All India Bar Examination (AIBE) 4-IV Previous Year Question Papers with Answers

The correct option is B: Necessary facts to arrive or determine rights, liability or immunity.

Facts in issue are those facts that directly relate to the legal question or dispute that needs to be resolved by the court. They are the facts that are in controversy or dispute between the parties, and that affect the outcome of the case. According to Section 3 of the Indian Evidence Act, 1872, the expression facts in issue means and includes any fact from which, either by itself or in connection with other facts, the existence, non-existence, nature or extent of any right, liability, or disability, asserted or denied in any suit or proceeding, necessarily follows.

For example, in a case of murder, the fact that A killed B is a fact in issue, as it is the main point of contention between the prosecution and the defence. 

Similarly, in a case of breach of contract, the fact that A failed to deliver the goods as per the agreement is a fact in issue, as it determines whether A is liable for damages or not. Facts in issue are also known as material facts or operative facts, as they have a direct bearing on the legal rights and obligations of the parties. Facts involved indirectly or incidentally are not facts in issue, but they may be relevant facts if they have some connection or relation with the facts in issue. Relevant facts are those facts that help to prove or disprove the facts in issue, or that make them more or less probable. 

For example, in a case of murder, the fact that A had a motive to kill B is a relevant fact, as it makes it more likely that A killed B. However, it is not a fact in issue by itself. Therefore, option B is the correct answer.