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The Specific Relief Act, 1877

( ACT NO. I OF 1877 )

Chapter IV

OF THE RESCISSION OF CONTRACTS

When rescission may be adjudged
35. Any person interested in a contract in writing may sue to have it rescinded, and such rescission may be adjudged by the Court in any of the following cases, namely:-
 
 
 
 
(a) where the contract is viodable or terminable by the plaintiff;
 
 
 
 
(b) where the contract is unlawful for causes not apparent on its face, and the defendant is more to blame than the plaintiff;
 
 
 
 
(c) where a decree for specific performance of a contract of sale, or of a contract to take a lease, has been made, and the purchaser or lessee makes default in payment of the purchase-money or other sums which the Court has ordered him to pay.
 
 
 
 
When the purchaser or lessee is in possession of the subject-matter, and the Court finds that such possession is wrongful, the Court may also order him to pay to the vendor or lessor the rents and profits, if any, received by him as such possessor.
 
 
 
 
In the same case, the Court may, by order in the suit in which the decree has been made and not complied with, rescind the contract, either so far as regards the party in default, or altogether as the justice of the case may require.
 
 
 
 
Illustrations
 
 
 
 
to (a)-
 
 
A sells a field to B. There is a right of way over the field of which A has direct personal knowledge, but which he conceals from B. B is entitled to have the contract rescinded.to (b)-
 
 
 
 
A, an 1[Advocate], induces his client B, a Hindu widow, to transfer property to him for the purpose of defrauding B's creditors. Here the parties are not equally in fault, and B is entitled to have the instrument of transfer rescinded.
Rescission for mistake
36. Rescission of a contract in writing cannot be adjudged for mere mistake, unless the party against whom it is adjudged can be restored to substantially the same position as if the contract had not been made.
Alternative prayer for rescission in suit for specific performance
37. A plaintiff instituting a suit for the specific performance of a contract in writing may pray in the alternative that, if the contract cannot be specifically enforced, it may be rescinded and delivered up to be cancelled; and the Court, if it refuses to enforce the contract specifically, may direct it to be rescinded and delivered up accordingly.
Court may require party rescinding to do equity
38. On adjudging the rescission of a contract, the Court may require the party to whom such relief is granted to make any compensation to the other which justice may require.
 
 

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Ministry of Law, Justice and Parliamentary Affairs