Equity under Indian Legal System 

As a branch of the legal system Equity refers to the essence or rules arising from the
administration process of justice specifically in those cases where the areas are not adequately
covered by statute. Equity besides supplements the law with quintessence of liberty and
goodwill. In India, as a matter of administration, there was never a well-developed Supreme
court as most part of the law for the application of the court is certified. There the court acts
according to the principle of equity, justice. The Mohammedan law also partly lays down its
origin from the principle of equity. Equity and adequate ethics have also been expressly laid
down with laws. The English laws also contributed to the development of Equity in the
jurisdiction of India. In Indian, the common law doctrine of equity had been followed even after
the independence. The principle of law has been stated in various laws such as: 

➢ The Specific Relief Act, 1877 

➢ The Indian Trusts Act, 1882
➢ The Indian Succession Act,1925 
➢ The Transfer of Property Act,1882 

Equity in the Courts of East India Company - The Courts established by the East India Company
were presided over by English lawyers who frequently resorted to English Law of equity in cases
of difficulties. Regulation 4 of 1827 required the Courts of East India Company to act according
to justice, equity and good conscience in the absence of a specific law and usage. The Law
Commissioner for preparing a body of substantive law for India, in its First Report
recommended that the judges should decide those cases for which there is no provision in law
in the manner they deem most consistent with the principles of justice, equity and good
conscience.

The Regulating Act of 1773 established Supreme Court which was also constituted a court of
equity, justice and good conscience. Under clause 36 of the Supreme Court Charter 1823, the
Supreme Court of Bombay was expressly made a Court of Equity and Law. Not only this, the
Supreme Court of Bombay was also given an equitable jurisdiction corresponding to that of the
Court of Chancery.

Though the provisions of the rules of the justice, Equity and good conscience was expressly laid
down in all subsequent Acts in British India for the guidance of judges, there was no separate
court for exercising only equitable jurisdiction.

In 1861 the Indian High Courts Act was passed by which the Supreme Courts and the Courts of
Sadar Diwani Adalats were abolished and High Courts were established at Calcutta, Bombay,
Madras and Allahabad. These High Courts also administered justice according to the well
established principles of Equity, justice and good conscious. They had all the powers of a Court
of Equity in England of enforcing their decrees in personam.
Statutory Recognition of Equity in India - Statutory recognition of the principles of Equity in
India is found in the Specific Relief Act, 1877, the Indian Trust Act, 1882, the Indian Contract
Act, the Indian Succession Act, the Guardianship and Wards Act and the Transfer of Property
Act.

The various provisions of the Specific Relief Act, 1877 with regard to injunction, receiver,
specific performance of the contract, rectification etc. recognise the principles of equity to a
large extent.

Section 48 and Section 51 of the Transfer of Property Act contain the principles of Equity.
Similarly, the equitable doctrine of part performance of English Equity has been enunciated in

Section 53-A of the Transfer of Property Act.

The Indian Trust Act is based on most important selected and comprehensive principles of
Equity jurisprudence.

Sections 64 and 65 of the Indian Contract Act also contain the principles of Equity as they
provide that the party who receives the benefit under a void or voidable contract has to restore
such benefit or make compensation to the party from whom he has received it.

In Bhagwan Das v. Girdhari Lal and Co., AIR 1966 SC 543, it was observed by Supreme Court in
the administration of Law of Contracts the courts in India, have generally been guided by rules
of English Common Law as applicable to contracts where no statutory provision to contrary is in
force------Expression "Equity, justice and Good Conscience" has been consistently interpreted to
mean rules of English Common Law, so far as they are applicable to Indian society and
Circumstances.