INTRODUCTION:

This maxim means that “when the conflicting interests of two or more parties are supported by equitable pleas of equal value, equity being unable to prefer one to the other would allow the conflicting equities to cancel out and leave law to take its course”.

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EXPLANATION:

Where one thing follows two claimants on the base of equal equity, equity shall follow the law and legal right shall be preceded. Law provides relief to those who claims on the base of legal right.

According to this maxim if legal right is equal to equitable rights, legal right shall remain there. It means the person bearing legal right shall precede however equity is under law.

ILLUSTRATION:

For instance, if A sells to C land, over which B has a right of way, C takes the land subject to B’s

right, although he was ignorant of the right at the time of purchase. But the rule is different as regards equitable rights. It is well established rule that a purchase for valuable consideration without notice of prior equitable right, obtaining the legal estate at the time of his purchase, is entitled to priority in equity as well as at law. In such a case equity follows the law, the

purchaser’s conscience not being in any was affected by the equity.

APPLICATION:

This maxim has certain applications such as:

1. Dispute in transfer of property: When both the contestants are equally entitled to obtain help from courts of equity (because their equities are equal), the party who has law in his favor will

For example, A agrees with B to sell his property for Rs. 5,000/-. Therefore in breach of the above agreement, A sells the property to C for B Rs. 6,000/- and making a document hands over the possession of the property to C. As a result of the agreement B did not get any legal interest in the property. B has only an equitable interest in his favor binding A conscience. C, on the contrary, as a result of his agreement with A, gets the legal interest and has executed a document and obtained possession of the property. B’s interest is an equitable with law in his favor.

Naturally, therefore, in a conflict between B and C, C has superior interest as compared to that of

1. Thus equitable interest is not as strong as a legal interest and so, according to the maxim the law shall prevail.
2. It may be noted that the doctrine of Election, Marshaling, and Set Off are based on the maxim under discussion
3. In contradiction of legal and equitable right: This maxim is used where equitable and legal rights conflict and precedence go to legal right. Equities must be equal by there should be conflict of legal and equitable It does not apply where priority of time in case of equity is determinant factor in relief.
4. Transfer of property cases:
5. 78 of Transfer of Property Act is based on this maxim. It enacts that “where though the fraud, misrepresentation, or gross neglect of a prior mortgagee, another person has been induced to advance money on the security of the mortgaged property, the prior mortgagee shall be postponed to the subsequent mortgagee.

SEC 53 of Transfer of Property Act is also based upon this maxim.

It enacts that “every transfer of immovable property made with intent to defeat or delay the creditors of the transferor shall be void-able at the option of any creditor so defeated or delayed.

EXCEPTION:

This maxim has two exceptions as follows:

1. Prior equitable and subsequent legal right: Where interest in legal property comes subsequently, cannot attain Person, who acquires equitable right in the presence of legal right, he procures breach of duty.

In case of negligence or fraud legal property extinct priority right if equitable property comes subsequently.

2. Equal equities without legal right: Where there are equal equities but legal right lacks, this maxim shall not apply.

There are three different mortgages executed in respect of the same property to X, Y, & Z

 

respectively. The mortgagor executed on different date and non-of the parties have the notice of the prior mortgage. In such as case the first mortgagee has to legal estate. According to maxim where equities are equal the first in time shall prevail, the mortgages rank in order of time. If C, by paying off A’s mortgage, obtains the legal estate, i.e., obtains conveyance of A’s estate and an assignment of his securities, he is entitled to precedence over B and also to the first mortgage.

But in case the first mortgagee has not the legal estate, the third mortgagee acquires not property over the second mortgagee even if he made the payment to the first mortgagee.