Section 26 - When instrument may be rectified. RESCISSION OF CONTRACTS
Local statutory-text source control: Retained official India Code PDF extract. Official India Code source prevails.
Current statutory text
26. When instrument may be rectified.—(1) 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;
or
(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; or
(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.
(2) If, in any suit in which a contract or other instrument is sought to be rectified under sub-
section (1), the court finds that the instrument, through fraud or mistake, does not express the real intention
of the parties, the court may, in its discretion, direct rectification of the instrument so as to express that
intention, so far as this can be done without prejudice to rights acquired by third persons in good faith and
for value.
(3) A contract in writing may first be rectified, and then if the party claiming rectification has so prayed
in his pleading and the court thinks fit, may be specifically enforced.
1. Subs. by Act 52 of 1964, s. 3 and the Second Schedule, for “made to” (w.e.f. 29-12-1964).
2. Subs. by Act 18 of 2018, s. 12, for “the Arbitration Act, 1940 (10 of 1940)” (w.e.f. 1-10-2018).
(4) No relief for the rectification of an instrument shall be granted to any party under this section unless
it has been specifically claimed:
Provided that where a party has not claimed any such relief in his pleading, the court shall, at any stage
of the proceeding, allow him to amend the pleading on such terms as may be just for including such claim.
CHAPTER IV
RESCISSION OF CONTRACTS
Finin2min clause-by-clause decode
| Clause | Statutory requirement | Finin2min meaning | Evidence/control |
|---|---|---|---|
| Main rule | 26. When instrument may be rectified.— | Test this main limb within the corrective and declaratory relief framework. Operational focus: 26. when instrument may be rectified.—. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (1) | 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— | Test this (1) within the corrective and declaratory relief framework. Operational focus: when, through fraud or a mutual mistake of the parties, a contract or other instrument in writing [not. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (a) | either party or his representative in interest may institute a suit to have the instrument rectified; or | Test this (a) within the corrective and declaratory relief framework. Operational focus: either party or his representative in interest may institute a suit to have the instrument rectified; or. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (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; or | Test this (b) within the corrective and declaratory relief framework. Operational focus: the plaintiff may, in any suit in which any right arising under the instrument is in issue, claim. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (c) | a defendant in any such suit as is referred to in clause | Test this (c) within the corrective and declaratory relief framework. Operational focus: a defendant in any such suit as is referred to in clause. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (b) | , may, in addition to any other defence open to him, ask for rectification of the instrument. | Test this (b) within the corrective and declaratory relief framework. Operational focus: , may, in addition to any other defence open to him, ask for rectification of the instrument. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (2) | If, in any suit in which a contract or other instrument is sought to be rectified under sub- section | Test this (2) within the corrective and declaratory relief framework. Operational focus: if, in any suit in which a contract or other instrument is sought to be rectified under sub-. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (1) | , the court finds that the instrument, through fraud or mistake, does not express the real intention of the parties, the court may, in its discretion, direct rectification of the instrument so as to express that intention, so far as this can be done without prejudice to rights acquired by third persons in good faith and for value. | Test this (1) within the corrective and declaratory relief framework. Operational focus: , the court finds that the instrument, through fraud or mistake, does not express the real intention of. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (3) | A contract in writing may first be rectified, and then if the party claiming rectification has so prayed in his pleading and the court thinks fit, may be specifically enforced. 1. Subs. by Act 52 of 1964, s. 3 and the Second Schedule, for “made to” (w.e.f. 29-12-1964). 2. Subs. by Act 18 of 2018, s. 12, for “the Arbitration Act, 1940 (10 of 1940)” (w.e.f. 1-10-2018). | Test this (3) within the corrective and declaratory relief framework. Operational focus: a contract in writing may first be rectified, and then if the party claiming rectification has so prayed. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| (4) | No relief for the rectification of an instrument shall be granted to any party under this section unless it has been specifically claimed: | Test this (4) within the corrective and declaratory relief framework. Operational focus: no relief for the rectification of an instrument shall be granted to any party under this section unless. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
| Provided that | where a party has not claimed any such relief in his pleading, the court shall, at any stage of the proceeding, allow him to amend the pleading on such terms as may be just for including such claim. CHAPTER IV RESCISSION OF CONTRACTS | Test this provided that within the corrective and declaratory relief framework. Operational focus: where a party has not claimed any such relief in his pleading, the court shall, at any stage. | Contract/deed, authority, chronology, notices, performance and payment records tied to this limb. |
Finin2min implementation explanation
Section 26 is a corrective and declaratory relief provision dealing with when instrument may be rectified. rescission of contracts. Identify the actor, trigger, cumulative or alternative conditions, provisos, exceptions and legal consequence before reaching a conclusion.
Implementation control: Identify the instrument or right requiring correction, statutory prerequisites, third-party interests, readiness, equitable conduct, limitation and exact order requested.
Section-level practical application
Transaction test
Apply this provision to the event-date facts and record every satisfied, disputed or inapplicable limb.
Consequence and remedy
Identify how it changes validity, title, authority, liability, payment, rejection, recovery, registration, evidence or relief.
