He who seeks equity must do equity

He who seeks equity must do equity

Introduction:

Law of equity is law of conscience, when anyone comes to the court of equity in order to get relief he is considered to ready and willing to recognize equitable right of other party against plaintiff himself.

Meaning of Maxim:

The maxim “he who seeks equity must do equity” explains that law of equity requires everyone who comes to get relief to be willing to concede, recognize and admit equitable right of defendant.

Purpose:

The purpose of this maxim is to prevent multiplicity of legal proceedings.

Case Law:

Lodge Vs National Union Investment Company (Ltd).

 Facts of the case:

Lodge borrowed money from National Union Investment Company (Ltd) by mortgaging certain securities to company. The said company was unregistered moneylender under the Moneylenders Act of !900, the contract was illegal and therefore void. Lodge sued company for return of securities.

Decision:

The court refused to make an order except upon the terms that Lodge should repay the money, which had been advanced to him. This decision was based on the principle of above stated maxim.

Application:

This maxim has application on the following cases.

1)     Illegal loans:

If one has taken illegal loan he must pay back the loan before relief is given in favor of him.

2)      Doctrine of Election:

According to this doctrine who accepts a benefit under an instrument must adopt the whole of it, confirming to all its provisions and renouncing every right inconsistent with it.

Illustration:

Where a donor gives his own property by way of gift deed to “E” and in the same instrument purports to give “E’s“property to “B” . “E” cannot claim his part of the gifted property if he is not willing to give his own property to “B” as mentioned in the same instrument.

3)     Consolidation of mortgage:

If a person becomes entitled to more than one mortgages against the same person: he may consolidate these mortgages and refused to permit the exercise of the equitable right to redeem one mortgage without the others.

4)    Doctrine of notice:

According to this doctrine if a mortgagor whishes to exercise his right to redeem his mortgaged property he must give a reasonable notice of his intention to the mortgagee.

5)    Principle of set-off:

Where the mutual debt is due from the litigating parties against each other. The amount so due shall set-off that much due from other party and only the residuary amount shall be claimed.

6)    Wife’s equity to a settlement:

Before the enactment of Married Woman and Tort Feasor Act of 1935 the woman could not hold her own property, on getting married her property was to be merged in her husband’s property. At that time the court of equity prescribed that if a husband wants to get the possession of the property to which he was entitled in right of his wife he then has to make a fair settlement of part of the property on his wife and children.

7)    Equitable estoppels:

Where any person by his act or intention or by negligence makes to believe another person of what is not true he cannot afterwards take plea of innocence if that person takes some legal steps under that misrepresentation.

8)    Restitution:

Under law of contract if the contract is rescindable at the option of the one party and it rescinded the same; it shall have to restore all benefits it took out of such contract.

Application in Pakistan:

(i)                  Section 19-A of Contract Act 18772.

(ii)                Section 35 of Transfer of Property Act 1882.

(iii)               Order 8 Rule 6 of Code of Civil Procedure 1908.

(iv)              Article 114 of Qanoon-e-Shahadat Ordinance !984.

(v)                Section 56 of Specific Relief Act.