The National Law Institute University, Bhopal

B. A. LL. B. (Hons.), End Term Examination, September 2019

IV Trimester
Equity Trusts and Specific Relief
Model Answers
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1. X granted a lease to Y of a pond owned by him for a period of 10 years. One of the
conditions of the lease provided that ‘Y’ cannot sublet or transfer the pond to any
other person during the lease period. After one year ‘Y’ granted the licence of pond
to ‘Z’ for a period of three months for the purpose of catching the fish. The terms of
the licence provided that licence does not create any right in the favour of ‘Z’, in the
pond during the term of licence. There was no agreement between X and Z relating
to the pond. When X came to know that ‘Y’ granted the licence of the pond in favour
of ‘Z’, then X without following the due course of law, and without obtaining consent
from Y, dispossessed ‘Y’ and ‘Z’ from the pond. Are ‘Y’ & ‘Z’ entitled to claim any
remedy against ‘X’ according to Specific Relief Act, 1963? Decide and give
arguments on behalf of X, and ‘Y’ & ‘Z’.

Ans.1 Section 5& 6 SRA 1963,

Sections 105, 108 TPA , 1882

Section 52 Indian Easement Act, 1882

- Difference between lease and licence

- ‘Y’ having the possession of the property, therefore entitled to recovered back
the possession of pond as per section 6
- ‘Z’ being licencee not having the possession of the property, therefore not
entitled to get the benefit of section 6 SRA. But when ‘Y’ got back the
possession of the pond ,then he(Z) having right to call upon him to perform his
part of the contract.
- Express News paper P.Ltd. V. UOI (1986) 1SCC
- Bharat Petroleum Corporation Ltd. V. Chembur Service Station (2011) 3
SCC710.

2. ‘X’ created a trust in respect of his house property for the benefits of his minor sons
‘Y’ and ‘Z’. The terms of trust provided that when ‘Y’ & ‘Z’ attained the age of 25
years, the house property would be divided in equal proportion between ‘Y’ and ‘Z’.
‘Y’ after attaining the age of majority sold his half share in the house property in
favour of ‘W’ and also executed a registered sale deed in favour of ‘W’. Trustee and
‘Z’ claimed that sale made by ‘Y’ in respect of his half share in the house property is
not valid. Decide and examine the claim of both the parties in the light of relevant
statutory provisions and judicial pronouncements.

Ans2. Sections 56, 58 & 8 Indian Trust Act, 1882

 - In Re Satyendra Nath Nandi(2016) Cal

3. (a) ‘X’, working in the armed force, gave Rs. 50 lakhs to his brother ‘Y’ to purchase a
piece of land jointly in the name of ‘X’ and ‘Y’, so that after retirement they will do
farming on that particular piece of land. But ‘Y’ purchased a piece of land from Rs. 50
lakhs in his own name through a registered sale deed. All the conversation between
‘X’ and ‘Y’ show that ‘Y’ has to purchase the land jointly in the name of ‘X’ and ‘Y’.
After retirement when ‘X’ came back to his home found that land was registered in
the name of ‘Y’. X approached you to seek legal advice in the matter. Advise ‘X’ as
to how will he protect his right against Y under Specific Relief Act, 1963.
Ans 3(a) Section 26 and 31 SRA
- Rectification of Instrument
• CIT v. Kamla Town Trust AIR 1996SC620
• Cooperative Bank p/c v. Tipper (1996)4 All ER 366.
- Cancellation of Instrument

(b) ‘X’ entered into a contract with ‘Y’ to purchase his house property for Rs. 50 lakhs, but
there is a need to repair that house. ‘Y’ orally agreed with ‘X’ that he will make the
necessary repair of the house before selling the house to him, but ‘Ý’ did not make any repair
of that house. ‘X’ refused to purchase the house. Y filed a suit against ‘X’ and claimed the
remedy in the form of specific performance of contract. Decide the claim of ‘Y’ in the light of
relevant statutory provisions and judicial pronouncements.

Ans 3(b) S.18 SRA, Non-enforcement of contract except with variation set up by defendant

- G M Cutts v. T F Brown(1880) 6 Cal 328

- Section 16, SRA Specific performance of a contract cannot be enforced in

favor of a person who violates essential terms of contract
- P.Prabhakar v. Youngmens Association(2015) 5SCC355
- Mangabhai Jadhavbhai v. Tekchand Shah AIR 2014Guj 12

4.(a) X, gave to his friend ‘Y’ a house owned by him for residential purpose. After 20 years
when ‘X’ claimed his house back from Y, he refused to give it to him. ‘Ý’ claiming that he is
the owner of that particular house. Thereafter ‘Y’ filed a suit in the court for a declaration that
he is the owner of that house. Decide the claim of ‘Y’.

Ans 4(a) Section 34 SRA

- Y only having the custody of house property, legal possession and ownership of house
property remain with ‘X’.

- ‘Y’ does not have any right to the property, ‘Y’ does not approach the court with clean hand.

-Meenugu Mallaiah v. Ananhula Rajaiah(2017), Gurudwara Sahib v. Gram Panchayat Village

Sirthala (2014) 1SCC669
(b) X , a renowned actor, entered into a contract with ‘Y’, a movie production company, that
he will shoot for movie with ‘Y’ company only, for a period of two years. The terms of
contract provided that during the period of contract, X would not be allowed to engage
himself with any other movie production company. After six months X refused to work
with ‘Y’ company and entered into contract with another ‘Z’ movie production company to
work with them for a period of next three years. Is ‘Y’ company entitled to restrain X from
working with ‘Z’ company during the period of contract between X and Y . Decide citing
relevant reasons, statutory provisions and judicial pronouncements.

Ans 4(b) Sections 14, 42 SRA

- Injunction to perform negative agreement

- Lumley v. Wagner (1843) All ER Rep 368

5. Comment on any two of the following:

(A)Salient features of Implied trusts

(B) Cancellation of Instruments.

(C) Modes of extinction of trusts.

(D) Defences to the suits for specific performance of contract.

Note: Apart from model answer independent, logical reasoning is also appreciable.