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Law Dictionary Home Dictionary Definition good-faith

Good faith, nothing shall be deemed to be done in good faith which is not done with due care and attention. [Limitation Act, 1963, s. 2 (h)] The expression 'good faith' has not been defined in the U.P. Imposition of Ceiling on Land Holdings Act, 1960. The expression has several shades of meaning. In the popular sense, the phrase 'in good faith' simply means 'honestly, without fraud, collusion or deceit; really, actually, without pretence and without intent to assist or act in furtherance of a fraudulent or otherwise unlawful scheme'. (see WORDS AND PHRASES, Permanent Edition, Vol. 18-A, page 91). Although the meaning of 'good faith' may vary in the context of different statutes, subjects and situations, honest intent free from taint of fraud or fraudulent design, is a constant element of its connotation. Even so, the quality and quantity of the honest requisite for constituting 'good faith' is conditioned by the context and object of the statute in which this term is employed, Brijendra Singh v. State of U.P., AIR 1981 SC 636 (639): (1981) 1 SCC 597: (1981) 2 SCR 287. 'Good faith' is defined, in a negative fashion, by s. 52, IPC as follows: 'Nothing is said to be done or believed in `good faith' which is done or believed without due care and attention'. The insistence is upon the exercise of due care and attention. Recklessness and negligence are ruled out by the very nature of the definition. The standard of care and attention must depend on the circumstances of the individual case, the nature of the imputation, the need and the opportunity for verification, the situation and context in which the imputation was made, the position of the person making the imputation, and a variety of other factors. Good faith, therefore is a matter for evidence. It is a question of fact to be decided on the particular facts and circumstances of each case. So too the question whether an imputation was made for the public good. In fact the First Exception of s. 499, IPC expressly states 'Whether or not it is for the public good is a question of fact'. 'Public good' like `good faith' is a matter for evidence and not conjecture, Sewakram Sobhani v. R.K. Karanjia, Chief Editor, Weekly Blitz, AIR 1981 SC 1514: (1981) 3 SCC 208: (1981) 3 SCR 627. The meaning of the expression 'good faith' is explained in s. 2 (h) of the Limitation Act,1963 thus: 'good faith'-nothing shall be deemed to be done in good faith which is not done with due care and attention, Munshi Ram v. Narsi Ram, AIR 1983 SC 271 (274): (1983) 2 SCC 8: (1983) 2 SCR 233. In order to establish good faith and bona fide it has to be seen first the circumstances under which the letter was written or words were uttered; secondly, whether there was any malice; thirdly, whether the appellant made any enquiry before he made the allegations; fourthly, whether there are reasons to accept the version that he acted with care and caution and finally whether there is preponderance of probability that the appellant acted in good faith, Chamal Lal v. State of Punjab, AIR 1970 SC 1372 (1374): (1970) 1 SCC 590. [Penal Code (45 of 1860), s. 499] According to the definition in the General Clauses Act means a thing which is in fact done honestly, whether it is done negligently or not. In other words an act done honestly must be deemed to be done in good faith, Madhav Rao Scindia v. Union of India, AIR 1971 SC 530 (554): (1971) 1 SCC 65. The expression good faith qualifies prosecuting the proceeding in the Court which ultimately is found to have no jurisdiction. Failure to pay the requisite court-fee found deficient on a contention being raised or the error of judgement in valuing a suit filed before a Court which was ultimately found to have no jurisdiction has absolutely nothing to do with the question of good faith in prosecuting the suit as provided in s. 14 of the Limitation Act, Vijay Kumar Rampal v. Diwan Devi, AIR 1985 SC 1669 (1670). [Limitation Act, (36 of 1963), s. 14] Good faith Nothing is said to be done or believed in 'good faith' which is done or believed without due care and attention. (Indian Penal Code, s. 52) Due care, an act done with due care and attention satisfies the test of 'good faith'. 'Due care' means that sufficient care was taken so far as circumstances demanded and there was absence of negligence, Ghashi Ram v. Chait Ram Saini, AIR 1998 SC 2476 (2479). [Limitation Act, 1963, s. 2(h)] Good faith, the expression 'good faith' means excise of due care and attention, Deena v. Bharat Singh, (2002) 6 SCC 336; Vijay Kumar Rampal v. Diwan Devi, AIR 1985 SC 1669.

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