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When Cancellation may be ordered ?
Section 31 of the Specific Relief Act, 1963 – Provides how and when cancellation of an instrument may be ordered.
(1) Any Person Against whom a written instrument is void or voidable and who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury, may sue to have it adjudged void or voidable, and the court may, it its discretion, so adjudge it and ordered it to be delivered up and cancelled.
(2) If the instrument has been registered under the Indian Registration Act, 1908 (16 of 1908) , the court shall also send a copy of its decree to the officer in whose office the instrument has been so registered, and such officer shall note on the copy of the instrument contained in his books the facts of its cancellation.
Note :- Plaintiff to establish 3 Conditions for suit under section :-
(1) The Instrument is Void or Voidable Against him
(2) He may have a reasonable apprehension that such instrument may cause serious injury.
(3) Court must adjudicate the instrument as Void or Voidable.
What is Void Contract ?
Void agreements are those agreements which are not enforced by law courts. Section 2(g) of the Indian Contract Act defines a void agreement as, “an agreement not enforceable by law”. Thus the parties to the contract do not get any legal redress in the case of void agreements.
What is Voidable Contract ?
Section 2(i) of the Indian Contract Act, 1872 defines voidable agreements as those which are valid as long as one of the parties or both the parties can decide to void their agreement. Mostly, cases involving a voidable contract relate to a situation where there was a lack of free consent from one of the parties.
Difference between Void and Voidable Agreement :-
A void contract is considered to be a legal contract that is invalid, even from the start of signing the contract. On the other hand, a voidable contract is also a legal contract which is declared invalid by one of the two parties, for certain legal reasons.
While a void contract becomes invalid at the time of its creation, a voidable contract only becomes invalid if it is cancelled by one of the two parties who are engaged in the contract.
In the case of a void contract, no performance is possible, whereas it is possible in a voidable contract. While a void contract is not valid at face value, a voidable contract is valid, but can be declared invalid at any time.
While a void contract is non existent and cannot be upheld by any law, a voidable contract is an existing contract, and is binding to at least one party involved in the contract.
Conclusion :- To secure the performance and enforceability of a contract , the contract should be a valid contract . As the void contracts can’t be enforced.