He introduced Equity which formed the basis of a new source for English Law. The purpose of equity was to look for natural justice where traditional legal sense failed to deliver justice. Following Royal courts were formed for this purpose:
For centuries the highest legal authority in the United Kingdom was the Parliament or more precisely the House of Lords. This situation has changed in the recent times though. Under the Constitutional Reforms Act 2005, the Supreme Court of United Kingdom is created which is now the highest legal authority in the country. It is also the highest level of appeal in the United Kingdom. .1 (F. A. Inderwick)
United Kingdom joined European community – now knows as European Union- in 1973 and since then European Law has a profound impact on English Law. First, the Communities Act 1972 made it binding for the English courts to follow its decision on matter of community law. Then, the Human Rights Act 1998 asked English courts to have regard of decisions made by European court of Human Rights. This process of development is still in process.
“Natural Law” is based upon a set of principles which are set by nature and therefore have universal legitimacy and wide acceptance. “Equity” or “Justice” is believed to alleviate the strictness of “English Common Law” by allowing courts to use their good judgment and apply justice in accordance with “Natural Law”. According to Hobbes, there are nineteen laws of nature. 2 (Thomas Hobbes) Equity looked to follow these natural laws in order to seek justice.
The Court of Chancery originated in Norman or Kings Council. It is also called the “Court of Equity” in England and Wales. The Chancery had jurisdiction over all matters of equity, including trusts, property law and the administration of the assets etc.
Party coming to Equity court must be with clean hands. Clean hands does not mean that a person with wrong deeds cannot obtain the aid of equity but it