When there is a question whether a particular act was done, the existence of any course of business, according to which it naturally would have been done, is a relevant fact.
Illustrations
- The question is, whether a particular letter was dispatched.
The fact that it was the ordinary course of business for all letters put in a certain place to be carried to the post, and that particular letter was put in that place, are relevant. - The question is, whether a particular letter reached A. The facts that it was posted in due course, and was not returned through the Dead Letter Office, are relevant.
Simplified Explanation
Section 16 of the Indian Evidence Act, 1872 pertains to the relevance of facts that establish the existence of a course of business, particularly when it is material to a case. This section allows evidence of regular practices or established routines in business or professional activities to be considered when it is relevant to the issue at hand.
Text of Section 16:
“When there is a question whether a particular act was done, the existence of any course of business, according to which it naturally would have been done, is a relevant fact.”
Explanation:
- Course of Business: This refers to the regular, established practices or procedures followed in a business or professional setting. If a particular act is alleged to have occurred, the existence of a standard routine or procedure can be relevant to determine whether or not the act was likely done.
- Relevance of Established Practices: If it is customary in a business to perform a certain act under specific conditions, the fact that the business follows this practice can be relevant in determining whether the act was performed in a particular instance.
- Probative Value: The section allows the court to consider whether a particular act likely occurred based on the regular course of business. It relies on the idea that if something is typically done in a certain way in the ordinary course of business, it is probable that it was done that way in the situation under consideration.
Example:
Imagine a case where a customer, A, claims that they paid a large sum of money to B, a supplier, but B denies receiving the payment.
- Fact in Issue: Whether A made the payment to B.
- Relevant Facts under Section 16:
- Course of Business in Payment Handling: If B’s business has a well-established procedure for handling payments, such as issuing receipts for every payment received and recording each transaction in a ledger, the existence of this course of business is relevant. B can argue that because their business consistently follows this procedure, and there is no record of A’s payment, it is unlikely that the payment was made.
- Deviation from Established Practices: On the other hand, if A can show that B’s business sometimes deviates from its established course of business (e.g., B sometimes accepts payments without issuing receipts or recording them), this could support A’s claim that the payment was made but not properly recorded by B.
- Example in Banking: If there is a question about whether a check was deposited by a bank, evidence that the bank has a routine practice of recording all check deposits immediately and issuing deposit slips could be relevant to show whether the deposit likely occurred.
Significance:
Section 16 is significant because it allows the court to consider regular business practices as evidence when determining whether a specific act was likely carried out. This section provides a basis for assuming that, in the absence of evidence to the contrary, business activities are conducted according to their established procedures. It helps in cases where direct evidence of an act may not be available, but the existence of a routine or customary practice can indicate whether the act probably occurred or not. This approach ensures that the court can make informed decisions based on the probable behavior of businesses and professionals within their established course of operations.
