Legal Maxims Edited Version
Legal Maxims Edited Version
Legal Maxims Edited Version
5. Case Reference:
the court propounded that, so far as this case is concerned, the subsequent conduct of pledging
their shares at artificially inflated prices, based on inflated financial results and raising loan on
them would indicate that they had deliberately and with full knowledge committed the illegality
and hence the principle of “acta exteriora indicant interiora secreta” (meaning external actions
reveals inner secrets) applies with all force.
The court held that we re-collect and call-up the following maxim Acta exteriora indicant
interiora secreta. It is ex facie and prima facie clear that the landlady and her husband because of
their non-employment under Rajeswari should essentially ferret out ways and means to eke out
their livelihood and in that connection they want to have their own building for running their
1
A. N Narayanan v. Adjudicating Officer, Sebi, A.I.R. 2013 (4) S.C.J 212 (India).
2
B. V.Koodalingappan v. P.L.Prema, LQ 2012 HC 14123 (India).
medical establishments and as such, the advantage of the landlady would out-weigh the hardship
of the tenant, who is running a grocery shop and he could shift it to some other place and conduct
the same concern. However, the tenant, who is carrying forward the business of the grocery shop
would require sufficient time to shift his business because of his necessity to recover the dues
payable to him by his consumers.
C. Sahara India Real Estate Corporation Limited and Others. Vs. Securities and Exchange
Board of India and Another3
The Hon'ble Supreme Court of India has directed Sahara India Rea1 Estate Corporation Limited
("SIRECL") and Sahara Housing Investment Corporation Limited ("SHICL") (both collectively
referred to as the "Appellants") to refund to the SEBI the USD 3.16 billion they had raised along
with an interest of 15% by November 30, 2012, and also to furnish information, along with the
application forms etc., of the 6.6million subscribers from whom the Appellants had raised the
money.
3
Sahara India Real Estate Corporation Limited and Ors. v. Securities and Exchange Board of India and Anr, (2013)
1 S.C.C. 1 (India).
2. Literal Meaning: Abundant Caution does no harm.
3. Explanation and Origin- There is no harm in being cautious. The legal maxim suggests
that a person can never be too careful and hence even excessive precautions don’t hurt
anyone. Great caution or care or an excess of it, is preferable to an insufficiency of it.
Apparently a variant on maxima, is not to be found in Roman law with any definition
exactly parallel to that of a legal maxim in the Medieval or modern sense of the word.
4. Case Reference:
The judge opined that my mind is reminiscent of the following maxims: (i) Ex abundanti cautela
– Out of abundant caution; to be on the safe side. (ii) Abundans cautela non nocet – Abundant
caution does no harm.
The court propounded the following "A definition which first tells us what a thing means and
then goes on to say what it includes, can use the inclusive device for three entirely different
purposes. First, by way of illustration, or of enumeration of the forms the thing defined
commonly assumes, by naming things that clearly come within the meaning given. Secondly, for
roping in things that, either partly or in whole, would not come within the meaning. Thirdly, by
way of abundant caution, so as to put it beyond doubt that certain things do come within the
meaning".
Certainly neither a firm nor an association is a company as defined in the Travancore Companies
Act, 1114, wherefore the inclusive device has not been used in S.3(8) of the Travancore Act on
the principle abundans cautela non nocet (there is no harm done by great caution).
4
A. V. Vaiyapuri v. M. Pavayi & Anr, LQ 2011 HC 18054 (India).
5
Krishnan Nair v. Sivaraman Nambiar, 1967 KLT 78 (India).
6
Canara Bank v. State, LQ 1981 HC 2312 (India).