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Writer's pictureAnanya Walia
Sep 5, 20217 min read

EQUITY AND ITS PRINCIPLES - A DESCRIPTIVE ANALYSIS

Author- Ananya Walia*

Editor- Riya Luhadia

Introduction

Equity is that body of law administered by the common law, which was earlier developed and nourished in the Court of Chancery. It is governed by different principles, rules, and remedies. Equity means fairness, power, justice. There was a large body of principles that became the law of equity. According to the meaning of equity, 'the rules developed to mitigate the severity of common law.' It is the rule of conduct that ought to be followed by the people. In its broader sense, the word "equity" means fair or just, but according to its legal meaning, it is the rules formed to fulfill the common law's gravity.


Definition

Sir Henry Maine, 'equity is a fresh body of law by the side of the original law founded on distinct principles, also supersede the civil law by virtue of its superiority in principles.' According to Osborne, equity is primarily fairness or Natural Justice.

Need of law of equity

Earlier, the customary law originated in Curia Regis, a king's Court in London known as Common Law. It was based on judicial decisions and precedents. In Common Law, there was just one remedy available: damages, and for that, the civil action had to be filed, which had a very rigid system of 'No writ, no remedy.' The civil action starts with a legal written document writ, where the reason and basis a person sued was mentioned and was issued by clerks of a Chancellor's office.


This law was very narrow and rigid. Common law has three types of courts: the office of the exchequer, the Court of Common Pleas, and the King's Bench. The Court of exchequer was for the collection of revenues. The Court of common pleas resolved disputes between one and another individual. The King's bench was responsible for enforcing common laws, the judicial function, and other minor crimes. Thus, this led to dissatisfaction among the people as for the maximum time they need to settle their disputes through inappropriate and unjust remedies.

Defects in Common Law:

The juries in the law courts could be corrupted and intimated. There was just one remedy which was damages. More attention was paid to the formalities of writs rather than the merits of the case. The common law does not recognize the trust and has a rigid structure. No oral pieces of evidence were allowed in the courtroom.


The defects and rigidity gave rise to Chancellery, which was the law of equity. Equity follows the law as a fundamental principle. The rules prescribed by old courts, which means common law courts, were adopted by the Chancery court unless the Court finds any reason for their rejection.

Advantages of Equity comparative to Common law Court

The Law of Equity provided petitioning to the King. The King was considered as the origin or foundation of justice. When workload over the King was increased, the King passed his work to the Chancellery who learned in the civil and common law. The clergyman worked behind the wooden screens, which were known to be Cancelleria from where the word Chancery came.


Equity issued new rights such as trusts. The benefit was provided to trustees. Here one party gives property to trustees to hold for the beneficiary's use. In common law, the trustees were regarded as the owners. Equity also provided the right of redemption, allowing the mortgagor to keep the property if the debtor does not pay with interest. Court of Equity popularly was a flexible, superior procedure and also provided a more appropriate remedy.


Law of equity provided new remedies such as:

  • Specific Performance- is an order telling the party to perform part of the contract where damages are inadequate. E.g., the Sale of the house refused to convey it.

  • Rectification- It was made allowed to make changes in a written document if they did not represent the actual agreement.

  • Rescission allowed parties to revert to their original position (as there was no contract) if the contract was misrepresented.

  • Injunction- It is an order to stop a person from doing a particular act. E.g., Breach of contract.

  • Estoppels, Account of profit, Subrogation, Declaratory Relief, proprietary Remedies are also few remedies available in the Law of Equity.

Principles of Equity:


Ubi jus ibi remedium: It means where there is a right, there is a remedy. Rights and remedies are to be treated within a single jurisdiction. General remedies available are specific Performance of contract or injunction.

In Ashby vs. White (1703) 92 ER 126, the voter was not allowed to vote in elections, and he filed a suit against the officer restraining him from voting. This case shows that if any person has been granted a right, then that person also remedies its infringement.

Aequitas Sequitur Legem: According to this principle, equity will not allow the remedy that is not specified or different from the specific law. The equity does not supersede the law; it has to be part of the law. In the case where the law does not apply, this legal maxim suffers a limitation as it is applying to the existing laws. In the case of Earls of Oxford (1615) 21 ER 485, the Hon'ble Court was of the contention that, when there will be confusion between the rule of law and equity, the law of equity will prevail.

He who seeks equity must do equity: According to this principle, the plaintiff is a follower and worker to justice, and court power is to apply it. Thus, making them obliged to perform duties. Parties who seek equitable relief. In the lodge vs. National union investment corporation limited case, the plaintiff borrowed money from a money lender and took action to recover the money as security. The Hon'ble Court refuses the plea filed by the lodge.


Whoever comes to equity must come with clean hands: This principle is related to past conduct, past behavior of the person. It states that the person who asks for a remedy must not be involved in the inequitable act on his own past. The defense is only applicable when there is any bridge between the party's conduct in the past and the remedy he wishes to fulfill. D and C Builder limited vs. Rees [1965] EWCA Civ 3 in this case, the Hon'ble Court rejected the plaintiff's claim for promissory estoppel as he wanted to take unfair advantage of the pure position defended. This specific principle was adopted in section 17,18,20 of the specific relief act.


Vigilantilus non dormient bus aequitas subvenit: This maxim states that a person with excessive delay is not entitled to get equity. According to this principle, equity generally helps the active people. Laches stands for unreasonable delay in filing a plea for a specific claim. If there is laches in a case, it results in the dismissal of such claims. In some cases, there may be situations where the law expressly provides the period. Then the party is barred from bringing any such suit. This rule of laches and reasonable time was first introduced in Chief Young Dede vs. African Association limited [1914] UKPC 23 Bailii.

Equality is equity: The principle is explained with the help of Latin legal maxim that is Aequitas est quasi aequalitus which means equality is equity. This principle puts both the parties on equal footing and makes the rights and obligations equate. In other ordinary laws, they may give advantage to one person over the other, but it strives for both parties equally.

Equity looks at what ought to have been done: It results in a legal phenomenon, an equitable conversion, and acts done before it happened. According to this principle, where an individual is required to perform any action by way of law or by an agreement under legal significance, the Court presumes as the act has already been done or ought to be done before the act has happened.

Equity looks to intent rather than form: The equity remedy is established by way of this principle. It establishes that when the terms and facts of the case are seen to determine justice, then it is required to check the intention of the parties. According to this principle, equity seeks for the intention of the person rather than the form of seeking that relief. The common law court generally seeks for the forms as the case has to be presented in the writs.In the case of Parkins vs. Thorold [1851] Eng R 542, (1851), if the party fails to fulfill the contract in the time frame given in the contract, the Court provides a reasonable time to the party to perform the act.

Aequitaes est corectrio legis generalities tales parte deficit: This follows the common law. According to this principle, equity is the correction of that part of the common law, where it is defective, not as a new law.

Equity imputes an intention to fulfil obligation: If the party is under the obligation to perform an act but instead of performing that act, acts similar to that act, then the intention of fulfilling the act is considered as the act done.

Where there is equal equity, the law prevails: Equity did not prevail when no justice in taking the answer to an issue. Equity is not any sort of punishment, but it is a remedy to right infringement.

Qui prior est tempore potior est jure: According to this principle, where the equities are equal, the first in time prevails. If two-person have conflicting interests in the same property, then the rule is that the person who is first in time has priority in the law of equity over the other person.

Conclusion:

The body of rules of fairness and justice has become the law of equity. It is being derived from back in England. Earlier, the common law had a rigid system and even lacked specific remedies, then the Court of Equity was established, which was governed by these principles. These principles are still followed by the Court today also. Later in the 19th century, the equity courts also became rigid, delay caused, inadequacy was there, number of judges were dependent on the fees paid, so the new dual system is known to be Judicature Act 1873-75 was established.

References



*The Author is a 4th-year B.B.A.LLB (Hons) student at Chandigarh University



Disclaimer: The opinions and views in this article are personal and independent opinions of the author. VAIDHA does not hold any liability arising out of this article.

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