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What is equity • Equity is a legal system for obtaining a fair result when

existing laws do not provide a solution• equity is the set of legal principles that supplement strict

rules of law where their application would operate harshly According to Osborne –’it is primarily fairness or natural justice’

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Definition of equityAccording to :

Plato “equity is a necessary element supplementary to the imperfect generalization of legal rules”Snell ” equity is a portion of natural justice which, although of a nature suitable for judicial enforcement, was for historical reasons not enforced by the Common Law courts, an omission which was supplied by the Courts of Chancery”Aristotle described equity as eternal and immutable .Blackstone defines equity as the soul and spirit of all law

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After the conquest of England by Normans in the 11th century , Common Law had taken a definite shape

3 courts court of common law were kings bench, Common Law Pleas and Exchequer

Development of Equity

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Development of Equity

If a person wants an action at common law , fees should be remitted from Chancery

An injury party can sue only if it come under the scope of an existing writIf litigants could not get justice, they can sue directly to the king

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Development of Equity

The major deficiencies of common law were:1.Incomplete or no remedies in many cases 2.Inadequate relief 3. Incomplete and defective procedure

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Development of Equity

The rules of equity arose in England when the strict limitations of common law would not solve all problemsIn 1348 the king completely assigned his equity jurisdiction to the Chancellor

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Development of Equity

• Earl of Oxford’s Case (1615) 21 ER 485• It was decided that in cases of conflict between

common law and equity, equity was to prevail

Development of Equity

• Judicature acts 1873-75• They created one system of court by amalgamating the

common law courts and the court of equity• However , this did not fuse the principles of common

law and equity, which still remain as separate bodies of rules

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Equity in IndiaIn India the common law doctrine of equity had traditionally

been followed even after it became independent in 1947Under the 1963 “Specific Relief Act", most equitable

concepts were codified and made statutory rights, thereby ending the discretionary role of the courts to grant equitable reliefs.

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MAXIMS OF EQUITY• The maxims of equity may fairly be described as a set of

general principles which are said to govern the way in which equity operates

• In contrast to the common law, maxims are more flexible, responsive to the needs of the individual and more inclined to take account of the parties’ conduct and worthiness.

• None of the maxims is in the nature of a binding rule.

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Equity will not suffer a wrong without a remedy

•where there is defect in the common law then equity should provide and answer•This maxim is a restatement of the broad legal principle: Ubi jus, ibi remedium, "Where there is a right, there is a remedy.•Equity will not allow the technical defects of the common law to prevent worthy plaintiffs from obtaining redress.

example : Ashby v White

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Equity follows the lawo Equity developed as a response to the defects of the common

law; however, it did not aim to override the common lawo Equity will, where possible, ensure that its own rule are in

line with the common law principles

Example : Stickland V Aldridge

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He who seeks equity must do equityThe maxim means that do obtain an equitable relief the plaintiff must himself be prepared to do “equity”, that is there must be reciprocity

Example: Lodge V National Union Investment Co Ltd

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He who comes to equity come with clean hands

• A claimant seeking an equitable remedy must not himself be guilty of unconscionable conduct.•The court may therefore consider the past conduct of the claimant.

Cleaver v Mutual Reserve Fund Life Assoc.[1892]

A woman who had murdered her husband was denied the right to claim the payout under a life insurance written in her favour, on the basis that she should not profit from her crime.

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Delay defeats equity

a person who seeks equitable relief must do so within a reasonable time.

also known as equity aids the vigilant , not those who slumber /sleeps on their right.

Example: Chatrabhuj V Mansukhram AIR 1925 Bom 183

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EQUITY ACTS IN PERSONAM

•It is the nature of equitable remedies that they generally operate against the person of the defendant.•Judgment is made against individual.•This maxim comes in handy with regard to properties held abroad. •Equity can make orders affecting property outside its jurisdiction by making orders against the person of the defendant in the jurisdiction.

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Penn V Lord Baltimore An order of specific performance was granted to

the plaintiff who brought a boundary dispute case to an English court, yet the land was in Maryland, in the USA. The parties to the dispute were English and both lived in England.

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The personam maxim however has its limitations:

1.The defendant has to be within the jurisdiction of the court.2.The order must not violate the legal rules of another country.3.The order given must be capable of being executed without intervention of a foreign court.

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Equity delights in equality• Where two presonam have an equal right, the property will

be divided equally. • Equity will not play favourites.• If there is a dispute over property in which more than one party has a beneficial interest, that property will be divided equally.•This maxim does not apply if there is evidence that the property should be divided amongst the parties in some other manner.Example :MIDLAND BANK V COOKE [1995]4 ALL ER 562

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MIDLAND BANK V COOKE [1995]4 ALL ER 562

Husband and wife disputed over the ownership of their matrimonial home.it was held that the beneficial interest belongs to spouses should be shared equally

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EQUITY LOOKS TO THE INTENT RATHER THAN THE FORM

Equity looks to the spirit and not to the lettersIt looks to the intention of the parties and not to the wordsIt looks to the realities rather than to mere appearnces

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For exampleIn a sale of land - party fails complete within the ti me-in common law ,its breach of contract-in equity its not, it will allow reasonable ti me to the party concerned

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EQUITY LOOKS ON THAT AS DONE WHICH OUGHT TO BE DONE

What one had undertaken to do, Binding his conscience, ought to be doneFor ex: A leaves 50000 to T purchase land for P .T doesnot purchase & P dies by the time leaving immovable to X and rest to Y. Who should get 50000, X or Y?

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EQUITY IMPUTES AN INTENTION TO FULFIL AN OBLIGATION

If a person is under an obligation to do certain act, and he doe some other act, which is capable of being regarded as an act of fulfilment of his obligation Equity in such cases presumes and imputes an intention that the latter act was intented to be in performance of the former

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Sowden V SowdenHusband agrees with trustees to pay 50000 to buy land DHe never paid But he bought land D & diedCould not bring the land into settlementDecision- the land was purchased to fulfill his obligation

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Other maxims include

• WHERE THE EQUITIES ARE EQUAL , THE FIRST IN TIME PREVAILS• WHERE THE EQUITIES ARE EQUAL, THE LAW PREVAILS

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Thank you