Modes of Rectification of Instruments - by Sri P Rajasekhar
Modes of Rectification of Instruments - by Sri P Rajasekhar
Modes of Rectification of Instruments - by Sri P Rajasekhar
by
Rajasekhar Pallagani,
Junior Civil Judge, Lakkireddipalli
The Specific Relief Act, 1963 which came into force on 1st March, 1964.
Chapter III of the Specific Relief Act, 1963 deals with rectification of
instruments. Chapter V of the Specific Relief Act, 1963 deals with
cancellation of instruments.
Legal instrument is a legal term of art that is used for any formerly
executed written document that can be formally attributed to its author,
records and formally expresses a legally enforceable act, process, or
contractual duty, obligation, or right, and therefore evidences that act,
process, or agreement.
"Instrument" includes every document by which any right or liability
is, or purports to be, created, transferred, limited, extended, extinguished or
recorded – As per Indian Stamp Act.
“Rectification” is a term which may be understood as the correction
of an error in an instrument with a view to give effect to the real intention of
the parties.
“Cancellation” is a term often used interchangeably with Rescission,
but whereas only a document can be canceled, any agreement—whether oral
or written—can be rescinded. Cancellation is distinguishable from
reformation, which is an action by a court to enforce a document after its
terms have been reframed in accordance with the intent of the parties, in
that cancellation abrogates the duties of the parties under the instrument.
RECTIFICATION OF INSTRUMENTS:-
Sec.26 of the present Act corresponds to Sec.31 of the old Act. Sec. 26
of Specific Relief Act, 1963 provides as to when an instrument may be
rectified and reads as under: -
Sec.26. When instrument may be rectified:-
(1) When, through fraud or a mutual mistake of the parties a contract or
other instrument in writing (not being the articles of association of a
company to which the Companies Act, 1956 (1 of 1956), applies) does
not express their real intention, when –
(a) either party or his representative in interest may institute a suit
to have the instrument rectified ; or
(b) the plaintiff may, in any suit in which any right arising under the
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Mutual mistake:-
The term “mutual mistake” means common mistake on the part
of both parties to contract. A party seeking rectification has to establish that
there was a prior complete agreement which was reduced to writing in
accordance with the common intention of the parties and by reason of a
mistake the writing did not express the real intention of the parties. There
cannot be rectification where the mistake was not a mutual mistake but only
a mistake committed by the Scribe. There cannot be rectification on the basis
of unilateral mistake not amounting to fraud. A mutual mistake can be
established by any one of the parties to a contract.
Real intention of the parties:-
In a suit for rectification of deed, it is not necessary to have
evidence of a binding contract antecedent to the instrument which is sought
to be rectified and it is enough if the plaintiff proves ;beyond reasonable
doubt the concurrent intention of the parties at the moment of executing the
instrument and the instrument fails to give effect to that concurrent
intention. The rectification of instrument always involves the real prior
agreement between the parties and the absence of such real agreement in
fact in the document as a result of fraud or mutual mistake and hence the
Court has to find out whether there has been fraud or mistake in framing the
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instrument and further the Court has to also ascertain the real intention of
the parties.
So far as rectification can be done without prejudice to rights
acquired by third persons in good faith and for value:-
The courts will not be inclined to rectify instruments where such
rectification may cause prejudice to the rights acquired by third persons in
good faith and for value. A purchaser who does not make enquiries as to the
title of the vendor and intends to take advantages of the mistake cannot be
termed as a bona fide purchaser without notice.
Burden of proof:-
The burden of proof lies heavily on the person seeking rectification.
Laches: -
Mere laches may not be a sufficient ground for refusing the relief of
rectification but unreasonable delay can be considered to refuse such a relief.
CANCELLATION OF INSTRUMENTS:-
Sec.31 of the present Act corresponds to Sec.39 of the old Act.
Sec.31 of Specific Relief Act, 1963 provides as to when cancellation may
be ordered and reads as under: -
Sec.31. When cancellation may be ordered:- (1) Any person against
whom a written instrument if void or voidable and who has reasonable
apprehension that such instrument, if left outstanding may cause him serious
injury, may sue to have it adjudged void or voidable and the Court may, in its
discretion, so adjudge it and order it to be delivered up and cancelled.
(2) If the instrument has been registered under the Indian
Registration Act, 1908 (16 of 1908), the Court shall also send a copy of its
decree to the officer in whose office the instrument has been so registered
and such officer shall note on the copy of the instrument contained in his
books the fact of its cancellation.
Requirements of the section:- For section 31 to apply the following
conditions should be fulfilled:-
(i) the written instrument in question must be either void or
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serious injury” exists or not depends upon the facts and circumstances of
each case. Mere speculation or vague complication cannot be ground to
maintain an action under this section and even in the absence of reasonable
apprehension of serious injury a suit under this section is not maintainable.
Reasonable apprehension exists in a case where a document is registered
though the execution is denied or where a person in possession of the
property finds, that a document is registered with a view to affect his title.
Cancellation and declaration:- In Vellayya Konar and another vs.
Ramaswami Konar and another reported in AIR 1939 Madras 894, his
lordship Wordsworth.J. explained the difference between a cancellation of an
instrument and a declaration that the instrument is not bending on the
plaintiff. Void document does not confer any right on anybody and such
document need not be cancelled.
May sue:- The words “May sue” in sec.31 of the present Act clearly show
that it is not obligatory on the part of a person to sue for cancellation. A void
document need not be set aside or cancelled since such document can be
ignored. If a person is induced to execute a document which he never
undertook to execute such a document is void and need not be cancelled.
Nature of the relief:- Plaintiff can claim the relief to have the document
adjudged void or voidable and to get the document delivered up and
cancelled. The relief must be based on solid grounds and not on speculations.
Sec.32 of the present Act corresponds to Sec.40 of the old Act. Sec.32
of Specific Relief Act, 1963 provides as to what instruments may be
partially cancelled and reads as under: -
Sec.32. What instruments may be partially cancelled: -
Where an instrument is evidence of different rights of different
obligations the Court may, in a proper case, cancel it in part and allow it
stand for the residue.
Secs.31 and 32 of the present Act are based on the principle of
protective and preventive justice. Sec.31 deals with the cancellation of a
document whereas Sec.32 deals with the cancellation of a document in part
leaving the residue to stand. An instrument can be cancelled in part under
this section only in a case where that part sought to can be cancelled is
separable and distinct from other parts of the instrument.
Where an instrument is evidence of different rights or different
obligations:-
The plaintiff has a right to get the specific portion of a contract
cancelled only where the deed is evidenced by different obligations and such
rights or obligations are separable from one another.
The Court may in a proper case:- The words “the Court may, in a proper
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