Section 123 of the Bharatiya Sakshya Adhiniyam, (BSA), 2023
Certainly! Here's a detailed explanation of Section 123 of the Bharatiya Sakshya Adhiniyam (BSA), 2023:
📜 Section 123: Estoppel of Acceptor of Bill of Exchange, Bailee, or Licensee
Provision:
Section 123 of the BSA, 2023, addresses the principle of estoppel in the context of certain legal relationships. It states that:(legalserviceindia.com)
Acceptor of a Bill of Exchange:
An acceptor of a bill of exchange is not permitted to deny that the drawer had the authority to draw or endorse the bill.(apnilaw.com, myjudix.com)
Bailee or Licensee:
A bailee or licensee is not permitted to deny that their bailor or licensor had the authority to make the bailment or grant the license at the time it commenced.(myjudix.com, apnilaw.com)
Explanation:
This section establishes that certain individuals, due to their roles, are estopped (legally barred) from denying the authority of the person with whom they have a legal relationship. The rationale is to promote trust and reliability in commercial and legal transactions.
Illustrations:
(a) An individual accepts a bill of exchange from a drawer. Later, the acceptor cannot claim that the drawer did not have the authority to draw or endorse the bill.(vidhiadda.com)
(b) A bailee receives goods from a bailor. The bailee cannot later deny that the bailor had the authority to make the bailment at the time it commenced.(apnilaw.com)
Exceptions:
Explanation 1: The acceptor of a bill of exchange may deny that the bill was genuinely drawn by the person it purports to have been drawn by.(vidhiadda.com)
Explanation 2: If a bailee delivers the goods bailed to a person other than the bailor, the bailee may prove that such person had a right to them as against the bailor.(myjudix.com)
Purpose:
The intent behind this section is to uphold the integrity of transactions involving bills of exchange, bailments, and licenses. By preventing parties from denying the authority of the other party in these relationships, the law ensures smoother and more predictable commercial and legal dealings.!
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