Rule of Equity

• As a branch of a legal system- refers to

principles or rules arising from process of
administration of Justice- in cases which are not
covered by Statutes.
• It is not feasible on part of State to devise a
comprehensive code of law in order to govern
every contingency.
• Equity supplements law with essence of liberty
& kindness.
 Equity: Application in India
• Origin- ancient Hindu period when legal experts define old
laws & set out new rules of interpretations & equitable
solutions in case of any conflict b/w rules of different laws.
• For administration of Equity- no establishment of separate
courts. Since most part of law for application by Court is
codified.
• However, Courts act according to principles of Equity/
justice/ Good conscience in absence of any specific law or
usage in matters placed before Court.
• Principles of Equity- clearly noticeable in Muslim Law.
 Equity: Development
• English law- contributed to development of equity
jurisdiction in India.
• The Regulation Act,1927- provision required the
East India Company Courts to act according to
principles of Equity/ justice/ Good conscience in
absence of any specific law or usage.
• Most of Laws enacted- India- for guidance of
judges- provision of Equity/ justice/ Good
conscience has been expressly laid down.
 Principle of Equity: Codification
• It has been codify in various laws such as:-
The Specific Relief Act, 1877
The Indian Trust Act, 1882
The Indian Succession Act
The Guardian & Wards Act.
The Indian Contract Act, 1872.
The transfer of Property Act, 1882.
 Difference between Common law/ Equity
System
• Imp. Distinction- between two systems- based on remedies that
each offers.
• Common Law- decisions made by reference to existing legal
doctrines or statutes.
• In Equity system- emphasis laid on fairness & flexibility which are
known as maxims of equity.
• Ex- most common remedy- Court award- money in lieu of damages
caused. Equity on other hand- enters injunctions or decrees
directing someone either to act or to forebear from acting, which
are in practical terms more valuable to complainant.

These equitable remedies- can only be dispensed by a judge as it is a

matter of Law.
 Case Law
• Paton v. British Advisory Service Trustees