Code: Section 26
When Instrument May Be Rectified
“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, then:
(a) either party or his representative in interest may institute a suit to have the instrument rectified;
(b) the plaintiff may, in any suit in which any right arising under the instrument is in issue, claim in his pleading that the instrument be rectified;
(c) a defendant in any such suit as is referred to in clause (b), may, in addition to any other defence open to him, ask for rectification of the instrument.”
Explanation of Section 26 – The Specific Relief Act
Section 26 of the Specific Relief Act deals with the rectification of instruments. It provides a legal remedy when an instrument (such as a contract) does not accurately reflect the real intention of the parties due to fraud or mutual mistake.
Key provisions include:
- Eligibility for Rectification
- If a contract or other written instrument does not express the real intention of the parties due to fraud or mutual mistake, any party or their representative can initiate a suit for rectification.
- The plaintiff can also request rectification in their pleading if their rights under the instrument are in question.
- A defendant can also request rectification in response to a claim made by the plaintiff.
- Court’s Discretion to Rectify
- If the court finds that the instrument does not reflect the true intentions of the parties, it can order the instrument to be rectified, provided it does not affect the rights of third parties who have acquired rights in good faith and for value.
- Possibility of Specific Enforcement
- The court may rectify the contract first and, if the party claiming rectification requests it, the contract may be specifically enforced.
- Requirement to Claim Rectification
- A party must specifically claim rectification in their pleading. If a party initially fails to claim rectification, they may be allowed to amend their pleading at any stage of the proceedings, as long as the court finds it just.
Illustration
Example 1: Mutual Mistake in Contract
Imagine two parties enter into a contract for the sale of goods, but due to a mutual mistake, the contract does not reflect the correct quantity of goods to be delivered. One party can file a suit to rectify the contract to accurately reflect the original agreement, as long as the other party agrees that the mistake occurred.
Example 2: Fraud in the Execution of a Document
A person is tricked into signing a contract under fraudulent circumstances. The person may file a suit to have the contract rectified to reflect the true terms, as fraud has caused the instrument to misrepresent the real intention of the parties involved.
Common Questions and Answers on Section 26 – The Specific Relief Act
1. Who can request rectification of an instrument under Section 26?
- Answer: Either party or their representative can request rectification. Additionally, the plaintiff can request it in their pleading if their rights under the instrument are in dispute, and a defendant can request it in their defence.
2. Can the court refuse rectification if third parties are involved?
- Answer: Yes. The court will not allow rectification if it prejudices the rights of third parties who have acquired rights in good faith and for value.
3. Can rectification be sought after a contract has been signed?
- Answer: Yes. If the contract does not reflect the true intention due to fraud or mistake, rectification can be sought at any time, even after the contract has been signed.
4. Do I need to claim rectification in my pleading?
- Answer: Yes, you must specifically claim rectification in your pleading. If you forget to claim it initially, you can amend your pleading at any stage of the proceedings, as long as the court allows it.
Conclusion
Section 26 of the Specific Relief Act provides a legal remedy to correct written instruments that do not express the true intentions of the parties due to fraud or mutual mistake. It ensures that parties can rectify such instruments, restoring the integrity of the agreement. However, it balances the need for correction with the protection of third-party rights. If rectification is sought, the courts have the discretion to order it and enforce the corrected contract, as appropriate.
