Doctrine of estoppel - Judiciary Exams PDF Download

Introduction

Estoppel: Meaning and Origin:

• The term "estoppel" comes from the French word "estoupe," meaning "stopper." 
• In English law, estoppel is used to prevent someone from contradicting a fact or situation they previously acknowledged through words or actions. 

Principle of Estoppel:

• Estoppel is based on the principle "allegans contraria non est audiendus," which means that a person should not be heard when they assert contradictory facts. 
• The purpose of estoppel is to prevent fraud and ensure justice between parties by promoting honesty and good faith. 

Estoppel in Bharatiya Sakshya Adhiniyam, 2023:

• Sections 121 to 123 of the Bharatiya Sakshya Adhiniyam, 2023 (BSA) address estoppel. 
• Section 121 outlines the general rule of estoppel. 
• Sections 122 and 123 focus on specific instances of estoppel by agreement. 

Essential Elements

To apply Section 121 of the BSA, the following conditions must be met:

• Representation of Fact: One party must represent an existing fact to the other party, not just make a promise. 
• Intent for Action: The representation must be made with the intention that it will be acted upon. 
• Acceptance and Reliance: The other party must accept and rely on the factual representation, believing it to be true. 
• Action Based on Belief: There must be action resulting from this belief, meaning the representation has been acted upon. 

Types of Estoppel 

Estoppel by Matter of Record:

• This type of estoppel prevents parties from reopening and relitigating a matter that has been finally settled between them by a Court of competent jurisdiction. 
• Estoppel by record is covered under Section 11 of the Civil Procedure Code, 1908 (CPC) and Sections 40 to 44 of the Indian Evidence Act, 1872 (IEA). 
• It is also known as estoppel by judgment. 

Estoppel by Deed:

• When a party enters into a solemn engagement by deed regarding certain facts, neither they nor anyone claiming through them is allowed to deny those facts. 
• However, estoppel does not apply if the deed is affected by fraud or illegality. 

Estoppel in Pais or by Conduct:

• Estoppel in pais, also known as estoppel by conduct or representation, can arise from a contract or outside a contract through unilateral statements, acts, or omissions that induce another party to believe and act on that belief. 

Promissory Estoppel:

• Promissory estoppel is a legal doctrine that allows a party to recover on a promise made without a formal contract if they have relied on that promise to their detriment. 
• It serves as an equitable remedy to prevent injustice when one party relies on the promise of another. 

Essential of Promissory Estoppel 

Conditions for Promissory Estoppel:

• Clear and Definite Promise: There must be a clear and unequivocal promise made by the promisor. 
• Reliance by the Promisee: The Promisee must have reasonably relied on the promise. 
• Detriment: The reliance must have caused a detriment or harm to the Promisee. 
• Injustice if Not Enforced: It must be shown that it would be unjust not to enforce the promise. 

Exceptions to Estoppel under Indian Evidence Act 

No Estoppel Where Truth is Known:

• If a person is aware of the true facts, they cannot invoke the principle of estoppel. 

No Estoppel in Case of Mistake:

• Estoppel cannot be applied when both parties are under a common misapprehension until the situation is clarified. 

No Estoppel for Mere Promise:

• A simple promise to undertake something in the future does not create an estoppel. 

When Both Parties Plead Estoppel:

• If both parties present a case for estoppel, the court treats the situation as if there is no plea of estoppel from either side. 

Fraud, Misrepresentation, or Negligence by Other Party:

• Estoppel does not apply if there is fraud by the other party that the promisor could not have detected with ordinary care. 

Mere Attestation Does Not Create Estoppel:

• Attestation, which does not involve knowledge of the deed's contents, cannot create estoppel or imply consent; it can only be used for cross-examination. 

No Estoppel Against Statute or Law:

• Estoppel cannot be applied on a legal point, settled proposition of law, or to undermine the provisions of valid law. 

No Estoppel Against Sovereign Acts in Public Interest:

• Estoppel cannot be applied against the Government in the exercise of its sovereign, legislative, and executive functions. 

Estoppel of tenant and of licensee of person in possession:

As per Section 122 of the BSA, 2023, a tenant or licensee who takes possession is considered to do so under the condition that they will not challenge the title of the owner or licensor. This means they acknowledge the legitimacy of the owner's title and the fact that they would not have received possession without the owner's permission. 

• A tenant or licensee is not allowed to deny the title of their landlord or licensor. 

Estoppel of acceptor of bill of exchange, bailee or licensee:

Section 123 of BSA, 2023:

• Estoppel by Agreement. This section addresses further instances of estoppel by agreement. 

• Applicability. It is applicable to estoppel in respect of movable property in the following cases: 

• Acceptor of a Bill of Exchange. An acceptor of a bill of exchange is bound by the agreement. 

• Bailee. A bailee is also subject to estoppel in this context. 

• Licensee. Similarly, a licensee is included under this provision. 

Case Laws 

Tata Iron and Steel Co. Ltd. v. Union of India (2000):

• The Supreme Court clearly established the key principles for the doctrine of estoppel in this case. 

Pickard v. Sears (1837):

• This case is where the doctrine of estoppel was originally founded. 
• The Court described estoppel as a principle that prevents a person from denying what they previously stated in Court. 

Conclusion

The doctrine of estoppel plays a crucial role in ensuring justice and fairness in legal proceedings. By holding individuals accountable to their previous statements or actions, it prevents unfair practices and fosters equitable outcomes. This principle safeguards the integrity of legal transactions while promoting trust and reliability in contractual and relational dealings. Its proper understanding and application can greatly influence the resolution of legal disputes, making it a cornerstone of Indian law.