Equity 2
Equity 2
Equity 2
Course Outcome
CO Title
Number
CO1 The students will better appreciate the
concept of equity, justice and good con-
science
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• This meant that to start a case in the common law courts, the would
be litigant had to be able to fit his claim into one of the existing types
of writ – if this could not be done then there was little chance of
justice. To get around this technical difficulty, the judges did develop
‘fictions’ which allowed some cases to proceed. In other words they
assumed certain facts for the case, even though those facts were not
true.
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• Initially, the two court systems operated in parallel, with equity being
regarded as a gloss upon the common law. Where the law failed to provide
remedy equity could operate to “fill the gap”. However, as both systems
become more developed, the situation became one of conflict rather than
assistance. Equity began to be criticized by some for its unpredictability and
it increasingly found a remedy opposing that offered by the common law.
This culminated in the Earl of Oxford’s Case (1615), in which James I
decided in favour of equity as the prevailing rule in the case of conflict.
• Equity was now free to develop. It created its own set of rights and
remedies, which are still in force today. It was an equitable development,
along with many other areas of property law such as the equitable
mortgage, the rules of probate, will and succession. Remedies were also
created to support these rights. The injunction has its foundations in the
early development of equity. It served then, as now, as an addition to
common law award of damages.
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• Alongside these developments, equity also created its own set of rules, the
‘maxims of equity’, to guide the judge in the use of his Discretion in matters
of equity. Whilst one of the attractions of equity was that it was based on the
judge’s discretion and therefore flexible, the maxims led some to criticize
equity for becoming as rigid as the common law. Nevertheless, the work of
the Chancery courts expanded as equity widened its scope through the late
1700s and 1800s. By the middle of the nineteenth century it was realized
that the two systems could no longer operate as separate bodies and the
review of the system was needed.
• This reform was achieved by the Judicature Act 1873-75. This legislation
provided for procedural fusion of the two systems into one court hierarchy,
which is the basis of the modern divisions of today’s High Court. Rather than
eliminating equity, the Acts it is submitted, strengthened and confirmed its
place in the future. A litigant could now bring his proceedings in one court
which would apply both the rules of common law and equity and Judicature
Acts confirmed that in the case of conflict, equity would prevail.
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• It would be easy to assume that having provided these foundations,
the importance of equity as a developing body of law ceased after
1875. However, this is clearly not the case when one examines the
many twentieth century developments of equity. The rights and
remedies created before 1873 continue to operate today.
Furthermore, they have been refined added to by modern judges and
legal developments. The now established principle of “promissory
estoppel” in contract owes its existence to the judgment of Lord
Denning in the High Trees case10. The contractual license,
constructive trust and doctrine of part performance are all creations
of the judge’s equitable discretion. The rights of the deserted spouse,
an essential part of modern matrimonial property law are creations of
equity, reinforced by statute.
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• So the significance of equity in the modern legal system can be clearly
illustrated. However one concept that has perhaps changed is the
historic notion of equity as flexible and fair. Whilst the reasoning
behind many modern developments is the need to provide a solution,
which is appropriate to the facts and the changing demand of society,
the wealth of guidelines that go with the discretion can be as rigid as
any common law rules. For example, to be granted an injunction one
must satisfy the complex requirements of the American Cyanamid
Rules. Anton Filler orders and Merava injunctions have been criticized
by some judges as harsh and draconian and a set of rigid procedures
aimed at safeguarding against abuse has developed alongside these
two injunctions.
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• Equity under Roman Law
• The Praetor was the famous judicial magistrate of a Roman law. The
exercising of power at that time was by the means of formulae and
written statements. Everything was bounded or surrounded all
around the statements. Gradually, the Praetor started following
another mode of jurisdiction, which is termed as an extraordinary
jurisdiction. After a phase, the cases and areas where the Praetor
could interfere become more common and through this only the
principle of morality and equity was introduced in the Roman Law.
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• Origin of Equity in India
In India, Equity has its origin from the relevant ancient Hindu period, when some of the well-
known legal experts defined the old law and set out the new rules for a better edible solution in
case of any conflict arising between rules of different laws. Hindu law has never been undeviating
and has accordingly introduced equitable principles to meet the requirements of the time. The
smritis were the oldest attempt for the compilation of law. In which smriti karas (the author of
Smriti) have actually conceded the principle of law. It was stated that decisions should not be
exclusively based on scriptures, there should be principles based on reasons. These reasons-based
principles are qualified with the term equity.
• Equity under Indian Legal System
As a branch of the legal system Equity refers to the essence or rules arising from the
administration process of justice specifically in those cases where the areas are not adequately
covered by statute. Equity besides supplements the law with quintessence of liberty and goodwill.
In India, as a matter of administration, there was never a well-developed Supreme court as most
part of the law for the application of the court is certified. There the court acts according to the
principle of equity, justice. The Mohammedan law also partly lays down its origin from the
principle of equity. Equity and adequate ethics have also been expressly laid down with laws. The
English laws also contributed to the development of Equity in the jurisdiction of India. In Indian,
the common law doctrine of equity had been followed even after the independence.
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• The principle of law has been stated in various laws such as:
• ➢ The Specific Relief Act, 1877
• ➢ The Indian Trusts Act, 1882
• ➢ The Indian Succession Act,1925
• ➢ The Transfer of Property Act,1882
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• Relationship between Common Law & Equity:
• Common law and equity developed to some extent in conflict with one another
until 1875 when the Judicature Act finally resolved the conflicts. The difficulties
arose out of the fact that the courts of equity would provide a remedy where the
common law courts would not. This had the effect of omitting the common law
courts jurisdiction. In the Earl of Oxford’s case13, James I decided in favour of
equity as the prevailing rule in case of conflict. Gradually the courts of equity
became undisputed courts of law and a clear body of rules emerged which were
applied there.
• At last the Judicature Act 1873-75 finally fused the two systems of law, common
law and equity, and provided that both were available in all law courts. Thus today
both common law and equity are English law, both rely on the doctrine of
precedent, both are applied in all courts and both have been partly embodied in
statutes. Where a principle of equity conflicts with one of common law, equity
prevails under Judicature Act. In fact the Judicature Act helped to stop the conflict
between common law and equity and definitely express the supremacy of equity
and a lawful and definite relationship between the two.
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• Professor Holdsworth the English Law was “received” in Indian
subcontinent, exactly for the same reasons as the Roman law was
received in Europe. These reasons are, firstly to solve the problems of
the more advanced stage of civilization and secondly to adapt it to
new environment . As observed by Setalvad “the expectation has
come true.”19The manner in which this permeation of English law
took place was altered, but its extent was in no way diminished when
in the nineteenth century the law was codified in Indian subcontinent.
•
• It is a paradox in history that the law and judicial system which the
British had fostered in India should have helped Indians to obtain
their freedom from Britain.
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