Estoppel – Prevented from denying.
Meaning of Estoppel
Estoppel is a legal principle that prevents a person from denying or asserting something contrary to what has been established as true by their previous words, actions, conduct, or legal declarations, especially when another party has relied on that representation.
In simpler terms, if you have led someone to believe something and they acted upon that belief, you cannot later go back and contradict it. This ensures fairness and prevents injustice.
Key Features of Estoppel
Representation or Conduct: The person making the claim or denial must have made a clear representation or acted in a way that led another to believe something.
Reliance: The other party must have relied upon that representation or conduct.
Detriment: The relying party must suffer some loss or disadvantage if the first party is allowed to go back on their word.
Prevention of Injustice: The court applies estoppel to prevent unfairness, not to enforce a contract where none exists.
Types of Estoppel
Promissory Estoppel: When a promise, even if not supported by consideration, is enforced because one party relied on it to their detriment.
Estoppel by Representation: Prevents a person from denying the truth of a statement previously made, upon which another has relied.
Estoppel by Conduct: Based on actions or behavior that led someone else to assume a fact or legal position.
Estoppel by Record/Estoppel by Deed: Based on previous judicial decisions or formal deeds.
Illustration
Suppose A tells B that he will sell his land to B for ₹50,000. Relying on this, B spends ₹10,000 preparing the land for construction. Later, A cannot deny the promise or claim that he will not sell, because B acted to his detriment based on A’s representation.
Leading Case Law in India
1. Central Inland Water Transport Corporation Ltd. v. Brojo Nath Ganguly (1986)
Facts: Brojo Nath claimed compensation based on a certain understanding.
Principle: The court emphasized that estoppel prevents a party from acting inconsistently with their prior conduct, particularly when another has relied on it.
2. State of Rajasthan v. Gopal Lal (1964)
Facts: The government attempted to deny earlier representations regarding land acquisition.
Held: The government was estopped from denying its earlier statements, as the affected parties relied on them to their detriment.
3. Motilal Padampat Sugar Mills Co. Ltd. v. State of U.P. (1979)
Principle: Estoppel cannot be invoked against the state if public interest or statutory provisions are involved. However, for private parties, estoppel is a strong doctrine to prevent injustice.
Key Points to Remember
Estoppel is not a cause of action but a defense: it stops someone from asserting something inconsistent with prior conduct.
The reliance by the other party must be reasonable.
Estoppel cannot be used to override statutory law or public policy.
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