In the case of National Insurance Corporation of Nigeria Ltd. v. Power and Industrial Engineering Co. Ltd. (1986) 1 NWLR (Pt. 14) 1 at 29, Aniagolu, JSC had this to say: “Equity, as we all know, inclines itself to conscience reason and good faith and implies, system of law disposed to a just regulation of mutual rights and duties of men, in a civilized society. It does not envisage sharp practice and undue advantage of a situation and a refusal to honour reciprocal liability arising therefrom; it will demand that a person will enter into a deal as a package-enjoying the benefits thereof and enduring, at the same time, the liabilities thereon.”
WHAT IS INEQUITABLE CONDUCT
The mere mention of “inequitable conduct” is a pointer to the equitable doctrine “He who comes into equity must come with clean hands”. This maxim will deny a relief to a complainant, who is himself guilty of inequitable conduct in reference to the matter in controversy. This means that the plaintiff must, in the matter of his claim, be free from any taint of fraud or bad faith. The cleanliness of hands must therefore relate to the matter of his claim, to the transaction in controversy. What bars the claim is not a general depravity but one which has an immediate and necessary relation to the equity sued for.
– Oputa, JSC. Adejumo v. Ayantegbe (1989)