Business Description
The advocate in Chandigarh statement can be seen as an application of the ordinary meaning of the term. Good faith is to be found in the common law and equity in relation to contracts and the discharge of fiduciary duties. It is imposed as a statutory obligation upon company directors and officers. It conditions, in bankruptcy, the validity of certain antecedent dispositions of property. Advocates in Chandigarh has long been identified as a positive obligation attaching to the exercise of official power. In 1905, Lord McNaghten said of the exercise of statutory power by a public body: It must keep within the limits of the authority committed to it. Advocates in Chandigarh must act in good faith. And it must act reasonably. The last proposition is involved in the second, if not in the first. Good faith and honesty of purpose are closely linked. Sir Owen Dixon spoke of good faith as ‘an honest attempt to deal with a subject matter confided to the tribunal and to act in pursuance of the power of the tribunal in relation to something that might reasonably be regarded as falling within its province’.
