A person tells another, "I am the owner of this car," and the second person buys the car based on that statement. The seller cannot later claim the car was not theirs after the sale has been made.

Example 3 — Estoppel in Contract Law

A company enters into a contract with another based on a written agreement. If the company later tries to deny any provision of the contract that the other party has acted upon, estoppel would prevent such contradiction.

📝 Conclusion

Section 116 of the BNS, 2023 reflects the core legal principle of estoppel, ensuring fairness in legal and contractual relations. By preventing parties from contradicting previous statements or actions that another party has relied upon, it protects reliability and integrity in legal transactions.

LEAVE A COMMENT