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LL.B.(3Yrs.)VIthSemester
Equity,Trust,FiduciaryRelationship&SpecificReliefAct
Unit–I
Syllabus
[TheOriginandDevelopmentofEquity,Equityanditsrelationwithlaw,TheMaxim ofEquity,The
conceptofTrust,MaximsofEquity,DoctrineofEquity,Election,Mortgageonceamortgagealwaysa
mortgage.Clogonredemption,Foreclosure.
UnitWisePreviousYearQuestionPaperofLucknowUniversity(LL.B.3year2012)
LongQuestion–
Q.1 Discusstheoriginanddevelopmentofequity.lkE;kdsmn~Hko,oafodkldhfoospukdhft;sA
Q.2 Explainthefollowingmaximsdoequity:
(i)Hewhoseeksequitymustdoequity
(ii)Delaydefeatsequity.lkE;kdsfuEufyf[krvk/kkj&lw=ksadhO;k[;kdhft;s%
(i)lkE;kpkgusokysdkslkE;dkikyudjukpkfg,A
(ii)foyEclkE;dksfoQydjnsrkgSA
ShortQuestion
Q.1ConceptofEquity (i)lkE;kdhladYiuk
Q.2DivisionsofEquityJurisdiction (ii)lkE;kdsvf/kdkj&{ks=dkoxhZdj.k
Q.3‘Equityfollowsthelaw’ (iii)lkE;kfof/kdkvuqlj.kdjrhgS*
(LL.B.Hon.2014)
LongQuestion–
Q.1 ExplaintheoriginandgrowthofequityinIndia.HkkjresalkE;kdhmRifÙkvkSjfodkldksle>kb,A
Q.2 Explainthemaxim,“Equityfollowsthelaw.”^̂lkE;fof/kdk̂̂vuqlj.kdjrhgS**&blvk/kkjlw=dksle>kb,A
ShortQuestion–
Q.1 Definitionofequity (i)lkE;kdhifjHkk’kk
Q.2 DevelopmentofequityinEngland (ii)baXyS.MesalkE;kdkfodkl
Q.3 ‘Equalityisequity’ (iii)̂lerkghlkE;gS*
Q.4 ‘Delaydefeatsequity’ (iv)̂foyEclkE;kdksfoQydjnsrkgS*
Q.5 Kings’Bench (v)fdaXlU;k;ky;
Q.6 CommonLaw (vi)dkWeuyk
LL.B.3Yrs.(SemesterVI)-2015
LongQuestion–
Q.1 DoyouagreewiththestatementthatEquitydoesnotembracewholeofnaturaljustice?D;kvkibldFkulslgergSafdlkE;klEiw.kZuSlfxZdU;k;dksLohdkjughadjrk\
Q.2 DiscusstheoriginanddevelopmentofEquity.
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lkE;kdsmn~Hko,oafodkldhfoospukdhft,A
ShortQuestion–
Q.1 DefinitionofequitylkE;kdhifjHkk’kk
Q.2 ‘Delaydefeatsequity’f̂oyEclkE;kdksfoQydjnsrkgS
Q.3 ‘Equalitywillnotsufferawrongtobewithoutaremedy.l̂kE;fdlhnks’kw.kZdk;Zdksmipkj&foghuughajgusnsxkA
Q.4 Equityissynonym tonaturaljustice.lkE;kizkd̀frdU;k;dkIk;kZ;okphgSA
LL.B.3Yrs.(SemesterVI)-2016
LongQuestion–
Q.1 Itissaidthat,theemergenceofequitywasduetotheincompletenessofthecommonLaw,
Comment.;gdFkugS]fdlkekU;fof/kdhviw.kZrkdsdkj.klkE;kdkizknqHkkZogqvkAleh{kkdhft,A
Q.2 Defineequityanddiscussitsnatureandscope?lkE;kdksifjHkkf’krdhft,rFkkmldhizd̀fr,oafoLrkjdhfoospukdhft,A
ShortQuestion–
Q.1 DifferentiatebetweenEquityandCommonLaw.lkE;krFkklkekU;fof/kesavUrjdhft,A
Q.2 EquityfollowstheLaw.lkE;kfof/kdkvuqlj.kdjrhgSA
LL.B.3Yrs.(SemesterVI)-2018
LongQuestion–
Q.1 ExplaintheoriginandgrowthofequityinIndia.HkkjresalkE;kdhmRifÙkvkSjfodkldksle>kb,A
Q.2 Explianthefollowingmaximsofequity:lkE;kdsfuEufyf[krvk/kkj&lw=ksadhO;k[;kdhft,%
(a)HewhoseeksequitymustdoequitylkE;kpkgusokysdkslkE;kdkikyudjukpkfg,A
(b)DelaydefeatsequityfoyEclkE;kdksfoQydjnsrkgSA
ShortQuestion–
Q.1 DefinitionofequitylkE;kdhifjHkk’kk
Q.2 DevelopmentofEquityinEnglandbaXyS.MesalkE;kdkfodkl
Q.3 ‘Kings’BenchfdaXlU;k;ky;
LL.B.3Yrs.(SemesterVI)-2019
LongQuestion–
Q.1 "TheprincipalreasonoforiginofequityisdeficiencyorhardshipofEnglishCommonLaw."
Discuss.ÞlkE;kdsmn~Hkodkizeq[kdkj.kbaXyS.MdhlkekU;fof/kesadeh;kmldhdBksjrkgSAÞfoospukdhft,A
Q.2 "Equitywillnotsufferawrongtobewithoutaremedy."Discuss.ÞlkE;fdlhvid̀frdksmipkj&foghuughajgusnsxkAÞfoospukdhft,A
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ShortQuestion–
Q.1 EquityundertheRomanLawjkseufof/kdsvUrxZrlkE;
Q.2 CommonLawdkWeuykW
Q.3 Onceamortgagealwaysamortgage,dckjcU/kdlnSocU/kdjgrkgSA
Q.4 EquityfollowstheLawlkE;kfof/kdkvuqlj.kdjrhgSA
Assignment/ModelPaper
LongQuestion–
Q.1 ExplaintheoriginandgrowthofequityinIndia.HkkjresalkE;kdhmRifRrvkSjfodkldksle>k,A
Q.2 Explainthefollowingmaximsofequity
(i)Itwhoseesequitymustdoequity.
(ii)Hewhocomestoequity,mustcomewithcleanhands.lkE;kdsfuEufyf[krvk/kkjlw=ksadhO;k[;kdhft,A
(i)lkE;kpkgusokysdkslkE;dkikyudjukpkfg,A
(ii)lkE;dh“kj.kesavkusokysdksLoPNgkFkksalsvkukvko”;dgSA
Q.3 Explainthefollowingmaximsofequity
(i)Delaydefeatsequity
(ii)EquityfollowsthelawlkE;kdsfuEufyf[krvk/kkjlw=ksadhO;k[;kdhft,A
(i)foyEclkE;kdksfoQydjnsrkgSA
(ii)lkE;kfof/kdkvuqlj.kdjrhgSA
LongAnswersQ.1 ExplaintheoriginandgrowthofequityinIndia?Ans.
InIndiatherehasbeennoworkonequityasanindependentbranchofIndianlaw.Itistherefore,notpossibletosaymuchonthistopic.Itishoweverobviousthatequityhashaditsdueplaceandimportanceinthedevelopmentoflaw undertheIndianlegalsystem.ThisisclearlynoticeablenotonlyintheAnglo-IndiaLawbutequallyintheMohammadanandHinduLaws.
InsofarasHindulawisconcernedithasbeenlaiddownthatiscaseofaconflictbetweentherulesofSmritieseithermaybefollowed,asreasoningontheprincipleofequityshalldecidethesolutions.Hidnulawhasneverbeenstaticandhasconsequentlyintroducedequitableprinciplesto
Theanswershallincludefollowingpoints:
OriginandgrowthofequityinIndia.
AccordingtoHinduLaw
AccordingtoBrihaspati
AccordingtoKautilaya
AccordingtoMohammdanLaw
BritishRuleandadministrationofjustice
- NatureofEquity
- ApplicationinIndianLaw
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meettheexigenciesofthetime.
ThelatterSmriti,Karas,namelyNradaandBrihaspatihavecategoricallyacknowledgedtheimportanceofequitableprinciples.Brihaspatihassaidthat“DecisionshouldnotbebasedmerelyonScriptures.Therewouldbefailureofjusticeiftheprinciplesbasedonreasonsarenotfollowed.TheYuktiVicharwasnecessarilytheprinciplesofequitywhichwasbasedonjusticeandright.Theseprinciplesofreasonmaybecalledprinciplesofequity.
Jayswalhasalsocollectedtheauthoritiestothesameeffect.Hesays-
“WemayrecallKautilaya‘sprovisionthatiftheDharmatextisfoundopposedtojudicialreasontheDharmatextfailsandtheretheauthorityofreasonprevailsYajnavalkyasayswherethereisaconflictbetweentwoSmritiestexts,Reasonistherestronger.Yajnavalkyadoesnotpermitapossibilityofconflictbetweenreasonandtext.HelimitsthesuperiorityofReasonorEquitytoaconflictbetweentheshastrasthemselves.WithregardtotheMohammdanlaw theirLordshipsofthePrvyCouncilhaveobserved:“ThechapterontheDuties(Adap)oftheKaziintheprincipleworksonmussalmanlawclearlyshowsthattherulesofequityandequitableconsiderationscommonlyrecognizedinthecourtsofchanceryinEnglandarenotforeigntotheMussulmansystem butareinfactafterreferredtoandinvokedintheadjudicationofcases.ItmaybenotedthatalltherulesofEnglishequityarenotapplicableinIndia.
TheMohammdanLaw alsopartlyowesitsorigintotheprinciplesofequitytheseprinciplesembodiedinMohammdanlaw areknownasistehsanorjuristicequityHanafisectofSunniswasfoundedbyAbuHanifawhoexpoundedtheprinciplethattheruleoflawbasedonanalogycouldbesetasideattheoptionofthejudgeonaliberalconstructionorjuristicpreference tomeettheexigenciesofaparticularcase.
UndertheBritishruleandadministrationofjusticetheLaw CommissionersforpreparingabodyofsubstantivelawforIndiarecommended.Thatthejudgesshoulddecidethosecasesforwhichthereisnoprovisioninlawinthemannertheydeem mostconsistentwiththeprinciplesofjustice,equityandgoodconscience.
TheSupremeCourtofjudicaturewhich wasestablish bytheRegulating Act1773 alsoconstitutedaCourtofequityandtheruleofjusticeandgoodconsciencewasbysection17expresslylaiddownfortheguidanceofjudgesforthedecisionofcasesnotcoveredbyanyruleoflaw.AftertheabolitionoftheSupremeCourtofjudicatureatCalcutta,BombayandMadrasandwiththeestablishmentintheirplacesoftheHighCourtsinthreePresidenciestheequityjurisdictionwas,byclause19oftheletterpatentpreservedtothoseHighCourts.ThesamerulewaslaiddownfortheMufassilCourtsunderclause9ofRegulationVIIof1832.ThesameprovisionhadbeencarriedforwardinsubsequentActsandcontinuedtogoverntherulesfillcodificationtookplaceinthecountrysoinIndiawedonothaveandindeedneverhadaseparateCourtofequityaswasinEnglandbefore1873forexercisingequitablejurisdictiontheCourtswhichwerecourtsofequityaswellaslawasenjoyedtodecidethosecasesforwhichthereisnoprovisionundertheexistingbodyoflawaccordingtotheprinciplesofjustice,equityandgoodconscience.Eveninplaceswheretherewasnostatutoryprovisiontothateffect,judgescouldconform andactaccordingtotheprinciplesofjusticeequityandgoodconscienceintheabsenceofspecificlawonthepoint.
NatureofEquity:-
1.EquityisbasedonNaturejusticeandConscience.
2.EquityisthesubjectmatterofDiscretionoftheCourt.
3.Equityisthebodyofrulestofulfilltherequirementthecivillaw.
4.Equityfollowsthelaw
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5.Equitybelievesinequality.
ScopeofEquity-SincetheemergenceofEquityislikeameantofulfilltheobjectoflaw.Itsemergenceequityprotectstheshortcomingofcivillaworcommonlaw.Attheemergenceofequitytherewerethreemaindrawbacksincommonlaw.
1.AbsenceofRemedy.
2.InadequateRemedy.
3.Complicatedandwrongfulprocess.
TheroleofequityinIndialegalsystem isveryancient.OurreligiousworkslikeVedas.PuranSmiritiarebaseonprinciplesofequityandjustice.IfwelookatancientHindulaw.ThentheimportanceofequityhasbeenclearedinitselfwhereNarada,Brihaspati,Kautilyaandallothersacknowledtedtheimportanceofequity.IthasbeensaidthatincaseofaconflictbetweentherulesofSmiritionlyreasonableprincipleshouldberecognized.
InMuslim law,theequityalsoholdstheimportantplaceprophetMohammadhasestablishedtheequityintheform ofreasonsandconscience.ThefounderofSummitAbuHanifhaspropoundedthatruleoflawcanbeexplainedonundergroundsaccordingtotimeandcircumstances.
TheimportanceofEquitycanbeseenintheIndianlegalsystem infollowingAct.
1.IndianTrustAct1882-Itistotallybasedonequityjusticeandgoodconscience.
2.SpecificReliefAct1963-SpecificreformenceofcontractprovisionrelativelytoInjunction,cancellationofdeedsetc.
3.IndianContractAct1872-Sec.64,65arebasedonprincipleofequity.
4.TransferofpropertyAct1882-Section48,51,53-9arebasedonequity.
5.IndianSuccessionAct1925-Sect177,178,179arebasedonequity.
_________________________________________________________________________________________Q.2 Explainthefollowingmaximsofequity.
1.Hewhoseeksequitymustdoequity.
2.Hewhocomestoequity,mustcomewithcleanhands.
Ans.-
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HewhoseeksequitymustdoEquity-Thismaxim expressesthegoverningprinciplesthateveryactionofthecourtofEquityindeterminingrightsandawardingremediesmustbeinaccordancewithgoodfaithandconscience.Themeaningofthemaxim simplystatedisthatifalitigantclaimssomethingbwayofequityhemustbereadyandwillingtogranttootherpartywhichbelongstothatotherpartyinequityequitableremediescreatethediscretionoftheCourtandsothatcourtwouldbeforegrantingoneenquirewhethertheplaintiffhimselfwouldbepreparedtoactasamanofconsciencetowardsthedefendants.
Themaxim initsbroadestsensemayberegardedasthefoundationofallequitybutasapracticalprincipleguidingtheequitycourtsintheiradministrationofjustice.Themaxim isonlyusedinamuchnarrowerandmorespecialmeaning.Itisaprincipleofmoreextensiveapplicationnodoubtbutitisonlyappliedtocertainparticularcases.
Applicationofthemaxim
1.WifeEquitytoasettlement-Whenbeforethepassingofthevariousmarriedwomen’spropertyActinEnglandahusbandsoughttheaddedoftheCourtofChancerytoobtainpossessionofpropertytowhichhehasentitlesinrightofhiswife.Thecourtrefusedtoassisthim exceptonthetheconditionthathemadeafairsettlementofthepartofthepropertyorhiswifeandchildren.
2.Unconscionableofbargains.InsettingasidesuchbargainstheCourtwouldseethatthemoneyborrowedisrepaidwithfairinterest.Whereapersonasksforthereturnofthemortgagedsecurities,heisassigningforanequitablereliefandhemustfirstpaybackthemoneyadvanced.
Theanswershallcontainfollowingimportantpoints:
1.Hewhoseeksequitymustdoequity.
a.Applicationofthismaxim
i.Wifeequitytoasettlement
ii.Unconscionableofbargains
iii.Thedoctrineofmutualityinspecificperformance.
iv.Electionandmortgage.
v.Compensationfortherepairsandimprovements
vi.Mortgagesbydepositoftitledeeds
- ApplicationofthisMaxim inIndia:-
1.ContractAct,Sec.19-A,64and65
2.TransferofpropertyAct,Sec.35and51
3.IndianTrustAct,Sec62and86
- Limitation
o FirstLimitation
o SecondLimitation
2.Hewhocomesintoequitymustcomewithcleanhands.
ApplicationofthisMaxim inIndia
1.IndiantrustAct,1882
2.SpecificReliefAct,1963
3.Injunction
4.Relief
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3.Thedoctrineofmutualityinspecificperformance-Equitywillnotdecreespecificperformanceofcontractatthesuitofonepartyunlessitdecreesspecificperformanceatthesuitoftheotherpartyaswell.
4.ElectionandMortgage-Themaxim isalsoillustratedgenerallyinthedoctrinesofelectionandmortgages.ThusEquitywouldallowthemortgageortoredeem thepropertyevenafterexpiryofthecontractualperiodbutonlyonconditionwhicharefairtothemortgage.
5.Compensationfortherepairsandimprovements-Thismaxim alsounderliestherulewhichenjoyspaymentofcompensationforrepairsandimprovementsmadebyapersonwhoholdsthelegalestate,whenthepropertyissoughttoberecoveredbypersonentitledinequity.
6.Mortgagesydepositoftitledeeds-Themaxim alsounderliesequitabledoctrineofmortgagebydepositingoftitledeeds.Ifamanpledgeshistiledeedsasasecurityforaloanhemustpaytheamountbeforehewanttogetbackthedeeds,thoughamortgageoflandcouldnotbecreatedwithoutwritingbyreasonofthestatuetteofFrauds.
InIndia-Applicationofthemaxim-
1.ContractAct,Section19-A,64and65-Section19-A oftheIndianContractsaysthat‘whenconsenttoanagreementiscausedbyundueinfluence,theagreementisacontractvoidableattheopinionofthepartywhoseconsentwascaused.
AnysuchcontractmaybesetasideeitherabsolutelyorifthepartywhowasentitledtoavoidithasreceivedanybenefitthereunderuponsuchformsandconditionsastheCourtmaydeem just.
Undersection64and65oftheIndianContractActthepartyseekingtoavoidavoidorvoidablecontractismadetorestoreanybenefitthathehasreceivedfrom theotherparty.
2.TransferofpropertyAct(Section35and51)-Section35ofthetransferofpropertyActlaysdownthathewhotakesbenefitunderaninstrumentmustacceptorrejecttheinstrumentasawhole.
Section51ofthetransferofpropertyActprovidesthatatransferee,whomakesimprovementaanyimmovablepropertybelieving in good faith thathisabsolutelyentitled thereto and issubsequentlyevictedtherefrom byapersonhavingbettertitle,isentitledtocompensationfortheimprovementmadebyhim.
3.IndianTrustActSection62and86-Section62oftheTrustsActimposestheequitableconditiononthebeneficiarytorepaythetrusteethepurchase-moneywithinterestandotherlegitimateexpenseswhenheseeksadeclarationoftrustorretransferoftrustpropertywrongfullybroughtbythetrustee.
Section86similarlyimposestheequitableconditionofrepayingtheconsiderationpaidintransferofpropertypursuantarescindablecontract.
Limitations-Therearehowevertwoimportantlimitationbearingthescopeofthismaxim.Theyareasunder-
Firstlimitation-Inorderthatthemaxim mayapplyitisnecessarythattheequitysoughtbyorgrantedtothedefendantiswithrespecttothesubjectmatterofthesuitorgrowsoutofthecontroversypendingbeforethecourtthemaxim doesnotapplytothecasewhenthereliefsoughtbyplaintiffandtheequitablerightofreliefsecuredtoorsought-bythedefendantbelongtoorgrowoutoftwoentirelyseparateanddistinctmatters.
SecondLimitation-Themaxim appliesonlywhereapartyisappealingtothecourtsinordertoobtainsomeequitablerelief.ItisnotapplicablewhentheplaintiffseekstoenforcepurelylegalrightseventhoughaCourtofequity.
b.HewhocomesintoEquitymustcomewithcleanhands-Thismaxim issomethingexpressedin
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anotherfrom as“hethathascommittedinequityshallnothaveequity.Itmeansthatsofarasthesubjectmatterofthelitigationisconcernedtheclaim mustnotbetaintedwithillegalityorfraud.Theclaim mustnotbejustandfair.Themaxim guidedandregulatestheactionofequityCourtsandtheirinterpreposition.
Thismaxim ismuchmoreefficientbutrestrictiveinitsoperation.ItassumesthatthesuitoraskingtheaidoftheCourtofEquityhashimselfbeenguiltyofConductinviolationofthefundamentalconceptionsofequityandthereforerefusestohim allrecognitionandreliefwithreferencetothesubject-matterortransactioninquestionunseenthesuitforcanshow thathisconducthasbeenfairequitableandjustallalong.
ItsaysthatwheneverapartyseekstosetthejudicialmachineryinmutationandtoobtainsomeequitableprinciplethenthedoorsoftheCourtsofEquitywillbeshutagainsthim andthecourtwillrefusetointerfereonhisbehalftoacknowledgehisrightsortoawardhim anyrelief.Thismaxim isthusbasedonconscienceandgoalfaithwhiletheCourtofequitywouldactotheconscienceofdefendantandwouldforcehim todorightandjusticeitwouldneverthusinterfereonbehalfoftheplaintiffwhoseownconductinreferencetothesubjectmatteroftransactionhasbeen marked bya wantto good faith orhad violated anyofthe principles ofEquityorrighteousnesswhileaCourtofEquitytriestopromoteandenforcejusticegoodfaithuprightnessandfairnessonthepartofthedefendantitneverthelessstringentlydemandsthesamefrom theplaintiff.
__________________________________________________________________________________________
Q.3Explainthemaxim—“Equityfollowsthelaw”and“DelaydefeatsEquity”.
Ans.
Themaxim meansthatequityisnotabodyofjurisprudenceactingcontrarytolaw,butratherasupplementtolaw.TheCourtofChanceryneverclaimedtooverridetheCourtsofCommonLaw.Maitland,correctlyobservesthat“Everyjotandeverytitleofthelawwastobeobeyed,butwhenallthishadbeendone,somethingmightyetbeneedful,somethingthatEquitywouldrequire.Storyinelucidationoftheabovemaxim explainedthat“WherearuleeitheroftheCommonLaw ortheStatuteLaw,isdirect,andgovernsthecasewithallitscircumstances,ortheparticularpoint,aCourtofEquityisasmuchboundbyitasaCourtofLaw,andcan,aslittlejustifyadeparturefrom it.”
Theanswershallcontainfollowingpoints:
a.Equityfollowsthelaw
a.ApplicationofMaxim
i.Alegalestate,rightorinterest
ii.Anequitableestate,rightorinterest
Limitation–
ApplicationinIndianLaw
b.Delaydefeatsequity
Delayfataltoclaim
Threeconditions–
1.Destructionorlossofevidence.
2.Anagreementtoabandonareleaseofplaintiff’sright
3.Plaintiffinducethedefendanttoalterhisposition.
ApplicationinIndianLaw
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Thismaxim isunderstoodinthefollowingtowrespects:-
(1)Equityadoptsandfollowstheruleoflawinallcaseswhereapplicable.
(2)EquityfollowstheanalogiesofCommonLaw.
Applicationofmaxim—two-fold—Themaxim hadtwoapplicationsaccordingtothesubject-matter.Ifthesubjectmatterwas-
(1)Alegalestate,rightorinterest,or
(2)Anequitableestate,rightorinterest.
Asregardsalegalestate,rightorinterest.EquityisstrictlyboundbytherulesoflawandtheCourtofChanceryneverblamedtooverridetheCourtofCommonLaw.Equityinthesecasesobeyedthelaw evenifthelegalrulesinquestionwerehardorunfairasisillustratedabovebytheruleofintestatesuccession.
Asregardsequitableestate,rightandinterest,EquityfollowstheLawinthecaseofactinginanalogywithlegalrulesinsofarasanalogyclearlyexists,forexample,ifBwasthebeneficiaryunderatrust,hisinterestinthetrustproperlywasmerelyequitableandnotrecognizedbytheCommonLaw,buthisinterestinEquitywasheldtodevolveaccordingtothelegalruleforthedevolutionofproperty.Similarly,incaseofequitableclaimswhichwereanalogoustolegalclaims.Equity,asarule,appliedthetimebarundertheStatutesoflimitation.Forexample,inanactionbroughtbyanebeficiearytoreceivetrustmoneywronglypaidbythetrusteetoanotherbeneficiaryunderaCommonLawactionformoneypaidandreceivedandananalogyofthestatutoryperiodoflimitationofsixyearswasapplied.ThisshowsthatEquityrequiredproceedingstobebroughtwithintheperiodprescribedforlegalproceedingsofasimilarkind.
Themaxim that“Equityfollowsthelaw”hasanothermeaningalso.Indealingwithitsownequitableestatesandrights.Equityhasadoptedmostofthelegalrules.Equityfollowsthelegalruleswheretheyareconsistentwithjustice,conscienceandethics.
Limitations-Themaxim appliesinboththecases“legalestate”and“equitableestate”generally,buttherearecertaincasesofexceptiontothegeneralapplicationofthemaxim.Inexceptioncases,whereanexactlegalrulewasneitherdirectlyapplicablenorcapable,ofbeingextendedonprinciplesofanalogy,Equityproceededtoadministerjusticeonprinciplesandrulesofitsown.Itmayalsobenotedthatthismaxim issubjecttothepreviousmaxim that“equitywillnotsufferawrongtobewithoutaremedy”andwheretherewasawrong,equityalwaysextendeditshelptoredressitandtoenforcetherightifitwascapableofbeingjudiciallyenforced.
InIndia-ThedistinctionbetweenlegalandequitableinterestsdoesnotexistinIndia.Inallactions,whetheritrelatestolegalrightsandinterests,ortowhatareknowninEnglandasequitablerightsandinterests,iftherebeanystatutoryprovisionrelatingtothesubject-matter,thatmustapplyandequitableconsiderationwillnotbeallowedtooverridetheprovisionoftheStatute.Thusinallactions,thecourtistoapplythelawoflimitationenactedinIndiaLimitationAct,1908,andthejudgecannot,onequitablegrounds,enlargethetimeallowedbythelaw,postponeitsoperationsorintroduceexceptionsnotrecognizedbyit.Similarly,incaseofthelaw ofregistration,thePrivyCouncilobservedthat“norcanEquityoverrideaStatuteandconferuponapersonarightwhichtheStatueenactsshallbeconferredonlybyaregisteredinstrument.”
DelaydefeatsEquity-Themaxim hasalsobeenexpressedinotherform i.e.Equityaidsthevigilantandnotthedormant”.Thismaxim meansthatwhilelegalclaim isnotbarredbyanylapseoftimeshorterthantheperiodprescribedbytheStatuteofLimitation,andequitableclaim ontheotherhandmay,insomecasesbebarredbytheunreasonabledelayoftheplaintiffinseekingtherelief.TheCourtofEquitydiscouragesthelaches,i.e.unreasonabledelayofsuitinassertingorconforminghisright,holdingthatitwouldbeujusttoallowaclaim tobeassertedafteranunduelapseoftime.The
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CourtofEquityirrespectiveofthestatuteofLimitationisnottogivereliefwhenthepartyseekingreliefhasdelayedforalongtimewithoutattemptingtoenforcehisrightLordCamdeninSmithv.Clay,hassaidthat“ACourtofEquityhasalwaysrefuseditsaidtostatedemands,whereapartyhassleptuponhisrightsandacquiescedforagreatlengthoftime.NothingcancallforththisCourtintoactivitybutconscience goodfaithandreasonablediligence;whenthesearewanting,theCourtispassiveanddoesnothing.”
Delayfataltoclaim—Threeconditions—Delaywillbefataltoclaim forequitablereliefonlyunderthefollowingthreeconditions:-
(1)Whenithasresultedinthedestructionorlossofevidencebywhichtheclaim mighthavebeenrebutted;or
(2)Whenitisevidencedofanagreementbytheplaintifftoabandonareleaseofhisright;or
(3)Iftheplaintiffhassoactedastoinducethedefendanttoalterhispositiononthereasonablefaiththathehasreleasedorabandonedhisclaim.Butpartfrom suchcircumstance,delaywillbeimmaterial.
InIndia—Applicationofthemaxim—TheIndianLimitationActhasmadeprovisionsforallconceivablecases;andcasesnotspeciallyprovidedforintheActaregovernedbytheResiduaryAct.Butthisdoesnotmeanthatlachesarenotdefenceatallincaseswherestatutoryperiodoflimitationisprescribed.
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UNIT-IISyllabus[TheConceptofTrust,Distinctionwithagencyandcontract,ClassificationofTrust,Constructivetrust,ReligiousandCharitableTrustCommonpropertyresourcesandpublictrustdoctrine,Power,RightandDutiesandDisabilitiesofTrustee,DischargeandappointmentofnewTrustee,ExtinctionofTrust,RightsandLiabilitiesofBeneficiary–
UnitWisePreviousYearQuestionPaperofLucknowUniversity
LL.B.3Yr.(SemesterVI)2012
LongQuestion
Q.1 Describethedutiesoftrustees.U;kl/kkfj;ksadsdÙkZO;ksadko.kZudhft;sA
Q.2 Discusstherightsofbeneficiaries.fgrxzkfg;ksadsvf/kdkjksadhfoospukdhft;sA
ShortQuestion–
Q.1 DefinitionofTrust U;kldhifjHkk"kk
Q.2 Charitabletrusts [kSjkrhvFkokiwrZU;kl
Q.3 DifferencebetweenTrustandAgency U;kldhrhufuf'prrk,¡
Q.4 ThreecertaintiesofTrust fof'k"VpylEifÙkdsvkf/kiR;dhiqu%izkfIr2014
LL.B.3Yr.(SemesterVI)2014
LongQuestion–
Q.1 Describetherightsandpowersoftrustees.U;kl/kkfj;ksadsvf/kdkjksa,oa'kfDr;ksadko.kZudhft,A
Q.2 Whencannewtrusteebeappointedandbywhom?u;sU;kl/kkjhdcfu;qDrfd,tkldrsgSavkSjfdlds}kjk\O;k[;kdhft,A
ShortQuestion–
Q.1 DefinitionofTrust U;kldhifjHkk"kk
Q.2 CharitableTrusts [kSjkrhvFkokiwrZU;kl
Q.3 DifferencebetweenTrustandAgency U;klvkSjvfHkdj.kesavarj
Q.4 ThreecertaintiesofTurst U;kldhrhufuf'prrk,¡
LL.B.3Yr.(SemesterVI)2015
LongQuestion–
Q.1 WhatisConstructiveTrust?Howdoesitdifferfrom impliedtrust?izyf{krU;klD;kgS\;gyf{krU;kllsfdlizdkjfHkUugS\
Q.2 Discusstheliabilitiesofbeneficiaries.fgrxzkfg;ksadsnkf;Roksadhfoospukdhft,A
ShortQuestion–
Q.1 DefinitionofTrust U;kldhifjHkk"kk
Q.2 DifferencebetweenTrustandAgency U;klvkSjvfHkdj.kesavarj
Q.3 LiabilityforbreachofTrust U;klHkaxdsfy,nkf;Ro
12
LL.B.3Yrs.(SemesterVI)-2016
LongQuestion–
Q.1 Distinguishbetweencharitableandprivatetrusts.[kSjkrhrFkkfuthU;kldsHksnksadko.kZudhft,A
Q.2 Whataretheliabilitiesofthebeneficiaries.Discuss.fgrxzkghdsnkf;RoD;kgSa\o.kZudhft,A
ShortQuestion–
Q.1 Definitionoftrust.U;kldhifjHkk’kkA
Q.2 HewhocomestoEquitymustcomewithcleanhands.lkE;kdh“kj.kesavkusokysdksLpPNgkFkksalsvkukpkfg,A
LL.B.3Yrs.(SemesterVI)-2018
LongQuestion–
Q.1 Whencannewtrusteebeappointedandbywhom?Explain.Uk;sU;kl/kkjhdcfu;qäfd,tkldrsgSavkSjfdlds}kjk\O;k[;kdhft,A
Q.2 DescribethePowersoftrusteesU;kl/kkfj;ksadh“kfä;ksadko.kZudhft,A
ShortQuestion–
Q.1 DischargeoftrusteeU;kl/kkjhdhineqfä
Q.2 IllegaltrustvoS/kU;kl
Q.3 ExpresstrustvfHkO;äU;kl
LL.B.3Yrs.(SemesterVI)-2019
LongQuestion–
Q.1 DefineTrust.Discussitscreation.U;kldhifjHkk"kknhft,Abldsl̀tudhfoospukdhft,A
Q.2 DescribetheliabilitiesofaTrustee.U;kl/kkjhdsnkf;Roksadhfoospukdhft,A
ShortQuestion–
Q.1 PublicTrustlkoZtfudU;kl
Q.2 WhocanbeTrustee?U;kl/kkjhdkSugksldrkgS\
Q.3 CharitableTrust[kSjkrhU;kl
Assignment/ModelPaper
Unit-II
LongQuestion–
Q.1 Describethenightsandpowersoftrustees.U;k;/kkfj;ksdsvf/kdkjks,oa'kfDr;ksadko.kZudhft,A
Q.2 Discusstherightsofbeneficiaries.fgrxzkfg;ksdsvf/kdkjksdhfoospukdhft;sA
Q.3 DescribethedutiesoftrusteesU;kl/kkfj;ksadsdÙkZO;ksadko.kZudhft;sA
13
LongAnswers
Q.1- Describetherightsandpowersoftrustees.
Ans.-
Section31to35dealwiththerightsoftrusteesasgivenintheIndianTrustsAct.Theyareasunder:
1.Righttotitledeeds-Atrusteeisentitledtohaveinhispossessiontheinstrumentofthetrustandotherdocumentssolelypertainingtotrust-property(Section31).
2.Righttore-imbursement-Atrusteehasarighttoreimbursehimselforpayordischargeoutofthetrustproperty,allexpensesproperlyincurredinorabouttheexecutionofthetrusts,ortherealization,reservation orbenefitto thetrustproperty,ortheprotection orsupportofthebeneficiary(Section32)Twoconditionsmustbesatisfiedinordertoentitlethetrusteetorecovertheexpensesincurredinthefirstplace,itmustbeintheexecution ofthetrustandsecondly,itmustbereasonableandproperinthecircumstancesinwhichitwasincurred.
3.Righttoindemnityfrom againerbybreachoftrust-Apersonotherthanatrusteewhohasgainedan advantagefrom abreachoftrustmustindemnifythetrusteetotheextentoftheamountactuallyreceivedbysuchpersonunderthebreach;andwhereheisbeneficiary,thetrusteehasachangeonhisinterestforsuchamount(Section33).totakedirectionsfrom Court-AtrusteehasarighttoapplybypetitiontoaprincipalCivilCourtoforiginaljurisdictionforitsopinion,adviceordirectiononanypresentquestionrespectingthemanagementoradministrationofthetrustpropertyotherthanquestionofdeal,difficultyorimportance,notproperintheopinionoftheCourtforsummarydisposal(Section34).InDalipKumarv.Nandram,AIR1970Cal.292itwasheldthatSection34oftheIndianTrustsActismerelyanenablingprovisionandthatthetrusteeisnotobligedtoapplyforthedirectionoftheCourtineverycase.
4.Righttosettlementofaccounts-Whenthedutiesofatrustee,assucharecompleted,heisentitledtohavetheaccountsofhisadministrationofthetrustpropertyexaminedandsettled;andwherenothingisduttothebeneficiaryunderthetrust,toanacknowledgementinwritingtothateffect.Section35).
Theanswershallcontainthefollowingpoints:
Rightsoftrustee(sec.31–35)–
1.Righttotitledeeds
2.Righttore-imbursement
3.Righttoindemnityfrom againerbybreachoftrust
4.Righttosettlementofaccounts
Powersoftrustee–
1.Bythetrustinstrument
2.Bystatute
3.Underthegeneralprincipleoflaworequity
Statutorypowersoftrustee(Sec.37–43)
1.Powertoselftrustproperty
2.Powertovaryinvestments
3.Powertomaintainaninfantbeneficiary
4.Powertogivereceiptsfortrustproperty
5. Powertocompromiseclaims.
14
Atrusteemayhavethreekindsofpowersnamely-
1.Powersgiventothetrusteebythetrustinstrument;
2.Powersgivenbystatute;and
3.Powersavailableunderthegeneralprincipleoflaworequity.
Statutorypowersoftrustees-ThestatutorypowersofthetrusteesaredealtinSection37to43oftheIndianTrustAct.Theyareasunder:-
1.Powertoselltrustproperty.
2.Powertovaryinvestments,
3.Powertomaintainaninfantbeneficiary,
4.Powertogivenreceiptsfortrustproperty
5.Powertocompromiseclaims.
__________________________________________________________________________________________
Q.2 Discusstherightsofbeneficiaries.
Ans.-
1.Righttorentsandprofits-Thebeneficiaryhas,subjecttotheprovisionaryoftheinstrumentoftrust,righttotherentsandprofitoftherustproperty.(Section55).Thebeneficiarieshaveincertaincases,notmerelytherightstorentsandprofitsofthetrustpropertybutalsotothecorpusorthe
2.Righttospecificexecution-Thebeneficiaryisentitledtohavetheintentionoftheauthorofthetrustspecificallyexecutedtotheextentofhisparticularinterest.(Section55)
3.Righttotransferofpossession-Wherethereisonlyonebeneficiaryandhecompetenttocontractorwherethereareseveralbeneficiariesandtheyarecompetenttocontractandallareofonemind,heortheymayrequirethetransfertotransferthetrust-propertytohim orthem,ortosuchpersonasheortheymaydirect.(Section56)
4.Righttoimpactandtakecopiesofinstruments-Thebeneficiarieshavearightagainstthetrusteesandallpersonsclaimingunderhim withnoticeofthetrust,toinspectandtakecopiesoftheinstrumentoftrust,thedocumentsoftitlerelatingsolelytothetrustproperty,theaccountsofthetrustpropertyand thevouchers,bywhichtheyare supportedandthecasesubmittedandopiniontakenbythetrusteeforhisguidanceinthedischargeoftheduty.(Section57)
Theanswershallcontainfollowinggivenpoints:
Rightsofbeneficiary:-
1.Righttorentsandprofits.
2.Righttospecificexecution
3.Righttotransferofpossession
4.Righttoimpactandtakecopiesofinstruments
5.Righttotransferbeneficialinterest
6.Righttosueforexecutionoftrust
7.Rightstopropertrustee
8.Righttocompelthetrusteetoanyactofduty.
15
5.Righttotransferbeneficialinterest-Thebeneficiary,ifcompetenttocontract,maytransferhisinterestbutsubjecttothelawfortimebeinginforceastocircumstancesandextentinandtowhichhemaydisposeofsuchinterest.(Section58).
6.Righttosueforexecutionoftrust-Whennotrusteesareappointedorallthetrusteesdie,disclaim,oranydischarge,orwhereforanyotherreason,theexecutionofatrustbythetrusteeisorbecomesimpracticable,thebeneficiarymayinstituteasuitfortheexecutionofatrustbythetrusteeisorbecomesimpracticable,thebeneficiarymayinstituteasuitfortheexecutionofthetrust,andthetrustshall,soareasmaybepossible,beexecutedbytheCourtuntiltheappointmentofatrusteeormoretrustee.(Section59).
7.Righttopropertrustees-Thebeneficiaryhasarighttothepossessionsofthetrustdocumentthatthetrustpropertyshallbeproperlyprotectedandheldandadministeredbyproperpersonsandbyapropernumberofsuchpersons(Section60)
8.Righttocompelthetrusteetoanyactofduty-Thebeneficiaryhasarightthathistrusteeshallbecompelledtoperform anyparticularactofhisdutyassuch,andrestrainedfrom committinganycontemplatedorprobablebreachoftrust.(Section61)
__________________________________________________________________________________________
Q.3 Describethedutiesoftrustees
Ans.-
ThedutiesandliabilitiesofatrusteehavebeenexplainedinSection11to29oftheIndianTrustsAct.Theymaybebrieflystatedasunder:-
1.Trusteetoexecutetrust—Thetrusteeisboundtofulfillthepurposeofthetrust,andtoobeythedirectionsoftheauthorofthetrustgivenatthetimeofitscreations,exceptwhere-
(i) Itisimpracticable,illegalormanifestlyinjurioustothebeneficiaries.
(ii) Itismodifiedbytheconsentofallthebeneficiariescollectivelyprovidedtheyareallcompetentincontract,or
(iii) Adeparturefrom suchdirectionsissanctionedbytheCourt(Section11).
2.Trusteestoinform himselfofthestateoftrustproperty-Atrusteeisboundtoacquaint
Theanswershallcontainthefollowingpoints:
Dutiesoftrustee-
1.Trusteetoexecutetrust
2.Trusteetoinform himselfofthestateoftrustproperty.
3.Trusteetoprotecttitletotrustproperty
4.Trusteenottosetuptitleadversetobeneficiary
5.Carefuldealingwithtrustproperty
6.Conversionofperishableproperty
7.Tobeimpartial
8.Topreventwaste
9.Tomaintainproperaccounts
10.Toinvesttrustfunds.
16
himself,assoonaspossiblewiththenature,andcircumstancesofthetrustproperty;toobtain,wherenecessary,atransferofthetrustpropertyto himself;and subjectto theprovisionsoftheinstrumentoftrust,to getin trustmoneysinvested orinsufficientorhazardoussecurity(Section12).
3.Trusteetoprotecttitletotrustproperty-Atrusteeisboundtomaintainanddefendallsuchsuits(andsubjecttotheprovisionsoftheinstrumentoftrust)totakesuchotherstepsasmaybereasonableandnecessaryforthepreservation ofthetrustproperty,andtheassertionorprotectionofthetitlethereti[Section13].
Itisthedutyofthetrusteetoplacethetrustpropertyinastateofsecurityandforthatpurposetotakeallpossibleandreasonablestepslitigationsorotherwise.Thus,wherethetrustpropertyisimmovablepropertywhichhasbeengiventotheauthorofthetrustbyanunregisteredinstrument,itisthetrustee’sdutytocausetheinstrumenttoberegistered.
4.Trusteenottosetuptitleadversetobeneficiary-Thetrusteemustnotforhimselforanother,setuporaidanytitleinthetrustpropertyadversetotheinterestofthebeneficiary(Section14)
5.Carefuldealingwithtrustproperty-A trustee isboundtodealwiththetrustpropertyascarefullyasamanofordinaryprudencewoulddealwithsuchpropertyifitwerehisown,andintheabsenceofacontracttothecontraryatrusteesodealingisnotresponsiblefortheless,destructionordeteriorationofthattrustproperty.(Section15).
6.Conversionofperishableproperty—Wherethetrustiscreatedforthebenefitofseveralpersonsinsuccessionandthetrustpropertyisofperishablenatureorafutureorreversionaryinterest,thetrusteeisbound to correctthepropertyinto propertyofapermanentandimmediatelyprofitablecharacter,unless-
(i)thewillcontainsadirectionorimplicationtothecontrary;or
(ii)Thewillconfersonthetrusteediscretiontopostponesuchconversionwhichhecaninbonafidewayandimpartiallyexercise(Section16).
7.Tobeimpartial-Wheretherearemorebeneficiariesthanone,thetrusteemustbeimpartialandmustnotexecutethetrustfortheadvantageofoneattheexpenseofanother(Section17).
8.Topreventwaste-Wherethetrustiscreated forthebenefitofseveralpersonsinsuccessionandoneofthem beinginpossessionofthetrustpropertycommitsorthreatenstocommit,anyactwhichdestructive orinjurioustothe trustproperty;thetrusteeisboundtotakemeasuresinpreventsuchact.(Section18).
9.Tomaintainproperaccounts-Atrusteeisbound(a)tokeepclearandaccurateaccountsofthetrustproperty,and (b)atallreasonabletimesattherequestofthebeneficiary,tofurnishhim withfullandaccurateinformationastoamountandstateofthetrustproperty(Section19).
10.Toinvesttrustfunds-Wherethetrustpropertycontainsofmoneyandcannotbeappliedimmediatelyorifanearlydatetothepurposeofthetrust,thetrusteeisboundtoinvestmoneyonthesecuritiesmentionedinSection29oftheAct.ThetrusteeissoboundonlysubjecttoanydirectionscontainedIthetrustinstrument.Exampleofsuchsecuritiesarepromissorynotes,debentures,stockorothersecuritiesofanyStateGovernmentetc.
17
UNIT–IIISyllabus
Meaning,Nature&Scopeofequitablerelief,HistoryofSpecificRelief.Relievesregardingpossession
ofimmovable& movableproperty, Meaningofspecificperformance,enforcementofcontract,
defences,part-performanceofcontract.
UnitWisePreviousYearQuestionPaperofLucknowUniversity
LL.B.3Yrs.(SemesterVI)2012
LongQuestion
Q.1 StatetheprovisionofSpecificReliefAct,963relatingtothespecificperformanceofthepart
ofthecontractaslaiddowninSection12.fofufnZ"Vvuqrks"kvf/kfu;e]1963dh/kkjk12esafn;sx;slafonkdsHkkxdkfof'k"VikyulEcU/khizko/kkuksadkmYys[kdhft;sA
Q.2 Statethecircumstancesinwhichacontractisnotspecificallyenforceable.muifjfLFkfr;ksadko.kZudhft;sftuesalafonkdkfof'k"V:ilsvuqikyuughagksldrkgSA
ShortQuestion–
Q.1 Recoveryofspecificmovablepropertyfof'k"VpylEifÙkdsvkf/kiR;dhiqu%izkfIr
LL.B.3Yrs.(SemesterVI)2014
LongQuestion
Q.1 WhatdoyoumeanbySpecificReliefAct?DescribetheobjectsandhistoryofSpecificRelief
Act.fofufnZ"Vvuqrks"kvf/kfu;elsvkiD;kle>rsgSa\fofufnZ"Vvuqrks’kvf/kfu;edsmn~ns';,oabfrgkldkmYys[kdhft,A
Q.2 Describethecircumstancesinwhichspecificperformanceofcontractsmaybegrantedbythe
court.ftuifjfLFkfr;ksaesaU;k;ky;}kjklafonkvksadsfof'k"Vvuqikyudkvkns'kiznkufd;ktkldrkgS]mudko.kZudhft,A
ShortQuestion
Q.1 Meaningofspecificrelieffof'k"Vvuqrks"kdkvFkZ
LL.B.3Yrs.(SemesterVI)2015
LongQuestion
Q.1 StatetheprovisionsofSpecificReliefAct1963relatingtotheSpecificperformanceofthepart
ofthecontractaslaiddowninSection12.fof”k’Vvuqrks’kvf/kfu;e]1963dh/kkjk12esafn;sx;slafonkdsHkkxdkfof”k’VikyulEcU/khizko/kkuksadkmYys[kdhft,A
Q.2 DiscusstheobjectsandscopeoftheSpecificReliefAct,1963.fof”k’Vvuqrks’kvf/kfu;e]1963dsmn~ns”;,oafoLrkjdhfoospukdhft,A
ShortQuestion
Q.1 Recoveryofspecificmovablepropertyfof”k’VpylEifRrdsdCtsdhiqu%izkfIr
LL.B.3Yrs.(SemesterVI)-2016
LongQuestion–
18
Q.1 Discussthecontractswhichcanbespecificallyenforced.lafonk;saftudkfof”k’VvuqikyugksldrkgS]foospukdhft,A
Q.2 WhataretheobjectsandscopeoftheSpecificReliefAct,1963?Comment.fof”k’Vvuqrks’kvf/kfu;e1963dsmn~ns”;,oafoLrkjD;kgSa\o.kZudhft,A
ShortQuestion–
Q.1 DefinitionElectionfuokZpudksifjHkkf’krdhft,A
Q.2 UsufructuarymortgageHkksxcU/kd
Q.3 SubrogationizR;klu
Q.4 LienofBaileemifufgrhdk/kkj.kkf/kdkj
LL.B.3Yrs.(SemesterVI)-2018
LongQuestion–
Q.1 DiscusstheobjectsandscopeoftheSpecificReliefAct,1963.fof”k’Vvuqrks’kvf/kfu;e]1963dsmÌs”;,oafoLrkjdhfoospukdhft,A
Q.2 Discussthecontractswhichcanbespecificallyenforced.Lkafonk;saftudkfof”k’VvuqikyugksldrkgS]foospukdhft,A
ShortQuestion–
Q.1 Meaningofspecificrelieffof”k’Vvuqrks’kdkvFkZ
LL.B.3Yrs.(SemesterVI)-2019
LongQuestion–
Q.1 NarratetheprovisionsoftherecoveryofspecificimmovablepropertyundertheSpecificRelief
Act,1963.fofufnZ"Vvuqrks"kvf/kfu;e]1963dsvUrxZrfof'k"VvpylEifÙkdsizR;q)j.kdsmicU/kksadko.kZudhft,A
Q.2 "NormallytheSpecificPerformanceofapartofcontractisnotallowed."Explainandpointout
theexceptionstothisrule.ÞlkekU;#ilslafonkdsfdlhHkkxdkfofufnZ"Vvuqikyuughadjk;ktkldrkAÞLi"Vdhft,rFkkblfu;edsvioknksadkmYys[kdhft,A
ShortQuestion–
Q.1 RescissionofContractsLkafonkvksadkfo[k.Mu
Q.2 SpecificPerformanceofContractsLkafonkvksadkfof'k"Vikyu
Assignment/ModelPaper
Unit-III
Q.1 WhatdoyoumeanbySpecificReliefAct?DescribetheobjectsandhistoryofSpecificRelief
Act.fofufnZ"Vvuqrks"kvf/kfu;elsvkiD;kle>rsgSa\fofufnZ"Vvuqrks’kvf/kfu;edsmn~ns';,oabfrgkldkmYys[kdhft,A
Q.2 Describethecircumstancesinwhichspecificperformanceofcontractsmaybegrantedbythe
court.ftuifjfLFkfr;ksaesaU;k;ky;}kjklafonkvksadsfof'k"Vvuqikyudkvkns'kiznkufd;ktkldrkgS]mudko.kZudhft,A
Q.3 Specificperformanceofthepartofthecontract?
19
lafonkdsHkkxdkfof'k"VikyuA
LongAnswersQ.1 WhatdoyoumeanbySpecificReliefAct?DescribetheobjectsandhistoryofSpecificReliefAct.
Ans.
SpecificRelief—Itsmeaning—ThelawofSpecificReliefseekstoimplementtheideasofBenhamwhosaid,“Thelawoughttoassuremeeverythingwhichismine,withoutforcingmetoacceptequivalents,althoughIhavenoparticularobjectionstothem.”
SpecificReliefisareliefinspecie—Itisaremedybywhichapartytoacontractiscompelledtodooromittheveryactswhichhehasundertakentodooromit.
Itsobject—TheobjectoftheSpecificReliefActisconfinedtothatclassofremedieswhichasuitorseekstoobtainandaCourtofJusticeseekstogivehim theveryrelieftowhichheisentitled.AccordingtoSirEdwardFry“Aperfectsystem ofjurisprudenceoughttoenforcetheactualperformanceofcontractofeverykindandclass,exceptonlywhentherearecircumstanceswhichrendersuchenforcementunnecessaryorinexpedient.”
Inordertoprovidereliefincasesrelatingtocontracts,tortsandothercasesSpecificReliefAct,1877 wasenacted.Thislegislationhad becomenecessarybecauseIndianContractAct,1872providedonlythereliefofcompensationincaseofbreachofcontract.Itwasfoundthattheremightbesituationswhereinthegrantofcompensationwouldnotaffordadequatereliefandonlyspecificperformanceofthecontractwouldrenderjusticeandprovideadequaterelief.IntheabsenceofdevelopmentofseparateequitylawasinEngland,thiscreateddifficultiesandhardships.Inviewoflongdrawnconflictbetweenequitycourtsandcommonlawcourts,theBritishersdidnotintroduceequitylaw inIndiaasaseparatebranchoflaw whereveritwasfoundnecessaryequitylaw wasintroducedinthefrom ofstatutes.Thatiswhy,toprovidecertainreliefsuchasspecificperformanceofcontracts,SpecificReliefAct,1877wasenacted.
Withaview toadoptthelaw inaccordancewiththechangingtimesandcircumstances,thelawwasamendedandanewAct,namelySpecificReliefAct,1963wasenactedbytheParliament.Asitisclearfrom thePreambleoftheAct,itis‘anActtodefineandamendthelawrelatingtocertain
Theanswershallcontainfollowingpoints:
Specificreliefact
Meaning
Specificreliefisareliefinspecie
Object
Modeofspecificrelief
1.Bytakingpossession
2.Byorderingapartytodotheactwhichheisobligedto
3.Byinjunction
4.Bydeclaratorydecrees
5.Rectificationofinstruments
6.Rescissionofcontracts
7.Cancellationofinstruments
8.Enforcementofpublicduties
20
kindsofspecificreliefontheirsubjectaBillwasintroducedonDecember,23,1960inLokSabhabutitlapsed.ThereafterasecondBillwasintroducedandthistimetheBillwaspassedandthusSpecificReliefAct,1963wasenacted.ThisActcameintoforceonMarch1,1964.Thisactisnotexhaustiveanddoesnotincludethecompletelaw onthesubject.Thisisclearfrom thePreambleoftheActwhichhasbeennotedabove.But,aspointedoutbytheSupremeCourtinHungerfordInvestmentTrustLtd.v.HaridasMudra,(1972)3SCR690 theActiscompleteandexhaustiveinrespectofthematteritdeals.
ModeofSpecificRelief
UndertheSpecificReliefAct,1963,thespecificreliefmaybegiveninanyofthefollowingways:
1.Bytakingpossession-Bytakingpossessionofcertainpropertyanddeliver,inittoclaimant,i.e.recoveryofpossessionofproperty.(Section5,6,7,8).
2.Byorderingapartytodotheactwhichheisobligedto—Byorderingapartytodotheveryactwhichheisunderanyobligationtodo,i.e.specificperformanceofcontracts,(Section10to14).
3.Byinjunction—Bypreventingapartyfrom doingthatwhichheisunderanobligationnottodo.Thisiscalledpreventiverelief,i.e.injunction.(Sections36to42).
4.Bydeclaratorydecrees-Bydetermininganddeclaringtherightsofpartiesotherwisethanbyanawardofcompensation,i.e.declaratorydecrees.(Section34and35).
Inadditiontotheseclassesofcasesofanequitablerelieftheactincludesandprovidesforthefollowing:-
5.Rectificationofinstruments.(Section26).
6.Rescissionofcontracts.(Section28to30)
7.Cancellationofinstruments(Section31to33)
8.Enforcementofpublicduties.
Inadditiontothese,twomoreclassesofreliefswereknowninIndia,buttheyarenowomittedbytheSpecificReliefAct,1963.
______________________________________________________________________________________
Q.2 Describethecircumstancesinwhichspecificperformanceofcontractsmaybegrantedbythecourt.
Ans.
Thespecificperformanceofanycontractmayinthediscretionofcourt-
1-Whennostandardforascertainingactualdamageexists-
AccordingtoSection10theCourthasdiscretiontoenforcethespecificperformanceofcontractwhenthereexistsnostandardforascertainingtheactualdamagecausedbythenon-
Theanswershallconsistoffollowingpoints:
Specificperformanceofcontracts
1.Whenthestandardforascertainingactualdamageexists.
2.Whencompensationinmoneywouldnotprovideadequateelief.
3.Case–Madhusoodhanvs.KeralaKaumudiPvt.Ltd.
4.Case–Ram Karanvs.GovindLal
21
performanceoftheactagreedtobedone.Forexample,AagreestobuyandBagreestosellapicturebyadeadpainterandtworareChinavases.AmaycompelBspecificallytoperformthiscontractbecausethereisnostandardforascertainingtheactualdamagewhichwouldbecausedbyitsnon-performance.
2-Whencompensationinmoneywouldnotprovideadequaterelief-Thecourtmayenforcethespecific performance ofthe contractwhen the actagreed to be done is such thatcompensationinmoneyforitsnon-performancewouldnotaffordadequaterelief.
IthasbeenmadeclearthatunlessanduntilthecontraryisprovedtheCourtshallpresumethatthebranchofcontracttotransferimmovablepropertycannotbeadequatelyrelievedbycompensationinmoneyandthatthebranchofacontracttotransfermovablepropertycanbesorelieved.However,evenincaseofcontracttotransfermovablepropertytheCourtshallpresume thatcompensation in moneywould and be adequate reliefin theconditionsstatedbelow-
(a) Wherethepropertyisnotanordinaryarticleofcommerceorisofspecialvalueorinteresttotheplaintifforconsistsofgoodswhicharenoteasilyobtainableinthemarket.
(b) Wherethepropertyisheldbythedefendantasagentortrusteeoftheplaintiff.
Itistobenotedthatthepresumptionintheconditionsstated abovemayberebuttedbyrovingthecontrarytoit.
InMadhusoodhanv.KeralaKaumudiPvt.Ltd.AIR2004S.C.909 theSupremeCourthasheldthatthesharesofaprivatecompanyaregoodsandeasilyobtainableinmarketandthereforethecontractrelatingtosuchsharesmaybespecificallyenforgedi.e.thespecificperformanceofsuchcontractshouldbegranted.
InRam KaranvGovindLal,AIR1999Raj.167 therewasanagreementforsaleofagriculturalland.Thewholeconsiderationwaspaidbythepurchasertothesellerbuttheselleravoidedtheexecutionofthesale-deed.TheCourtheldthatthepaymentofcompensationinmoneywasnotadequatereliefanddetectedthesellertoperform thecontractspecificallyi.e.toexecutethesale-deed.
EventhecauseofmovablepropertythespecificperformanceofthecontractmaybeorderedbytheCourt.ForexampleAcontractwithBtopaintapictureforBandBagreestopayRs.1,000therefore.Bisentitledtohaveitdeliveredtohim onpaymentortenderofRs.1,000.
_________________________________________________________________________________________
Q.3 Specificperformanceofthepartofthecontract?
Ans.
Section12providesforspecificperformanceofapartofthecontract.Theprovisionsofsection6asfollows:
Theanswershallcontainfollowingpoints:
Specificperformanceofpartofcontract–
Sec.6andsec.12
Case–H.P.A.Internationalvs.Bhagwandasandothers
Case–Sundaram vs.DiraviaNadar
22
(1)Exceptasotherwisehereinafterprovidedinthissection,thecourtshallnotdirectthespecificperformanceofapartofacontract.
(2)Whenapartytoacontractisunabletoperform thewholeofhispartofit,butthepartwhichmustbeleftunperformedbyonlyasmallproportiontothewholeinvalueandadmitsofcompensation in money,the courtmay atthe suitofeitherparty directthe specificperformanceofsomuchofthecontractascanbeperformedandawardcompensationinmoneyforthedeficiency.
(3)Whenapartytoacontractisunabletoperform thewholehispartofitandthepartwhichmustbeleftunperformedeither:--
(a)Formsaconsiderablepartofthewhole,thoughadmittingofcompensationinmoney;or
(b)Doesnotadmitcompensationinmoney;heisnotentitledtoobtainadecreefor specificperformance;buttheCourtmay,atthesuitofotherparty,directthepartytodefaulttoperformspecificallysomuchofhispartofthecontractashecanperform,iftheotherparty:-
(i) Inacasefallingunderclause(a)paysorhaspaidtheagreedconsiderationforthewholeofthecontractreducedbytheconsiderationforthepartwhichmustbeleftunperformedandacasefallingunderclauseb)paysorhadpaidtheconsiderationforthewholeofthecontractwithoutanyabatement;and
(ii) Ineithercase,relinquishesallclaimstotheperformanceoftheremainingpartofthecontract andallrighttocompensation,eitherforthedeficiencyorforthelossordamagesustainedbyhim thoughthedefaultofthedefendant.
(4)Whereapartofacontractwhich,takenbyitself,canandoughttobespecificallyperformed,standsonaseparateandindependentfootingfrom anotherpartofthesamecontractwhichcannotoroughtnottobespecificallyperformed,theCourtmaydirectspecificperformanceoftheformerpart.
Explanation-Forthepurposeofthissection,apartytoacontractshallbedeemedtobeunabletoperform thewholeofhispartofitifaprotectionofthesubmitmatterexistingatthedateofthecontracthasceasedtoexistatthetimeofitsperformance.
InH.P.A.Internationalv.Bhagwandas&othersA.I.R.2004,S.C.3858 theSupremeCourthasmadeitclearthatspecificperformanceofapartofcontractcannotbeorderedwhentenureofcontractevinceintentionagainstsegregationofinterest.
InSundaram v.DiraviaNadarA.I.R.2005,S.C.167 thelandinquestionwasjointlyinheritedbytwobrothersandthreesisters.Theagreementtosellwasexecutedbythetwobrothersandthesisterswerenotmadeparties.TheCourtheldthatthepurchasercouldnotinvokeSection12toobtainsaleofundividedsharesofthetowbrotherswitharighttoforcepartitiononthesisterswhowerenotpartiestotheagreementofsale.TheCourthasobservedthatsuchareliefundersection12cannotbeobtainedbavendor,onpurchaseofanundividedshareofthepropertyofsomeoftheco-ownersagainstotherco-ownerswhoarenotpartiestothesaleagreement.
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UNIT–IVSyllabus
[Conditionsofrectification,Cancellation,Partialcancellation,Powerofrestorationorcompensation,
ConditionsofRescission,GroundsofDeclaration,Theeffectofdecreeofdeclaration,Meaningof
injunction&itsKinds,Groundsofissuingofperpetualinjunctions&theexception.]
UnitWisePreviousYearQuestionPaperofLucknowUniversity
LL.B.3Yrs.(SemesterVI)2012
LongQuestion
Q.1 Underwhatcircumstancescanapersonsueforcancellationofaninstrument?Discuss.fduifjfLFkfr;ksaesa,dO;fDrfdlhfoys[kdsfoyksiu¼fujL=hdj.k½dsfy;soknnk;jdjldrkgS\foospukdhft;sA
Q.2 Discussthelawrelatingtograntofperpetualinjunctions.'kk'orO;kns'kdksvuqnÙkfd;stkuslslEcfU/krfof/kdhfoospukdhft;sA
ShortQuestion
Q.1RectificationofInstruments foys[kksadkifj'kks/ku
Q.2DeclaratoryDecrees ?kks"k.kkRedvkKfIr;k¡
LL.B.3Yrs.(SemesterVI)2014
LongQuestion
Q.1 Underwhatcircumstancescanapersonsueforcancellationofaninstrument?Discuss.fduifjfLFkfr;ksaesa,dO;fDrfdlhfoys[kdsfoyksiu¼fujL=hdj.k½dsfy;soknnk;jdjldrkgS\foospukdhft;sA
Q.2 Discussthelawrelatingtograntofperpetualinjunctions.'kk'orO;kns'kdksvuqnÙkfd;stkuslslEcfU/krfof/kdhfoospukdhft;sA
ShortQuestion
Q.1 Temporaryinjunction vLFkk;hO;kns'k
Q.1 Rescissionofcontracts. lafonkvksadkfo[k.MuA
LL.B.3Yrs.(SemesterVI)2015
LongQuestion
Q.1 Underwhatcircumstancescanapersonsueforcancellationofaninstrument?Discuss.fduifjfLFkfr;ksaesa,dO;fDrfdlhfoys[kdsfoyksiu¼fujL=hdj.k½dsfy;soknnk;jdjldrkgS\foospukdhft;sA
Q.2 ExplaintheGeneralPrinciplesgoverninggrantofmandatoryinjunction.lekns”kkRedvkns”kiznkufd;stkuslslEcfU/krlkekU;fl)kUrksadhfoospukdhft,A
ShortQuestion
Q.1 Rescissionofcontracts lafonkvksadkfo[k.Mu
Q.1 PerpetualInjunction fpjLFkk;hvkns”k
LL.B.3Yrs.(SemesterVI)-2016
LongQuestion–
Q.1 Defineperpetualinjunctionanddistinguishwithtemporaryinjunction.“kk”or¼fpjLFkk;h½O;kns”kdksifjHkkf’krdhft,rFkkvLFkk;hO;kns”klsmldsvUrjdhft,A
Q.2 Explaintherescissionofcontractsandwhataretheirnecessaryconditions?Lafonkvksadsfo[k.Mudko.kZudhft,rFkkfo[k.Mudhvko”;d“krsZaD;kgSa\
24
ShortQuestion–
Q.1 RevivaloftrustU;kldkiqu#RFkku
Q.2 RectificationofInstrumentsfy[krksadkifj”kks/ku
LL.B.3Yrs.(SemesterVI)–2018
LongQuestion–
Q.1 DiscussthelawrelatingtograntofPerpetualInjunctions.“kk”orO;kns”kdksvuqnÙkfd;stkuslslEcfU/krfof/kdhfoospukdhft,A
Q.2 ExplaintheDeclaratoryDecrees.?kks’k.kkRedvkKfIrdhO;k[;kdhft,A
ShortQuestion–
Q.1 PreventiveRelieffuokjdvuqrks’k
Q.2 DeclaratoryDecrees?kks’k.kkRedvkKfIr;k¡
Q.3 MandatoryInjunctionsLkekns”kkRedO;kns”k
LL.B.3Yrs.(SemesterVI)-2019
LongQuestion–
Q.1 Underwhatcircumstancescanapersonsueforcancellationofaninstrument?Discuss.fduifjfLFkfr;ksaesa,dO;fäfdlhfoys[kdsfoyksiu¼fujLrhdj.k½dsfy,oknnk;jdjldrkgS\foospukdhft,A
Q.2 Whatisaninjunction,itskindsandgroundsforgrantingaperpetualinjunction?O;kns'k,oaO;kns'kdsizdkjD;kgSavkSj,d'kk'orO;kns'kdkstkjhdjusdsvk/kkjD;kgSa\
ShortQuestion–
Q.1 TemporaryInjunctionvLFkk;hO;kns'k
Assignment/ModelPaper
Unit-IV
LongQuestion
Q.1 Underwhatcircumstancescanapersonsueforcancellationofaninstrument?Discuss.fduifjfLFkfr;ksaesa,dO;fDrfdlhfoys[kdsfoyksiu¼fujL=hdj.k½dsfy;soknnk;jdjldrkgS\foospukdhft;sA
Q.2 Discussthelawrelatingtograntofperpetualinjunctions.'kk'orO;kns'kdksvuqnÙkfd;stkuslslEcfU/krfof/kdhfoospukdhft;sA
Q.3 ExplaintheDeclaratoryDecrees?kks"k.kkRedvkKfIrdhO;k[;kdhft,A
LongAnswersQ.1- Underwhatcircumstancescanapersonsueforcancellationofaninstrument?Discuss.
Ans.-
Theanswershallcontainfollowingpoints:
Cancellationofaninstrument
Conditionfortherelief
Illustration
Otherpointstobenoted
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Thereliefofcancellationoftheinstrumentisfoundedupontheadministrationofprotectivejusticeforfeartechnicallyknow as‘quatinict.Section31ofSpecificReliefActlaysdownthefollowinggroundsofcancellationofaninstrumentinthefollowingways:
1.Anypersonagainstwhom awritteninstrumentisvoidorvoidable,anadwhohasreasonableapprehensionthatsuchinstrument,ifleftoutstanding,maycausehim seriousinjury,maysuetohaveitadjudgedvoidorvoidable;andthecourtmay,initsdiscretion,soadjudgeitandorderittobedeliveredandcancelled.
2.IftheinstrumenthasbeenregisteredundertheIndiaRegistrationAct,1908,thecourtshallalsosendacopyofitsdecreetotheofficerinwhoseofficetheinstrumenthasbeensoregistered,andsuchofficershallnoteonthecopyoftheinstrumentcontainedinhisbooksthefactofthecancellation.
Conditionsfortherelief
Beforeapersoncanclaim reliefforcancellation,hemustprovethefollowingfactsbeyonddoubt—
(1)Thatthewritteninstrumentiseithervoidorvoidableagainsthim;
(2)Thathehasreasonableapprehensionofinjuryfrom theinstrumentifitisleftoutstanding;
(3)Thatthethreatenedinjuryisserious;
(4)Thatinviewofallthecircumstancesofthecase,thecourtconsidersitreasonableandpropertoadministerprotectiveandpreventivejusticeaskedforandthatthecourtought,intheexerciseofitsdiscretion—(a)adjudgetheinstrumentvoidorvoidableinhisfavour,and(b)orderittobedeliveredupandcancelled.
Illustration
(i) A,theownerofashipbyfraudulentlyrepresentinghertobeseaworthyinducesB,anunderwriter,toinsureher,Bemayobtainthecancellationofthepolicy.
(ii)AconveyslandtoBwhobequeathsittoCanddies,ThereuponDgetspossessionofthelandandproducesaforgedinstrumentstatingthattheconveyancewasmadetoBintrustforhim (D).Cmayobtainthecancellationoftheforgedinstrument.
(iii)Adeedofsettlementpurportingtoconveypropertymaybecancelledifthemarriageincontemplationofwhichithadexecutedcannotbeperformedonaccountofthedeathofeitherparty.
Otherpointstobenoted—
(1)“Thepartisrelievedupontheprincipleasitistechnicallycalled,quatinict,thatis,forfearthatsuchagreement,securities,deedsforotherinstrumentsmaybevexatiouslyorinjuriouslyusedagainsthim,whentheevidencetoimpeachthem maybelost;ortheynowthrowacloudorsuspicionoverhistitleorinterest(Story).”
(2)Onadjudgingthecancellationofaninstrument,thecourtmayrequirethepartytowhomsuchreliefisgrantedtomakeanycompensationtotheotherwhichjusticemayrequire(Section33).
_________________________________________________________________________________________Q.2 Discussthelawrelatingtograntofperpetualinjunctions.
Ans.
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Section38-Whentheplaintiffhasestablishedhisright,aperpetualinjunctionisissuedafterthetrial.Itholdsgoodsforever,restraintsthedefendantforevery,andsinceitconcludesarightitisineffectadecree.Itisgrantedwherethereisaquestionofsubstantialdamagewhichcannotbecompensatedbymoneyandwherealegaldutyisbroken.Ingrantingit,thecourtwilllooktotheplaintiff’sconductandthebalanceofconvenienceandconsiderthequestionfrom theviewpointofpreventingmultiplicityofjudicialproceedings.
Whengranted
Aperpetualinjunctionwillbegrantedinthefollowingcases:
i. topreventthebreachofanobligation,
ii. incaseofpreventingthebreachofobligationsarisingfrom contract,
iii.topreventtheinvasionorthreatofinvasiontoplaintiff’srighttopropertyortoitsenjoyment.
ThoughtincaseofwasteoroutsteraninjunctionmaybegrantedagainstthemanagerofajointHinduFamilyattheinstanceoftheCoparcener,butnonethelessablanketinjunctionrestrainingpermanentlyfrom alienatingthepropertyoftheJointHinduFamily,evenincaseofalegalnecessitycannotbegranted.
Forpermanentinjunctiononehastoprovethathetheownerofthepropertyinquestion,itremainedinhispossessionandthedefendanthadnoright,titleorinteresttherein;Permanentinjunctionisadiscretionaryreliefandisequitableinnature.Itmustbegranted interaliaonconsiderationsofequityandjusticeandtheappellantwhoishimselfguiltyofinequitableconductcannotclaim suchrelief.
Onceaperpetualinjunctionisgrantedandbecomesfinal,anyattempttocircumventthesamecannotbepermitted.Itsnon-compliancewouldbeacontinuingdisobedience,entailingpenalconsequences.
Whilegrantingthesame,thecourtwillconsiderthefollowingandsatisfyitselfastotheconditionslaiddowninSection38(3).Wherethereexistsnostandardforascertainingtheactualdamagecausedorlikelytobecausedbytheinvasion,wheretheinvasionissuchthatcompensationinmoneywouldnotaffordadequaterelief,andwhereinjunctionisnecessarytopreventmultiplicityofjudicialproceedings,aperpetualinjunctionwillbegranted.
_________________________________________________________________________________________Q.3ExplaintheDeclaratoryDecrees.
Ans.
Theanswershallcontainfollowingpoints:
Perpetualinsunction(sec.30)
(i) Topreventthebreachofanobligation.
(ii) Preventingthebreachofobligationsarisingfrom contract
(iii) Topreventtheinvasionorthreatofinvasiontoplaintiff’srighttoproperty
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Meaningof“declaratorydecree”-Adeclaratorydecreeismodeofreliefwherethereisnospecificperformanceandnoawardofcompensation.Thereisonlyadeclarationoftherightsofthepartieswithoutanyconsequentialreliefwhichcanbeenforcedbytheexecutionofthedecree.Inotherwords,declaratorydecreesarethosewheresomerightisdeclaredinfavouroftheplaintiffbutnothingissoughttobepaidorperformedbythedefendant.Further,thedeclarationdoesnotconferanynewrightupontheplaintiff,itmerelydeclareswhathehadbefore.
Objectofdeclaratorydecrees-Theobjectofsuchdecreesisthatwhereaperson’sstatusorlegalcharacterhasbeendeniedorwhereacloudhasbeencastuponhistitlestorightsandinterestsinsomeproperty,hemayhavethecloudremovedbyhavinghislegalstatusorrightsdeclaredbthecourt.
Circumstancesunderwhichcourtmaypassadeclaratorydecree—Section34oftheSpecificReliefAct,laysdownthecircumstancesunderwhichiadeclaratorydecreemaybepassedbythecourt.Itmaybestudiedasfollows:
Whomaysue?—Anypersonentitledto(i)anylegalcharacter,or(ii)anyrightastoanyproperty,mayinstituteasuit.
Againstwhom suitcanlie?—Againstanyperson,(i)denyingor(ii)interestedtodeny,histitletosuchcharacterorright.
Whatorderthecourtmaypass?—Andthecourtmayinitsdiscretion,makethereinadeclarationthatheissoentitledandtheplaintiffneednotinsuchsuitaskforanyfurtherrelief.
WhentheCourtmayrefusetoact?—Providedthatnocourtshallmakeanysuchdeclarationwheretheplaintiffbeingabletoseekfurtherrelief,thanameredeclarationoftitle,omitstodoso(Section34).
Explanation—A trusteeofpropertyisa“personinterestedtodeny”atitleadversetothetitleofsomeonewhoisnotinexistence;andforwhom,ifinexistence,hewouldbeatrustee.
Themeaningofthesectionisthatanyperson,whohasarighttoanystatusortitlemaybringadeclaratoryactionagainstanyonewhodenieshissuchstatusortitle.AndtheCourtmay,inthe
Theanswershallcontainfollowingpoints:
DeclaratoryDecrees
Meaning
Objectofdeclaratorydecrees
Circumstancesunderwhichcourtmaypassordeclaratorydecree.
Whomaysue?
Againstwhom suitcanlie?
Whatorderthecourtmaypass?
Whenthecourtmayrefusetoact?
Essentialelementsofsection–34
1.Legalcharacterofplaintiff
2.Denialoftitlebydefendant
3.Declarationsuitforlegalcharacter
4.Righttoseekfurtherreliefratherconsequentialrelief.
Illustration
Furtherpointstobenoted.
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exerciseofitssounddiscretion,makethedeclarationaskedfor,andinsuchasuittheplaintiffneednotaskforanyfurtherrelief.ButtheCourtshallrefusetomakethedeclarationaskedfor,ifitfindsthattheplaintiffbeingabletoseekforfurtherreliefthatthemeredeclarationhasomittedtodoso.
EssentialElementsofSection34
ThustomaintainasuitunderSection34oftheAct,thefollowingelementsareessential–
1.LegalCharacterofPlaintiff-Thattheplaintiffisapersonentitledtoanylegalcharacterorrightastoanyproperty;
2.DenialofTitlebyDefendant—Thatthedefendantisapersondenyingorinterestedtodenytheplaintiff’stitletosuchlegalcharacterorright;
3.DeclarationsuitforLegalCharacter-Thatthedeclarationsuedforisadeclarationthattheplaintiffisentitledtoalegalcharacterortoarighttoanyproperty;and
4.Righttoseekfurtherreliefratherconsequentialrelief-Thatwheretheplaintiffisabletoseekfurtherreliefthanameredeclaration,heisseekingsuchrelief(consequentialrelief).
Illustration
(i)Aislawfullyinpossessionofcertainland.Theinhabitantsofneighboringvillageclaim arightofwayacrosstheland.Amaysueforadeclarationthattheyarenotentitledtotherightsoclaimed.
(ii)Worshippersofatemplecanmaintainasuitforadeclarationthatapermanentleaseoftemplepropertygrantedtothedefendants;Possessionisinvalid[Worshippershavingrighttoworshipintempleareentitledtosue]
(iii)Wheninpriorproceedingsthefatherreferredthemattertoarbitration,adecreewaspassedonthebasisoftheawardandthesonsubsequentlysuedforameredeclarationthatthefatherhasnoauthoritytorefer,heldthatthesuitwasnotmaintainablewithoutafurtherprayerforcancellationofthedecree.[SriRam v.KhawajiAIR1934Lah.235]
Furtherpointstobenoted
1.Thereliefbywayofdeclarationispurelydiscretionary.
Eveniftheplaintiffsatisfiesalltheconditions,itisatthediscretionoftheCourttograntthereliefornot;itcannotbeclaimedasamatterofabsoluteright.
2.Atrusteeofapropertyisapersoninterestedtodenyatitleadversetothetitleofsomeonewhoisnotinexistenceandforwhom ifinexistence,hewouldbeatrustee(ExplanationtoSection34).
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