When suit for cancellation of instrument and suit for declaration of instrument as not binding can be filed as per indian law?

 Under Indian law, suits for cancellation of instruments and suits for declaration of instruments as not binding are governed by different provisions and have distinct requirements and limitations.

Suits for Cancellation of Instruments

Legal Framework: Cancellation of instruments is governed by Sections 31-33 of the Specific Relief Act, 1963. Section 31(1) provides that any person against whom a written instrument is void or voidable, and who has reasonable apprehension that such instrument may cause serious injury, may sue to have it adjudged void or voidable.

Requirements for Filing: For a court to entertain a suit for cancellation, the following three essential conditions must be satisfied:

1. The instrument must be void or voidable against the person filing the suit

2. The person must have reasonable apprehension of serious injury if the instrument is left outstanding

3. The court must be satisfied that cancellation would serve justice and adjudicate the instrument as void or voidable

Who Can File: Only parties to the instrument can file a suit for cancellation. Third parties who are not directly involved in the transaction cannot seek cancellation of an instrument, even if they are affected by it.

Limitation Period: The suit must be filed within three years from the date when the fact entitling the plaintiff to have the instrument cancelled first becomes known to him, as prescribed under Article 59 of the Indian Limitation Act, 1963.

Suits for Declaration of Instruments as Not Binding

Legal Framework: Declaration suits are governed by Sections 34-35 of the Specific Relief Act, 1963. Any person entitled to any legal character or right may institute a suit against any person denying or interested to deny his title to such character or right.

Key Distinction: There is a fundamental difference between seeking cancellation and seeking a declaration of non-binding nature. When a plaintiff seeks to establish title and finds himself threatened by a transaction between third parties, he cannot get that deed cancelled in its entirety. The proper remedy is to obtain a declaration that the deed is invalid so far as he is concerned.

Who Can File: Unlike cancellation suits, even non-parties to an instrument can file for declaration if they can demonstrate that the instrument affects their rights or interests.

Limitation Period: Declaration suits must be filed within three years from the date when the right to sue accrues under Article 58 of the Limitation Act, 1963. For suits seeking both declaration and possession, the limitation is twelve years under Article 65.

When to Choose Which Remedy

The choice between cancellation and declaration depends on the plaintiff's relationship to the instrument:

• Cancellation is appropriate when the plaintiff is a party to the instrument and needs it completely nullified due to it being void or voidable

• Declaration is suitable when the plaintiff needs to establish that an instrument (often involving third parties) does not bind him or affect his rights, without seeking complete cancellation of the instrument

The court has complete discretion in deciding whether to grant cancellation, and the effect of any declaration is binding only on the parties to the suit and persons claiming through them.

Print Page