Q. 1. Delay defeats equity
1.
Preface
·
Equity always assists
those who are active in respect of their rights.
It does not assist
those who are careless
in respect of their rights.
Once the party
knows they have been wronged, they must act relatively swiftly to preserve
their rights because
delay defeats equity. The maxim means
that a party who delays
in enforcing rights
will not be able to seek equitable relief.
2.
Lexical Meaning
·
It means
that if a person is lazy to claim a remedy for the wrong
committed against him then court will refuse to grant him any relief.
Ø
Case law
·
Where an injured party
has been slow
to demand a remedy for the wrong
for a long time with apparent indifference, in this case the court
will refuse to provide the remedy to him on the ground of public policy.
3.
Basis
of the maxim
· It is based on Latin maxim
“Vigilantibus non deriemtibus jura subverient” it means
equity aids the vigilant
not those who sleep on violation of their rights.
4.
Doctrine
of Laches (Ghaflat)
·
Delay which
is sufficient to prevent a party from
obtaining an equitable relief is called laches. A plaintiff who is guilty
of laches or unreasonable delay
is not entitled to equitable
relief.
1. Acquiescence (consent)
§
Acquiescence means awareness of the plaintiff on the violation of his right.
And is not ready to take legal
action in this
regard or he
has waived his right it also can
become cause of laches.
2. Position of defendant
§
A court
of equity will not allow
a latent claim
to be set up because by the laps of time the
defendant has may lost the necessary evidence
for resisting the claim in this case equity will
not set up the
case
5. When delay is fatal
Following are
the cases where
delay is fatal
for a party who is desirous of enforcing his rights.
1. Loss of evidence
§
When the available evidence
is lost or destroyed as a result
of delay
2. Waiver of rights
§
When party has waived
his right then delay is fatal.
3.
Death
of Witness
§
Loss of witnesses could
be occurred in case of death
6.
Circumstances when delay can be ignored
by the court
Following are the circumstance when
court can ignore the delay
I.
Ø When plaintiff was not aware of his right
II.
Ø When plaintiff was not aware
of his legal position
III.
Ø Plaintiff
was minor
IV.
Ø Plaintiff was insane
V.
Ø Due to any fraud which is caused
of delay
VI.
Ø Any natural act which is caused of delay
VII.
Ø Illness which is caused of delay
VIII.
Ø Undue influence which is cause of delay
IX.
Ø Preprocess
of the case which is caused of delay
7. Application of the Maxim
Following are the cases where this
maxim can be applied. Details are as under
I.This
maxim can be applied only
where a right
exists and that
right is recognized by law
II.This maxim
can be applied
where wrong has been done
and right has
been violated clearly.
III.This
maxim can be applied where
law does not provide any relief or for the breach of right.
8. Limitation of Actions
Following are the limitations of
action in this maxim.
Ø If
the cause of action is the contract
and the defendant is not the
government then that cause
of action must
be brought before
the court within
6 years if it’s
the government it must be brought within 3 years
Ø If
there is a tort the
action must be taken within
3 years .If
the defendant is government in this case
action must be taken within
1 year
Ø If the cause of action
is land it must be brought to the court within 12 years
Ø Tort
of defamation must be brought
to the court within 1 year
Ø Equitable interests or right within 6 years
9. Position in Pakistan
·
The English doctrine of delay and laches showing
negligence in seeking
relief in the court of equity
cannot be applicable in Pakistan in view of article 113 of limitation act which fixes a period of three years
within which a suit of specific performance should be filed. So it has no general
application in Pakistan.
Ø
PLD 2000
·
It was held that
courts always keep
the vigilant who approaches court
in time but
do not help the person who is indolent
in pursuing his matter.
10.
Preclude Remarks
·
To Preclude, we can say that where
a person has negligently slept
over his right,
court will refuse
to provide him remedy because
equity aids the vigilant not the indolent.
However this
maxim has no application when a legal
remedy is available to the party as well as time limitation has also been
set for the enforcement of rights violated.
Q.
2: Equality is equity, discuss
1.
Preface
·
Equity will
not play favorites. If there is a dispute
over property in which more
than one party has a beneficial interest, that property
will be divided
equally. This maxim does not apply if there is evidence that the property should be divided
amongst the parties in some other manner.
2. Interpretation
· Equality is an object
where everyone is treated in the same way, without
giving any importance to any one’s requirements.
It is a situation where each and every individual is granted same
rights and responsibilities on the basis
of equality, equality between rich and
poor, men and women, and
are not treated
on the basis of race, sex, caste, religion, nationality, disability, age etc.
Ø Example
·
This maxim
means that equity
will not lose
equality. For example, three adult children of a different women who are
killed in an accident and women receive money for Wrongful Death
action in this case money
received will be divided
equally.
3. Application of Maxim
This maxim has application on the
following matters.
1. Joint tenancy
·
This maxim
will apply in estate law; joint tenancy
is a special form of ownership by two or more persons
of the same
property. The individuals, who are called joint
tenants have equal
ownership of the
property and undivided right
to keep or dispose of the property. Joint tenancy creates
a Right of Survivorship. This right provides that if any one of the joint
tenants dies, the rest
of the property is transferred to the other
survivors.
2. Equal
distribution
·
This maxim
will apply if the distribution of the property
is needed between the two or more
parties due to any reason
in this case
court will equally distribute the property on the basis
of this maxim.
3. Equal
Contribution
·
This maxim
will apply if equal contribution is needed, in this situation if the persons made
any loss in this case
they all will have to share the loss by using the method of equal contribution among all the persons and court will use this maxim
4. Abatement (refusal) of Legacies
·
This maxim
will apply when
a person who
has been died
and left a property
behind him in this case his heirs are entitled to receive the property of
deceased person equally
in this case
in order to avoid any discrimination
court distributes the property equally
among the heir
according to the will
of deceased person which was written by him in his life
5. Power of appointment
·
A power
of appointment is a term
used in the law of wills to describe the authority of the testator (the person writing
the will) to select a person who will be given the authority to
dispose of certain property under the will. Although any person can exercise this
power at any time during
their life, under this maxim court
gives right to person on the basis
of equality is equity.
4.
Basis of Maxim
·
Equity can be defined as the quality
of treating individuals fairly based on their needs and requirements
·
Equality can be defined as treating each
and every individual in the same manner irrespective of needs and requirements.
5. Key
Differences Between Equity
and Equality
The differences between equity and
equality can be drawn clearly on the following grounds
·
Fairness in the manner of treating individuals is called equity.
Equality is an object
where everyone
is at the same level.
·
Equity is a process
while equality is the outcome
·
While equity
represents impartiality, i.e. the distribution is made in such a way to even opportunities for all the people.
Equality indicates uniformity, where everything is evenly distributed among people.
·
In equity,
the differences are recognized and efforts are
made to respond
the manner in which individual opportunities are not equal. On the contrary,
equality recognizes sameness and
so it aims at treating
everyone as equal.
·
In equity,
all the people
can have access
to what they need. The
equality, in contrast, all the people get the same thing, i.e. rights, resources
and opportunities.
6.
Position
in Pakistan
The doctrine
of equality is equity bas been recognized in Pakistan under
various enactments
Ø
Case Law 2003 MLD
·
It was held that in legal
case equality of all persons
before the courts
of law is the symbol of administration and provision of justice which
cannot be secrified at any cost.
7.
Preclude Remarks
·
To Preclude, we can say that equity
always tries to keep the
parties at same position. A party cannot get any undue advantage over the
others. The doctrine of equality
is operated in the court
of equity than
in the court
of law. In the distribution of property the highest equity is to make
equality between the
Q. 3: Discuss “Who comes to equity must come with clean
hands.
1.
Preface
·
The person
who is seeking relief must
not himself guilty
of illegal or immoral
conduct against defendant in order to take revenge
by his own hands because
plaintiff’s such conduct may dis-title him to receive
any assistance from the court. The court of equity will
take this conduct
into consideration, the personal conduct of the plaintiff in dispute without
the help of court; in this case
court will refuse
to grant him relief.
2.
Interpretation
of clean hands
·
The clean
hands doctrine is a rule
of law that someone files
a case for
equitable relief in the court of law; he must be free from unfair conduct
relating to the subject
matter of his claim. Because
it is a favorable defense
for the defendant who can claim that the plaintiff
has "unclean hands"
3.
Basis
of the maxim
Following are the basis of this Maxim.
v Ø A person is not competent to sue as a plaintiff who himself is guilty of fraud in
v the
subject matter of the suit.
v Ø On
an immoral consideration no action can be founded.
v Ø Nobody will be allowed
to found an action on his own hands.
v Ø Nobody can take benefit
of his own hands.
4. Essential element of maxim:
While apply this maxim the court will
see the following essential element of this maxim:
(i) Conduct of the plaintiff.
(ii) Depravity of the plaintiff
(iii) Stupidity of the plaintiff
Ø
Case
Law 2003
·
It was
held that in order to seek justice
the plaintiff must
be fair and
should do justice himself.
6.
Application
of Maxim
This maxim has application on the
following cases.
1) Specific performance
·
If the plaintiff is guilty of undue advantage in this situation the court of equity will refuse to give order
for the specific
performance of a contract.
2) Illegality
·
In Highwaymen case, two robbers
were partners in their own business. Due to a disagreement in shares one of them
filed a case
against another for proper sharing of the profits
of robbery. Courts
of equity do grant relief
in case of partnership but here was a case where the
cause of action
is an illegal action. So, the court
refused to grant relief
to anyone.
3) Fraud
·
In case of fraud,
court of equity
will not grant
any relief to a party
who has committed fraud.
4) Benami Transaction:
·
The act defines a 'benami' transaction as any transaction in which property
is transferred to one person
for a consideration paid by another person
in this case real owner is not allowed
to recover the property.
5) Infant's misrepresentation:
·
Where a minor
fraudulently concealing his age and obtained a sum from his agent which he was not entitled
before the age
of majority. In this case
the court will
not grant any relief
to the infant.
7. Exception to maxim
Following are exceptions to the maxim.
1. Against public policy:
·
If a transaction is against the public policy
in this case
this maximum will not be applied.
2. Unjust plan
·
Where a party with
unclean hands files
a case against the other
party in order
to get relief from the court
in this case court will not grant any relief under this maxim because plaintiff
is unclean handed.
1. Limitations
Following are the limitations on the
application of this maxim.
o This
maxim will not apply if a party
has waived his
right to an equitable
remedy by his own will,
o It
will not apply
if there is a breach
of a moral right only.
o Court can’t
apply this maxim
on the cases
which are recognized and a proper remedy is given
in case of its breach
under common law.
o It
will not apply
if there are acts of state, because
the courts are not
authorized to question on the acts of state.
Ø
Example:
o If a person files
a case against
sovereign or diplomat, he cannot be given
relief because
diplomats have privilege from such proceeding.
Position in Pakistan
·
The maxim who comes to equity must
come with clean
hands is applicable in the courts of law in Pakistan.
Ø Transfer of property act
Ø Qanon-e-Shahadat 1984
Ø Contract Act
Ø Trust
act
Ø Specific Relief Act
8. Preclude
Remarks:
·
To Preclude, we can say
that, he who
committed wrong will
not avail equity.
A court of equity declines to grant
relief to plaintiff where the conduct
of plaintiff in regard to
the subject matter of the case
is wrong. A person who
wants the equity
his hands should not be spotted
with injustice.
Q.
4: Discuss the maxim “Equity Act in Personam”.
1.
Preface
·
There
was a difference between the jurisdiction of the courts of law and the chancery
court. Courts of equity have power over persons who have bind themselves in contracts which are enforceable by the law. This distinction helped to separation of powers between
the two courts
The court of equity always
enforces its order in personam. The court gives
orders to defendant to obey the court but
if defendant fails
to obey the orders of court of equity in this case he is arrested and imprisoned.
2. Interpretation of
In Personam
“In personam” is a Latin
phrase which means
"directed toward a specific person". In a lawsuit
when case is filed against
a specific person
where such person
is served with a summons and the judgment
applies to a person and this judgment is called "in
personam "
3. Lexical Meaning
·
Equity binds
the conscience of a person
do which is required by the court.
the court of chancery always
enforced its decree in personam. it entertain certain suits respecting immoveable property, though the
property might be situated abroad
if the relief sought
could be obtained through the personal obedience can only
be secured. if he comes under the jurisdiction of the court
4. Objectives
· The term
“equity act is personam” is in a general sense,
associated with concepts
of fairness, morality and justice. It is an ethical jurisdiction. However, “equity” is the
branch of law that was administered in the Court of Chancery. It is come into
existence to obtain justice and to overcome
the deficiencies of the common-law.
The Court of Chancery to do what was fair in the settlement of a
dispute.
5. Importance
·
This
maxim has a vital importance. It describes the procedure in equity the judgments of the court of equity operate
in personem against
defendant. Especially in cases of land falling outside
the jurisdiction of the court.
6. Explanation
·
This maxim
states that equity
relates to a person rather
than their property. It applies to property outside a jurisdiction provided that a defendant is within the jurisdiction.
Ø
Case law
·
It was held that
judicial officer has to decide
matter before him in accordance with the evidence produced
regarding that matter.
The rights of parties shall
be
determined in accordance with the
applicable rule of law.
7. Application
This maxim applies in the following
matter.
Ø
For the recovery and foreclosure.
Ø
For specific
performance of a contract to create a mortgage.
Ø
For the deed of sale
Ø
For account
of rent and profit.
Ø
For the appointment of receiver.
8. Conditions:
Following are the conditions for
application of the maxim.
Ø
The remedy
sought must be equitable remedy.
Ø
There should
no proceedings started
in the appropriate foreign court.
Ø
The dispute must
be of consciences.
Ø
Dispute must not involve
a breach of foreign law.
9. Exceptions
Following are the exceptions.
Ø
It will not apply to an action for local transfer
of land in the abroad.
Ø
It has no application where there is no contract
and the dispute between the parties is only
a question of title of foreign land
10. Limitation
Following are the limitations on the
application of this rule or maxim. Details are as udder.
Ø
This maxim
is not applied if there
is no contract there is no jurisdiction.
Ø
This maxim
is not applied if the defendant is not within
the jurisdiction of the court.
Ø
This maxim is not applied to a local
tress pass.
Ø
This maxim
is not applied
if the court order is violating the
legal rules of another
country.
Ø
This maxim
is not applied
if the order
given by the court is not capable
of being executed without
the interference of foreign court.
Ø
This maxim
is not applied
if legal proceedings have been started
in another court.
Ø
This maxim
is not applied if a right is not exist
and that right
is not recognized by law
Ø
This maxim is not applied if a wrong
has not been done
Ø
This maxim
is not applied
if law provides any relief
regarding breach of contract.
11.
Position
in Pakistan
·
High courts
in Pakistan have all powers
of a court of equity.
High court can enforce
its orders in personam. proviso to Sec. 16 of the code is an application in the
modified form of the above
maxim according to it, where
a suit to obtain a relief in respect of immoveable property
can be obtained through the personal obedience
of the defendant, the can be filed within the local limits of the
court where the property is situated, or in the court where
the property is situated, or in the court
12. Preclude Remarks
·
To Preclude, we can say that, the equity acts
in personam was adopted by the early chancellors, in order
to avoid a direct clash
with the court
of law. The own judgment of court of equity
operates in personam
against the defendant. The court of equity
has jurisdiction to entertain cases related to immovable property, however the
property may be situated in abroad.
Q.
5:
Equity will not suffer a wrong to be without remedy or explain the maxim of the
equity Ubi Jus ibi rame dium?
1.
Preface
Equity courts
are the courts
of natural justice.
Whenever a right
is infringed, a remedy is available. There is always
a remedy for a wrong.
Only rights recognized by law can be
enforced by the court, Ubi Jus ibi Remedium is the crux of the
whole jurisdiction of equity. It expresses that
every right will
be enforced by court of equity and wrong will
be redressed by the court of equity.
2. Lexical Meaning
Where there
is a right there is a remedy.
This idea is expressed in the Latin
Maxim ubi jus ibi remedium. It means that
no wrong should
be without remedy
if it is capable of being remedied
by courts. This
maxim says that
where the common
law gives a right, it also gives a remedy
or right of action for the wrong doer.
3. Explanation of maxim
Ubi Jus ibi Remedium covers
entire equitable jurisdiction. It explains that where there is
a right there is a remedy.
Rights and remedies co-exist one can’t
not exist without
the other.
4. Interpretation of Equity
Ubi Jus Ibi Remedium is a Latin
legal maxim which
means "where there
is a right there is a remedy". The
basic principle planned
in the maxim
is that, when
a person's right
is violated the victim
will have an equitable remedy
under law against
the wrong doer.
The maxim also states
that the person
whose right is being infringed has a right
to enforce the infringed
right through any action before
a court.
5. Importance of maxim Ubi Jus Ibi Remedium
The maxim
ubi Jus ibi remedium directes
the judge to interfere in the administration of justice in order
to give a relief to plaintiff by common law and to help the plaintiff by offering different remedies
Ø
Case law
o When
law clothes a man with
a right, it also gives
ways to a man to have his rights and remedies co-exist and
only existence of legal rights without a remedy is Lexical Meaningless.
6. Limitations
Following are the limitations on the
application of this maxim.
o This
maxim will not
apply if a party has
waived his right
to an equitable remedy by his own will,
o It
will not apply
if there is a breach
of a moral right only.
o Court can’t
apply this maxim
on the cases
which are recognized and a proper remedy is given
in case of its breach
under common law.
o It
will not apply
if there are acts of state, because
the courts are not
authorized to question on the acts of state.
Ø
Example:
o If a person files
a case against
sovereign or diplomat, he cannot be given
relief because
diplomats have privilege from such proceeding.
7. Application of the Maxim
Following are the cases where this
maxim can be applied. Details are as under
o This
maxim can be applied only where a right exists
and that right
is recognized by law
o This maxim
can be applied where wrong
has been done
and right has
been violated clearly.
o This
maxim can be applied where
law does not provide any relief or for the breach of right.
8. Non
application of the Maxim
Maxim will not apply in the following
case.
o (Where there
is a breach of moral right because
equity helps only where
there is breach of legal right.
o Where
there is jurisdiction of common law courts.
o Where
there is negligence of plaintiff.
9. Position in Pakistan
·
The maxim ubi Jus ibi remedium is applicable in Pakistan. The specific performance of the contract, ratification of instrument, rescission of contract, cancellation of instrument are
examples. The civil
procedure code entitles a civil court
to entertain all kinds of suits
unless they are prohibited.
10. Remedies in shape of damages
Following are the kinds of damages.
Details of all kinds are being given below
I. General damages
v General damages are those
damages which cannot
be calculated with
the
v value
of money, such as pain,
enjoyment of life,
general damages are
v compensation for past, present
and future losses.
v In
this case, the compensation in the form of money
is paid by wrong doer
v to
the injured person
against violation of his rights
which legally has been
v recognized
II. Special damages
o Special damages
are those damages
which can be calculated with
the value of
money, such as medicine bills,
or repair cost
etc. and special
damages are compensation for past, present
or future losses
o In
this case, the compensation in the form
of money is paid by wrong doer to
the injured person
against violation of his rights
which legally has
been recognized
III. Exemplary damages
o Exemplary damages are those
damages when injured
person is not compensated for his loss
because object of this damage
is to punish the wrong doer
for his wrongful
act against injured
person as well as keep
him away from committing future
wrongs. Sexual harassment or fraud schemes come under this category
IV. Real
damages
v Real damages
are those damages
which actually have occurred as a result
of wrongful act and those
damages can be easily measured with the value
of money are called
real damages
v In
this case, the compensation in the form of money
is paid by wrong doer to
the injured person
against violation of his rights
which legally has
been recognized
v For example, loss of income
because of injury
in the shape of medical expenses etc.
V. Nominal damages
Nominal damages are those damages
when there is no actual
injury or money loss.
But court takes
a legal action
against violation of legal rights because the object of these damages
is to provide protection to a person from repeated violation of his rights by wrong doer.
VI. Contemptuous damages
o Contemptuous damages
are those damages
which are very
small in value such as one
cent or one
rupee that occurred after the wrongful act of wrong doer.
In this case when
injured person sue in the court for
compensation of his loss and it is not possible to convert the damages in significant sum of
money is called contemptuous damages
o But in different countries
a various rules have been set up for contemptuous damages
11.
Preclude Remarks
·
To Preclude, we can say
that the basic
idea ubi jus ibi remedium is that no wrong should
be without a remedy
if it is capable of being remedied
by the court. Where a common law
gives a right it also gives
a remedy or right of action. but it has some limitations it does not provide
remedy for all wrongs.
Specific
relief act
Q. 1: specific performance of
contract? Discuss the contracts which may be enforced specifically?
1.
Preface
Specific performance is an order
of the court
which requires from
a party to perform a specific act, usually which
was stated in a contract between the parties.
It is an alternate to award
damages or a remedy which
is used in the form
of injunctive relief
Specific performance is an actual
performance of a contract because
the plaintiff is entitled to avail the specific thing which he has
contracted. There are some circumstances when a contract cannot
be specifically enforced.
Basically specific
performance of contract
is exact fulfillment of the obligation upon either party
which they have
decided to do or not to do at the time of formation of contract.
2. Relay
Section
·
Sec. 12 of specific
relief act deals with specific
performance of the contract
3. Interpretation of specific performance
·
Specific performance is a contractual remedy in which
the court gives
order to a party to actually perform his promise as soon
as possible as it was decided at the time of formation of contract, because
monetary damages are insufficient to fix the harm.
4. Doctrine of specific performance of contract
·
The specific performance of a contract only requires execution of the contract
according to its
terms and conditions and it rejects to receive the compensation against no
execution of the contract.
5. When
specific performance is ordered?
·
Courts will enforce
specific performance only if the contract is valid. When one party has
refused to perform his obligations as decided in the contract
at the time
of formation of contract.
· Failure to obey the court’s order
for specific performance is a very
serious matter. A defendant who is not obeying court’s
order for specific performance is found
guilty of contempt of court and can be fined or imprisoned
Ø
Case law 2005 YLR 1905
·
It was held that relief in suit for specific performance is discretionary and
can also be granted
to a party who has filed the case on record to show his
bona fide in
the performance of the contract
6. Essentials of enforceable contract
Following are the essentials of
enforceable contract
v There
should be a contract.
v The
contract should be in written
v The
contract should be lawful
v The
contract must create
a legal relationship between the parties
v The
contract must have lawful object
v Parties of the contract
must be competent to enter into the contract
v The
contract should be clarified according to its terms
and conditions
v The
contract should be possible to perform
v When
monetary compensation is not enough
against nonperformance of the act agreed
v to be
done.
7. Cases
in which specific
performance enforceable
Following are the cases where specific
performance is enforceable.
1. Contracts of trust
·
Specific performance is applicable when
the act agreed
to be done but breached
wholly or partially
by the each party.
Ø
Example:
·
A holds
certain stocks in trust for B. A wrongfully disposes of the stock.
A is under an
obligation to restore the same quantity of stock to B. B can enforce specific
performance of the contract.
2. When
no standard exist
for establishing damage
·
It is the situation in which the plaintiff is unable to determine the amount of loss
suffered by him. Where the damage caused
by the breach of contract
is not
found then the remedy of specific
performance is not available to the plaintiff.
Ø Example
·
For example, a person enters
into a contract for the
purchase of a painting of dead
painter which is only one in the market and its value
is not available in this case he is entitled
receive the painting.
3. When
monetary compensation not sufficient relief:
In following cases compensation of
money would not provide adequate relief:
Ø Where
the subject matter of the contract is an immovable property.
Ø Where
the subject matter
of the contract is movable property and Such property or goods are not an ordinary article of commerce i.e. which could
be sold or purchased
in the market.
Ø The
article is of such nature
that is not easily available in the market.
Ø Example:
·
An agreement for sale of agricultural land was made & buyer
had paid full
sale consideration to the seller,
but the seller refuses to execute sale deed as per the agreement. The buyer brought
an action court
for the specific
performance of contract and
it was held by the compensation of money would not afford adequate relief
and seller was directed to execute sale deed in favor of buyer.
4. Where pecuniary compensation cannot be got:
·
It is the situation where
monetary compensation cannot be got for the nonperformance
of the contract as formed by the parties.
8. Contracts which cannot be specifically enforced
Following are the contracts which
cannot be specifically enforced
Ø Where
compensation in money is an sufficient relief
Ø Where
a contract runs into minutes
or numerous detail
Ø Contracts of determinable nature
Ø Contracts which involve the performance of continuous duty which court cannot
supervise
Ø Contract of arbitration
9.
Preclude Remarks
To Preclude, we can say
that specific performance of the contract is reasonable remedy. Specific performance of the contract
may be enforcing by the court
by exercising its discretionary power. The doctrine of specific performance of the contract based upon the principles of equity because
the plaintiff is entitled to have the
specific thing for which he has formed
the contract.
Q. 2: principle and procedure of
Rescission (Cancelation) of Contract.
1.
Preface
·
If
a party to a contract commits a breach the aggrieved party has a remedy of Rescission. He can cancel the contract. It means that
party can withdraw
the contract. In this way party can free himself
from all the obligations of the contract.
·
The main
aim of rescission of contract is to put an end of the contract and
bring back the parties to
their original position. If the Court has not allowed the specific performance of the contract, it may allow
the party to withdraw from
the contract
2.
Relay Section
·
Section 25 to 38 of specific
relief act deals with the rescission of the contract.
3.
Lexical
Meaning of Rescission
·
Rescission means to avoid,
withdrawal or cancellation.
4.
Interpretation
of rescission
·
There are a number
of reasons when contract is cancelled by the court
order and it is
done to bring back the
parties to the
position in which
they were before
formation of the contract
5.
Application
of Rescission
·
Rescission is not applicable to the contracts which are not enforceable by the law but is applicable to the contracts which
are enforceable by the law.
6.
Grounds
for rescission
Following are the grounds of
rescission of the contract. Details are as under.
1. Mistake of Law
·
A mistake
of law occurs
when a party to the contract knows
the facts but ignores the mistake in this case the contract
can be rescinded.
2. Unlawful contract
·
If contract
is against the
law it will be unlawful in this case
the contract can be rescinded
3.
Against
Public interest
·
If contract
is against public
interest it will
be unlawful in this case
the contract can be
rescinded
4. Fraud or undue influence
·
If a contract is formed by fraud or by undue
influence in this
case the innocent
party can rescind the contract with the help of court
5.
Failure
of consideration
· A
party to a contract can
also rescind a contract on the failure
of the other
party to provide “consideration" for
their agreement. A refusal or failure of a party
to perform his obligation of the contract, or a clear
intention to violate
it, gives right
to other party to
rescind.
7. Cases when rescission can be
declared
Following are the cases when
rescission is declared.
1. When
the contracts is voidable by the party.
·
Where the contract is voidable by the plaintiff, the rescission can
be declared by the
court of law on the request of party.
Ø Example
·
A sells
a field to B. There
is a right of way
over the field
but A conceals the facts from B and have
a knowledge of this fact,
in this case
B can rescind the contract
2. When
the contract is unlawful
·
When any unlawfulness arises within the contract in this case the party can rescind
the contract.
Ø Example
·
A, an attorney convinces his client B that is a Hindu
widow to transfer property to him for purpose of defrauding her.in
this case B can rescind
of the contract.
3.
Default
in the payment
·
When purchaser does not pay the money
to the vendor and makes
default in the payment of purchase in this case the vendor
can sue for the rescission of the contract
4. Alternative prayer for rescission
·
A plaintiff suits for the specific performance of a contract but the contract
is not specifically enforced, in this case
contract may be rescinded, if it refuses
to enforce the contract specifically,
8. Court
may require party
rescinding to do equity:
·
On adjudging the rescission of a contract, the court may require the party to whom such relief is granted to make any compensation to the other
which justice may require.
9.
When Rescission is Not Available
There are situations where
rescission is not available as a remedy,
because the decision is at the discretion of the court.
A judge may
deny rescission based
on following certain facts.
Ø When
one party has fulfilled their
obligation of the contract
Ø When A third party
has already received
some benefits from the contract
Ø The requesting party has committed some wrong relating
to the contract
Ø The
requesting party has unnecessarily delayed
the request for rescission,
Ø The requesting party has already
asked for money
damages. A contract rescission cannot be obtained
after requesting a monetary award.
10.
Effect
of rescission
·
The effect
of rescission is restoration of the plaintiff to his original position as the contract had not been made ever. In sec 35 the procedure for rescission of contract has been described for written
contracts it applies
on both vendor
and vendee. Any one of such
parties can go the court
in order to avail the remedy of rescission of the contract.
11.
Preclude Remarks
·
To Preclude, we can say that the
remedy of rescission of the contract is available for all of those who are entering into a contract
between them. There
are a lot of reasons
which gives arise to the rescission of the contract
and one of the parties
can contact to the
court in order to cancel the contract and
such order of court brings
the parties to back
on the position where they were before entering into the contract.
Q.
3:
declaration of rights & discuss the remedy as laid down by specific relief act
1.
Preface
·
Declaration is a legal
order of the court which
relates to person's
right to property
or his status. Declaration under specific relief
act is particular type of relief where
there is no specific performance, no award
of compensation but merely a declaration of rights of
the parties.
2. Relay
Section
·
Sec. 42, 43 specific
relief act deals with declaration of rights or status.
3. Discretion of court as to declaration of rights
·
Any person
entitled to any legal article, or to any right of any property can file the case
against any person denying or interested to deny, and the court
with his own discretion
can make a declaration that
he is so entitled, and
the plaintiff need
not in such suit ask for any further relief.
Ø Example
·
A lawfully has a possession of certain land.
The people of a neighboring village claim a right of way
across the land.
A can file a case
for declaration of right that
they are not entitled to the right
of way.
4. Object of declaration:
Following are the objective of the
declaration of rights. Details are as under:
Ø To
protect the legal
right and legal
character of the owner from the illegal
attack
Ø To
enjoy the legal
character and legal
right peacefully by peaceful owner,
Ø To
protect the law & peace where adverse
possession is noticed.
Ø To define
a person's legal
character and provision of remedy in case of any
violation
5. Who
can sue for declaration of rights?
Following are the person who can file
the case for declaration of rights.
·
Persons having
any legal character
·
Person having
any right upon any property.
6. Who
can be sued for declaration of rights?
Following are the person who can be
sued for declaration of rights.
·
Any person
who is denying a right.
·
Any person
who is Interested to deny his title
of such character
of right.
Ø 7. Case law 2004 MLD 227
·
It was held that any person
entitled to any right of any property
can file the case against any person who is denying or interested to deny his right.
7. Essentials for declaratory suit
Following are essentials for
declaratory suit.
1.
Legal character:
·
The plaintiff
should be entitled
to any legal character at the time of suit.
2.
Right
to property:
·
The plaintiff
should be entitled
to a right of property
for declaratory suit.
3.
Denial
by defendant:
·
Defendant should
have denied or interested to deny the legal character or right of property of the plaintiff.
4.
No
other extra relief:
·
If the plaintiff not have no other extra
relief.
8. Nature of declaratory relief
· Declaratory relief is equitable remedy that’s why
it cannot be claimed as matter of right.
It is a relief where
the legal position
of the plaintiff is declared
by the court.
9. When
extra relief is not requested:
·
Extra relief
is not requested by the plaintiff
when the court dismisses the suit
10.
When declaration is refused by the court
Following are the case when
declaration is refused by the court.
1) Vexatious (Distressing) litigation:
·
In vexatious litigation declaration is refused by the court.
2) Evasion of court fee:
·
In case of evasion
of court fee declaration would
be refused by the court.
3) Multiplicity of suit
·
In case of multiplicity of suit declaration is refused by the court.
11.
Scope:
·
Any person
entitled to any legal character or to any right of any property
can file the case against any person
who is denying
the legal right
of the owner in this
case court by
his own discretion makes a decision
for further relief
12.
Effect
of declaration
·
A declaratory decree
is one which
resolves the legal
uncertainty of the rights and status
of the parties. However, passing of a declaratory decree
is a matter of discretion of
court and it cannot be claimed as a
right.
13.
Preclude Remarks
·
To Preclude, we can say
that court grants
declaration of rights
in order to ensure and protect the interests of people at large. The court cannot
grant declaration on question
of law. A suit for declaration can
be filed by any person
who is entitled to any legal character or any right
of property but where right
of his own
legal character or property
is not involved the suit is not maintainable
Q.
4:
cases where court may refuse to grant of an Injunction.
1.
Preface
·
An injunction is an equitable remedy in the shape of a court
order that requires
a party to do,
or to refrain from doing
different acts. A party that
fails to obey the injunction of the court it may faces
criminal or civil
penalties and may
have to pay damages. In some
cases, breaches of injunctions are considered serious
criminal offenses that
can become cause of arrest and possible prison
sentences. Granting of an injunction is a matter
of judicial discretion for the court.
2. Relay
Section
·
Section 56 Specific Relief Act deals with an injunction
3. Interpretation of Injunction
·
An injunction is a judicial process where a party is required to do, or not to do any particular act.
4. Lexical Meaning of Injunction
· The
word injunction has
been derived from
a Latin word
“ingoing” which means
to “Command or Order”
5. Cases
when injunction is refused
Following are the case where court
cannot grant an injunction.
1. Continuing breach:
§
The court
can refuse to grant injunction if the plaintiff by agreement has disentitled himself to such relief
2. Stay
of pending judicial
proceeding
· Under
the specific relief
act no injunction can be granted
by the court in order
to stop judicial proceeding pending on the court’s end.
3. Stay
of proceeding pending
in court &
subordinate
·
No injunction can be granted
in order to stop proceedings in a court
and not for another
court.
Ø Case law 2003 MLD 201
§
It was held that civil court cannot
issue an injunction to stay judicial
proceedings or proceedings in a superior
court.
4. Stay in criminal matters
§
A civil
court cannot grant an injunction to stay proceeding in a criminal
court.
5.
Prevention of persons to file a case
§
No injunction can be granted
in order to prevent the
persons to file
the case in the
court against violation
of their rights.
6. Prevention of breach of contract:
§ An
injunction cannot be issued to prevent a breach of contract which
cannot be specifically enforced.
7. Prevention of nuisance:
§ No
injunction can be granted where
there is no nuisance or interference with rights or apprehension thereof.
8. Interference in Government
§
No
injunction can be granted to interfere with the public duties of any department of the central
government, or a provincial government or with the sovereign acts of a foreign government.
9.
Any
other relief:
§
No injunction can be granted
to a person who is seeking a special relief
from a court against the plaintiff.
10. X.
Where plaintiff's conduct
disentitles him:
§
When the
conduct of the plaintiff or his agents
has been such as to disentitle him to
the assistance of the court.
11. No
interest of the plaintiff:
§
No injunction can be granted
in special favor
of plaintiff because
no one has any personal interest in the judicial proceedings.
6. Forms of
injunction
Following are the two forms of
injunctions. Details are as under.
1. Prohibitory
·
An injunction is an order
of the court
which is requiring from a party
to stop doing something (a prohibitory injunction) if a person
fails to obey
of an injunctio
·
n order,
in this case he may will be sued for contempt of court
2.
Mandatory
·
An
injunction is an order of the court which is requiring from a party to do
something (a mandatory injunction). If a person
fails to obey
the injunction order in
this case he may be sued for contempt of court.
7. Kinds of injunctions
Following are the kinds of injunctions
1.
Preliminary injunction
·
It is an initial
injunction by the court in order to restrain a party for doing something until the
case has been
decided
2.
Temporary injunction
·
It is a temporary injunction by the
court in order
to restrain a party for doing something for a short period
3.
Permanent
injunctions (perpetual)
·
It is a final
order by the court in order to restrain a party for doing
something permanently
7. Preclude Remarks
§
To Preclude, we can say that injunction is an order
or decree by which a party to an
action is required to do or refrain from doing a particular thing. The right of
an injunction governed by provisions of the specific
relief act 11887.
When an
injunction order
has been issued,
it must be obeyed, and the only
remedy for the aggrieved party is to come up in appeal
to the superior
court to have an order vacated. The court may refuse to grant injunction under Sec. 56 of the
specific relief act
Q.5: procedure for the recovery of immovable property
under the Specific Relief Act.
1) Preface
·
No one can be deprived from
his immovable property without lawful reason.
If a person who is deprived from his immovable property without lawful
reason in this case, he can
file a suit for recovery
of possession such
immoveable property. Because
Sec 8 and 9 relates to the recovery of possession of immoveable property. Person who has
been illegally deprived from
his property, he has relief
under Sec. 9 of Specific Relief Act.
2) Relay
Section
·
Section 8, 9 of Specific Relief Act 1877
provides the remedy
of recovering possession of immoveable property.
3) Interpretation of Immoveable property
·
Immovable property
is an immovable thing or property which
cannot be moved
from one place to another place
without destroying or shifting it such as property which
is fixed to the earth, such as land or a house.
4) Interpretation of possession
·
A person who is possessor of anything, he has complete control over the thing and has
the right
of exclusion of others is called possession
5) Evidence of Possession
Following have been held prime facie
evidence of possession
Ø Entry in khewat
Ø Existence of possession before
displacement by act of God
e.g earthquake.
Ø Grant of lease.
Ø Apprehension of rent.
Ø Handing over key of the promises.
Ø Registration of ownership of property.
6) Procedure recovering of immovable property
1.
Regular procedure
·
If any person is deprived off from his immovable property without his consent
in this case he can file
the case on the basis
of title under
Sec. 8 of specific relief
act.
·
'A person
entitled to the
possession of immovable property can recover
it in the manner
prescribed by the code of civil procedure.
I. Essential of Sec. 8
Ø Strength of possessory title.
Ø Existence of proof of prior possession.
Ø Dispossession should be forceful.
2. Summary procedure
·
Summary procedure for
recovery of the possession of immoveable property
is provided under
Sec. 9 of the specific
relief act.
·
'If any person is deprived off
from his immovable property without his consent and without lawful reason, he can file
case in the
court of law
in order to recover the possession thereof.
I. Essential of summary procedure
·
The plaintiff
must have possession of immovable property.
·
He must have been enjoying
the possession from the last 6 months,
before forcefully dispossession.
·
He must have been forcefully dispossessed without any lawful
reason.
·
Dispossession must be without
the consent of person.)
II. Exceptions
Following are exceptions to Sec. 9
·
No legal action can be taken
against central or provincial government.
·
No legal action can be taken against decree
of the court.
·
No review
or appeal shall
lie against such
an order of restoration of possession.
·
No one can be restrained from
establishing his title
of possession in the court
of law.
III. Essentials of Sec. 9
·
Its object
is to discourage people from
taking the law into their
own hands, however good their title may be.
IV. Nature
·
Summary procedure under Sec. 9 provides a speedy remedy
under specific relief
act.
Ø
Case law2004 YRL
105
·
It was
held that summary
procedure have been
provided under no Sec. 9 to person deprived off from immoveable property without his consent. Person
coming under this Sec. is required to show that
he had actual physical possession of immoveable property from which
he was deprived
off without his consent by defendant within
six months
7) Difference between section 8 and section
9
Following are the difference between
sec 8 and section 9 of the Specific Relief Act.
1.
As
to nature:
Ø Sec
8 is not summary proceeding.
Ø Sec.
9 is summary proceeding.
2. As to
title
Ø Title of property must be proved
for recovery of possession of immovable property under section 8.
Ø Title
of property under sec. 9 is not required to prove.
3.
As
to limitation
Ø Time
limitation for filing
the case u/s 8 is 12 years.
Ø Time
limitation for filing
the case u/s 9 is 6 months
after the time
of dispossession.
4. As to
remedy
Ø Sec
8 provides general
remedy.
Ø Sec.
9 provides quick remedy for possession of immovable property.
8) Preclude Remarks
·
To Preclude, we can say that Sec. 8 and Sec. 9 of specific relief act provided alternative remedies and they are mutually exclusive. A plaintiff cannot combine suit.
Under Sec. 8 claim is based
on the title
while claim is based on possession in Sec. 9.
Q.6: What is specific relief. Do you understand by
equitable remedies and how they are granted?
1) Preface
·
Specific relief is a form of judicial compensation. Compensation must be provided
to every person who has been
injured in the
social process. Basically, the objective of the
Specific relief
is to assure that if there is a wrong
there must be a remedy.
·
In this kind of relief it is compliance of a contract
and compels the
both parties to do or not
to do certain acts which
have been mentioned in the contract. And violation of
these acts makes the other party able
to receive compensation from the other party.
2) Relay
Section
·
Sec 5 to 35 are for Specific relief
3) Interpretation of relief
·
Specific relief
is a remedy by which
each party of the contract is compelled to do or not
to do very acts as defined under the contract.
4) Lexical Meaning of Relief
·
The word relief means removal of anxiety or pain.
5) Objective of specific relief
Following are the objectives of
specific relief.
·
Possession must be lawful as who comes
for justice must
come with clean
hands because it invites claim against unlawful
ejection.
·
No unlawful means
to be used for ejectment of possessor even
possession is taken unlawfully. Only courts
are competent authority to grant specific relief to the affected
party.
·
Person who comes for specific
relief must do equity and cease from the use of unlawful force.
·
Specific relief
aims that law should not be taken
into hands of an individual and just State should
remain sole authority in granting the relief to the aggrieved party.
Ø Explanation
·
Any person
whose rights have been violated
can go to the court
of law for a relief in order to seek
a remedy. In this case
the court of law will
compel the defendant to give compensation to the
person against those items which have been wrongfully obtained by him
Ø Case law PLD 1971 Lah.199
·
The
jurisdiction vested in the court for the grant of decree for specific
performance is discretionary and the court
is not bound
to grant such
relief even
it is lawful to do.
Ø Example
·
If a person agrees
to sell a house to another person
and the person
pays some amount to the owner
under the agreement made up but
the owner of the house does not sale the house latter.
In this case
aggrieved person can sue for the
damages and return of the
amount paid or he also
can ask the court to compel
the owner to sale his
house now. In this situation owner will have
to sale the house as he agreed
for giving specific
relief to aggrieved person.
6) Features of specific relief
Following are the features of specific
relief.
·
Specific relief
is granted under the principles of equity.
·
Its basic purpose is to give a very thing to a person
who is entitled for it.
·
The defaulting party is compelled to do or not to do the very act which has been
decided to do or not to do.
·
Specific relief is an adjective law.
7) Modes of specific performance
Following are the equitable remedies
1. Specific performance
·
Under the law according to this remedy,
the court of law gives
an order to directing a party
to do an act which
was decided between
the parties and under an obligation to do.
2. Injunctions
·
An injunction is
the second type of equitable remedy available in contract. The
court of law gives
order to directing a party to stop doing
that act which
he should not to do.
3. Recession (Collapse)
·
Rescission happens when
a previously existing contract was withdrawn because it was breached. The contract can be re-written in a different way so that
both parties are satisfied with the terms.
4. Rectification (Amend)
·
Under the law according to this remedy,
the court of law issues
an order on the request of any party for
rectification of the
contract when a contract is written with
fraud or a mutual mistake of the parties which
does not truly
express their intention.
5. Cancellation
Under the law according
to this remedy,
a person can cancel the contract by asking to the court of law if contract is void or voidable and apprehension of this contract is causing serious injury
to him.
6. Delivery of possession
·
Under the law according to this remedy,
in this situation the certain property is taken in possession by the claimant.
7.
Declaration
of rights
·
Under the law according to this remedy,
in order to declaration of rights, compensation is awarded to the aggrieved party against the breach of contract.
8.
Appointments
of receiver
·
It is also a kind of equitable remedy,
over a dispute between the two parties
the court appoints a receiver who looks after
the affairs the dispute until
the case is decided by the
court.
8) Basis of specific relief
Basis of specific relief are as under:
1. He
who comes to equity must come with clean hands
2. He
who seeks equity
must do equity
3. Delay defeats equity.
9) Preclude Remarks
·
To Preclude, we can say that specific
relief is a relief in its nature.
It objective is exact
fulfillment of an obligation and the thing
obtained by unlawful
means will have
to return to claimant. A lot remedies for specific relief
have been presented by the law in order
to maintain justice and to run a proper
business of the parties
Trust Act
Q. 1: Discuss the rights available to
beneficiaries under trust act.
1.
Preface
·
Under trust act 1882 every
person is capable
of holding property as a beneficiary. He
is the person
for whose benefit
the trustee accepts
the property from
grantor. Each and every
Beneficiary is entitled to avail the all benefits specified by the grantor of the trust.
2. Interpretation of Beneficiary
·
A beneficiary is a person
who receives different benefits from a trust under
the will
3. Interpretation of trust
·
In law
a trust is a relationship, where property is held by one person
for the benefit of another person. A trust is
created by the owner, also called a "grantor" who transfers his property to a trustee
(receiver). The trustee
holds that property for beneficiaries.
4. Rights of beneficiary under
trusts act
Following are the rights of beneficiaries
under the trust act.
1. Right to rent and profit
·
Under the provisions of trust act
the beneficiary has a right
to rents and
receives the profit from the trust property without
any legal restriction.
2. Right to specific execution
·
Under the provision of trust act the beneficiary has a right
for specific execution for example the grantor of the trust announced some specific benefits
for beneficiaries in this case beneficiaries are entitled for specific execution
3. Right
to sue for execution of trust
·
Under the provision of trust act when no trustee is appointed or one who
is died or discharged from his office and due to
this the execution of the trust becomes impracticable in this case
a beneficiary can
file a case for execution of the trust
and court will execute
the practice of the trust
until new trustee
is appointed
4.
Right to take legal action against
trustee
·
Under the provision of trust act the beneficiary has a right
to take legal
action against the trustee
in the court of law if the trustee wrongfully obtaining profits
from the property of trust
5.
Right
to have conversion
·
Under the provision of trust act the beneficiary has a right
to have the trust
property back when
a trustee wrongfully sells the trust
property to someone
and later becomes of the owner
of the property.
6. Right of inspection
·
Under the provision of trust act
the beneficiary has
a right to inspect and take
copies of instruments of trust
which is a document having
terms and conditions of the trust and having other details such as:
Ø Documents relating to the trust property
Ø The
vouchers
Ø Details of cases if under proceedings of the courts
7.
Right
to inspect accounts
·
Under the provision of the trust
act the beneficiary has full right
to inspect the accounts of the trust
property and if beneficiary finds any discrepancy in this case he
can file the case in the court
8.
Right
of proper trustee
·
Under the
provision of trust
act the beneficiary has a right
that the trust
shall be administered by a proper
trustee or trustees who may protect
and administer the business of trust in healthy way
for the benefits
of beneficiaries
Following are not proper trustee:
Ø A person domiciled
abroad or foreigner
Ø An alien enemy
Ø A person who is conflicting with the beneficiary
Ø A bankrupt
Ø A minor
Ø A married woman
9. Right
to compel for particular act
·
Under the provision of trust act
the beneficiary has a right
to compel his trustee to perform any particular act
of his duty
as he is under obligation to perform this act
and has a right to restrain from committing any breach of instruments of trust.
10. Right to receive information
·
Under the provision of trust act
the beneficiary has a right
to be provided enough
information about the business of the trust
and about its administration that
their rights are being transferred or not.
11. Right
to remove the trustee
·
Under the provision of trust act Current and remainder beneficiaries have the right to petition the court for the removal
of the trustee
if they believe
that the trustee
is not acting in their best
interest. Trustees have
an obligation to balance the needs of
the current beneficiary
12. End the trust
·
Under the
provision of trust
act in some circumstances, if all the
current and remainder beneficiaries agree, they can
petition the court
to end the trust. State laws vary on when
this is allowed. Usually, the purpose
of the trust
must have been fulfilled or be impossible.
5. Preclude Remarks
· To
Preclude, we can say that
the beneficiary is the person
for whose benefit
the grantor of the trust offers
different benefits as well as the trust
act also provides multiple rights to beneficiaries for protection of their rights
from trustee’s wrongful actions or from others.
The beneficiary is important person
because a trust
is controlled not only by the instrument of trust and the court, but
also by the beneficiaries.
Q.
2:
What is trust? different kinds trust and object & lawful trust?
1.
Preface
· The
rules relating to trust are
contained by the trusts act 1882. In law a trust is a
form of relationship created on the direction of any individual, in which a person
holds the individual’s property under
some duties to use it for the benefit of others.
In trust the title of ownership of the property
of a trustee is not a legal
or real while it
is obligatory in nature which is used for the benefits of others.
2. Interpretation of trust
·
In law
a trust is a relationship, where property is held by one person
for the benefit of another person. A trust is
created by the owner, also called a "grantor" who transfers his property to a trustee
(receiver). The trustee
holds that property for beneficiaries.
3. Kinds of Trust
Following are the kinds of trusts.
Details are as under.
1. Revocable trust
o Revocable trust is such trust where
a grantor is allowed to keep control
of all the assets
in the trust, and grantors has a right
to cancel or change the terms of the trust
at any time
without the consent
of the beneficiaries.
2. Irrevocable trust
o Revocable trust is such
trust where a grantor is not allowed
to keep control of all the assets
in the trust,
and grantors has no right
to cancel or change
the terms of the trust at any time
without the consent of the beneficiaries.
3. Executed trust
o Executed trusts
are such trusts
where interests of the trust
are completely limited and defined by grantor. Executed trusts are complete trusts and no further acts are required to be done
by the grantor or by the beneficiaries to give it its full effects
4. Executory trust
o Executory trust is such
trust where some
further acts are
required to be done
by the grantor of the trust or by the beneficiaries, to give it its full effect.
5. Express trust
o Express trust
is such trust
where a grantor transfers his property to trustee
for the benefit of others in express terms
which can be in writing
or may be oral. And trustee in under an obligation to distribute such property for the
benefits of beneficiaries.
6.
Implied trust
o Implied trust is such trust where
a grantor has shown his intention to provide certain property for the construction of mosque and people have made a mosque there
without any objection raised by the
grantor of the property is called implied
trust while it has not been in written or even oral statement but it was just an intention of the grantor.
Following are the kinds of implied
trust.
A. Resulting trust
·
A resulting trust
is such trust which comes
into existence by the operation of law, where property is transferred to
someone who pays nothing for it and is under
an obligation to use it for the benefit
of others.
B. Constructive trust
·
Constructive trust is such trust
which is created
by grantor himself due to old age for example where
husband and wife make trust by their own will is
called constructive trust. After death of one partner another
partner succeeds. And in
case of death of both, property of the trust shall go to specific person.
7. Public trust
o Public trust is such
trust which is created for the beneficial use for the public
at large and not for a specific
group of persons
such as public
places, parks
etc.
8. Private trusts
o Private trust is such
trust which is created for
the beneficial use for the specific group of person
and not for the promotion or welfare of the public at large
9. Voluntary trust
o Voluntary trust such trust
which is created
by the grantor during his lifetime, In a voluntary trust, the grantor
holds legal title
of the property transferred to the beneficiary, even the beneficiary has actual title
and possession.
10. Testamentary trust
o Testamentary trust is such
trust which takes
effect after the death of the
grantor according to the terms
and conditions of the trust
for the benefits of other.
11. Secret trust
o Secret Trust
is such trust
where grantor leaves
his property after
his death under
a will that they will
hold the property
as a trustee for
the benefit of beneficiaries who are
not mentioned in the will
4. unlawful Objects of a trust
Following are the causes of unlawful
trusts. Details are as under:
1.
Fraudulent
o Any trust
based on fraudulent purpose is unlawful. For example, a trust created for the training
of prostitution is void.
2. Against the public policy
o Any
trust, which is against the public policy,
is unlawful. For example Trust
property to employ
in carrying smuggling business and utilization of its profit
for the benefit
of children is unlawful.
3. Forbidden:
o Any trust,
which is expressly forbidden by law on any ground, is unlawful.
4. Causing injury
o Any
trust which is causing any injury to the person
or property of another is unlawful.
5.
Immoral
o Any trust which is involved in immoral activities or against public policy is unlawful.
6. Partially unlawful
o Any
trust which is partially lawful
and partially unlawful, it will be considered as unlawful trust in its very nature.
5. Preclude Remarks
·
To Preclude, we can say that trust is an equitable obligation which is taken
either expressly or impliedly and is administered in the court
of equity. But there are different kinds of trusts
and causes of their unlawfulness
Q. 3: When the office of a trustee may be
vacated or what are the ways when a trustee may be discharged with or without
the intervention of the court?
1.
Preface
·
The trusts act provides the qualification of appointment and reasons of discharge of trustee. A person
who is being
appointed as a trustee may accept the appointment
or may not. Because acceptance totally depends upon
his own will
to accept the appointment or not because
no one can be compelled to be a trustee but once trust ship is accepted by a person in
this case he is bound to perform his duties accordingly. A trustee can
also be discharged from his duties
and his office
may be vacated.
2. Interpretation of trust
·
In law
a trust is a relationship, where property is held by one person
for the benefit of another person. A trust is
created by the owner, also called a "grantor" who transfers his property to a trustee
(receiver). The trustee
holds that property for beneficiaries.
3. Interpretation of trustee
·
A trustee is a person
who holds and administers property
received by grantor
for the benefit
of others. A trustee may
be appointed in the case
of bankruptcy, for a
charity, for a trust fund etc.
4. Vacation of office of trustee
Following are the grounds which become
cause the vacation of the office of trustee.
1) Death of trustee
·
In case of death of trustee,
the office of trustee falls vacant.
2) Mental disorder
·
If trustee
is declared by a competent court to be incapable of managing his duties
under mental disorder in this case office
of trustee will be vacant
3) Bankruptcy
·
If trustee
becomes bankrupt, in this case office of trustee will be vacant.
4) Conviction by court
·
If the
trustee is convicted by the court
of law against
any criminal violation, in this case office
of trustee will be vacant
5. Modes
of Discharge of trustee
Following are the ways when a trustee can be discharged from his office.
Details are as under.
1.
Consent
·
If the
trustee himself wants
to leave or not interested to perform his duties as a
trustee for a trust, in this case,
trustee will be discharged from his office.
2. Extinction of trust
Following are the reasons
of extinction of trust. In case of extinction of trust,
trustee will be discharged from his office
Ø when
purpose of the trust is completely fulfilled
Ø when
purpose of the trust becomes
unlawful
Ø when
the fulfillment of its purpose
becomes impossible by destruction of the
trust-property etc
Ø When
the revocable trust
expressly extinct.
3. Completion of duties
·
If trustee
has completed his
duties in connection with the trust
property, in this
case trustee will be discharged from his office.
4. Incapability of trustee
·
If the trustee is not capable
of fulfilling the role because
of sickness or injury or he
has committed serious
misconduct in the administration of trust, in this case trustee
will be discharged from his office
5. Appointment of new trustee
·
If a new trustee
has been appointed by the court,
in this case
ex-trustee will be discharged from his office
Ø Powers of new trustee
Every newly
appointed trustee by the court
shall have the same powers, authorities and discretions if he has been nominated a trustee by the grantor of trust.
6.
Deed
of trust
·
The trustee will
be discharged from
his office by means of as may be prescribed by the
instrument of trust.
6.
Petition to be discharged from trust
·
Petition
to be discharged from trust. Every trustee can apply by petition to a principal Civil
Court of original jurisdiction for his discharge from his office;
and if the Court finds that there
is sufficient reason
for such discharge, court may discharge him accordingly but if there is no such reason, the Court shall
not discharge him, until a proper person
can be found to take his place
7.
Preclude Remarks
·
To Preclude, we can say that once
trust ship is accepted by the trustee, he is bound
to carry out his duties because
a trust is obligatory. As well as there are a lot of reasons which can cause of discharge of
trustee from his office or modes of discharge of trustee? Each
and every person
can become a trustee who is capable
to hold or own
property whether he is minor or not.
Waqf Act
Q 1. Define and discuss waqf and mutawalli.
1.
Preface
·
Waqf is an important institution of Islam.
It is a permanent dedication of some specific property
by a Muslim for religious and pious purpose. Every muslim of sound
mind may dedicate his property by way of waqf. It may be made verbally
or in writing.
·
Mutawalli is superintendent or manager of the waqf property. He has no legal right in waqf property. He looks the matters of waqf property. He has same
rights of management as an individual. The office trustee
is not transferable.
2. Interpretation of waqf
·
Waqf
is a permanent dedication by a person supporting Islam by giving any moveable or immoveable property
for any purpose
which is recognized by the Muslim law as pious,
religious or charitable and the property itself cannot be sold or be
replaced is called
waqf.
3. Qualifications of waqif
The person
who creates waqf
is called waqif.
He should have
the following qualifications.
Ø Waqif should profess Islam
Ø Waqif
can be both a male or female
Ø Waqif
should be sound mind
Ø Waqif
should be the owner of the property
Ø Waqif
musta attain the age of majority
4. Modes of creation of waqf
Following are the modes of creation
of waqf.
Ø By way of dedication by the owner of the property
Ø By
means of will by the owner of the property
Ø By owner of the property
during his illness
Ø Waqf by user
5. In
whose favor waqf can be made
Following are the person in whose
favor property of waqf can be made.
Ø The waqif himself
Ø The descendants of waqif
Ø The family of waqif
Ø Public
6. Interpretation of Mutawalli
·
Mutawalli is the person
who manages the property of waqf and responsible for the
distribution of the property.
7. Qualification of mutawalli
Following are the qualifications of a
mutawalli.
Ø Mutawalli may be a Muslim
Ø Mutawalli may be non-muslim
Ø Mutawalli should be of sound mind
Ø Mutawalli should be a major
8. Who can appoint mutawalli
Following are the persons who can
appoint the mutawalli.
Ø By the waqif
Ø By the executor
Ø By the mutawalli
Ø By the order of court
9. Who
can be appointed as mutawalli
Following are the persons who can be
appointed as mutawalli.
Ø The waqif himself
Ø Female
Ø Non-muslim
Ø Sunni
in a shia waqf and shia in a sunni waqf
10. Reasons for removal of mutawalli
Following are the reasons of removal
of mutawalli.
1.
Bankruptcy
o If
the mutawalli becomes
bankrupt, in this case he will be removed from his title
2.
Corruption
o If
the mutawalli makes
corruption with the property of waqf, in this case he
will be removed
from his title
3. Mentel disorder
o If the mutawalli becomes
mentally unfit due to any reason, sickness
or disease, in this case he will be removed
from his title
4. Death of mutawalli
o In
case of death
of mutawalli, he automatically will
be removed and new
mutawalli will be appointed for his replacement
5. Conviction by court
o If
the mutawalli is convicted by the court
of law in charge of any
violation or any offense committed by him, in this case
he will be removed from his title
11.
Duties
of mutawalli
Following are the duties of mutawalli.
Ø It is duty of mutawalli to take care waqf property
Ø Mutawalli is bound not to sell
waqf property without
the permission of the
court
Ø Mutawalli is bound not to lease
the waqf property
not exceeding the
three years in case of agriculture property
and one year in case of domestic
property
Ø Mutawalli is bound not to increase
the allowances of officers and servants
Ø Mutawalli is bound not to transfer
the waqf property
to another.
12.
Rights
of mutawalli
Following are the rights of mutawalli
Ø Mutawalli can appoint his successor if waqif and his executor
are both dead
Ø Mutawalli can
appoint his successor at the time
of his death
bed if successor has already not been appointed
Ø Mutawalli has a right to receive
salary
Ø He
has right to do anything that is reasonable for the administration and betterment of the waqf
Ø He has right to manage
the property of waqf.
·
13. Preclude Remarks
·
To Preclude, we can say that waqf is such
property which is transferred from a muslim for the recognized purpose of pious
or religious and
it is not transfer property
to any person instead of waqf.
·
Mutawalli is a person
who manages the property of waqf and office of mutawalli is not
hereditary and nontransferable. He has rights
and duties under
law. He can be
removed by the court. On the grounds
of breach of trust, misconduct, bankruptcy etc.
very helpful plz slso add mercantile law
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