CANCELLATION OF INSTRUMENTS

PRELIMINARY NOTE:

The nature of specific relief is not merely remedial, but also preventive. If any written instrument is void or voidable against any party, or if a party has a reasonable apprehension that such an instrument, if left outstanding, may cause serious injury, they may file a suit for cancellation of that instrument.
The Court, in its discretion, may order such an instrument to be delivered up and cancelled.

CONCERNED LAW AND PROVISION:

Chapter V – Cancellation of Instruments
Sections 39 to 41 of the Specific Relief Act, 1877

WHAT IS CANCELLATION OF AN INSTRUMENT?

Cancellation of an instrument refers to the legal nullification of a document that is either void, voidable, or potentially harmful if left in effect. This remedy protects parties from future injury or fraud resulting from the document’s continued existence.

WHEN CANCELLATION MAY BE ORDERED (Section 39)

The Court may, in its discretion, order a document to be delivered up and cancelled when:

• There is a void or voidable instrument against the plaintiff, and

• There is a reasonable apprehension that if left outstanding, the instrument may cause serious injury to the plaintiff.

1. IF THE INSTRUMENT IS REGISTERED:

If the instrument has been registered under the Registration Act, 1908, the Court shall send a copy of its decree to the concerned registration officer, who must then note the cancellation in the official records.

2. CONDITIONS FOR CANCELLATION OF INSTRUMENT:

To obtain cancellation, the following conditions must be fulfilled:

a) The instrument must be void or voidable against the plaintiff
b) The plaintiff must have a reasonable apprehension of injury if the instrument is left outstanding

ILLUSTRATIONS:

(a) A, the owner of a ship, fraudulently represents it as seaworthy and induces B (an underwriter) to insure it. B may obtain cancellation of the policy.

(b) A conveys land to B, who bequeaths it to C. After A’s death, D forges a document claiming the land. C may obtain cancellation of the forged instrument.

(c) A misrepresents the status of his tenants and sells land to B. Later, A grants a backdated lease to C and registers it. B may obtain cancellation of this lease.

PARTIAL CANCELLATION OF INSTRUMENTS (Section 40)

Where an instrument represents different rights or obligations, the Court may cancel it in part, while allowing the rest to stand.

Illustration:
A bill is endorsed successively, but one endorsement is forged. The injured party may request only that endorsement be cancelled, while the rest of the instrument remains valid.

COMPENSATION ON CANCELLATION (Section 41)

Upon cancelling an instrument, the Court may require the party benefiting from the cancellation to compensate the other party, if justice demands.

CONCLUSION:

Cancellation of instruments is a protective equitable remedy under the Specific Relief Act, 1877. It empowers the court to prevent possible harm, fraud, or injustice by declaring a void or voidable instrument as cancelled. This remedy is particularly useful when a party is under threat of serious legal or financial injury due to the continued existence of a faulty or forged document. The discretion of the court is essential, and equitable considerations, including compensation, are factored in to ensure justice is served.