legal maxims

The maxim of Nullus Commodum Capere Potest De Injuria Sua Propria is a Latin phrase which means “no one can derive an advantage from his own wrong”. Applied generally to the Law of Contracts, this maxim is derived from the general principle of good faith. The principle of good faith says that when one party prevents the other from performing his end of the agreement in a contract, the former cannot take advantage of this fact. The same point is also mentioned in Section 39 of the Indian Contract Act, 1872. It is applied when the promisee prevents the promisor from performing his promise. In such cases, the promisee cannot demand justice from the Court from non-performance of the contract. The maxim forma a salient feature of Equity and is applicable in case of equitable jurisdiction and to prevent fraudulent practices concerning contracts.

Indore Development Authority v. Shailendra (Dead) Through Lrs. & Ors.

In this case, the creditor had declined the acceptance of the loan when the debtor tried to repay him. The Supreme Court held that, when such a thing happens, the creditor cannot come to the Court demanding his money and interest on the principal amount. The debtor is, of course bound to pay the money back to the creditor, but the extra interest and compensation for non-performance of contract will not be made.