From Risk Management to Due Diligence: Unpacking the Evidence Act for CLAT PG/AILET PG Aspirants
Lakshmi ยท Law Enthusiast ยท ๐Ÿ“… 20 Apr 2026 ยท 7 hr ago ยท โฑ 3 min read Published

From Risk Management to Due Diligence: Unpacking the Evidence Act for CLAT PG/AILET PG Aspirants

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**Navigating the Complexities of Evidence Admissibility in Indian Law** As someone who made the transition from a corporate career to law school, I often find myself drawing parallels between my previous field and the law. In finance, we spoke of risk management; in law, we call it due diligence โ€“ same goal, different vernacular. When it comes to the Evidence Act, 1872, this concept is particularly relevant.

Understanding the Scope of the Evidence Act

The Evidence Act is a critical component of the Indian Evidence Code, dealing with the admissibility of evidence in court proceedings. Section 3 of the Act states that "all facts may be proved by oral evidence, subject to the provisions herein contained, and this Chapter shall apply to the proving of fact by oral evidence." This broad scope encompasses a wide range of evidence types, including direct and circumstantial evidence.

Paradox of Admissibility: The Bishun Dutt Sharma Case

The landmark case of Bishun Dutt Sharma v. State of UP (1954 SCR 185) highlights the challenges of admissibility under the Evidence Act. In this case, the Supreme Court ruled that an out-of-court statement, though hearsay, could be admissible if it met the requirements of Section 8 of the Act. The judgment showcases the importance of understanding the nuances of the Evidence Act in determining the admissibility of evidence.

Due Diligence in Action: Section 57 and Beyond

Section 57 of the Evidence Act explicitly excludes opinion evidence unless it's based on special knowledge or skill. This provision serves as a crucial reminder of the importance of diligence in evaluating evidence. As we navigate the complexities of the Evidence Act, it's essential to remember that due diligence requires a thorough examination of the evidence, weighing its relevance, reliability, and admissibility.

Real-World Scenario: The Ahmedabad Stock Exchange Case

Consider the scenario presented in State of Gujarat v. K. R. Bhana and others (1999 (7) SCC 69): a dispute arose in the Ahmedabad Stock Exchange regarding the admissibility of computer-generated records. The court ultimately ruled in favor of the admissibility of these records, citing the principles of the Evidence Act. As a law student, it's essential to think critically about the admissibility of evidence in real-world scenarios, drawing on your understanding of the Evidence Act and its various provisions. As you delve deeper into your studies, remember that the Evidence Act is a powerful tool for navigating the complexities of evidence admissibility. By applying the principles of due diligence, you'll become adept at evaluating evidence and making informed decisions โ€“ a valuable skillset for any aspiring advocate.

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