(..14 e..)
CANCELLATION OF INSTRUMENT[1]
(S. 31 TO 33)
QUESTION BANK
Q.1. Enumerate as per Specific Relief Act, when the instruments are ordered to be cancelled.
SHORT NOTES
- Cancellation of instrument
SYNOPSIS
III. Partial cancellation of instrument. (S. 32)-
I. Introduction:-
- 31 to 33 contain provisions for the cancellation of instruments, which may be void or Voidable. A party thereto has a reasonable apprehension that such an instrument, if left outstanding, may cause serious injury.
II. When the court can direct cancellation of an instrument (S. 31):-
- 31 (1) provides that any person against whom a written instrument-
- a) Is void or Voidable, and
- b) Who has reasonable apprehension,
- c) That such instrument, if left outstanding,
- d) may cause him serious injury, may sue to have it adjudged void or Voidable, and
- e) The Court may, at its discretion, adjudge it and order it to be delivered and cancelled.
If such an instrument is registered, the Court shall also send a copy of its decree to the officer in whose office the instrument has been registered. That officer shall note the fact of its cancellation on the copy of the instrument.
Illustrations
(a) A, the owner of a ship, by fraudulently representing her as seaworthy, induces B, an underwriter, to insure her. B may obtain the cancellation of the policy (after discovering this fraud).
(b) A conveys land to B, who bequeaths it to C and dies. Thereupon, D gets possession of the land and produces a forged instrument stating that the conveyance was made to B in trust for him. C may obtain the cancellation of the forged instrument[2].
III. Partial cancellation of the instrument. (S. 32):-
In some cases, cancelling the entire instrument is neither just nor equitable. Therefore, where an instrument is evidence of different rights or different obligations, the court may, in a proper case, cancel it in part and allow it to stand as far as the residue is concerned.
Illustration
A executes a mortgage deed in favour of B. A fraudulently gets back the deed from B and endorses on it a receipt for Rs. 20000, purporting to be signed by B. B’s signature is forged. B is entitled to have the endorsement cancelled, leaving the deed to stand in its other respects.
IV. Power of the court to adjust equities in cases of cancellation of instruments[3] (S. 33):-
When adjudging the cancellation of an instrument, the Court may require the party to whom such relief is granted to restore, so far as may be, any benefit which he may have received from the other party and to make any compensation to him which justice may require. But no compensation is payable where the contract is without consideration.
However, if the agreement sought to be enforced against a minor or a lunatic is to be cancelled on the ground that the agreement is void because of his incompetence (to enter into a contract), even though the minor or lunatic may be required to restore to the other party any benefit received by him.
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[1] करार रद्द करणे [दस्तावेज़ रद्द करना]
[2] (c) A, representing that the tenants on his land were all at will, sells it to B, and conveys it to him by an instrument, dated the 1st January, 1877. Soon after the day, A fraudulently grants to C a lease of part of the lands, dated the 1st October, 1876, and procures the lease to be registered under the Indian Registration Act. B may obtain the cancellation of this deed.
(d) A agrees to sell and deliver a ship to B, to be paid for by B’s acceptances of four bills of exchange, for sums amounting to Rs 30,000, to be drawn by A or B. The bills are drawn and accepted, but the ship is not delivered according to the agreement. A sues B on one of the bills. B may obtain the cancellation of all the bills.
[3] करार रद्द करण्याच्या प्रकरणांमध्ये इक्विटी समायोजित करण्याचा न्यायालयाचा अधिकार [दस्तावेज़ को रद्द करने के मामलों में इक्विटी को समायोजित करने की न्यायालय की शक्ति]