Important Legal Definitions
Explore legal terms, clear definitions and practical examples.
Unjust Enrichment
Principles of Natural Justice & Equity
Definition
The equitable and quasi-contractual principle (codified in Sections 68 to 72 of the Indian Contract Act) dictating that no person should be permitted to unfairly enrich themselves at the financial expense of another, obligating restitution of the benefit received.
Example
In Mafatlal Industries Ltd. v. Union of India, a nine-judge Constitution Bench held that an assessee who has passed on the burden of an illegally collected excise duty to consumers cannot claim a refund from the State, as doing so would amount to unjust enrichment.