Estoppel-

TANMOY MUKHERJEE INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherjee

Advocate

Estoppel-

 

Tanmoy Mukherjee

[Advocate]

The word 'estoppel' is derived from the French word 'estoupe' which means 'stopper'. The term 'estoppel' was adopted by the English Jurisprudence for the purpose of shutting the mouth of a person who are pleading the contrary of a fact or state of thing which he has formerly asserted by words or conduct.

• The word estoppel is based on the maxim "allegans contraria non est audiendus", that means a person alleging contrary facts should not be heard.
• The object of estoppel is to prevent fraud and secure justice between parties by promotion of honesty and good faith.
• Section 121 to 123 of Bharatiya Sakshya Adhiniyam, 2023 (BSA) deals with estoppel. Section 121 lays down the general rule whereas Section 122 and 123 deals with Special instances of estoppel by agreement.

Essential Elements-

In order to bring a case within the scope of section 121 BSA, following things are necessary-

i) One party should make a representation to the other party about an existing fact as distinct from a mere promise.

ii) The representation must be made with the intention to be acted upon.

iii) The other party should accept and rely upon the aforesaid factual representation i.e., there must have been belief on the part of the other.

iv) There must have been action arising out of the belief i.e., the representation must have been acted upon.

Types of Estoppel-

Estoppel by Matter of Record-

Estoppel by record is estoppel of the parties from reopening and re-litigating the matter which has been finally settled between them by a court of competent jurisdiction. Estoppel by record is covered under Section 11 of the Code of Civil Procedure, 1908 (CPC) and section 40 to 44 of the Indian Evidence Act, 1872 (IEA). This type of estoppel is also known as estoppel by judgement.

Estoppel by Deed-

When a party has entered into a solemn engagement by deed as to certain facts, neither he nor anyone claiming through or under him is permitted to deny such facts. There is no estoppel where the deed is affected by fraud or illegality.

Estoppel in pais or by conduct-

In pais means "before the public" and estoppel in pais is also freely translated as estoppel by conduct/representation. Estoppel by conduct can either arise from a contract or de hors (outside a contract) by unilateral statements, acts or omissions which include 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 is an equitable remedy to prevent injustice that can arise when one party relies on the promise of another.

Essentials of Promissory Estoppel-

For promissory estoppel to apply, certain elements must be satisfied:

1. Clear and Definite Promise:

There must be a clear and unequivocal promise made by the promisor.

2. Reliance by the promisee:

The promisee must have reasonably relied on the promise.

3. Detriment:

The reliance must have caused a detriment or harm to the promisee.

4. 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:

1. No estoppel when truth is known-

 A person having knowledge of facts cannot take advantage of the principle of estoppel.

2.  No estoppel in case of mistake-

 Where both parties acted under common misapprehension, there could be no estoppel until the position is cleared up.

3.  No estoppel in case of mere promise to do something-

 A mere promise to do something in future will not create an estoppel.

4.  When both parties plead estoppel-

 If both parties establish a case for application of estoppel, then the parties are set free and court will have to proceed as if there is no plea of estoppel on either side.

5.  Fraud, Misrepresentation, Negligence on the part of other party-

 If there is a fraud on the part of the other party, which could not be detected by the promisor with ordinary care, the estoppel will not operate.

6. Mere attestation will not create an estoppel-

 Attestation does not involve the witness of any knowledge of the contents of the deed, it can at the best be used for the purpose of cross-examination, but it will neither create estopped nor imply consent.

7. No estoppel against a statute or Law-

There can be no estoppel on a point of law or on a settled proposition of law or to defeat the provisions of a valid law.

8.  No estoppel against sovereign acts in public interest-

There cannot be any estoppel against the Government in the exercise of its sovereign, legislative and executive functions.

• Estoppel of tenant and of licensee of person in possession-

• The underlying policy under Section 122 of BSA, 2023 is that the tenant/licensee obtaining possession is deemed to obtain it upon the terms that he will not dispute the title of the owner/Licensor who gave it to him and without whose permission he would not have got it.
• A tenant/Licensee cannot be permitted to deny the title of his landlord/licensor.

• Estoppel of acceptor of bill of exchange, bailee or licensee-

• Section 123 of BSA, 2023 deals with further instances of estoppel by agreement.
• It deals with estoppel in respect of movable property and is applicable to: An acceptor of bill of exchange, Bailee, A licensee.

Reference Cases-

• The doctrine of estoppel serves as a vital tool in ensuring justice and equity in legal proceedings. It prevents parties from engaging in unfair practices by holding them to their previous statements or conduct. This principle not only upholds the integrity of legal interactions but also promotes trust and reliability in various contractual and relational dealings. Understanding and applying estoppel can significantly impact the outcomes of legal disputes, making it an essential concept in Indian law.