Introduction –
Estoppel is a legal principle that prevents a person from denying or going back on their previous statements or actions that induced another person to act in a certain way. It holds a person accountable for their representations, whether true or false and prevents them
from making inconsistent or conflicting statements that would harm another party who relied on the original statements. The primary purpose of estoppel is to promote fairness and prevent injustice.
Meaning –
According to Black’s Law Dictionary, estoppel is defined as: “A bar or impediment that precludes a person from denying or asserting anything to the contrary of that which has, in contemplation of law, been established as the truth either by the acts of judicial or legislative officers, or by his own deed, admission, or representation.” Estoppel is a legal principle found in common law systems in India, the United States, the United Kingdom, and other countries. The doctrine of estoppel takes different forms in different countries.
Common types of estoppel –
Collateral estoppel: A collateral estoppel prevents a person from returning to court as a plaintiff with the same grievance. This prevents legal harassment and the exploitation of legal resources. Estoppel by Deed: Estoppel by deed prevents a person from denying the truth of any fact stated in a deed that they have executed.
Equitable Estoppel: This type of estoppel prevents a person from taking a legal position that is contrary to or inconsistent with their previous position if doing so harms the other party. Promissory Estoppel: This is a term used frequently in contract law. Promissory estoppel shields a person who acts on the basis of another person’s reasonable promise, whether in a formal contract or not, and then suffers significant economic loss because the other party fails to fulfil that promise.
Doctrine of Estoppel in Indian Context –
In contract law, estoppel is often used to prevent a party from denying the existence of a contract or from going back on their contractual obligations. For example, if a party makes a representation to another party regarding the terms of a contract and the other party relies on
that representation and enters into the contract, the first party will be estopped from denying the terms of the contract. In real property law, estoppel is used to prevent a party from denying the ownership of a property or from going back on a previous representation regarding the ownership of the property. For example, if a person sells a property and gives a representation to the buyer that the property is free from all encumbrances, and the buyer relies on this representation and purchases the property, the seller will be estopped from denying the ownership of the property. Doctrine of Estoppel is a provision in Sections 115 to 117 of the Indian Evidence Act of 1872
that prohibits a person from giving false evidence by preventing them from making contradictory statements in a Court of Law. The goal of this doctrine is to prevent one person from committing fraud against another. This doctrine holds a person accountable for false
representations he makes, whether through his words or his actions.
In administrative law, estoppel is used to prevent a government agency from denying the validity of a previous representation or action. For example, if a government agency gives a representation to a person that they are eligible for a certain benefit, and the person relies on
this representation and acts accordingly, the government agency will be estopped from denying the validity of the representation.
The principle of estoppel in India is also reflected in various provisions of the Indian Contract Act, 1872, and the Specific Relief Act, 1963. The Indian Contract Act provides that a person is estopped from denying the existence of a contract if he has previously acted on the contract or has induced another person to act on the contract. The Specific Relief Act provides for the enforcement of estoppel by way of specific performance, which is a remedy that requires a person to perform their contractual obligations.
Conclusion –
To conclude, the doctrine of estoppel is a legal principle with significant consequences in the Indian legal system. It is an equity principle that promotes fairness and prevents injustice by holding someone accountable for previous statements or actions that influenced another person to act in a particular way. Estoppel is recognized in a variety of legal contexts, including contracts, real estate law, administrative law, the Indian Evidence Act of 1872, the Indian Contract Act of 1872, and the Specific Relief Act of 1963. The doctrine of estoppel is implemented to ensure that parties are bound by their previous statements and actions and that they cannot pull back on their representations to the detriment of another.
Written By: Stuti Nayak
College Name: Himachal Pradesh National Law University, Shimla (1st Semester)