Question

Which among the following is a law based on equity?

• A. Indian Contract Act, 1872
• B. Indian Penal Code, 1860
• C. Indian Partnership Act, 1932
• D. Specific Relief Act, 1963

Hint:

Associate the Specific Relief Act directly with Equity. Its remedies (specific performance, injunction) are the classic "equitable remedies" designed to provide justice when the standard common law remedy of monetary damages is insufficient.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
In common law systems, law is historically derived from two main sources: common law and equity. Common law provided rigid remedies, primarily monetary damages. Equity developed to supplement the common law and provide remedies in cases where damages were inadequate. Equitable remedies are based on principles of fairness, justice, and good conscience. They are often discretionary.
Step 2: Detailed Explanation:
Let's analyze the options:
- (A) Indian Contract Act, 1872: This Act primarily codifies the common law rules of contract. The main remedy it provides is damages (compensation) under Section 73, which is a common law remedy.
- (B) Indian Penal Code, 1860: This is a code of substantive criminal law. It is based on statutory provisions, not principles of equity.
- (C) Indian Partnership Act, 1932: This Act codifies the law relating to partnership firms, largely based on common law and commercial customs.
- (D) Specific Relief Act, 1963: This Act is the quintessential example of a law based on equity. It provides for remedies that were historically developed by the Courts of Chancery in England. These include:
- Specific Performance of a contract (forcing a party to perform their promise).
- Injunction (an order to do or refrain from doing an act).
- Rectification and Cancellation of instruments.
- Declaratory Decrees.
These remedies are not available as a matter of right but are granted at the discretion of the court based on equitable principles. Therefore, the Specific Relief Act is fundamentally a law based on equity.