CA Inter P2 · Chapter 12 · Question 2 of 12
Under section 3(22) of the General Clauses Act, 1897, a thing is deemed to be done in 'good faith' where it is in fact done:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Honestly, whether it is done negligently or not
Explanation
Section 3(22) provides that a thing shall be deemed to be done in good faith where it is in fact done honestly, whether it is done negligently or not. The test is honesty, not carefulness. This contrasts with the definition in the general penal law, where nothing is said to be done in good faith if it is done without due care and attention.
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