“Rule of Estoppel appertains to equity and fairness in action.” Explain ...

Question: “Rule of Estoppel appertains to equity and fairness in action.” Explain and illustrate with decided cases. [HPJS 2019]

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Answer

The rule of estoppel is a principle of equity that prevents a person from asserting something contrary to what they have previously represented or agreed upon if another person has relied upon that representation to their detriment. It ensures fairness and prevents injustice by prohibiting individuals from benefiting from their own inconsistencies.

Estoppel is governed by (Section 121 of Bharatiya Sakshya Adhiniyam, 2023/ Previously Section 115 of the Indian Evidence Act, 1872), which states:

“When one person has, by his declaration, act or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative shall be allowed, in any suit or proceeding between himself and such person or his representative, to deny the truth of that thing.”

Thus, estoppel is based on the principles of justice, good conscience, and equity.

Types of Estoppel

• Estoppel by Record – Prevents a party from denying the existence of a previous judgment.
• Estoppel by Deed – Prevents denial of statements made in a deed.
• Estoppel by Conduct (Promissory Estoppel) – Prohibits a person from going back on a promise made without consideration if another party relied on it.
• Estoppel by Representation – Bars a party from asserting something contrary to their previous statement.

Estoppel is a rule of equity flowing out of fairness, striking on the behaviour deficient in good faith. It operates a check on spurious conduct by preventing the inducer from taking advantage and assailing forfeiture already accomplished. It is invoked and applied to aid the law in administration of justice. Estoppel can always be used as a weapon of defence; Indira Bai v. Nand Kishore, AIR 1991 SC 1055.

The doctrine of promissory estoppel is an equitable doctrine and the petitioners cannot ask the court to apply the same to compel something which is inequitable. One who seeks equity must do equity. In our society, larger public interest must get precedence over individual interest or interest of a comparatively smaller section of the society; R.K. Kawatra v. D.S.I.D.C., AIR 1992 Del 28.

Estoppel is an equitable principle and is not a rule of substantive law. It ensures that a party cannot take advantage of their own previous misrepresentations to the detriment of another.