Section 10 of Bharatiya Sakshya Adhiniyam, 2023: Facts Relevant to Determining Damages

Learn how Section 10 of the BSA, 2023 helps courts determine the amount of damages in civil suits.

Introduction

Section 10 of the Bharatiya Sakshya Adhiniyam, 2023 (BSA) deals with the relevancy of facts that help a court determine the amount of damages to be awarded in a suit. It is an important provision under Chapter II, which deals with the relevancy of facts.

When a person suffers a legal wrong, the law may allow them to claim monetary compensation from the person responsible. However, deciding whether compensation is payable and determining the appropriate amount are two separate questions. The court must consider relevant evidence to assess the loss suffered and arrive at a fair amount of damages.

Section 10 ensures that facts capable of assisting the court in calculating the appropriate damages are relevant in proceedings where damages are claimed.

This provision corresponds to Section 12 of the Indian Evidence Act, 1872, which it replaced when the BSA came into force on 1 July 2024. The wording of the provision remains substantially unchanged.

Bare Act: Section 10 of the Bharatiya Sakshya Adhiniyam, 2023

Section 10 provides:

“In suits in which damages are claimed, any fact which will enable the Court to determine the amount of damages which ought to be awarded, is relevant.”

The provision establishes a rule of relevancy. It allows the court to consider facts that help determine the appropriate amount of damages claimed in a suit.

Meaning and Explanation of Section 10 BSA

In simple terms, Section 10 means that whenever a person claims damages in a suit, facts that help the court calculate the proper amount of compensation are relevant.

For example, suppose A agrees to supply 500 units of goods to B but fails to deliver them in accordance with the contract. B purchases equivalent goods from another supplier at a higher price and files a suit claiming damages.

The court may consider the original contract price, the price paid to the replacement supplier, the terms of the contract, and evidence of the additional expense incurred by B. These facts can help the court assess the loss and determine the damages, subject to the applicable substantive law.

The provision does not prescribe a fixed formula for calculating damages. Instead, it identifies the relevance of facts that assist the court in making that assessment.

Essential Elements of Section 10

1. There must be a suit in which damages are claimed

Section 10 applies where damages are claimed in a suit. The claim may arise from a breach of contract, negligence, defamation or another legally recognised civil wrong.

The section does not itself create a right to compensation. The claimant must establish the legal basis for the claim under the applicable law.

2. The fact must help determine the amount of damages

The central requirement is that the fact must assist the court in determining the amount of damages that ought to be awarded.

Relevant facts may include evidence of financial loss, expenses incurred, damage to property, loss of income or other circumstances connected with the assessment of compensation.

A fact does not become relevant merely because it relates generally to the dispute. It must have a meaningful connection with the determination of damages.

3. The court determines the appropriate amount

Section 10 refers to the amount of damages that ought to be awarded. This means that the court must assess the appropriate amount on the basis of relevant evidence and applicable law rather than automatically accepting the amount demanded by the claimant.

Also Read: Section 13 of Bharatiya Sakshya Adhiniyam, 2023: Facts Bearing on Whether an Act Was Accidental or Intentional

The claimant’s estimate of damages is not, by itself, conclusive proof of the amount recoverable.

4. The provision concerns quantification, not automatic liability

Section 10 primarily concerns the assessment of the amount of damages. It does not independently establish that the defendant committed a wrongful act or is legally liable to pay compensation.

Liability, causation, the availability of a remedy and the applicable measure of damages must be considered under the relevant substantive law and other applicable rules of evidence.

Types of Facts Relevant Under Section 10

The nature of relevant evidence depends on the circumstances of the case. Common examples include the following:

Type of fact	Example	Relevance
Financial loss	Business accounts showing a loss following a breach	Helps quantify economic loss
Repair expenses	Invoices for repairing a damaged vehicle	Helps establish the cost of restoring property
Medical expenses	Hospital bills and treatment records	Helps assess claimed medical costs
Loss of income	Salary records or business accounts	Helps establish the amount of income allegedly lost
Replacement costs	Documents showing the price of substitute goods	Helps calculate additional expenditure
Extent of injury or damage	Medical evidence or property valuation reports	Helps assess the nature and extent of the loss

These are illustrative examples, not an exhaustive statutory list. The court must assess whether the evidence is relevant, sufficiently reliable and legally admissible in the particular proceedings.

Illustrations of Section 10 BSA

Illustration 1: Breach of Contract

A agrees to supply machinery to B for ₹5,00,000 but fails to deliver it. B purchases comparable machinery from another supplier for ₹5,80,000 and claims damages.

The court may examine the contract, invoices, payment records and evidence of the replacement purchase. The additional cost of ₹80,000 may be relevant to calculating damages, provided the loss is legally recoverable and the other requirements for the claim are satisfied.

Illustration 2: Damage to Property

A negligently damages B’s vehicle. B files a suit seeking compensation for the damage.

The repair estimate, repair bills, photographs, expert assessments and evidence of any other legally recoverable loss may help the court determine the amount of damages.

The court must assess the evidence rather than assume that every expense claimed is automatically recoverable.

Illustration 3: Loss of Business Income

A business suffers a loss of income because another party allegedly breaches a contractual obligation. The business files a suit claiming damages for the resulting loss.

Financial statements, sales records, previous business performance and other relevant evidence may help the court assess the alleged loss. The court must also consider whether the loss was caused by the breach and whether it is recoverable under the applicable law.

Illustration 4: Defamation

A person files a civil suit alleging that defamatory statements caused reputational and financial harm.

Evidence concerning the statements, their circulation, the surrounding circumstances and the alleged consequences may be relevant to the assessment of damages. The availability and amount of compensation depend on the applicable law and the facts established before the court.

Important Case Laws Relating to the Assessment of Damages

Section 10 of the BSA substantially reproduces Section 12 of the Indian Evidence Act, 1872. Decisions concerning the earlier provision may therefore be useful in understanding the principle. However, the following cases principally explain the substantive law governing damages; they should not be mistaken for judgments directly interpreting Section 10 of the BSA.

1. Murlidhar Chiranjilal v. Harishchandra Dwarkadas

Citation: AIR 1962 SC 366

Legal principle: The Supreme Court discussed the principles governing damages for breach of contract, including the requirement to assess the loss in accordance with the applicable rules of contract law.

Relevance: The case helps explain why evidence of the loss caused by a breach is important when a court determines damages. Section 10 of the BSA supports the consideration of facts that assist this assessment, but the substantive rules governing the recoverability of damages must also be applied.

2. Hadley v. Baxendale

Citation: (1854) 9 Exch 341

Also Read: Section 11 of Bharatiya Sakshya Adhiniyam, 2023: Facts Relevant When Right or Custom Is in Question

Legal principle: This English decision established a foundational rule that damages for breach of contract are generally limited to losses arising naturally from the breach or losses that were within the parties’ reasonable contemplation when they contracted.

Relevance: The case illustrates that proving a financial loss does not automatically make the entire amount recoverable. The court must apply the relevant rules governing remoteness and recoverability of damages. In Indian contract law, these issues are addressed principally through Section 73 of the Indian Contract Act, 1872.

3. Livingstone v. Rawyards Coal Co.

Citation: (1880) 5 App Cas 25 (HL)

Legal principle: This English decision is associated with the compensatory approach to assessing damages, particularly in relation to wrongful interference with property.

Relevance: The decision illustrates the broader objective of compensatory damages: assessing the monetary amount appropriate to the loss caused by a wrongful act. It may assist in understanding the purpose of evidence relating to the amount of damages, although it is not a direct interpretation of Section 10 BSA.

Relationship Between Section 10 BSA and Section 73 of the Indian Contract Act, 1872

Section 10 of the BSA and Section 73 of the Indian Contract Act, 1872 serve different purposes.

Basis	Section 10, BSA, 2023	Section 73, Indian Contract Act, 1872
Nature	Rule concerning relevancy of facts	Substantive rule governing compensation for breach of contract
Main purpose	Identifies facts relevant to determining damages in a suit	Addresses compensation for loss or damage caused by breach
Scope	Suits in which damages are claimed	Loss or damage arising naturally from breach or within the parties’ contemplation, subject to the statutory requirements
Function	Helps the court consider evidence relevant to the amount	Helps determine which losses are legally compensable

Thus, Section 10 addresses the evidentiary question of which facts can help determine damages, while Section 73 addresses the substantive question of compensation for breach of contract.

Difference Between Section 10 and Section 9 of the BSA

Both provisions fall within Chapter II of the BSA, but they address different aspects of relevancy.

Section 10	Section 9
Deals with facts relevant to determining the amount of damages in suits where damages are claimed	Deals with circumstances in which facts not otherwise relevant become relevant
Focuses on quantifying damages	Covers specified circumstances in which facts become relevant under the provision
Applies specifically to suits claiming damages	Has a broader scope as provided by its statutory conditions

Importance of Section 10 for Law Students

Section 10 is important because it connects the law of evidence with the practical assessment of monetary relief in civil litigation.

Law students should understand the following points:

• The provision is concerned with determining the amount of damages claimed in a suit.
• Evidence of financial loss, expenses, injury or property damage may be relevant, depending on the case.
• The amount claimed by a party is not automatically the amount that the court will award.
• The provision does not independently create a right to damages or establish the defendant’s liability.
• The substantive law governing the claim determines which losses are legally recoverable.
• Section 10 substantially corresponds to Section 12 of the Indian Evidence Act, 1872.

Frequently Asked Questions (FAQs)

1. What is Section 10 of the Bharatiya Sakshya Adhiniyam, 2023?

Section 10 provides that, in suits where damages are claimed, any fact that enables the court to determine the amount of damages that ought to be awarded is relevant.

2. What is the main objective of Section 10 BSA?

Its main objective is to allow the court to consider relevant facts that assist in assessing the appropriate amount of damages in a suit.

3. Which section of the Indian Evidence Act corresponds to Section 10 BSA?

Section 10 of the BSA substantially corresponds to Section 12 of the Indian Evidence Act, 1872.

4. Does Section 10 itself create a right to compensation?

No. It is an evidentiary provision. The right to claim damages must arise under the applicable substantive law, and the claimant must establish the requirements for the remedy.

5. What kinds of evidence may be relevant under Section 10?

Depending on the circumstances, relevant evidence may include invoices, repair bills, financial statements, income records, valuation reports, medical records and other material that assists the court in assessing damages.

6. Does the court have to award the exact amount claimed by the plaintiff?

No. The court determines the amount, if any, that ought to be awarded on the basis of the evidence and applicable law.

7. When did the Bharatiya Sakshya Adhiniyam, 2023 come into force?

The BSA came into force on 1 July 2024, subject to the applicable statutory transitional provisions.

Conclusion

Section 10 of the Bharatiya Sakshya Adhiniyam, 2023 establishes that facts assisting a court in determining the amount of damages claimed in a suit are relevant. It enables the court to consider evidence of financial loss, expenses, property damage and other relevant consequences when assessing compensation.

However, the provision does not independently establish liability or determine which losses are legally recoverable. Those questions must be resolved under the applicable substantive law. For law students, the key distinction is that Section 10 governs the relevancy of facts for assessing damages, while provisions such as Section 73 of the Indian Contract Act, 1872 govern compensation for breach of contract.

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