Which court administers justice according to the principles of equity?

The correct answer is the courts of equity, which are specifically designed to administer justice based on principles of equity rather than strict legal rules. Courts of equity, also known as chancery courts, focus on fairness and providing remedies that are equitable in nature, such as injunctions, specific performance, and other non-monetary solutions. This system arose because the rigid application of law in courts of law was sometimes insufficient to achieve just outcomes, leading to the establishment of a separate system to address these shortcomings.

In contrast, courts of law typically adhere to established statutes and common law, which can result in more rigid outcomes that may not always serve the interests of justice in complex or nuanced situations. Small claims courts handle minor disputes, often with simplified procedures, while the Supreme Court functions as the highest court in a jurisdiction, dealing primarily with significant constitutional or legal questions rather than the equitable relief offered by lower courts of equity.