Provisions Relating to Amendment & Cancellation of Documents

Question: Discuss the provisions of the law relating to amendment of documents.

Answer:

Provisions related to amendment of documents:

Amendment of a document is the correcting of a mistake to fulfill the real purpose of the parties to the contract. The provisions of the Act relating to the amendment of documents are within Sections 31 to Sections 34 of the Specific Relief Act have been discussed.

According to section 31, in case of any contract where the document does not really express their intentions for fraud or due to mutual mistakes of the parties, either party or their representative may file a suit to amend the document and if the court finds it clearly proven that the document has been made by fraud or omission and it is not possible to determine the true motive of the parties in enforcing it, there the court may, in accordance with its discretionary power, amend the deed to the extent that it can be exercised by a third party in good faith and without interfering with the rights acquired in exchange for a price, so that it is able to express that purpose.

Illustration relating to amendment of documents:

A, intending to sell to B his house and one of three godowns adjacent to it, execute a conveyance prepared by B, in which, through B's fraud, all three godowns are included. Of the two godowns which were fraudulently included, B gives one to C and lets the other to D for a rent, neither C nor D having any knowledge of the fraud. The conveyance may, as against B and C, be rectified so as to exclude from it the godown given to C; but it cannot be rectified so as to affect D's lease.

Who Can apply for amendment of document?

Any party or representative who has the interest may institute a suit for amendment of document.

When a document can be amended?

When a contract or other written document does not really express its intention by fraud or due to mutual mistake of the parties, the court may amend the document by exercising its discretionary power. Documents can be amended in 3 cases:

A) If the documents are prepared through fraud or

B) If there is mutual mistake in the document or

C) If the purpose of the document is not truly expressed.

Assumptions about the will of the parties:

In order to amend the written contract in accordance with section 32 of the Specific Relief Act, the court must ensure that the goal of all parties to the agreement is to execute a balanced and equitable agreement.

Principles of rectification if documents:

When amending a written document under section 33 of the Specific Relief Act, the court may inquire that, for what purpose of the document was and what the intention was regarding the valid outcome of the contract.

The court will consider not only the language of the document, but also the purpose for which the document was made and the parties intentions regarding the valid outcome of the agreement.

Specific enforcement of the rectified contract:

According to section 34 of the Specific Relief Act, the written contract may be amended first and if the plaintiff has prayed in the petition and the court deems it reasonable, it may be enforced later.

Illustration:

"A' contract in writing to pay his attorney, B, a fixed sum in lieu of costs. The contract contains mistakes as to the name and rights of the client, which, if construed strictly would exclude B from all rights under it. B is entitled, if the Court thinks, fit, to have it rectified, and to an order for payment of the sum, as if at the time of its execution it had expressed the intention of the parties.

Question: When can a cancellation order of document be issued?

Answer:

Order for cancellation or annulment of documents:

Generally, it can be said that, when a document is illegal or a document that does not create any rights or claims is therefore a void document. Usually, the court has the only right to cancel the deed. Therefore, the annulment of a deed means that the deed which has been declared as void and forfeited by the court in the final judgment of a civil suit is void. Cancellation of the document means that the document will not be valid. The provisions of the law relating to cancellation of documents are stated in sections 39 to 41 of the Specific Relief Act.

According to section 39- A person against whom a written document is void or voidable, who has a reasonable fear that if such a document is left unfinished, it will cause him irreparable loss, but he can file a suit to declare it void or voidable, And the court may, in its discretionary power, give such judgment and order to annulment of the contract. If the deed is registered under the Registration Act, the court shall send a copy of his decree to the officer in whose office the deed has registered, and such officer shall record in his book the matters relating to his extinction by copying the deed.

Example: A, the owner of a ship by fraudulently representing her to be seaworthy, induces B, an underwriter, to insure her. B may obtain the cancellation of the policy.

Conditions for cancellation of written instruments:

✓The written instrument will be voidable or void;

✓If such a document is left unfinished, it will cause him irreparable loss.

✓The court may, in its discretionary power, give such judgment and order to cancel the contract.

Who can claim cancellation of documents?

According to Section 39 of the Specific Relief Act of 1877, a person who has -

✓Any document which is voidable or void or

✓The document has caused irreparable loss to him, i.e., any person who has a reasonable fear or cause of serious damage.

Instruments can be partially repealed:

Under Section 40 of the Specific Relief Act, where a document bears witness to various rights or obligations, the court may, in an appropriate suit, partially dissolve it and retain the remainder.

Illustration:

'A' draws a bill on 'B', who endorses it to 'C', by whom it appears to be endorsed to 'D', who endorses it to 'E'. 'C's endorsement is forged. 'C' is entitled to have such endorsement cancelled, leaving the bill to stand in other respects.

Power to recover compensation from the party for whom the deed was cancelled:

Under Section 41 of the Specific Relief Act, the court may direct the either party to grant compensation to the other party as per the requirements of justice on behalf of the party to whom the court has granted such relief.

Question: 'X' in a declaratory Suit to the effect that a document is not binding upon him in that court, he alleges that he did not execute the document which he had shown to the giver. The court dismissed the suit though the cancellation of document did not claim. Do you agree with the decision of the court? Discuss the relevant provisions.

Answer:

Facts in brief:

'X' alleges in a declaratory Suit that a document was not binding upon him in court, that he did not execute the document which 'X' had made by showing him the giver. The court dismissed the suit as it did not want to quash the disputed document. The court dismissed the suit though the cancellation of document is not claimed.

Opinion about the decision of the court:

I agree with the decision of the court. Because the person who is the party of the instrument, he and the documents are fake and not valid, the court will not run the suit if it only wants the declaration. Since he is the party of the document, he should not only file a declaratory suit under section 42, he should also claim cancellation of the document as a consequential relief under section 39. But in the suit of Sultana Begumn vs. Abul Kalam, 43 DLR 177, the court had decided that, if the person is not the party of the instrument, then he can claim only the declaration, here claiming cancellation of instrument is not mandatory.

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