SRA Assignment Cancellation of Instrument
SRA Assignment Cancellation of Instrument
Introduction
The legal system in India provides for certain duties and obligations which
are to be performed by each party to a contract. A party found in breach of
any such duty or obligation is punishable under law. Along with these duties,
the laws also provide for certain reliefs to the parties to a contract, in cases
where a contract can be held questionable under law. One such relief is the
Cancellation of Instruments, which has been mentioned under the Specific
Relief Act, 1963. This article would help the reader understand the different
issues associated with the Cancellation of Instruments under the Specific
Relief Act, 1963.
Cancellation of instruments
In simple language, cancellation of instruments means the nullification of a
written document which is proof of a transaction between the parties that are
part of the transaction. An instrument being every document by which any
right or liability is, or purports to be created, transferred, limited, extended
or extinguished as per the Indian Stamps Act, 1899.
Cancellation of documents is dealt with under Sections 31, 32 & 33 of the
Specific Relief Act, 1963. If there is an instrument, which is void or voidable
due to some reason and a party to such an instrument has enough reasons
to believe that the said instrument has the potential to act against him and
may even cause serious injury to him, then such a person can file a suit with
regards to the cancellation of such an Instrument. This is a discretionary
relief and the reason behind such is defined in the later stages of this article.
The second clause of Section 31 tells us that if an instrument which has been
put up in front of the Court for cancellation is a document which has been
registered under the Indian Registrations Act, 1908, then a copy of such a
decree containing details about the cancellation of the instrument is required
to be sent to the officer under whom the instrument/document had been
registered. Such a decree is sent for the convenience of the officer and to
keep his register updated. Upon receiving the instructions/decree from the
court, the officer is required to mark the copy of the documents as
“cancelled” in his register.
This Section firstly tells us that when the court decides to cancel an
instrument either completely or partially, then the party towards whom such
relief is granted is required to either restore/claim any benefits which he/she
may have received from the other party or to make the required amount of
compensation for it. Such conditions are put forth by the act with an
intention to deliver justice to the parties, as a court is a place that is
responsible for delivering justice to the people who approach it.
This Section also provides/states/lays the conditions under which, a
defendant to a suit for the performance of an instrument/contract may claim
for the cancellation of such an instrument/contract. The conditions
mentioned in Section 33 are as follows:
justice.
The Hon’ble Court held that as far as void documents are considered the
aggrieved party may not be required to file a suit for cancellation of an
instrument/document under Section 31 in the Specific Relief Act, 1963.
Though when a similar concern is raised with regards to a voidable
document/instrument then a suit for such shall be required to be filed under
Section 31 in the Specific Relief Act, 1963 for the purpose of cancellation of
the instrument.
Conclusion
The purpose of cancellation of instruments by the courts in India under the
Specific Relief Act of 1963 has always been with an intent to serve justice to
the parties who are in a fear of being harmed or are actually being harmed
by the other party due to the performance of such instrument/contract. The
court serves justice in such situations by way of cancellation of the
instrument/contract. Thus it can be said that provisions with regards to the
cancellation of instruments under the Specific Relief Act, 1963 is
commendable and falls in line with the purpose of Courts to serve justice.