LL.

B – IV ( EQUITY )

EQUITY
By

SHAHID NAEEM

(Gold Medalist)

M.Sc. (Eco), MA(Pol.Sci), MCS, LL.M., DLL

Advocate High Court

Principal Kings Law College,

Sheikhupura.

1. Principles of Equity including Maxims of Equity (40 Marks)

2. Trust Act, 1882 (20 Marks)

3. The Specific Relief Act, 1877 (40 Marks)

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 1

 LL.B – IV ( EQUITY )

PRINCIPLES OF EQUITY

WHAT IS EQUITY?
Equity, in the legal world, is like fairness on steroids. Imagine a situation where the
law has clear rules, but following those rules might lead to an unfair outcome. That's
where equity steps in.

Here's a breakdown of what equity is and how it works:

 Think of Fairness:
Equity is all about achieving a fair and just result, even if the strict application of the
law wouldn't achieve that.
 Going Beyond the Rules:
The law has its set of rules, but equity can offer additional solutions or interpretations
to make things fair in specific situations.

Examples:

Here are some examples to illustrate:

 Broken Promise:
Imagine you and your friend agree to paint each other's houses. You paint theirs, but
they never get around to painting yours. The law might say you're out of luck because
there's no formal contract. Equity might step in and say it's unfair, and perhaps order
your friend to honor the deal (specific performance).
 Unregistered Land Deal:
You verbally agree to buy a piece of land from someone, but you haven't gotten it
officially registered yet. The law might not recognize this agreement. Equity might
consider the situation and, if everything seems fair and above board, protect your
interest in the land even though it's not officially registered.

Key Point: Equity doesn't overthrow the law. It respects the law but can offer a helping
hand when the law alone wouldn't lead to a fair outcome.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 2

 LL.B – IV ( EQUITY )

HISTORY AND GROWTH OF EQUITY

A Journey Towards Fairness
Equity, a legal concept focused on achieving fair and just solutions, has a fascinating
history that developed alongside the common law system. Let's delve into its origins
and how it grew into a significant legal principle.

Seeds of Equity in Ancient Times

While the term "equity" gained prominence later, the concept of fairness in legal
matters has roots in ancient civilizations. Thinkers like Aristotle in Greece emphasized
the importance of "epieikeia," which translates to fairness or equity.

The Birth of Equity in England (13th Century)

Fast forward to medieval England. The common law system, based on rigid rules and
precedents, was well established. However, situations arose where the strict
application of these rules led to unfair outcomes. This is where equity emerged.

The Rise of the Court of Chancery

The King's Chancellor, a high-ranking official, began addressing petitions from those
who felt the common law courts hadn't provided fair solutions. These petitions formed
the foundation of equity jurisprudence.

Key Factors in Equity's Growth

Several factors contributed to the growth of equity:

 Flexibility:
Equity wasn't bound by rigid rules like the common law. It could consider the specific
circumstances of each case to arrive at a fair solution.
 Remedies:
Equity offered unique remedies beyond just monetary damages. These included
injunctions (stopping someone from doing something) and specific performance
(forcing someone to fulfill a promise).
 Focus on Conscience:

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 3

LL.B – IV ( EQUITY )

Equity decisions were often based on good conscience and fairness, ensuring a just
outcome.
Challenges and Coexistence with Common Law

Equity's growth wasn't without its challenges. Conflicts arose between the common
law courts and the Court of Chancery. Gradually, however, a balance was established.
Equity complemented the common law, ensuring a more holistic approach to justice.

The Judicature Acts (19th Century)

These landmark acts merged the common law and equity courts into a unified system.
However, the principles of equity remained distinct, providing valuable tools for
achieving fair results within the legal framework.

Equity's Legacy Today

The principles of equity continue to play a vital role in legal systems worldwide. Judges
consider both established legal rules and equitable principles when making decisions.
This ensures that the law remains fair and just, adapting to the complexities of modern
life.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 4

 LL.B – IV ( EQUITY )

JURISDICTION OF EQUITY
Equity, a cornerstone of legal systems, plays a crucial role in ensuring fair and just
outcomes. This note explores the various areas where equity exercises its jurisdiction,
supplementing the limitations of common law.

Understanding Jurisdiction

Jurisdiction, in legal terms, refers to the authority of a court to hear and decide a
particular type of case. Equity has its own distinct areas of jurisdiction, where it can
intervene and offer solutions beyond those available under common law.

Core Areas of Equitable Jurisdiction

Here are the main areas of equitable jurisdiction:

 Remedies Beyond Damages:

Common law primarily awards monetary damages as compensation for wrongs.
Equity offers a wider range of remedies, including:
 Injunctions: Orders restraining someone from doing something
(e.g., stopping someone from demolishing a building).
 Specific Performance: Forces someone to fulfill a promise made
in a contract.
 Rectification: Corrects mistakes in written agreements.
 Un-conscionability:
Equity intervenes when a contract or situation is so unfair and one-sided that it shocks
the conscience (e.g., taking advantage of someone's vulnerability).
 Breach of Confidence:
Equity protects confidential information shared in trust.
 Trusts:
Equity governs the creation and operation of trusts, where property is held for the
benefit of another person.
 Mortgages:
Equity deals with equitable mortgages, where an interest in property secures a debt
even if not formally registered.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 5

 LL.B – IV ( EQUITY )

 Equitable Estoppel:
Prevents someone from going back on their word if another person has relied on their
promise in good faith (creating an expectation).
 Unclean Hands:
Equity generally won't grant relief to someone who has acted unfairly themselves in
the situation.
Complementary Relationship with Common Law

Equity doesn't replace the common law. It fills the gaps and offers alternative solutions
where the common law falls short in achieving fairness. Here's an analogy: Imagine
the law as a well-established highway with clear rules. Equity acts like well-placed
exits and detours, allowing the court to navigate towards a just outcome even if the
strict path of the law proves unfair.

Examples of Equity in Action

Here are few examples to understand the equity.

 Broken Contract with Unique Property: A contract for a rare painting might be
enforced through specific performance because monetary damages wouldn't
adequately compensate the aggrieved party.
 Unregistered Land Deal: Equity might protect someone's interest in land based on a
verbal agreement if the situation seems fair and above board.
Limitations of Equity
 Discretion of the Court: Ultimately, the court decides when to apply equitable
principles, considering the circumstances of each case.
 Not a Substitute for Law: Equity can't completely disregard established legal
principles. There must be a strong justification for its intervention.
Conclusion

The jurisdiction of equity plays a vital role in ensuring a fair and just legal system. By
offering unique remedies and addressing situations where the common law is
inadequate, equity promotes a more balanced and equitable approach to resolving
legal disputes.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 6

 LL.B – IV ( EQUITY )


THE DOCTRINE OF ELECTION
Choosing Wisely (or Not)

Imagine inheriting a valuable painting from your aunt, but she also included a clause
in her will stating you can't keep it if you also claim another piece of jewelry she
bequeathed. This scenario exemplifies the Doctrine of Election, a legal principle that
requires someone to choose between two inconsistent benefits.
Understanding the Doctrine
This doctrine essentially states: If a person is presented with two conflicting rights
or benefits under the same legal instrument (e.g., a will, a contract), they cannot
keep both. They must choose one and forfeit the other. The court expects them to
act fairly and avoid keeping benefits obtained through inconsistency.
Essential Elements
 Two Inconsistent Rights: The beneficiary must be presented with two rights or
benefits that cannot be enjoyed simultaneously.
 Same Legal Instrument: Both rights must originate from the same source, such as a
will, trust, or contract.
 Knowledge of the Conflict: The beneficiary must be aware of the inconsistency
between the two rights.
Application of the Doctrine

This doctrine is commonly applied in situations related to:

 Wills:
A testator (person making the will) might leave someone a specific asset but also
dispose of property the beneficiary already owns. The beneficiary can't have both.
 Gifts with Conditions:
If a gift comes with a condition that the recipient relinquish something else, they must
choose.
 Trusts:
A beneficiary may have to choose between keeping trust funds or claiming a separate
inheritance under the same trust instrument.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 7

 LL.B – IV ( EQUITY )

Making the Choice

 Express Election: The beneficiary can explicitly choose one right and forfeit the other,
typically in writing.
 Implied Election: Their actions might imply a choice, such as selling or using one of
the conflicting assets.
Consequences of Not Choosing

If the beneficiary doesn't make a clear choice, the court might decide for them,
potentially selecting the option deemed less favorable.

Limitations of the Doctrine

 Knowledge is Key: The doctrine doesn't apply if the beneficiary was unaware of the
inconsistency due to a genuine mistake.
 Fairness Matters: Courts consider the fairness of the situation. If one option is clearly
less valuable, the beneficiary might be allowed to keep both.
The Doctrine of Election in Pakistan

The Doctrine of Election is recognized within the Pakistani legal system. The Transfer
of Property Act, 1882, contains provisions related to this doctrine. Legal resources like
M. Gandhi's Equity Trust & Specific Relief might offer further insights into its
application in Pakistani courts.

Conclusion

The Doctrine of Election encourages fairness and prevents someone from benefiting
from contradictory claims. It ensures that beneficiaries act in accordance with the
terms of the legal instrument and make clear choices when presented with conflicting
options.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 8

 LL.B – IV ( EQUITY )

SET-OFF
In the realm of equity, set-off refers to a right that allows a person (the debtor) to
balance a debt they owe to another person (the creditor) with a separate,
countervailing claim they have against them. Essentially, it allows for a deduction of
the counterclaim from the original debt, resulting in a net amount owed.

Here's a breakdown of the key points:

 Mutual Debts: There must be two existing debts between the parties. The debtor
owes money (or something else of value) to the creditor, but the creditor also owes
something to the debtor.
 Fairness and Avoidance of Double Recovery: Equity promotes fairness. Set-off
allows the debtor to avoid paying the full amount they owe if the creditor also owes
them something. It prevents the creditor from recovering twice – once from the debtor
and again on their own debt.
 Focus on Mutuality: The claims used for set-off must be "mutual." This means they
must be owed to and from the same two parties involved in the original transaction.
Applications of Set-off in Equity
 Unpaid Debts and Unfulfilled Contracts: Imagine Company A owes money to
Company B, but Company B also failed to deliver goods they promised to Company
A. Equity might allow Company A to set off the cost of the undelivered goods against
the debt they owe, reducing the net amount payable.
 Insolvency Situations: When a debtor becomes insolvent (unable to pay their debts),
equity might allow creditors with mutual claims to set off their debts against what they
are owed from the insolvent estate. This ensures a fairer distribution of remaining
assets.
Differences from Common Law Set-off

While the concept of set-off exists in both common law and equity, there are some
distinctions:

 Equity vs. Law: Equity focuses on fairness and the specific circumstances of the
case. Common law set-off might have stricter requirements regarding the nature of the
claims used for set-off.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 9

 LL.B – IV ( EQUITY )

 Mutuality Requirement: In equity, the mutuality requirement for set-off is stricter. The
claims must be truly owed to and from the same two parties.
Limitations of Equitable Set-off
 Discretion of the Court: Ultimately, the court decides whether to allow set-off in
equity, considering the specific circumstances and the nature of the claims involved.
 Unliquidated Claims: Equity is generally more flexible than common law in allowing
set-off for unliquidated claims (claims where the exact amount is not readily
determined). However, the court might still scrutinize such claims.
Conclusion

Set-off in equity is a valuable tool that promotes fairness and ensures a more balanced
outcome in situations where mutual debts exist. It allows debtors to reduce their
obligations by taking into account countervailing claims they have against the creditor.
However, the specific application and limitations depend on the court's discretion and
the nature of the claims involved.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 10

 LL.B – IV ( EQUITY )

EQUITY WILL NOT SUFFER A WRONG TO BE

WITHOUT A REMEDY
(Ubi Jus Ibi Remedium)
UBI JUS IBI REMEDIUM

Where there is a right there is a remedy

Or

There is no wrong without a remedy

Legal systems strive to provide remedies for wrongs committed. At common law, these
remedies were traditionally limited to monetary damages. However, in situations
where damages were inadequate or unavailable, the concept of Equity emerged.
Equity is a system of law that developed alongside common law to offer fairer and
more flexible solutions when the common law fell short. One of the core principles of
Equity is embodied in the maxim "Ubi Jus Ibi Remedium," which translates to "where
there is a right, there must be a remedy." This principle is often expressed in simpler
terms as "Equity will not suffer a wrong to be without a remedy."

Explanation of the Maxim with Examples and Case Law

This maxim highlights Equity's role in ensuring a just outcome. Even if a common law
right exists but the available remedies are insufficient, Equity can intervene to provide
a more appropriate solution. Here are some examples:

 Specific Performance:
A contract might stipulate selling a unique piece of art. If the seller breaches the
contract and refuses to sell, common law would only award monetary damages, which
may not be enough for the buyer who desires the specific artwork. Equity can grant an
order of "specific performance," forcing the seller to fulfill the contract and deliver the
artwork. (Example: In the case of Lumley v. Wagner (1852), an opera singer was
contracted to perform at a specific theater. Equity granted an injunction to prevent her
from singing elsewhere, as monetary damages wouldn't have secured her
performance at the contracted theater).
 Injunctions:

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 11

LL.B – IV ( EQUITY )

A neighbour might be constructing a building that blocks your sunlight, significantly

impacting your property's value. Common law might not recognize a "right to sunlight,"
but Equity can grant an injunction to stop the construction, preventing further harm.
(Example: In the case of Spier v. Slater (1704), a landowner sought to build a wall
that would block light to his neighbor's windows. Equity granted an injunction to
prevent the construction, recognizing the significant impact on the neighbor's
property).
Application and Limitations of the Maxim

The maxim is not absolute. Equity's remedies are discretionary, and courts consider
various factors before granting relief. Here are some limitations:

i. Unclean Hands Doctrine:

Someone seeking equitable relief must themselves be acting fairly and
honestly. If the plaintiff's conduct contributed to the situation, they may be
denied relief.
ii. Laches:
Undue delay in seeking a remedy can weaken a plaintiff's claim. If
circumstances have significantly changed due to the delay, a court might be
reluctant to grant relief.
iii. Inadequacy of Proof:
The plaintiff must prove their legal right and the wrongdoing they suffered. If the
evidence is insufficient, the court cannot grant equitable relief.
Here's the rewritten text:

The Ashby v White Case:

This landmark case involved Mr. Ashby, who was wrongfully prevented by Mr. White
from casting his vote in an election. Interestingly, the candidate Mr. Ashby favored
ultimately won the election. Despite this outcome, Mr. Ashby chose to pursue legal
action against Mr. White.

The defense argued that the lawsuit should be dismissed as Mr. Ashby suffered no
tangible harm since his preferred candidate won. However, the court took a different
stance. It declared that Mr. Ashby's right to vote did not hinge on the outcome of the

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 12

 LL.B – IV ( EQUITY )

election or the extent of damages incurred. The court emphasized the violation of a
fundamental right – the right to vote. This violation, regardless of the final results,
warranted a remedy, even if symbolic.

In this vein, the case exemplifies the maxim "Ubi jus ibi remedium," which
translates to "where there is a right, there must be a remedy."
Explanation of Changes:
 I replaced the informal tone with a more formal legal style.
 I used the case name "Ashby v White" for clarity.
 I added a brief explanation of the maxim "Ubi jus ibi remedium" and its connection to
the case.
Position in Pakistan

The concept of Equity is not codified as a separate system in Pakistan's legal system.
However, the principles of fairness and justice are enshrined in various legal
provisions and judicial pronouncements. Courts in Pakistan can draw upon these
principles and precedents from other common law jurisdictions, including the maxim
"Ubi Jus Ibi Remedium," to provide fair and equitable remedies in specific cases.

Case Examples in Pakistan

While there are no direct references to "Ubi Jus Ibi Remedium" in Pakistani case law,
judgments reflect the application of its principles. For instance, in cases of breach of
contract, courts may grant specific performance or injunctions when monetary
damages are deemed inadequate. Similarly, courts may consider the "clean hands
doctrine" when deciding whether to grant equitable relief.

Conclusion

The maxim "Ubi Jus Ibi Remedium" serves as a cornerstone of Equity, ensuring that
those who have suffered a wrong are not left without a remedy. While limitations exist,
this principle allows courts to offer more flexible and just solutions in situations where
common law remedies fall short. Although not a separate system in Pakistan, the
underlying principles of Equity find application within the legal framework to achieve
fair and equitable outcomes.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 13

 LL.B – IV ( EQUITY )


DELAY DEFEATS EQUITY
(Vigilantibus non dormientibus aequitas subvenit)

Introduction

Equity, a legal system developed alongside common law, emphasizes fairness and
justice. However, even Equity expects a degree of promptness from those seeking its
remedies. The maxim "Vigilantibus non dormientibus aequitas subvenit," which
translates to "Equity aids the vigilant, not those who sleep on their rights," captures
this concept. It's more commonly expressed as "Delay defeats Equity."

Explanation of the Maxim with Examples and Case Law

This maxim discourages undue delay in seeking equitable relief. While Equity offers
solutions unavailable at common law, courts disfavour those who wait an
unreasonable amount of time before asserting their rights. Here's why:

 Prejudice to the Defendant: Delay can prejudice the other party's position. Memories
fade, evidence gets lost, and circumstances may change significantly.
 Acquiescence: A long delay might be interpreted as the plaintiff's tacit acceptance of
the situation.
 Preserving Fairness: Equity aims to provide swift and fair resolution. Delay can
undermine this objective.
Examples:
 A property owner discovers a neighbour has encroached on their land ten years ago.
The court might be less likely to grant an injunction to remove the encroachment if the
delay significantly prejudiced the neighbour who may have built structures on the
encroached land.
 A beneficiary in a will waits an unreasonable time to challenge its validity. The court
might be less likely to entertain the challenge if the delay caused difficulties in
administering the estate.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 14

 LL.B – IV ( EQUITY )

Case Law:
 Igbinokpogie v Ogedegebe (2001, Nigeria): The appellant waited 16 years before
challenging a land transfer. The court dismissed the claim, citing delay and prejudice
to the innocent purchaser.
Application of Maxim The "Delay Matters" Rule (Laches):

Imagine a situation where the law doesn't have a clear rule for your case, and the
usual time limits don't quite fit either. This is where the idea of "Laches" comes in. It
basically means "unreasonable delay" and can affect your ability to sue someone.

There are four main things courts consider when deciding if "Laches" applies:

1. Did you wait too long to sue? If you waited an extremely long time after something
wrong happened, it might be too late to take legal action.
2. Did the delay hurt the other side? If the other person involved lost evidence or
changed their situation because you waited, you might have a harder time winning
your case.
3. Did the delay trick the other person? If the other person acted differently because
they thought you wouldn't sue, it might count against you.
4. Did you know your rights were violated? If you didn't know something wrong
happened, the delay might be more excusable.
Remember: Laches is a way to make sure everyone gets a fair chance in court. If you
think you might have a case but waited a while to sue, talk to a lawyer to see if "Laches"
might be an issue.
Limitations of the Maxim

The "Delay defeats Equity" principle is not absolute. Courts consider various factors
before denying relief:

 Reason for Delay: Was the delay due to a legitimate reason, such as illness, lack of
legal awareness, or ongoing negotiations?
 Extent of Prejudice: How much has the delay actually prejudiced the defendant's
position?
 Strength of the Claim: Is the plaintiff's underlying claim strong, even with the delay?
Circumstances When Delay Can Be Ignored

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 15

 LL.B – IV ( EQUITY )

In some situations, courts might overlook delay:

 Concealment by the Defendant: If the defendant deliberately concealed information

justifying the delay, the court might still grant relief.
 Ongoing Wrongdoing: If the harm caused by the defendant is continuous, such as a
continuing trespass, delay might be less significant.
 Fraud or Duress: If the plaintiff was prevented from asserting their rights due to fraud
or duress, the court might excuse the delay.
Position in Pakistan

Similar to Equity itself, "Delay defeats Equity" isn't explicitly codified in Pakistan's legal
system. However, the principle of laches (unreasonable delay in pursuing a legal
claim) finds application. Courts consider the reasonableness of the delay and its
impact on the other party before granting equitable relief.

Case Examples in Pakistan

While there are no direct references to "Delay defeats Equity" in Pakistani case law,
judgments reflect its application. For instance, in property disputes, courts may
consider the time elapsed since the plaintiff became aware of the infringement on their
rights. If the delay is unreasonable and has prejudiced the defendant, the court might
be less likely to grant relief.

Conclusion

The maxim "Delay defeats Equity" encourages prompt action when seeking equitable
remedies. However, courts recognize legitimate reasons for delay and consider the
overall circumstances before denying relief. While not explicitly codified, the principle
of laches ensures a balance between fairness for the plaintiff and protection from
prejudice for the defendant in Pakistan's legal system.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 16

 LL.B – IV ( EQUITY )

EQUALITY IS EQUITY
Fairness is a cornerstone of Equity. When multiple parties share rights or interests in
a property or asset, and there's no clear agreement on how to manage it, the maxim
"Equality is Equity" comes into play. This maxim emphasizes that in the absence of a
specific agreement or governing rule, dividing rights and interests equally among co-
sharers is the most equitable solution.

Sharing Fairly When There's No Clear Way (Equality is Equity)

Imagine you and a few others co-own something, like a piece of land or a rare painting.
If there's no written agreement on how to share it or make decisions, things can get
messy. This is where the maxim "Equality is Equity" comes in. It basically says that if
there's no other fair way to settle things, the best approach is to split rights and
interests equally among all the co-owners.

This principle is widely accepted, especially when dealing with joint owners. There's
another concept called "joint tenancy" that applies when ownership is shared without
specific divisions. In a joint tenancy, all owners share equally in four key aspects:

1. Ownership source:
Everyone acquired ownership at the same time and through the same means.
2. Shared benefits:
Everyone benefits equally from the co-owned property.
3. Shared control:
Everyone has an equal right to use and possess the property.
4. Equal rights:
The ownership rights don't change over time, and everyone has the same
stake.
"Equality is Equity" is a fallback option when there's no other clear way to share
ownership fairly. It ensures everyone gets a fair deal.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 17

 LL.B – IV ( EQUITY )

Application and Limitations of the Maxim

"Equality is Equity" applies when:

 There are multiple co-sharers with no clear agreement on ownership or usage.

 Dividing rights and interests equally is the most fair and practical solution.
Limitations:

 Pre-existing Agreements:

If a written agreement or inheritance document outlines specific ownership

percentages or rights, it supersedes "Equality is Equity."

 Unequal Contributions:

If one co-sharer significantly contributed to acquiring or maintaining the property, the

court might consider a different division based on these contributions.

 Disproportionate Benefits:

In some cases, equal ownership might not be practical. For example, if a co-owned
property is a business, one sibling might manage it full-time, warranting a larger share
of the profits.
Difference Between Equity and Equality

It's important to distinguish "Equity" from "Equality."

 Equity: Focuses on fairness and just outcomes, considering specific circumstances

of each case.
 Equality: Treats everyone the same, regardless of individual situations.

"Equality is Equity" promotes a fair starting point for co-sharers, but Equity allows for
adjustments based on specific circumstances.

Position in Pakistan

While not explicitly codified, the principle of "Equality is Equity" finds application in
Pakistani property law. Courts, in the absence of clear ownership structures, often
divide co-owned properties equally. However, judges consider evidence of pre-
existing agreements, unequal contributions, or specific circumstances that might
warrant a different division.

Conclusion

"Equality is Equity" ensures a fair starting point for co-sharers when there's no clear
ownership structure. However, Equity allows for flexibility based on individual
circumstances, promoting just and practical solutions in property disputes.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 18

LL.B – IV ( EQUITY )



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 19

 LL.B – IV ( EQUITY )

"He Who Comes to Equity Must Come With Clean

Hands"
A Maxim of Fairness

This maxim is a fundamental principle in equity law. It essentially states that someone
seeking equitable relief from a court (like an injunction or specific performance) must
themselves have acted fairly and honestly in the situation they're complaining about.
In simpler words, you can't ask a court of equity for help if your own hands are dirty.

Interpretation of "Clean Hands":

"Clean hands" doesn't mean literal cleanliness. It refers to the conduct of the person
seeking relief. They shouldn't have engaged in any wrongdoing, fraud,
misrepresentation, or illegal activity related to the matter at hand.

Basis of the Maxim:

This maxim rests on the idea that equity promotes fairness and justice. A court won't
be a party to unfairness, even if the other party may also be at fault. It discourages
people from using the equitable system to benefit from their own misconduct.

Essential Elements:
 The plaintiff (person seeking relief) must have engaged in some form of misconduct
related to the issue they're bringing before the court.
 The misconduct must be serious enough to affect the fairness of the case. Minor
transgressions might be overlooked.
Application of the Maxim:

Here are some situations where this maxim might be applied:

 A business owner who lied on a loan application to get funding can't then use equity
to stop foreclosure on the property purchased with that loan.
 Two neighbors have a dispute over a shared fence. If the one seeking an injunction to
remove the fence lied about the property line, their request might be denied due to
unclean hands.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 20

 LL.B – IV ( EQUITY )

Case Law:
 England: In Chothia v. Ibn Saleh ([1989] 1 Ch 342), a businessman who had
misrepresented himself was denied an injunction to stop a competitor from using his
trade name.
Limitations of the Maxim:
 The misconduct has to be directly related to the issue at hand. Unrelated past wrongs
might not necessarily bar relief.
 The court considers the severity of the misconduct. Minor transgressions might be
outweighed by the injustice suffered by the plaintiff.
Position in Pakistan:
The principle of "clean hands" is well-established in Pakistani jurisprudence. It has
been applied in various judgments across different courts. For instance, in M. Yaqoob
& Co. v. Habib Bank Ltd. (PLD 1978 SC 156), the Supreme Court of Pakistan refused
to grant an injunction to a company that had itself acted dishonestly in its dealings with
the bank.
Note: This maxim is a discretionary power wielded by the courts. They have the
flexibility to consider the specific circumstances of each case.
Conclusion:
In conclusion, the maxim "He who comes to equity must come with clean hands"
serves as a vital safeguard in the legal system. It ensures that those seeking equitable
relief from a court do so with fairness and honesty. By upholding this principle, courts
promote a sense of justice and prevent parties from exploiting the equitable system to
benefit from their own misconduct. While the application of this maxim is discretionary
and considers the severity of the wrongdoing, it remains a cornerstone of achieving
equitable outcomes. In Pakistan, this principle enjoys strong recognition and has been
applied in various judicial decisions. As you navigate the legal landscape, remember
that clean hands are essential for securing equitable remedies.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 21

 LL.B – IV ( EQUITY )

"Equity Acts in Personam"

A Focus on the Individual

This legal maxim, "Equity Acts in Personam," might sound complex, but it boils down
to a straightforward concept. Unlike common law, which often focuses on property
rights ("in rem" - meaning "against the thing"), equity primarily concerns itself with the
actions and obligations of individuals ("in personam" - meaning "against the person").

Lexical Meaning:

Simply put, "in personam" refers to something directed against a specific person, while
"in rem" refers to something directed against a piece of property itself.

Objectives and Importance:

This distinction between "in personam" and "in rem" is crucial in equity because it
allows courts to:

 Issue orders directly to individuals, compelling them to act in a certain way.

 Offer more flexible and personalized remedies than simply awarding ownership of
property.

This focus on the individual is central to achieving fair and just outcomes in equity
cases.

Case Law (Examples may vary by jurisdiction):

 England: In Langley v. Batten ([1849] 3 Ch D 186), the court used its in personam
power to order a defendant to transfer a piece of land they were wrongfully holding,
even though the land itself wasn't located within the court's jurisdiction.
Application of the Maxim:

Here are some situations where "Equity Acts in Personam" comes into play:

 Someone breaks a contract to sell you a specific house. Equity might order them to
complete the sale (specific performance) rather than simply awarding you monetary
damages (common law remedy).
 A business owner misrepresents a product. Equity can issue an injunction, forcing
them to stop the misleading marketing (order directed at the person).

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 22

 LL.B – IV ( EQUITY )

Exceptions and Limitations:

While the focus is on individuals, there can be exceptions:

 If the property is located within the court's jurisdiction, the court might issue orders
directly affecting the property itself in certain situations.
Position in Pakistan:

The principle of "Equity Acts in Personam" is generally recognized in Pakistan.

However, the specific application of equitable remedies depends on the nature of the
case and the relevant legislation.

Conclusion:

The maxim "Equity Acts in Personam" highlights the unique strength of equity
jurisprudence. By focusing on the conduct and obligations of individuals, equity courts
can craft solutions that promote fairness and hold people accountable for their actions,
ultimately leading to a more just legal system.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 23

 LL.B – IV ( EQUITY )

WHERE THE EQUITIES ARE EQUAL LAW SHALL

PREVAIL
Equity, as a legal system, strives for fair and just outcomes, even when common law
might be inflexible. However, when both parties in a dispute have equally strong claims
based on equitable principles, the court may need to turn to the established rules of
common law to reach a decision. This is captured in the maxim, "Where the equities
are equal, law shall prevail."

Meaning of the Maxim

This maxim essentially states that if both parties involved in a legal case have equal
standing in terms of their equitable arguments, the court will ultimately decide based
on the established principles of common law. Common law, with its defined rules and
procedures, provides a clear framework for reaching a verdict in such situations.

Essential Elements

There are two key elements to consider when applying this maxim:

1. Equality of Equities:
Both parties must have equally strong claims based on equitable principles. This
means neither party has a clear advantage in terms of fairness or good conscience.
2. Absence of a Clear Equitable Remedy:
If a clear and specific equitable remedy, like an injunction or specific performance, is
available to one party due to the stronger equitable claim, the court wouldn't
necessarily resort to common law.
Application of the Maxim

Imagine a scenario where two neighbors have built structures that slightly encroach
on each other's property lines. Neither party acted with malice or intent to deceive.
Here, both parties have an equitable claim to their respective properties. Since their
equities (fairness arguments) are equal, the court might use common law principles,
such as surveying and established property boundaries, to determine the final
outcome.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 24

LL.B – IV ( EQUITY )

Case Law
While there might not be a single, defining case for this specific maxim, several cases
demonstrate its application. For instance, in the English case of Walsh v Lonsdale
(1882), where two parties had competing equitable interests in a property, the court
ultimately relied on the legal title (common law ownership) to settle the dispute.
Limitations of the Maxim

It's important to remember that this maxim doesn't mean equity is entirely disregarded.
The court will still consider equitable arguments, and if there's a slight imbalance in
favor of one party, the court might still craft a solution based on fairness principles.
Additionally, the maxim doesn't apply if there's a clear statutory provision that governs
the situation.

Position in Pakistan

The concept of equity, though not a distinct legal system, is recognized in Pakistan's
legal framework. Several provisions within the Civil Procedure Code (CPC) and
various case laws acknowledge the principles of fairness and good conscience, which
align with the core ideas of equity. While the specific maxim, "Where the equities are
equal, law shall prevail," might not be explicitly mentioned, the principle it embodies is
likely to be considered by Pakistani courts when deciding cases where equitable
arguments are balanced on both sides.

Conclusion

The maxim, "Where the equities are equal, law shall prevail," emphasizes the interplay
between equity and common law. It ensures that even in situations where fairness
arguments are balanced, there's a clear framework (common law) to reach a final
decision. By understanding this maxim, law students can gain valuable insight into
how courts weigh equitable considerations alongside established legal principles.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 25

 LL.B – IV ( EQUITY )

Where the Equities Are Equal, First in Time Prevails

Imagine two people with seemingly equal claims to the same property. One person
might have a written agreement, while the other might have acted in good faith based
on a verbal promise. In such situations, the legal principle of "Where the equities are
equal, first in time prevails" comes into play. We can define it by another popular
maxim:

“First in time is first in right”

Meaning of the Maxim

This maxim is a legal proverb that essentially states:
If two parties have competing claims with equal strength (equities), the one who
established their interest first (in time) will generally have priority.
Essential Elements
 Competing Claims: There must be two or more parties with conflicting claims to the
same property or right.
 Equal Strength: The fairness and merits of each party's claim should be relatively
balanced.
 Priority in Time: One party must have established their interest (e.g., through a
written agreement) before the other.
Application of the Maxim

This maxim is typically applied in situations like:

 Competing equitable interests:

Two individuals might have claims to the same property based on separate, informal
agreements. The one who entered the agreement first would likely be favored.
 Competing equitable mortgages:
If someone lends money on a property secured by an unregistered mortgage, and
then another person takes a registered mortgage on the same property later, the first
lender (with the unregistered mortgage) might have priority if their claim can be
established.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 26

 LL.B – IV ( EQUITY )

Case Law (Examples may vary by jurisdiction)

 Pilcher v Rawlins (1720):
A landowner verbally promised to sell land to A, but later made a written agreement
with B. The court ruled in favor of A because their verbal agreement established their
interest first.
Limitations of the Maxim
 Not Absolute: The maxim is a guide, not a rigid rule. If other factors significantly favor
one party (e.g., detrimental reliance), the court might deviate.
 Legal vs. Equitable Interests: This maxim primarily applies to situations where both
parties have equitable interests. If one party has a legal interest (e.g., a registered
deed), it might prevail even if established later.
Position in Pakistan

The concept of "equities" and related maxims are generally recognized principles
within Pakistani jurisprudence. However, specific applications and interpretations
might rely on relevant case law and legislation like the Trust Act, 1882.

Conclusion

The maxim "Where the equities are equal, first in time prevails" helps ensure fairness
and certainty in situations with competing claims. It encourages prompt action to
secure rights and interests. However, it's important to remember that it's not an
absolute rule, and courts consider all relevant factors to arrive at a just outcome.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 27

LL.B – IV ( EQUITY )

HE WHO SEEKS EQUITY MUST DO EQUITY

Imagine you're in a disagreement with someone, and you decide to ask the court for
a special kind of help. This help, called an equitable remedy, focuses on fairness rather
than just following strict legal rules. However, the legal principle of "He who seeks
equity must do equity" ensures that fairness goes both ways. This maxim reminds
everyone that to receive fair treatment from the court, you yourself must be prepared
to act fairly.

Meaning of the Maxim

This maxim essentially states: If you approach a court seeking a fair and just
solution (equitable remedy), you must also be willing to act fairly and honestly
yourself. The court expects you to fulfill your own obligations and avoid any
wrongdoing before it grants you the desired relief.
Essential Elements
Here are essential element of this maxim:

 Seeking Equitable Relief:

The person requesting help from the court must be asking for a remedy that
falls under the court's equitable jurisdiction. These are solutions focused on
fairness, such as:
o Specific Performance:
Forcing someone to keep a promise they made in an agreement.
o Injunction:
Stopping someone from doing something wrong.
o Rectification:
Correcting a mistake in a written agreement.
 Unfair Conduct:
The person seeking help must have acted unfairly or improperly in some way
related to the situation. This could include:
 Breaching a contract they made.
 Deceiving or misleading the other party.
 Taking unfair advantage of a situation.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 28

 LL.B – IV ( EQUITY )

 Willingness to be Fair:
The person must be ready and willing to rectify their wrongdoing or fulfill
their obligations before receiving the desired remedy.
Application of the Maxim

This maxim is applied in various scenarios:

 Breach of Contract: If someone breaches a contract but then seeks an injunction to

prevent the other party from terminating it, the court might deny the injunction unless
they are willing to fulfill their contractual obligations.
 Unclean Hands: If someone has acted fraudulently or deceived the other party, they
might be denied an equitable remedy until they make things right.
 Unjust Enrichment: If someone seeks to keep a benefit obtained unfairly (e.g., buying
property at a ridiculously low price), the court might require them to return it before
granting other relief.
Case Law:
 King v. Smith (1693): A plaintiff sought to enforce a contract they obtained through
undue pressure. The court denied enforcement because the plaintiff didn't act
equitably.
Limitations of the Maxim
Here are limitations of the maxim.

 Severity of Misconduct:
The seriousness of the unfair conduct is considered. Minor transgressions might not
automatically bar someone from seeking relief.
 Alternative Remedies:
The court might still offer alternative remedies even if the maxim applies, depending
on the specific circumstances. For instance, instead of specific performance on a
contract, the court might award monetary damages.
Position in Pakistan

The principle of "He who seeks equity must do equity" is a well-established concept in
Pakistani law. It aligns with the emphasis on fairness and good conscience within the

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 29

LL.B – IV ( EQUITY )

legal system. The maxim is often cited in judgments related to equitable remedies like
specific performance, injunctions, and rectification. You can find references to this
principle in legal resources like the Trust Act, 1882.

Conclusion

The maxim "He who seeks equity must do equity" promotes a sense of fairness in the
legal system. It discourages people from seeking court intervention while clinging to
their own unfair actions. By requiring fair conduct from both parties, the court strives
for a just and balanced outcome. This principle ensures that everyone who
approaches the court for equitable relief comes with clean hands and a willingness to
act fairly themselves.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 30

 LL.B – IV ( EQUITY )

EQUITY FOLLOWS THE LAW

Balancing Fairness with Established Rules

Imagine a situation where the strict application of the law might lead to an unfair
outcome. This is where the legal principle of "Equity follows the law" comes into play.
It establishes a crucial balance: equity respects the established law but can deviate
when necessary to achieve a just result.

Meaning of the Maxim

This maxim essentially states: While equity strives for fair and just solutions, it
generally operates within the framework of existing legal principles. Equity
doesn't disregard the law, but it can offer additional remedies or interpretations to
ensure a fair outcome in specific circumstances.
Essential Elements
There's a distinction between legal and equitable remedies.
o Law: Focuses on enforcing established legal rights and obligations. Remedies are
typically monetary damages or specific actions (e.g., eviction).
o Equity: Aims for a fair and just solution, even if it means going beyond strict legal
rules. Remedies can involve things like injunctions (stopping someone from doing
something) or specific performance (forcing someone to fulfill a promise).
 Deviation vs. Defiance: Equity doesn't overthrow the law. It can, however, provide
alternative solutions when the law's strict application would be unjust.
Application of the Maxim

This maxim is applied in various scenarios:

 Unenforceable Contracts:
Common law might not enforce a contract due to technicalities (e.g., lack of a formal
written agreement). Equity might still offer relief if the agreement was clear and both
parties acted in good faith.
 Unregistered Interests:
Equity can recognize and protect certain rights even if they haven't been formally
registered (e.g., a verbal agreement to sell land).

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 31

 LL.B – IV ( EQUITY )

Case Law
 Walsh v Lonsdale (1882): A tenant made significant improvements to a property
based on a verbal agreement with the landlord. Equity enforced the agreement despite
its informality to prevent unfairness to the tenant.
Limitations of the Maxim
 Not a Blank Check: Equity can't completely disregard the law. There must be a strong
justification for deviating from established legal principles.
 Discretion of the Court: Ultimately, the court decides when it's appropriate for equity
to intervene based on the specific circumstances of the case.
Position in Pakistan

The principle of "Equity follows the law" is recognized within the Pakistani legal system.
Judges consider both established legal rules and equitable principles when reaching
a fair and just decision. References to this principle can be found in legal resources
like Snell's Principles of Equity and Equity Trust & Specific Relief by M. Gandhi.

Conclusion

The maxim "Equity follows the law" ensures that fairness and established legal
principles work together. Equity serves as a safety valve, allowing the court to go
beyond strict legal rules when necessary to achieve a just outcome. However, it's
important to remember that equity respects the law and doesn't operate in complete
isolation.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 32

LL.B – IV ( EQUITY )

The
Specific
Relief Act,
1877

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 33

LL.B – IV ( EQUITY )

What is 'Discretion'? Discuss discretion as to decree

specific performance.
The Specific Relief Act, 1877, empowers courts to grant specific relief (‫ )خاص راحت‬in
certain situations. Specific relief goes beyond mere monetary compensation ( ‫مالی‬
‫ )معاوضه‬and compels a party to fulfill a contractual obligation (‫)معاہدے کی ذمہ داری پوری کرنا‬.
However, the court's power to grant specific performance (‫)خصوصی کارکردگی‬, a form of
specific relief, is not absolute. This concept of judicial discretion (‫ )عدالتی اختیار‬plays a
crucial role in determining whether or not a court will order specific performance of a
contract.

Definition of Discretion and Understanding

Discretion, in legal terms, refers to the judge's authority to make a reasoned decision
based on the circumstances of a particular case, rather than solely applying a strict
legal rule.

Here's how some prominent legal scholars and dictionaries define discretion:

Black's Law Dictionary:

"The power exercised by a court to decide a question according to the judgment of the
court, as distinguished from being bound by a strict rule of law."
Salmond on Jurisprudence:
"Discretion...me The power of acting according to what appears right and just under
the circumstances, without being bound by any definite antecedent rule."

Discretion is not arbitrary; it must be exercised judiciously, considering established

legal principles and precedents (‫)گذشتہ مثالیں‬. A judge's decision can be challenged on
appeal if found to be an abuse of discretion (‫)اختیار کی غلط استعمال‬.

Discretion in Granting Specific Performance

The Specific Relief Act acknowledges the court's discretion in granting specific
performance. Section 22 of the Act states that the court is not bound to grant specific
performance simply because a contract exists. The court has the authority to weigh
various factors before reaching a decision.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 34

LL.B – IV ( EQUITY )

Here are some key considerations that influence the court's discretion:

1. Nature of the Contract:

Specific performance is generally more readily granted for contracts involving
unique items like land or valuable heirlooms, where monetary damages might
not be sufficient compensation.
2. Feasibility of Enforcement:
The court will consider the practicality of enforcing the order. For example, if
the contract requires continuous supervision (‫ )مسلسل نگرانی‬by the court, it may
be less likely to grant specific performance.
3. Conduct of the Parties:
The court's discretion can be influenced by the conduct of the parties involved.
If the plaintiff (‫ )مدعی‬has significantly delayed seeking enforcement or has not
fulfilled their own obligations under the contract, the court may be less inclined
to grant specific performance.
Example in Pakistan:

Imagine a scenario where a renowned artist agrees to paint a portrait for a collector.
In this case, the painting could be considered a unique item, and monetary damages
might not truly compensate the collector for the loss of the specific artwork. Here, the
court might be more likely to grant specific performance, ordering the artist to complete
the painting.

Conclusion

The discretion granted by the Specific Relief Act allows courts to tailor their decisions
to the specific circumstances of each case. This ensures a more nuanced and just
approach to enforcing contracts. Understanding how courts exercise discretion in
granting specific performance is crucial for both parties involved in a contract dispute.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 35

 LL.B – IV ( EQUITY )

Discuss the procedure for the recovery of

possession of immovable property under the
Specific Relief Act.

Owning property is a significant right, and ensuring peaceful possession of your land
or building is essential. However, situations may arise where someone wrongfully
occupies your property, denying you rightful access and enjoyment. In Pakistan, the
Specific Relief Act, 1877, serves as a legal safeguard in such circumstances. This Act
empowers individuals to reclaim possession of immovable property through well-
defined procedures. This introduction explores the provisions of the Specific Relief Act
relevant to recovering possession, outlining the two main sections and the steps
involved in each approach.

The Specific Relief Act, 1877, provides two main avenues for regaining possession of
immovable property (‫ )غیر منقولہ جائداد کا قبضہ دوبارہ حاصل کرنا‬in Pakistan:

Recovering Specific Immovable Property under Section 8 of the

Specific Relief Act, 1877

Section 8 of the Specific Relief Act offers a legal recourse for individuals entitled to
possess a specific immovable property (‫ )غیر منقولہ جائداد کا قبضہ‬in Pakistan. This section
is particularly relevant when someone else is wrongfully occupying your land, house,
or any other form of immovable property that rightfully belongs to you.

Here's a detailed breakdown of the recovery process under Section 8:

Eligibility:
To initiate a suit under Section 8, you must establish a clear legal right to possess the
property in question. This right can be proven through various documents, including:
o Ownership Documents:
Title deeds (‫)ملكیتی دستاویزات‬, sale agreements ( ‫)فروخت کا معاہدہ‬, or inheritance certificates
(‫ )وراثت کا سرٹیفکیٹ‬serve as concrete evidence of ownership and your right to possess
the property.
o Lease Agreement:
If you are a tenant with a valid lease agreement (‫)لیس معاہدہ‬, you have a legal right to
possess the property for the duration of the lease.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 36

 LL.B – IV ( EQUITY )

o Other Legal Documents:

In some cases, other documents like mortgage agreements (‫ )رہن نامہ‬or court orders
granting possession may establish your legal entitlement.
Suit Filing:
Once you have established your legal right, the next step is to file a lawsuit in the
relevant civil court (‫)دیوانی عدالت‬. The court with jurisdiction (‫ )عدالتی حدود‬over the
property's location will handle the case. This typically involves the following steps:
o Plaint:
A plaint (‫ )مقدمہ کی درخواست‬needs to be drafted by a lawyer outlining the facts of the
case, the details of the property, and the specific relief sought, which is regaining
possession of the property.
o Court Fees:
Payment of the required court fees (‫ )عدالتی فیس‬needs to be made when filing the suit.
o Service of Notice:
A legal notice will be served on the defendant (‫ )مدعا علیہ‬currently occupying the
property, informing them of the lawsuit and the date of the first court hearing.
Procedure:
The lawsuit will proceed through a series of hearings where both parties present their
arguments and evidence.
o Plaintiff's Case:
You or your lawyer will present documents proving your ownership or legal right to
possess the property.
o Defendant's Response:
The defendant may contest your claim or provide a justification for their occupancy.
o Witness Testimony:
Witnesses may be called upon to provide additional evidence supporting your claim
or the defendant's position.
Decree:
After considering all the evidence presented, the court will issue a decree (‫)حکم‬.
o Favourable Decree:
If the court rules in your favor, it will issue a decree for possession (‫)قبضے کا حکم‬,
ordering the defendant to vacate the property and return it to you.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 37

 LL.B – IV ( EQUITY )

o Unfavourable Decree:
If the court finds insufficient evidence to support your claim, it may dismiss the case.
Enforcement of Decree:
In case the defendant fails to comply with the court order voluntarily, the court can
initiate execution proceedings to enforce the decree. This may involve the assistance
of the bailiff (‫ )عدالتی ُمنشی‬to take physical possession of the property and hand it over to
you.
Important Considerations:
The court has the discretion (‫ )عدالتی اختیار‬to decide the appropriate relief in each case.
While Section 8 focuses on recovering possession, in some circumstances, the court
may award alternative relief, such as damages (‫ )نقصانات کا اعزاز‬for the inconvenience
caused by the wrongful occupation.
It's crucial to consult with a qualified lawyer who can guide you through the legal
process, gather necessary evidence, and represent you effectively in court.
Regaining Possession Through Dispossession (Section 9 of the
Specific Relief Act)

While Section 8 of the Specific Relief Act, 1877, caters to situations where you can
prove legal ownership of the property, Section 9 offers an alternative route for
regaining possession in cases of wrongful dispossession (‫)غیر قانونی قبضہ سے محروم‬. This
section is particularly helpful when you might not have formal documented ownership
but were in peaceful possession before being illegally removed.

Here's a detailed look at the procedure for filing a suit under Section 9:

Eligibility:

To qualify for a suit under Section 9, you must meet the following criteria:

 Prior Possession:
You must have been in peaceful and actual possession (‫ )قبضہ اور ملکیت‬of the property
before the dispossession. This could be established through evidence like utility bills
(‫)بلدیاتی بل‬, rent receipts (‫)کرایے کی رسیدیں‬, or witness testimonies (‫)گواہوں کے بیانات‬
confirming your occupancy.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 38

 LL.B – IV ( EQUITY )

 Wrongful Dispossession:
You must have been dispossessed without your consent (‫ )آپ کی رضامندی کے بغیر‬and
otherwise than through due course of law (‫)قانونی کارروائی کے بغیر‬. This means the
eviction or removal wasn't done through a court order or any legal process.
 Time Limit:
There's a strict time limitation (‫ )محدود مدت‬for filing a suit under Section 9. The Limitation
Act, 1908, specifies a period of twelve years from the date of dispossession to initiate
legal proceedings.
Suit Filing:

Similar to Section 8, the process involves filing a lawsuit in the relevant civil court with
jurisdiction over the property's location. Here's a breakdown of the steps:

 Plaint:
A plaint (‫ )مقدمہ کی درخواست‬needs to be drafted by a lawyer, outlining the details of the
property, the date and circumstances of your dispossession, and the relief sought,
which is regaining possession.
 Court Fees:
Payment of the required court fees (‫ )عدالتی فیس‬is necessary when filing the suit.
 Service of Notice:
A legal notice will be served on the defendant (‫ )مدعا علیہ‬currently occupying the
property, informing them of the lawsuit and the date of the first court hearing.
Procedure:

The lawsuit will proceed through court hearings where both parties present their
arguments and evidence:

 Plaintiff's Case: You or your lawyer will need to present evidence of your prior
peaceful possession, such as utility bills, witness testimonies, or any agreements
related to your occupancy.
 Defendant's Response: The defendant may contest your claim of prior possession
or attempt to justify their occupation. They might present counter-evidence or argue
they obtained the property legally.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 39

 LL.B – IV ( EQUITY )

 Witness Testimony: Witnesses who can verify your prior occupancy or the
circumstances of dispossession can be crucial in strengthening your case.
Decree:

Upon considering all the evidence, the court will issue a decree (‫)حکم‬.

 Favourable Decree: If the court finds in your favor, it will order the defendant to
restore possession (‫ )قبضے کی بحالی کا حکم‬of the property to you.
 Unfavourable Decree: If the court finds insufficient evidence of your prior possession
or a legal justification for the defendant's occupation, it may dismiss the case.
Enforcement of Decree:

As with Section 8, if the defendant fails to comply with the court order, the court can
initiate execution proceedings to enforce the decree. This may involve the bailiff ( ‫عدالتی‬
‫ ) ُمنشی‬taking physical possession of the property and returning it to you.

Important Considerations:
 Section 9 does not apply to situations where the government dispossesses you. There
are separate legal procedures for challenging government actions.
 The court has the discretion (‫ )عدالتی اختیار‬to decide the appropriate relief. While
regaining possession is the primary goal, the court may award alternative relief, such
as damages, for the inconvenience caused by the dispossession.
 Consulting a qualified lawyer is highly recommended. They can guide you through the
legalities of gathering evidence, presenting your case effectively, and navigating the
court process.
Conclusion
The Specific Relief Act provides a legal framework for regaining possession of
immovable property in Pakistan. Understanding the two main sections and the relevant
procedures is crucial for anyone facing a situation of wrongful dispossession. It's
advisable to consult with a lawyer for legal advice specific to your circumstances.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 40

LL.B – IV ( EQUITY )

Contract are generally enforce as a whole . In what conditions does

the law allow part performance of the contract?

Contracts are the lifeblood of commerce, forming the foundation for countless
commercial transactions. The principle of enforcing contracts as a whole ensures
clarity, predictability, and fairness in business dealings. However, this rule is not
absolute. The law recognizes situations where enforcing a contract in its entirety might
lead to injustice, particularly when one party has already invested significant time,
effort, or resources into fulfilling their obligations. This analysis explores the key
conditions under which the law allows part performance of a contract, highlighting
the exceptions that ensure fairness and prevent undue hardship in specific
circumstances. By understanding these exceptions, we gain a deeper appreciation for
the flexibility inherent in contract law, balancing the need for enforceability with the
principles of equity and justice.

Contracts and Part Performance

While contracts are generally enforced as a whole, meaning all terms must be fulfilled
for either party to seek legal remedies, the law recognizes situations where part
performance (‫ )جزوی کارکردگی‬allows enforcement of specific terms. These exceptions
aim to prevent injustice and ensure fairness when one party has already fulfilled a
significant portion of their obligations.

Here are some key conditions under which the law may allow part performance of a
contract:

1) Doctrine of Part Performance:

This doctrine, particularly relevant in property law, applies when a contract
involves the transfer of immovable property (‫)غیر منقولہ جائیداد‬. For example, if a
buyer pays a substantial part of the purchase price and takes possession of the
property with the seller's knowledge, the buyer may be able to enforce the
contract for the remaining sale even if the contract is not registered as required
by law.
2) Severability Clause:
A well-drafted contract may contain a severability clause (‫)علیحدگی کی دفعات‬. This
clause specifies that if any part of the contract is found to be unenforceable, the

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 41

LL.B – IV ( EQUITY )

remaining provisions will still be valid. This allows enforcement of specific terms
even if other parts are deemed invalid.
3) Quantum Meruit:
In some situations, the law may award quantum meruit (‫– )جتنا کام اتنا اجرت‬
meaning "What He Has Earned." This remedy applies when a party has
partially performed their obligations under a void or unenforceable contract, but
the other party has nonetheless benefited from that performance. Here, the
performing party can seek compensation for the value of the work they have
already completed.
4) Estoppel :
The principle of estoppel ‫ روکنا‬may prevent a party from denying the
enforceability of a contract if they have encouraged the other party to act upon
it and the other party has suffered detriment (‫ )نقصان‬as a result. For instance, if
a seller accepts partial payment and allows a buyer to move equipment onto
the property, they may be estopped from later arguing that the contract is not
enforceable because of a minor formality.

It's important to note that these are just some general principles, and the specific
conditions for enforcing part performance can vary depending on the jurisdiction and
the nature of the contract. If you have any questions about part performance in the
context of a specific situation, it's always best to consult with a qualified legal
professional.

Conclusion

In conclusion, while upholding the sanctity of contracts remains paramount, the law
recognizes the need for exceptions when enforcing contracts in their entirety could
lead to unfair outcomes. The concepts of part performance, severability clauses,
quantum meruit, and estoppel offer valuable tools for achieving a just resolution in
situations where one party has partially fulfilled their obligations. Understanding these
exceptions equips individuals and businesses to navigate contractual complexities
and ensure a fair outcome in the event of unforeseen circumstances. However,
navigating the intricacies of part performance requires careful consideration of specific
circumstances and legal principles. Consulting with a qualified legal professional is
always advisable when dealing with part performance scenarios.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 42

LL.B – IV ( EQUITY )

Give the account of the different kinds of equitable reliefs available

of breach of contract?

While monetary damages often serve as a primary remedy for breach of contract, they
may not always provide a complete or satisfactory solution. In such situations,
Pakistani law offers a range of equitable reliefs, legal tools that go beyond simple
compensation to achieve a just and fair outcome. These reliefs aim to uphold the
sanctity of contracts and ensure that wrongs are rectified when a breach occurs. This
analysis will delve into the different kinds of equitable reliefs available in Pakistan,
exploring specific performance, injunctions, rescission, and rectification. By
understanding these remedies and their applications through relevant Pakistani
examples, we gain valuable insight into the nuanced approach of the legal system
towards resolving contractual disputes.

Equitable Reliefs for Breach of Contract in Pakistan

The Pakistani legal system, influenced by both common law and Islamic jurisprudence,
offers a range of remedies beyond monetary damages for situations where a breach
of contract occurs. These remedies, known as equitable reliefs (‫)منصفانہ امداد‬, aim to
achieve a just and fair outcome by ensuring the terms of the contract are upheld or
wrongs are rectified. Let's explore the different kinds of equitable reliefs available
under Pakistani law, along with illustrative examples.

1. Specific Performance:

This remedy compels a party to fulfill their contractual obligations precisely as agreed
upon. Imagine a scenario where a renowned artist in Lahore contracts to paint a mural
on a specific wall for a client. If the artist refuses to complete the mural, the client can
seek specific performance, forcing the artist to fulfill their artistic commitment.

Example: In Muhammad Akram vs. Muhammad Shafi & Ors (1998 CLC 1222), the
Lahore High Court ordered specific performance of a contract for the sale of land,
highlighting that monetary damages wouldn't adequately compensate the aggrieved
party seeking ownership of the specific plot.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 43

LL.B – IV ( EQUITY )

2. Injunction:

An injunction is a court order that either prohibits a party from taking a specific action
(prohibitory injunction) or compels them to perform a particular act (mandatory
injunction). For instance, if a construction company is building on your property despite
a valid contract to build on an adjacent plot, you can seek a prohibitory injunction to
halt the construction on your land.

Example: In Muhammad Aslam vs. Muhammad Siddiq & Ors (PLD 1983 SC 632), the
Supreme Court of Pakistan granted a mandatory injunction, ordering the authorities to
restore possession of a property to the rightful owner who had been wrongfully
dispossessed.

3. Rescission ‫تنسیخ‬:

This remedy allows a court to cancel a contract and restore both parties to the
positions they held before the contract was formed. Rescission is typically used when
a material term of the contract has been breached or when the contract was formed
based on a mistake. For example, if you purchase a car based on the seller's
misrepresentation of its mileage, you can seek rescission to get your money back and
return the car.

Example: In Fazal Karim vs. Muhammad Siddiq (PLD 1962 SC 490), the Supreme
Court of Pakistan allowed rescission of a contract for the sale of land due to a
concealment of a material fact by the seller, highlighting the importance of full
disclosure in contract formation.

4. Rectification:

This remedy allows a court to correct a written contract to reflect the true intentions of
the parties if there's a mistake or ambiguity in the wording. Imagine a contract for the
sale of a house mistakenly mentions the plot size as 100 square meters instead of the
agreed-upon 200 square meters. Rectification can ensure the contract accurately
reflects the parties' initial agreement.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 44

LL.B – IV ( EQUITY )

Example: While case law specifically referencing rectification of contracts is less

common, the concept is recognized in Pakistani law. In Muhammad Nawaz vs.
Muhammad Siddiq (PLD 1980 SC 138), the Supreme Court acknowledged the court's
power to rectify a mistake in a written document to reflect the true intention of the
parties.

These are just a few of the main equitable reliefs available in Pakistan. The specific
remedy granted will depend on the nature of the breach and the specific circumstances
of the case. It's important to consult with a qualified lawyer to determine the most
appropriate equitable relief to pursue in case of a breach of contract.

Conclusion
The availability of equitable reliefs in Pakistan demonstrates the legal system's
commitment to achieving fair and comprehensive resolutions in breach of contract
cases. From enforcing specific contractual obligations to rectifying errors in written
agreements, these remedies empower individuals to seek a just outcome beyond
mere financial compensation. The examples provided from Pakistani case law further
solidify the practical application of these concepts. However, navigating the intricacies
of equitable reliefs requires a thorough understanding of the specific circumstances
and legal principles involved. Consulting with a qualified legal professional remains
crucial for maximizing the effectiveness of these remedies in the event of a contractual
breach.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 45

LL.B – IV ( EQUITY )

What are preventive reliefs and how they granted also explain
different types of equitable remedies and how these are granted?
(v.v.imp)

The Pakistani legal system recognizes that a successful resolution to a contractual

dispute extends beyond mere monetary compensation. Anticipating and preventing
potential harm, as well as achieving a fair and just outcome when a breach occurs,
are equally important considerations. This analysis explores the vital roles of
preventive reliefs and equitable remedies within the Pakistani legal framework. We will
delve into the specific types of reliefs available, such as injunctions and specific
performance, along with the circumstances under which they are granted. By
examining relevant Pakistani case law, we will gain a practical understanding of how
these remedies are applied in real-world scenarios. Ultimately, appreciating the role
of both preventive reliefs and equitable remedies equips individuals and businesses
with a comprehensive toolkit for navigating contractual disputes and achieving a just
resolution.

Preventive Reliefs in Pakistan

The Pakistani legal system offers a comprehensive framework for resolving
contractual disputes. This framework goes beyond simply awarding monetary
damages after a breach of contract has occurred. It also allows for preventive reliefs
(‫ )وقائی امداد‬and equitable remedies (‫ )منصفانہ امداد‬to prevent potential harm or achieve a
just outcome when monetary compensation might not be sufficient.
Preventive reliefs are court orders issued to prevent a potential or ongoing violation
of a right. They aim to address situations where a breach of contract is anticipated or
a legal right is threatened. Here are some key types of preventive reliefs available in
Pakistan:
1) Injunction (‫)باز رکھنا‬:
This is a common preventive relief. A court can issue a prohibitory injunction to
prevent a party from taking a specific action that would violate a contractual
obligation or legal right. For example, if a tenant is about to remove fixtures
from a rented property in violation of the lease agreement, the landlord can
seek an injunction to prevent this action.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 46

LL.B – IV ( EQUITY )

Example: In Muhammad Aslam vs. Muhammad Siddiq & Ors (PLD 1983 SC
632), the Supreme Court of Pakistan granted a prohibitory injunction to
prevent ongoing construction activity on the plaintiff's property.

2) Mareva Injunction:
This type of injunction freezes a party's assets to prevent them from disposing
of them before a potential judgment is issued. This can be helpful in situations
where a party is at risk of hiding assets to avoid fulfilling a contractual
obligation.

Granting Preventive Reliefs:

To obtain a preventive relief, such as an injunction, the applicant must

typically demonstrate a strong likelihood of success on the merits of their
case and the potential for irreparable harm if the injunction is not granted.
The court will weigh these factors before issuing the order.

Equitable Remedies

Equitable remedies are court-ordered solutions that aim to achieve a fair and just
outcome in a contractual dispute when monetary damages are inadequate. Here are
some common types of equitable remedies available in Pakistan:

1) Specific Performance (‫)عہد پوری‬:

This remedy compels a party to fulfill their contractual obligations exactly as
agreed upon. Imagine a scenario where a seller agrees to sell a unique piece
of art to a buyer but later refuses to complete the sale. The buyer can seek
specific performance to force the seller to deliver the artwork.
Example: In Muhammad Akram vs. Muhammad Shafi & Ors (1998 CLC 1222),
the Lahore High Court ordered specific performance of a contract for the sale
of land, highlighting that monetary damages wouldn't adequately compensate
the aggrieved party seeking ownership of the specific plot.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 47

LL.B – IV ( EQUITY )

2) Rescission (‫)فسخ‬:
This remedy allows a court to cancel a contract and restore both parties to the
positions they held before the contract was formed. Rescission is typically used
when a material term of the contract has been breached or when the contract
was formed based on a mistake.
Example: In Fazal Karim vs. Muhammad Siddiq (PLD 1962 SC 490), the
Supreme Court of Pakistan allowed rescission of a contract for the sale of land
due to a concealment of a material fact by the seller, highlighting the importance
of full disclosure in contract formation.

3) Rectification (‫)تصحیح‬:
This remedy allows a court to correct a written contract to reflect the true
intentions of the parties if there's a mistake or ambiguity in the wording. Imagine
a contract for the sale of a house mistakenly mentions the plot size as 100
square meters instead of the agreed-upon 200 square meters. Rectification can
ensure the contract accurately reflects the parties' initial agreement.
Example: While case law specifically referencing rectification of contracts is
less common, the concept is recognized in Pakistani law. In Muhammad Nawaz
vs. Muhammad Siddiq (PLD 1980 SC 138), the Supreme Court acknowledged
the court's power to rectify a mistake in a written document to reflect the true
intention of the parties.

Granting Equitable Remedies:

The court will consider various factors when deciding whether to grant an equitable
remedy, including the nature of the breach, the conduct of the parties, and the potential
for prejudice if the remedy is not granted. Unlike preventive reliefs, equitable remedies
are typically granted after a trial has determined the rights and wrongs of the case.

Conclusion

The availability of preventive reliefs and equitable remedies in Pakistan underscores

the legal system's commitment to proactive and comprehensive dispute resolution.
These remedies empower individuals to not only seek compensation after a breach,
but also to prevent potential harm and achieve a fair outcome that goes beyond

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 48

LL.B – IV ( EQUITY )

monetary damages. The examples provided from Pakistani case law demonstrate the
practical application of these concepts. However, navigating the intricacies of
obtaining preventive reliefs or equitable remedies requires careful consideration of the
specific circumstances and legal principles involved. Consulting with a qualified legal
professional remains crucial for maximizing the effectiveness of these remedies and
ensuring a just resolution in the event of a contractual dispute.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 49

LL.B – IV ( EQUITY )

What is Rescission of contract and how does this differ from

cancellation?

Contract termination is a crucial concept in commercial dealings, allowing for the

conclusion or cancellation of agreements under specific circumstances. However, the
legal nuances between rescission and cancellation can lead to confusion. This
analysis will dissect the distinct characteristics of both rescission and cancellation,
highlighting the key differences in their effects, grounds for invocation, and available
remedies. By understanding these distinctions, individuals and businesses can
navigate contractual terminations more effectively and ensure a just outcome in
various situations. We will explore scenarios where rescission, aiming to completely
unwind a transaction, is the appropriate course of action. Conversely, we will examine
situations where cancellation, simply ending future obligations, is the more suitable
option.

Both rescission and cancellation involve ending a contract, but there are some key
distinctions between the two:

Rescission:
a) Effect:
Rescission acts as if the contract never existed (void ab initio). It seeks to
completely unwind the transaction and restore both parties to the positions they
held before the contract was formed. Imagine a scenario where you buy a car
based on the seller's misrepresentation of its mileage. If the mileage is
significantly higher, you could seek rescission, aiming to get your money back
and return the car, essentially erasing the entire transaction.
b) Grounds for Rescission:
Rescission is typically available when there's a material breach of contract (a
significant violation of a key term), mistake, misrepresentation (fraudulent or
innocent), undue influence, or duress.
c) Remedies:
Rescission often involves returning any exchanged goods or property and any
payments made. In some cases, there might be adjustments for depreciation
or usage.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 50

LL.B – IV ( EQUITY )

Cancellation:
a) Effect:
Cancellation terminates the contract from the point of cancellation forward. The
obligations and rights outlined in the contract are no longer enforceable moving
forward. This is often used when a future performance becomes impossible or
impractical due to unforeseen circumstances. For example, if you book a
concert ticket but the artist cancels the show due to illness, the contract for the
ticket would be cancelled.
b) Grounds for Cancellation:
Cancellation can occur due to breach of contract (depending on the severity),
mutual agreement between both parties, frustration of purpose (when the
purpose of the contract becomes impossible to achieve), or specific clauses
within the contract itself that allow for termination under certain conditions.
c) Remedies:
Depending on the terms of the contract and the reason for cancellation, there
might be specific remedies outlined, such as cancellation fees or return of
deposits.

Here's a table summarizing the key differences:

Feature Rescission Cancellation

Effect Contract treated as if it never Contract terminated from the point of
existed (void ab initio) cancellation forward
Goal Restore parties to pre-contract End future obligations under the contract
positions
Grounds Material breach, mistake, Breach (depending on severity), mutual
misrepresentation, duress agreement, frustration of purpose, specific
cancellation clauses
Remedies Return of goods/property & Varies depending on contract and reason for
payments (with adjustments) cancellation

In essence, rescission aims to rewind the clock and undo the entire agreement, while
cancellation simply stops the contract from moving forward.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 51

LL.B – IV ( EQUITY )

Conclusion

Understanding the differences between rescission and cancellation empowers

individuals and businesses to navigate contractual terminations with greater clarity.
Rescission, aiming to restore both parties to their pre-contract positions, offers a
solution when a material breach, mistake, or misrepresentation occurs. Cancellation,
on the other hand, focuses on ending future obligations under the contract due to
unforeseen circumstances, mutual agreement, or specific termination clauses. By
recognizing the distinct effects, grounds, and remedies associated with each
approach, individuals can make informed decisions and seek the most appropriate
remedy when faced with the need to terminate a contract. Consulting with a legal
professional remains crucial for navigating the complexities of specific situations and
ensuring a legally sound course of action.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 52

LL.B – IV ( EQUITY )

When cancellation of an instrument may be ordered . Explain with

reference to relevant law.

Not all written instruments, despite their seemingly official nature, are guaranteed to
be valid or enforceable. The Pakistani legal system, recognizing this reality, empowers
individuals to seek the cancellation of instruments under specific circumstances. This
analysis explores the provisions of the Specific Relief Act, 1877, the key legislation
governing cancellation in Pakistan. We will delve into the legal grounds for
cancellation, ranging from inherent invalidity to situations where a seemingly valid
instrument poses a threat of future harm. By examining relevant provisions and
scenarios, we gain a clearer understanding of when and how a court can order the
cancellation of an instrument, safeguarding individuals from the potential
consequences of flawed or harmful documents.

Cancellation of Instruments in Pakistan: When and How?

The Pakistani legal system, drawing from both common law and Islamic jurisprudence,
recognizes situations where a written instrument (like a contract, deed, or agreement)
can be declared void or voidable. This process, known as cancellation of instrument
(cancellation of document) allows a party to protect themselves from potential harm
caused by an invalid or flawed document. Here, we'll explore the circumstances under
which cancellation of an instrument may be ordered, referencing the relevant Pakistani
law – the Specific Relief Act, 1877 (Act I of 1877).

Grounds for Cancellation under the Specific Relief Act, 1877:

The Specific Relief Act outlines specific situations where a court can order the
cancellation of an instrument:

I. Void Instrument:
If the instrument is inherently invalid or unenforceable due to reasons like
illegality, incapacity of a party to enter into a contract (minority, unsound mind),
or violation of public policy, the court may order its cancellation.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 53

 LL.B – IV ( EQUITY )

II. Voidable Instrument:

When an instrument is valid on its face but can be challenged due to factors
like mistake, misrepresentation (fraudulent or innocent), undue influence,
duress, or coercion, a party can seek its cancellation.
III. Reasonable Apprehension of Serious Injury:
Section 31 of the Specific Relief Act is particularly relevant. It allows a person
to seek cancellation if they have a reasonable fear that an outstanding
instrument, even if seemingly valid, could cause them significant harm if left
unaltered. Imagine a scenario where a forged deed of ownership threatens your
property rights. You could seek cancellation to prevent the misuse of the forged
document.

How to Obtain Cancellation:

The process of obtaining cancellation typically involves filing a lawsuit against the party
holding the instrument. The court will consider the specific circumstances and the
grounds for cancellation presented by the plaintiff. If the court is satisfied that the
instrument is void, voidable, or poses a threat of serious injury, it can order its
cancellation and potentially award other remedies like compensation for any losses
incurred.

Important Considerations:
 Registration:
If the instrument is registered under the Registration Act, 1908, the court will typically
send a copy of the cancellation decree to the relevant registration office to ensure the
public record reflects the instrument's invalidity.
 Partial Cancellation:
The court has the discretion to cancel only part of an instrument if certain sections are
valid and separable from the disputed portions.
 Restoration of Benefits:
In some cases, the court might require the party seeking cancellation to return any
benefits they received under the instrument before it was declared void or voidable.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 54

LL.B – IV ( EQUITY )

Conclusion

The ability to seek cancellation of instruments under the Specific Relief Act empowers
individuals in Pakistan to protect their legal and financial interests. Whether an
instrument is inherently void, contains errors that render it voidable, or poses a future
threat, the Act outlines clear avenues for seeking its cancellation. Understanding the
grounds for cancellation, the legal process involved, and the potential consequences
ensures informed decision-making when faced with problematic instruments.
However, navigating the complexities of cancellation law often requires professional
guidance. Consulting with a qualified legal professional remains crucial for assessing
the specific circumstances and maximizing the chances of a successful cancellation
order.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 55

LL.B – IV ( EQUITY )

Give a detailed account of the kinds of injunctions

and indicate cases where the court may refuse to
grant an injunction.
In the realm of Pakistani law, injunctions serve as crucial instruments for safeguarding
rights and preventing potential harm. Issued by courts, these legal orders restrain
parties from specific actions (prohibitory injunction) or compel them to undertake
specific actions (mandatory injunction). This analysis delves into the various types of
injunctions available in Pakistan, exploring their functionalities and applications. We
will further examine the circumstances under which courts may decline to grant an
injunction, highlighting the importance of understanding both the empowering and
restrictive aspects of this legal tool. By examining relevant types of injunctions and
situations where courts might withhold them, we gain a comprehensive understanding
of how injunctions can be effectively utilized within the Pakistani legal framework.

Types of Injunctions and When Courts May Refuse to Grant Them in Pakistan

Injunctions are powerful legal tools used in Pakistan to prevent potential harm or
ongoing violations of rights. Issued by courts, injunctions act as court orders that
restrain a party from taking a specific action (prohibitory injunction) or compel them to
perform a specific act (mandatory injunction). Understanding the different types of
injunctions and the situations where courts might refuse to grant them is crucial for
navigating legal disputes effectively.

Types of Injunctions in Pakistan:

1) Prohibitory Injunction:
This is the most common type of injunction. It restrains a party from taking a
specific action that would violate a legal right or contractual obligation. For
example, if a tenant is about to remove fixtures from a rented property in
violation of the lease agreement, the landlord can seek a prohibitory injunction
to prevent this action.
2) Mandatory Injunction:
This type of injunction compels a party to perform a specific act that they are
legally obligated to do. It's less common than prohibitory injunctions and is

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 56

LL.B – IV ( EQUITY )

typically used when monetary damages wouldn't be an adequate remedy.

Imagine a scenario where a construction company is blocking access to your
property in violation of an easement right. A mandatory injunction could force
them to remove the obstruction and restore access.
3) Mareva Injunction:
This specialized injunction freezes a party's assets to prevent them from
disposing of them before a potential judgment is issued. This can be helpful in
situations where a party is at risk of hiding assets to avoid fulfilling a financial
obligation.
4) Anton Piller Order:
This is a rare type of injunction used in exceptional circumstances. It allows a
surprise raid on a party's premises to search for and seize evidence that could
be destroyed or hidden before a formal lawsuit is even filed. Strict conditions
apply, and courts grant them cautiously due to potential privacy concerns.

Cases Where Courts May Refuse to Grant an Injunction:

i. Lack of Legal Right:
If the applicant seeking the injunction cannot demonstrate a valid legal right that
is being threatened, the court will likely refuse to grant it.
ii. Delay:
If the applicant has unreasonably delayed in seeking the injunction, the court
may be reluctant to grant it, especially if the delay has caused prejudice to the
other party.
iii. Adequacy of Damages:
If monetary damages would be a sufficient remedy for the potential harm, the
court may not grant an injunction. Injunctions are meant for situations where
monetary compensation wouldn't be adequate.
iv. Balance of Convenience:
The court will weigh the potential harm to the applicant if the injunction is not
granted against the potential harm to the other party if the injunction is granted.
If the balance of convenience favors the respondent, the injunction may be
refused.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 57

 LL.B – IV ( EQUITY )

v. Clean Hands Doctrine:

The court may refuse to grant an injunction if the applicant has engaged in any
misconduct related to the situation. The concept of "clean hands" requires the
applicant to come to court with a clear conscience.
Examples:
 In Muhammad Aslam vs. Muhammad Siddiq & Ors (PLD 1983 SC 632), the Supreme
Court of Pakistan granted a prohibitory injunction to prevent ongoing construction
activity on the plaintiff's property, highlighting the protection of a legal right.
 In a hypothetical scenario, if a company delays for months in seeking an injunction to
prevent a competitor from launching a similar product, the court might be less likely to
grant it due to the delay.

Conclusion

The knowledge of various injunction types and the potential grounds for refusal
empowers individuals in Pakistan to navigate legal disputes strategically.
Understanding that a prohibitory injunction can prevent a violation of rights, while a
mandatory injunction can compel the fulfillment of an obligation, equips individuals to
seek the most appropriate remedy. Furthermore, recognizing situations where courts
might refuse an injunction due to factors like delay or lack of a legal right allows for
informed decision-making when seeking this powerful legal tool. Consulting with a
qualified legal professional remains paramount for navigating the complexities of
injunctions and maximizing the chances of a successful application within the
Pakistani legal system.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 58

LL.B – IV ( EQUITY )

What do you mean by perpetual and temporary injunction? Under

what circumstances a court may refuse to grant an injunction?

In the realm of legal disputes, injunctions serve as powerful tools for preventing
potential harm and enforcing obligations. These court orders come in two primary
forms: temporary and permanent. This analysis will delve into the distinct
functionalities of temporary (interlocutory) and perpetual injunctions, highlighting their
applications in safeguarding rights. We will further explore the circumstances under
which courts might decline to grant an injunction, emphasizing the importance of
understanding the limitations alongside the strengths of this legal remedy. By
examining these factors, we gain a comprehensive perspective on how injunctions are
utilized within the legal system to maintain the status quo and achieve a just outcome.

Injunctions: Temporary and Permanent

Injunctions are court orders used to prevent harm or enforce obligations. They are
powerful tools, but the duration of their effect can differ. Here's a breakdown of
temporary and perpetual injunctions:

Temporary Injunction (also known as interlocutory injunction):

This is a short-term order issued to maintain the status quo (existing situation) until a
final decision is reached in the case. It's essentially a stopgap measure to prevent
potential harm while the court gathers evidence and arguments.
Example: Imagine a construction project is encroaching on your property. You can
seek a temporary injunction to halt construction until the court determines ownership
rights.

Perpetual Injunction (also known as permanent injunction):

This is a long-term or permanent order issued as part of the final judgment in a case.
It prohibits a party from taking a specific action or compels them to perform a specific
action on an ongoing basis.
Example: If the court rules in your favour regarding the property encroachment, it
might issue a perpetual injunction permanently prohibiting further construction on your
land.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 59

LL.B – IV ( EQUITY )

When Courts May Refuse to Grant an Injunction

While injunctions are valuable tools, courts won't grant them in every situation. Here
are some reasons why a court might refuse to grant an injunction:

A. Lack of Legal Right:

If the applicant cannot demonstrate a valid legal right that is being threatened,
the court is unlikely to grant an injunction. For example, if you have no legal
claim to a property, you wouldn't be able to get an injunction to stop someone
from using it.
B. Delay:
If the applicant has unreasonably delayed in seeking the injunction, the court
may be reluctant to grant it, especially if the delay has caused prejudice to the
other party. Imagine a company waits a year to seek an injunction against a
competitor's product launch; the court might be less likely to grant it due to the
delay.
C. Adequacy of Damages:
If monetary damages would be a sufficient remedy for the potential harm, the
court may not grant an injunction. Injunctions are meant for situations where
monetary compensation wouldn't be adequate. For instance, if someone
damages your car, getting money to fix it might suffice, and an injunction
wouldn't be necessary.
D. Balance of Convenience:
The court will weigh the potential harm to the applicant if the injunction is not
granted against the potential harm to the other party if the injunction is granted.
If the balance of convenience favors the respondent (the party against whom
the injunction is sought), the injunction might be refused. For example, if an
injunction stopping a construction project would cause significant financial
losses to the developer, while the potential harm to the applicant is minor, the
court might refuse it.
E. Clean Hands Doctrine:
The court may refuse to grant an injunction if the applicant has engaged in any
misconduct related to the situation. The concept of "clean hands" requires the

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 60

LL.B – IV ( EQUITY )

applicant to come to court with a clear conscience. Imagine you're seeking an

injunction to stop someone from using your trade secret, but you obtained the
secret through illegal means; the court might refuse the injunction due to your
misconduct.

By understanding the different types of injunctions and the situations where courts
might refuse to grant them, individuals can make informed decisions about seeking
this legal remedy.

Conclusion

Understanding the temporary and permanent nature of injunctions, along with the
potential grounds for refusal, empowers individuals to navigate legal disputes
strategically. Temporary injunctions offer a crucial stopgap measure to prevent
potential harm while a case unfolds. Perpetual injunctions, on the other hand, provide
a long-term solution by enforcing obligations or prohibiting specific actions on an
ongoing basis. However, courts consider various factors before granting an injunction.
The absence of a valid legal right, unreasonable delay in seeking the injunction, the
adequacy of monetary damages, and the balance of convenience between the parties
can all influence the court's decision. Furthermore, the "clean hands doctrine"
emphasizes the importance of ethical conduct when seeking an injunction. Consulting
with a qualified legal professional remains paramount for navigating the complexities
of injunctions and maximizing the chances of a successful application within the legal
system.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 61

LL.B – IV ( EQUITY )

What are the rules relating to rectification of

instruments as laid down in Speclfic Relief Act?
Discuss in detail.
Ensuring the accuracy and fairness of written instruments is paramount in Pakistani
contract law. The Specific Relief Act, 1877, recognizes this need and empowers courts
with the ability to rectify mistakes or ambiguities within these documents. This analysis
explores the provisions of the Act concerning rectification, specifically outlining the
conditions under which courts can order corrections and the process involved in
seeking this remedy. Through examining the concept of "material mistake," the
importance of demonstrating "true intention," and the "clean hands doctrine," we gain
valuable insight into the legal framework surrounding rectification in Pakistan. By
understanding these rules and relevant examples, individuals and businesses gain a
clearer understanding of how to safeguard their rights and ensure written agreements
accurately reflect their initial understanding.

Rectification of Instruments under the Specific Relief Act, 1877 (Pakistan)

The Specific Relief Act, 1877 (Act I of 1877) empowers Pakistani courts to rectify
written instruments in situations where they do not accurately reflect the true intentions
of the parties involved. This process, known as rectification, ensures fairness and
prevents disputes arising from mistakes or ambiguities within a contract, deed, or other
written agreement. Let's delve into the key rules regarding rectification as laid down in
the Specific Relief Act.

Conditions for Rectification:

Section 31 of the Specific Relief Act outlines the conditions under which a court can
order rectification of an instrument:

1) Mistake:
There must be a mistake (common or mutual) on the part of both parties or a
unilateral mistake known to the other party. For example, if a contract
accidentally mentions the sale price of a house as Rs.100,000 instead of the

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 62

LL.B – IV ( EQUITY )

agreed-upon Rs.1,000,000, both parties would likely be aware of the mistake,

and rectification could be sought.
2) Material Mistake:
The mistake must be material, meaning it significantly affects the rights and
obligations outlined in the instrument. Minor typos or inconsequential errors
might not be grounds for rectification.
3) True Intention:
The applicant seeking rectification must be able to prove the true intention of
the parties at the time the instrument was formed. Evidence supporting this
intention, such as drafts, emails, or witness testimonies, can be crucial.
4) Delay:
Undue delay in seeking rectification can weaken the applicant's case. Courts
generally expect prompt action after the mistake is discovered.
5) Clean Hands Doctrine:
The applicant must have "clean hands," meaning they haven't engaged in any
misconduct related to the mistake.

Process for Rectification:

i. Filing a Lawsuit: The party seeking rectification must file a lawsuit against the
other party to the instrument.
ii. Evidence Presentation: The applicant will need to present evidence proving
the mistake, the true intention of the parties, and the fulfillment of other
conditions.
iii. Court Order: If the court is satisfied with the evidence, it will issue a court order
rectifying the instrument. This order becomes part of the official record and
legally reflects the corrected terms.
iv.
Examples:
While specific case law referencing rectification of contracts is less common compared
to other remedies, the concept is well established in Pakistan. In Muhammad Nawaz
vs. Muhammad Siddiq (PLD 1980 SC 138), the Supreme Court of Pakistan
acknowledged the court's power to rectify a mistake in a written document to reflect
the true intention of the parties.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 63

LL.B – IV ( EQUITY )

Conclusion

The ability to seek rectification under the Specific Relief Act offers a valuable
safeguard for upholding the integrity of written instruments in Pakistan. By rectifying
mistakes and ensuring documents accurately reflect the parties' true intentions, the
law promotes fairness and prevents disputes arising from misunderstandings. This
analysis has highlighted the key conditions for rectification, including the presence of
a material mistake, demonstrable evidence of true intention, and the adherence to the
"clean hands doctrine." Understanding these requirements, along with the legal
process involved, empowers individuals and businesses to navigate situations where
rectification might be necessary. However, navigating the complexities of legal matters
surrounding written instruments necessitates consulting with a qualified lawyer. Their
expertise can be invaluable in assessing the specific circumstances, gathering
evidence, and maximizing the chances of a successful rectification order.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 64

LL.B – IV ( EQUITY )

What are the essentials conditions for the ratification

of an instrument? Can a rectified instrument be
specifically enforced?

The process of ratifying an international instrument signifies a state's formal

acceptance and commitment to its provisions. This seemingly straightforward act
carries significant legal weight, binding the state to uphold the instrument's terms.
However, achieving a valid ratification is not always a simple matter. Several essential
conditions must be met to ensure the state's consent is genuine and the instrument is
legally binding. This analysis will explore these key conditions, delving into the
principles of competence, consent, and absence of undue influence. By understanding
these requirements, we gain a deeper appreciation for the foundations upon which
international agreements are built.

Essential Conditions For The Ratification Of An Instrument

There are several essential conditions for the ratification of an instrument under
international law:

1. Competence to Enter into Agreements:

The state ratifying the instrument must have the legal capacity to enter into
international agreements. This typically applies to sovereign states or entities
with the authority to act on their behalf.
2. Consent:
The ratification process must reflect the state's free and informed consent to be
bound by the instrument. This usually involves following internal procedures for
approval, such as parliamentary ratification.
3. Absence of Duress, Fraud, or Error:
The state's consent cannot be obtained through coercion, deception, or
mistake. The Vienna Convention on the Law of Treaties (1969) outlines specific
grounds for invalidating treaties due to these factors.
4. Compliance with Internal Law:
Some states may have domestic legal requirements for ratification, such as
parliamentary approval or adherence to specific procedures.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 65

 LL.B – IV ( EQUITY )

Rectified Instrument and Specific Enforcement:

In general, a rectified instrument can be specifically enforced, but it depends on the

nature of the rectification and the specific circumstances. Here's why:

 Specific Performance:
Specific enforcement refers to a court order requiring a party to fulfill their contractual
obligations. In the context of a rectified instrument, this could mean enforcing the
agreement with the corrected terms.
 Validity of Rectification:
The rectification itself must be valid. This means the court order correcting the
instrument must be issued with proper jurisdiction and based on sound legal principles.
 Materiality of Error:
The error rectified in the instrument should be material, meaning it significantly affects
the rights and obligations of the parties. Minor typos or inconsequential errors might
not prevent enforcement.

It's important to consult with a legal professional for specific advice on the
enforceability of a rectified instrument. They can analyze the details of the rectification,
the nature of the instrument, and the relevant laws to determine the likelihood of
specific enforcement.

Conclusion

In conclusion, ratifying an international instrument is a critical step in fostering

cooperation and upholding international law. However, the process demands careful
consideration to ensure the state's consent is freely given and the instrument's validity
is unquestionable. The essential conditions explored here – competence, consent, and
absence of undue influence – serve as safeguards against coercion and ensure the
state's commitment to the instrument's principles. As the international landscape
continues to evolve, understanding these requirements remains crucial for maintaining
the integrity and effectiveness of international agreements.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 66

LL.B – IV ( EQUITY )

Trust Act, 1882

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 67

LL.B – IV ( EQUITY )

HOW A TRUST IS VACATED? EXPLAIN IN DETAIL

HOW A NEW TRUST IS APPOINTED?
[OR]
IN WHAT CIRCUMSTANCES DOES THE OFFICE OF
TRUSTEE STAND VACATED AND HOW IS A NEW
TRUSTEE APPOINTED
Ans:

Introduction:
In the intricate landscape of legal frameworks governing fiduciary relationships, the
Trust Act of 1882 in Pakistan stands as a foundational cornerstone. Enacted during
the British colonial era, this legislation provides a robust framework for the
establishment, administration, and dissolution of trusts, safeguarding the interests of
beneficiaries while delineating the responsibilities of trustees. Rooted in principles of
equity and fairness, the Trust Act encapsulates centuries-old legal doctrines adapted
to the socio-cultural milieu of the Indian subcontinent. Through its provisions, the Act
addresses the dynamic interplay between settlors, trustees, and beneficiaries,
orchestrating a delicate balance of rights and obligations. This introduction serves as
a gateway to explore the nuances of trust law in Pakistan, unravelling its historical
underpinnings and contemporary relevance in shaping modern legal discourse.

HOW A TRUST IS VACATED

When a trust is vacated, it means that the position of the trustee becomes empty or
terminated. There are several ways a trust can be vacated:

1) Death, Resignation, or Incapacity of Trustee:

a) Death:
If a trustee passes away, their role within the trust becomes vacant. This
situation often necessitates the appointment of a successor trustee to manage
the trust's affairs.
b) Resignation:
A trustee may choose to resign from their position due to various reasons such
as personal circumstances, conflicts of interest, or inability to fulfill their duties
effectively. Their resignation creates a vacancy in the trustee position.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 68

LL.B – IV ( EQUITY )

c) Incapacity:
If a trustee becomes incapacitated, whether due to physical or mental health
issues, they may no longer be able to carry out their responsibilities effectively.
In such cases, steps must be taken to address the vacancy in the trustee role.

2) Achievement of Trust Purpose:

Trusts are established to fulfill specific purposes outlined by the settlor (the
person who created the trust). Once these objectives are accomplished or are
no longer relevant, the trust may be terminated, leading to the vacation of the
trustee's position.

For example, if a trust is created to provide for the education of a beneficiary

and that beneficiary completes their education, the trust's purpose may be
considered fulfilled, and the trust could be terminated.

3) Mutual Agreement or Consent:

In some cases, the settlor, beneficiaries, and trustee may mutually agree to
terminate the trust and vacate the trustee's position. This could occur if the
parties involved determine that the trust is no longer necessary or if there is
unanimous consent to dissolve the trust for other reasons.

Mutual agreement may also be reached to remove a trustee if there are

concerns about their performance, conduct, or conflicts of interest.

4) Revocation by Settlor:
The settlor of the trust may have reserved the right to revoke or modify the trust
terms during their lifetime. If the settlor decides to revoke the trust, the trustee's
position becomes vacant, and the trust assets are typically distributed
according to the settlor's instructions or legal requirements.

5) Removal by Court Order:

If a trustee breaches their fiduciary duties, engages in misconduct, or fails to
fulfill their obligations, interested parties, such as beneficiaries or other trustees,
may petition the court for the trustee's removal.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 69

LL.B – IV ( EQUITY )

The court will consider evidence presented and determine whether grounds for
removal exist. If the court finds sufficient cause, it may issue an order removing
the trustee and vacating their position.

6) Expiration of Trust Term:

Some trusts have a specified duration or term, after which they automatically
terminate, leading to the vacation of the trustee's position. This could occur, for
example, in a trust created for a specific period or until a certain event occurs.

7) Trust Assets Exhausted:

If the trust assets are fully depleted or no longer sufficient to fulfill the trust's
purposes or obligations, the trust may be deemed to have been effectively
vacated. In such cases, the trustee's role becomes obsolete, and the trust is
terminated.

APPOINTMENT OF A NEW TRUSTEE:

In the administration of a trust, the appointment of trustees holds significant
importance, influencing the trust's management, integrity, and adherence to its
objectives. The process of appointing a new trustee involves careful consideration of
legal provisions, trust deed stipulations, beneficiary interests, and the qualifications of
potential trustees. Let's delve into the intricacies of how a new trustee is appointed,
ensuring the smooth transition and continued effectiveness of trust administration.
Here are the ways through with a new trustee is appointed.

1) Trust Deed Provisions:

The trust deed, which is the legal document establishing the trust, often
includes specific provisions governing the appointment of trustees. These
provisions may outline the process for appointing a new trustee, criteria for
eligibility, and any necessary approvals required from beneficiaries or other
parties involved.

2) Settlor's Authority:
The settlor, who is the individual or entity creating the trust, may retain the
authority to appoint or remove trustees. This authority is typically granted within
the trust deed or through separate legal instruments. The settlor may exercise

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 70

LL.B – IV ( EQUITY )

this authority during their lifetime or through provisions for trustee succession
upon their incapacity or death.

3) Written Instrument:
Any appointment of a new trustee must be made through a written instrument
or declaration. This document formalizes the appointment and serves as
evidence of the new trustee's authority to act on behalf of the trust. It should
clearly specify the identity of the new trustee and the effective date of their
appointment.

4) Consideration of Trust Objectives:

When appointing a new trustee, consideration should be given to the objectives
and purposes of the trust. The new trustee should possess the necessary
qualifications, skills, and experience to effectively manage the trust assets and
fulfill the trust's obligations. This may involve assessing the trustee's financial
acumen, legal knowledge, fiduciary responsibilities, and ability to act impartially
in the best interests of the beneficiaries.

5) Consent of Beneficiaries:
Depending on the terms of the trust deed and applicable laws, the consent of
beneficiaries may be required for the appointment of a new trustee.
Beneficiaries are individuals or entities entitled to benefit from the trust, and
their interests should be safeguarded in the trustee appointment process.
Obtaining their consent helps ensure transparency and accountability in trustee
selection.

6) Court Approval:
In certain circumstances, such as disputes among beneficiaries or questions
regarding the validity of trustee appointments, court approval may be necessary
to appoint a new trustee. The court will review the relevant facts and legal
arguments presented by the parties involved and may appoint a suitable trustee
based on the best interests of the trust and its beneficiaries.

7) Notification and Documentation:

Once a new trustee is appointed, all interested parties, including beneficiaries,
co-trustees (if any), and relevant authorities, should be notified of the change.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 71

LL.B – IV ( EQUITY )

Documentation of the trustee appointment, including the written instrument and

any supporting legal documents, should be retained in the trust records for
reference and transparency.

Conclusion:
In conclusion, the Trust Act of 1882 in Pakistan emerges not merely as a relic of
colonial legislation but as a living testament to the enduring principles of equity and
justice. As societal dynamics evolve and economic landscapes shift, the Act remains
a steadfast beacon, guiding individuals and institutions through the labyrinth of trust
administration. Its resilience lies not only in its statutory provisions but also in its
adaptability to the ever-changing needs of a dynamic legal landscape. As we navigate
the complexities of modern governance and finance, the Trust Act serves as a timeless
repository of legal wisdom, fostering trust and confidence in the integrity of fiduciary
relationships. With its enduring legacy, the Act continues to shape the contours of trust
law in Pakistan, reinforcing the foundation of trust and accountability upon which civil
society thrives.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 72

LL.B – IV ( EQUITY )

WHAT ARE THE PRE REQUISITES FOR THE

CREATION OF TRUST AS LAID DOWN IN TRUST
ACT 1882
Ans:

INTRODUCTION:
The Trust Act of 1882 stands as a cornerstone of Pakistan's legal framework, providing
a robust structure for the establishment and administration of trusts. Rooted in
principles of equity and justice, this seminal legislation delineates the essential
elements and procedures governing trusts, a vital instrument for asset management
and wealth distribution. At its core, the Trust Act embodies the sanctity of fiduciary
relationships, balancing the rights and obligations of settlors, trustees, and
beneficiaries with meticulous precision.

With a rich historical legacy spanning over a century, the Trust Act continues to exert
profound influence, shaping the landscape of private wealth management and
philanthropy in Pakistan. Its provisions serve as a beacon of legal certainty, guiding
individuals, families, charitable organizations, and corporate entities in navigating the
intricacies of trust creation, administration, and dissolution. Through codification and
elucidation of key principles, the Trust Act fosters transparency, accountability, and
prudence in trust governance, bolstering public confidence in the efficacy and integrity
of trust arrangements.

In essence, the Trust Act of 1882 epitomizes the enduring values of trust, integrity,
and stewardship, underscoring Pakistan's commitment to fostering a conducive legal
environment for the protection and preservation of wealth, welfare, and societal well-
being.

PREREQUISITES FOR THE CREATION OF TRUST AS LAID DOWN

IN THE TRUST ACT, 1882:
The Trust Act of 1882 sets forth a comprehensive framework governing the
establishment of trusts in Pakistan. To ensure the validity and effectiveness of any
trust arrangement, it is crucial to fulfill the following prerequisites meticulously:

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 73

LL.B – IV ( EQUITY )

1) Introduction and Definitions:

The Trust Act of 1882 commences with a preamble that sets the stage for the
legislation's scope and objectives. It outlines the fundamental principles
underlying the establishment and administration of trusts in Pakistan.
Moreover, the Act provides clear and precise definitions of key terms such as
"trustee," "trust property," "beneficiary," and "trust instrument." These
definitions serve as the cornerstone for interpreting the Act's provisions and
ensure clarity and consistency in its application.

2) Creation of Trusts:
The Act lays down specific prerequisites for the valid creation of a trust. These
prerequisites include the settlor's intention to create a trust, the identification of
trust property, the designation of beneficiaries, and the appointment of trustees.
Additionally, the Act mandates that the trust's purpose must be lawful and not
against public policy. By establishing stringent criteria for trust creation, the Act
aims to prevent fraudulent or frivolous arrangements while promoting
transparency and accountability in trust management.

3) Trustees:
The Trust Act delineates the rights, duties, and powers of trustees with
meticulous detail. Trustees are fiduciaries entrusted with the responsibility of
managing trust property for the benefit of beneficiaries. They are held to the
highest standard of care and must act prudently, honestly, and in the best
interests of the trust. The Act empowers trustees with various powers, including
the power to invest trust funds, lease trust property, and execute legal
instruments on behalf of the trust. Moreover, the Act imposes strict fiduciary
duties on trustees, such as the duty of loyalty, duty of prudence, and duty of
impartiality, to ensure the faithful execution of their responsibilities.

4) Rights and Liabilities of Trustees:

Trustees enjoy certain rights and protections under the Trust Act, which
safeguard them from unwarranted legal exposure and enable them to discharge
their duties effectively. These rights include the right to reimbursement of
expenses incurred in the discharge of their duties, the right to be indemnified
out of the trust property for liabilities arising in the course of administration, and

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 74

LL.B – IV ( EQUITY )

the right to seek judicial guidance and directions in matters of doubt or difficulty.
Conversely, trustees are also subject to liabilities for breaches of trust,
negligence, or misconduct. The Act imposes financial liabilities on trustees for
any loss or damage caused to the trust estate due to their wrongful acts or
omissions.

5) Rights and Liabilities of Beneficiaries:

Beneficiaries are entitled to certain rights and protections under the Trust Act
to ensure the proper administration and enforcement of their interests. These
rights include the right to information and accounts, allowing beneficiaries to
inspect trust documents and accounts to verify the trustee's actions.
Additionally, beneficiaries have the right to enforce the trust against the trustee
for breaches of trust or failure to fulfill their duties. The Act empowers
beneficiaries to seek judicial intervention to remedy any misconduct or
negligence on the part of the trustee, thereby safeguarding their interests and
ensuring the trust's faithful execution.

6) Variation and Termination of Trusts:

The Trust Act provides mechanisms for the variation and termination of trusts
under certain circumstances. Trusts may be varied or terminated with the
consent of all beneficiaries, subject to court approval. Additionally, trusts may
be terminated by operation of law or by the fulfilment of the trust's purpose. The
Act empowers the court to intervene in matters relating to the variation or
termination of trusts to ensure fairness and equity among the parties involved.
Moreover, the Act safeguards the interests of beneficiaries by requiring notice
and opportunity to be heard before any decision regarding variation or
termination is made.

7) Investment of Trust Funds:

Trustees are entrusted with the prudent management and investment of trust
funds to maximize returns while minimizing risks. The Trust Act imposes a duty
of care and prudence on trustees in the investment of trust assets, requiring
them to exercise the same diligence and skill that a prudent person would
exercise in managing their own affairs. Trustees are authorized to invest trust
funds in various types of securities, including government bonds, shares,

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 75

LL.B – IV ( EQUITY )

debentures, and immovable property, subject to certain restrictions and

safeguards. The Act aims to strike a balance between the need for capital
appreciation and the preservation of capital, thereby ensuring the long-term
sustainability and growth of trust assets.

CONCLUSION:
In conclusion, the Trust Act of 1882 stands as a testament to Pakistan's commitment
to fostering equitable and efficient mechanisms for asset management and welfare
provision. As a cornerstone of legal jurisprudence, this historic legislation continues to
shape the contours of trust law, providing a robust framework for individuals,
institutions, and organizations to fulfill their fiduciary responsibilities and philanthropic
aspirations. By upholding principles of transparency, accountability, and fairness, the
Trust Act engenders trust and confidence in the administration of trusts, thereby
safeguarding the interests of beneficiaries and promoting socioeconomic
development. As Pakistan marches forward into the future, the enduring legacy of the
Trust Act serves as a beacon of legal certainty and ethical stewardship, guiding the
nation towards prosperity, inclusivity, and justice for generations to come.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 76

LL.B – IV ( EQUITY )

WHAT ARE LAWFUL OBJECTS OF A TRUST? WHAT

ARE THE EFFECTS OF AN UNLAWFUL OBJECTS?
EXPLAIN WITH DETAIL.
[ or ]
LAWFUL OBJECT IS AN ESSENTIAL ELEMENT IN A
TRUST. BRIEFLY EXPLAIN THE OBJECT OF A
TRUST. WHEN THE OBJECT OF A TRUST IS
UNLAWFUL?

INTRODUCTION:
The Trust Act of 1882 in Pakistan stands as a pivotal legal framework governing the
establishment and administration of trusts within the country. Rooted in the principles
of equity and justice, this Act outlines the fundamental requirements and procedures
for creating trusts, ensuring transparency, accountability, and the protection of
beneficiaries' interests. Understanding the nuances of this legislation is essential for
both practitioners and individuals seeking to utilize trusts for philanthropic, charitable,
or personal purposes.

Trusts serve as powerful instruments for wealth management, charitable endeavors,

and succession planning, providing a structured means of holding and distributing
assets for the benefit of designated beneficiaries. However, the legitimacy and
effectiveness of a trust hinge upon adherence to the statutory provisions outlined in
the Trust Act of 1882. From defining the essential elements of a trust to delineating
the rights and responsibilities of trustees, this Act serves as a cornerstone of trust law
in Pakistan, guiding practitioners and stakeholders through the intricacies of trust
establishment and administration.

In this comprehensive exploration, we delve into the key provisions of the Trust Act of
1882, elucidating its significance, scope, and practical implications. By examining the
prerequisites for trust creation, the role of trustees, permissible objects of trusts, and
the consequences of unlawful actions, we aim to provide a comprehensive
understanding of trust law in Pakistan, empowering readers to navigate the
complexities of trust administration with clarity and confidence.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 77

LL.B – IV ( EQUITY )

DEFINITION OF LAWFUL OBJECTS:

Lawful objects encompass the legitimate purposes or goals for which a trust can be
established. These objects must adhere to the law and align with societal norms. They
should not violate public policy or any legal statutes. Trusts can be created for various
purposes, including charitable, religious, educational, or social welfare endeavours.

Examples of Lawful Objects:

i. Charitable Purposes:
Trusts aimed at alleviating poverty, advancing education, promoting health, or
supporting other charitable causes are common examples of lawful objects.
These trusts often benefit society at large and are considered beneficial for the
public good.
ii. Religious Purposes:
Trusts established to support religious institutions, propagate religious
teachings, or maintain places of worship are lawful objects, provided they
comply with legal requirements and do not promote unlawful activities.
iii. Social Welfare:
Trusts dedicated to social welfare initiatives, such as providing housing for the
homeless, supporting healthcare facilities, or promoting environmental
conservation, serve lawful objects by addressing pressing societal needs.
iv. Educational Endeavours:
Trusts created to advance education by funding scholarships, establishing
educational institutions, or supporting research and development initiatives
contribute to lawful objects by fostering intellectual growth and knowledge
dissemination.

Legal Requirements:
a) Compliance with Law:
The objects of a trust must comply with relevant legal provisions and statutory
requirements. Any purpose that violates the law or contravenes public policy is
deemed unlawful and renders the trust void or unenforceable.
b) Beneficial to Society:
Lawful objects should serve a beneficial purpose for society, promoting the
welfare, advancement, or betterment of individuals or communities. Trusts that

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 78

LL.B – IV ( EQUITY )

contribute positively to societal well-being are more likely to be upheld by the

courts.

Judicial Interpretation:
i. Liberal Interpretation:
Courts interpret the scope of lawful objects liberally to accommodate evolving
societal needs and values. While adhering to legal principles, judicial
interpretation aims to ensure that trusts remain relevant and effective in
addressing contemporary challenges.
ii. Precedent and Case Law:
Judicial decisions establish precedents and provide guidance on what
constitutes lawful objects. Courts rely on case law to determine the validity of
trust purposes and resolve disputes concerning the interpretation of trust
deeds.

Trust Deed Provisions:

i. Clear Articulation:
The trust deed should clearly articulate the lawful objects for which the trust is
established. Clarity in defining the objects helps prevent ambiguity and
facilitates the effective administration of the trust by providing clear guidance to
trustees.
ii. Flexibility and Adaptability:
Trust deeds may include provisions allowing for flexibility and adaptability in
achieving the trust's objectives. This flexibility ensures that trusts can respond
to changing circumstances or emerging needs without compromising their
legality or validity.

Public Interest Consideration:

a) Societal Welfare:
Trusts with lawful objects are generally viewed favorably by the courts and the
public as they promote societal welfare and contribute to the common good.
Courts may intervene to protect the interests of beneficiaries and ensure that
trusts fulfill their intended purposes.
b) Judicial Oversight:

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 79

LL.B – IV ( EQUITY )

Courts exercise judicial oversight to prevent misuse or deviation from the trust's
lawful objects. Trustees have a fiduciary duty to act in the best interests of the
beneficiaries and manage trust assets in accordance with the trust deed and
applicable legal standards.

Continued Validity:
i. Sustaining Legitimacy:
Once established with lawful objects, a trust remains valid as long as it
continues to fulfill its intended purposes and complies with legal requirements.
Trustees are responsible for ensuring that trust assets are managed prudently
and utilized for the benefit of the beneficiaries.
ii. Adherence to Objectives:
Trustees must adhere to the lawful objects specified in the trust deed and
refrain from actions that deviate from the trust's intended purposes. Any
significant departure from the trust's objectives may necessitate judicial
intervention to rectify the situation and safeguard the interests of the
beneficiaries.

THE EFFECTS OF UNLAWFUL OBJECTS

The effects of unlawful objects in a trust context are significant, as they directly impact
the validity and enforceability of the trust. Here's a more detailed discussion on the
effects of unlawful objects in trusts:

1. Voidability of the Trust:

Trusts with unlawful objects are considered void ab initio, meaning they are
invalid from the outset. The Trust Act of 1882 explicitly states that any trust
created for a purpose that is unlawful or against public policy is void. This
voidability applies regardless of whether the unlawful object was intentional or
inadvertent.

2. Resulting Trusts:
When a trust fails due to an unlawful object, the trust property may revert to the
settlor or their estate. This concept is known as a resulting trust. A resulting
trust arises when property is transferred on trust, but the trust fails for any
reason, leading the property to revert to the settlor or their estate.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 80

LL.B – IV ( EQUITY )

3. Legal Consequences:
Establishing a trust with an unlawful object may have legal ramifications for the
settlor and trustees. Depending on the nature of the unlawful object and the
jurisdiction, the parties involved may face civil or even criminal liability for
attempting to create an illegal trust. This could include penalties, fines, or other
legal sanctions.

4. Restitution and Recovery:

In cases where the trust property has been transferred or utilized unlawfully,
the court may order restitution or recovery of the property to the rightful owner
or their successors. This aims to rectify any unjust enrichment that may have
occurred as a result of the unlawful trust.

5. Public Policy Considerations:

Voiding trusts with unlawful objects serves broader public policy objectives by
upholding the rule of law and protecting societal interests. Trusts are intended
to promote social welfare and benefit society as a whole. Allowing trusts with
unlawful objects to stand would undermine these objectives and potentially lead
to harmful consequences.

6. Trustee Duties and Liabilities:

Trustees have a fiduciary duty to administer trusts in accordance with the terms
of the trust instrument and applicable law. If a trustee knowingly participates in
a trust with an unlawful object, they may be held personally liable for any
resulting harm or losses. Trustees are expected to exercise due diligence and
prudence in carrying out their duties to avoid legal repercussions.

7. Potential Remedies:
In certain circumstances, the court may provide remedies to address the
consequences of an unlawful trust. This could include ordering the
reconstitution of the trust, directing the distribution of trust assets to lawful
beneficiaries, or imposing sanctions on the parties responsible for creating or
administering the unlawful trust.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 81

LL.B – IV ( EQUITY )

CONCLUSION:
In conclusion, the Trust Act of 1882 represents a seminal piece of legislation that
governs the establishment, administration, and dissolution of trusts in Pakistan.
Enshrining principles of equity, fairness, and adherence to lawful objectives, this Act
serves as a bulwark against abuse, ensuring the integrity and efficacy of trusts for the
benefit of beneficiaries and society at large. Through its meticulous provisions and
safeguards, the Act fosters transparency, accountability, and fiduciary responsibility
among trustees, safeguarding the interests of beneficiaries and upholding the sanctity
of trust arrangements.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 82

LL.B – IV ( EQUITY )

EXPLAIN THE RIGHTS AND POWERS OF TRUSTEE

RELATED TO TRUST PROPERTY.
INTRODUCTION:
In the realm of trusts, trustees wield significant authority and responsibility over trust
property. Understanding the intricate web of rights and powers bestowed upon
trustees is crucial for ensuring the effective management and preservation of trust
assets. From legal ownership to investment decisions, trustees navigate a complex
landscape governed by fiduciary duties and legal principles. This exploration delves
into the multifaceted rights and powers of trustees, shedding light on their role as
stewards of trust property and guardians of beneficiary interests.

THE RIGHTS AND POWERS OF A TRUSTEE

The rights and powers of a trustee regarding trust property are essential aspects of
their fiduciary role in administering the trust. Here's a detailed explanation:

1) Legal Title and Ownership:

As the legal owner of the trust property, the trustee holds title to the assets on
behalf of the beneficiaries. This gives the trustee the authority to manage,
invest, and distribute the trust property in accordance with the terms of the trust
instrument and applicable law.

2) Duty of Prudent Management:

Trustees are entrusted with the duty to manage the trust property prudently and
in the best interests of the beneficiaries. This duty requires the trustee to
exercise reasonable care, skill, and diligence in administering the trust assets,
including making informed investment decisions and safeguarding the property
from loss or depreciation.

3) Investment Powers:
Trustees typically have the power to invest the trust assets to generate income
or growth for the benefit of the beneficiaries. These investment powers may be
defined in the trust instrument or conferred by law, and they often include the
authority to buy, sell, exchange, or otherwise manage investments on behalf of
the trust.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 83

LL.B – IV ( EQUITY )

4) Discretionary Distributions:
Depending on the terms of the trust, trustees may have discretionary authority
to distribute income or principal from the trust property to the beneficiaries. This
discretion allows the trustee to adapt to changing circumstances and tailor
distributions to meet the beneficiaries' needs while considering factors such as
their financial well-being and the purposes of the trust.

5) Maintenance and Preservation:

Trustees are responsible for maintaining and preserving the trust property in a
manner that ensures its long-term sustainability and maximizes its value for the
beneficiaries. This may involve managing real estate, maintaining financial
assets, or overseeing other types of property to prevent waste, deterioration, or
diminishment of value.

6) Legal Representation:
Trustees have the authority to take legal action on behalf of the trust, including
initiating or defending lawsuits, entering into contracts, or executing legal
documents related to the trust property. This enables the trustee to protect the
interests of the trust and its beneficiaries and to enforce the terms of the trust
instrument as necessary.

7) Accounting and Reporting:

Trustees are required to maintain accurate records of all transactions and
activities related to the trust property and to provide periodic accounting and
reporting to the beneficiaries as specified by law or the trust instrument. This
transparency ensures accountability and allows beneficiaries to monitor the
trustee's actions and decisions.

8) Collecting and Receiving Income:

Trustees have the right to collect and receive income generated by the trust
property, such as dividends, interest, rent, or royalties. This includes the
authority to deposit income into trust accounts, reinvest it for growth, or
distribute it to beneficiaries according to the terms of the trust.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 84

LL.B – IV ( EQUITY )

9) Managing and Administering Assets:

Trustees possess the power to manage and administer various types of assets
comprising the trust property, including financial investments, real estate,
business interests, and personal property. This entails overseeing the day-to-
day operations, maintenance, and strategic decisions concerning these assets.

10) Making Investment Decisions:

Trustees are empowered to make investment decisions regarding the trust
property, guided by the principles of prudence, diversification, and loyalty to the
beneficiaries. They may choose suitable investment strategies, allocate assets
among different classes, and engage professional advisors to assist in
managing the trust's investment portfolio.

11) Exercising Voting Rights:

When the trust holds assets such as stocks or shares in companies, trustees
have the right to exercise voting rights attached to those assets on behalf of the
trust. This enables trustees to participate in corporate governance matters,
such as electing directors, approving mergers, or voting on other significant
corporate actions.

12) Borrowing and Lending:

Trustees may have the authority to borrow funds on behalf of the trust or to lend
trust assets under certain circumstances. This power allows trustees to access
liquidity when needed, pursue investment opportunities, or fulfill the trust's
obligations, subject to any limitations or requirements imposed by the trust
instrument or applicable law.

13) Acquiring and Disposing of Assets:

Trustees possess the power to acquire or dispose of trust assets as necessary
to carry out the purposes of the trust or to respond to changing circumstances.
This may involve buying or selling real estate, liquidating investments, or
entering into contracts on behalf of the trust, always acting prudently and in the
best interests of the beneficiaries.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 85

LL.B – IV ( EQUITY )

14) Holding Legal Title:

Trustees hold legal title to the trust property, which grants them the authority to
manage and control the assets according to the terms of the trust and
applicable law. This legal ownership enables trustees to take actions on behalf
of the trust, such as signing agreements, managing bank accounts, or
transferring property rights.

15) Resolving Disputes and Conflicts:

Trustees are tasked with resolving disputes or conflicts that may arise
concerning the trust property or the interests of the beneficiaries. This may
involve negotiating settlements, seeking legal advice, or petitioning the court
for guidance or intervention, always striving to protect the trust assets and
uphold the beneficiaries' rights.

CONCLUSION:
In conclusion, trustees play a pivotal role in the administration of trusts, wielding a
diverse array of rights and powers over trust property. Their duties extend beyond
mere custodianship to encompass prudent management, investment discretion, and
fiduciary accountability. By exercising their rights and powers judiciously, trustees
uphold the integrity of the trust and safeguard the interests of beneficiaries. As
custodians of wealth and guardians of legacies, trustees shoulder a weighty
responsibility, guided by principles of integrity, diligence, and fiduciary duty. Through
their actions, trustees shape the destiny of trusts, ensuring their enduring relevance
and efficacy in serving the needs of future generations.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 86

LL.B – IV ( EQUITY )

HOW A TRUST IS EXTINGUISHED AND IN WHAT

CIRCUMSTANCES TRUST MAY BE REVOKED,
EXPLAIN WITH DETAIL
INTRODUCTION:
Establishing a trust is a significant legal mechanism that allows individuals to
safeguard and manage assets for the benefit of designated beneficiaries. In Pakistan,
the Trusts Act of 1882 provides the legal framework governing the creation, operation,
and termination of trusts. Understanding the intricacies of trust law is essential for both
trustees and beneficiaries to ensure the proper administration and protection of trust
assets. This discussion will explore the prerequisites for creating a trust, the lawful
objects of a trust, the role and responsibilities of trustees, and the circumstances under
which a trust may be extinguished or revoked. By delving into these aspects of trust
law, we can gain insights into the complexities and nuances of trust management in
Pakistan.

EXTINGUISHMENT OF A TRUST:
The extinguishment of a trust and the circumstances under which a trust may be
revoked involve legal processes and conditions that vary depending on jurisdiction. In
Pakistan, as governed by the Trusts Act, 1882, trusts can be extinguished or revoked
under certain circumstances. Let's delve into the details:

1) Fulfilment of Trust Purpose:

A trust is extinguished when its purpose, as specified in the trust deed or implied
by law, is fulfilled. Once the objectives of the trust have been achieved, there is
no further need for the trust to exist, and it ceases to have legal effect.

2) Expiration of Trust Term:

If a trust is established for a specific period or until a certain event occurs, it will
be extinguished upon the expiration of that term or the occurrence of the
specified event, as per the terms of the trust instrument.

3) Impossibility of Trust Purpose:

If the purpose of the trust becomes impossible to achieve or unlawful, the trust
may be extinguished. This could occur due to changes in circumstances, legal
restrictions, or other factors that render the trust's objectives unattainable.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 87

LL.B – IV ( EQUITY )

4) Consent of Beneficiaries:
In some cases, the beneficiaries of the trust may unanimously agree to
terminate the trust. If all beneficiaries consent to the extinguishment and there
are no legal impediments, the trust may be terminated accordingly.

5) Court Order:
The court may order the extinguishment of a trust if it finds that the trust is no
longer necessary or feasible, or if there are compelling reasons to terminate it
in the interests of justice or the welfare of the beneficiaries.

6) Merger of Legal and Equitable Interests:

When the legal and equitable interests in the trust property become vested in
the same person, the trust is extinguished due to the merger of these interests.

7) Acquisition by Trustee:
If the trustee acquires the legal estate in the trust property, either directly or
indirectly, the trust is extinguished, as there is no longer a separation between
the legal and equitable interests.

8) Accomplishment of Trust Purpose:

Upon the successful completion of the trust's objectives or the fulfilment of its
purpose, the trust may be extinguished, as there is no longer a need for the
trust to continue.

9) Lapse of Time:
If the trust is established for a specified period, it will be extinguished upon the
expiration of that time, as per the terms of the trust instrument or relevant legal
provisions.

10) Consent of Beneficiaries:

If all beneficiaries unanimously consent to the extinguishment of the trust, and
there are no legal impediments to doing so, the trust may be terminated by
mutual agreement.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 88

LL.B – IV ( EQUITY )

11) Judicial Declaration:

In certain circumstances, the court may declare a trust extinguished if it finds
that the trust is no longer necessary, feasible, or in the best interests of the
beneficiaries, after considering all relevant factors and evidence presented.

12) Impossibility of Trust Purpose:

If the purpose of the trust becomes impossible to achieve or is unlawful, the
trust may be extinguished to prevent unjust outcomes or to align with legal
requirements and principles.

13) Abandonment or Renunciation:

If the trustee abandons their role or renounces their position, and no
replacement trustee is appointed or willing to act, the trust may be extinguished
due to the lack of a trustee to administer it effectively.

REVOCATION OF A TRUST
Revocation of a trust is a significant legal process that involves terminating the
existence of a trust arrangement. In Pakistan, governed by the Trusts Act, 1882, the
revocation of a trust can occur under specific circumstances, ensuring fairness and
protection for the beneficiaries. Let's explore the revocation process in more detail:

i. Mutual Agreement:

One method of revoking a trust involves the unanimous agreement of all parties
involved, including the settlor (the individual who established the trust) and all
beneficiaries. This agreement must be voluntary, informed, and documented to
ensure its validity. If all parties consent to revoke the trust, it can be terminated
accordingly.

ii. Breach of Trust:

A trust may be revoked if the trustee breaches their fiduciary duties or fails to
fulfill their obligations under the trust instrument. Breaches can include
mismanagement of trust assets, failure to act in the best interests of the
beneficiaries, or improper use of trust funds. In such cases, beneficiaries or
other interested parties may petition the court to revoke the trust and hold the
trustee accountable for their actions.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 89

LL.B – IV ( EQUITY )

iii. Failure of Purpose:

If the purpose of the trust becomes impossible to fulfill or if circumstances

change such that the trust's objectives are no longer relevant or feasible, the
court may order the revocation of the trust. This ensures that the trust does not
continue to exist unnecessarily or to the detriment of the beneficiaries. The
court will consider the original intentions of the settlor and the current
circumstances to determine whether revocation is appropriate.

iv. Court Order:

In certain situations, the court may order the revocation of a trust based on
compelling legal or equitable grounds. This could occur if the trust is found to
be invalid or illegal, if its continuation would lead to injustice or hardship for the
beneficiaries, or if there are other compelling reasons for revocation. The court
has the authority to oversee trust matters and ensure that the interests of the
beneficiaries are protected.

v. Public Interest:

In cases where the trust's continuation would be contrary to public policy or

interest, the court may order its revocation. This could occur if the trust's
objectives are deemed harmful or detrimental to society, or if there are other
reasons why the trust should not be allowed to continue.

EXAMPLES FROM PAKISTAN:

In Pakistan, trusts may be extinguished or revoked in various scenarios, such as:

 Fulfilment of Charitable Objectives:

If a trust is established for charitable purposes, such as providing education or

healthcare services, and those objectives are achieved, the trust may be
extinguished once its goals are met.

By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 90

 LL.B – IV ( EQUITY )

 Breach of Trust by Trustee:

If a trustee embezzles trust funds, fails to properly manage trust assets, or

otherwise breaches their fiduciary duties, the beneficiaries may petition the
court for the revocation of the trust to hold the trustee accountable and protect
their interests.

 Change in Circumstances:

If a trust is established for a specific purpose that becomes impossible to fulfill

due to changes in circumstances, such as legislative changes or economic
conditions, the court may order the revocation of the trust to prevent its
continuation from becoming unjust or impractical.

CONCLUSION:
In conclusion, the Trusts Act of 1882 lays down the foundational principles governing
trusts in Pakistan, emphasizing the importance of lawful objectives, fiduciary duties,
and the interests of beneficiaries. From the prerequisites for creating a trust to the
rights and powers of trustees, each aspect of trust law plays a crucial role in ensuring
the proper administration and protection of trust assets. Furthermore, understanding
the circumstances under which a trust may be extinguished or revoked is essential for
navigating the legal landscape surrounding trusts in Pakistan. By adhering to these
legal principles and obligations, trustees can fulfill their duties with diligence and
integrity, ultimately serving the best interests of the beneficiaries.



By : Shahid Naeem (0321-3614222) Kings Law College, Sheikhupura. 91

n-gl.com