Remedies Cancellation, Declarations & Injunctions
31. When cancellation may be ordered.
31(1).
This applies when a person is affected by a written instrument (like a contract, deed, agreement, etc.).
The instrument must be void or voidable in law.
The person must have a reasonable fear that if the instrument remains in force, it may cause serious harm to them.
In such a situation, the person can file a suit asking the court to declare the instrument void or voidable.
The court has discretion to make such a declaration.
The court may also order the instrument to be delivered up and cancelled.
31(2).
This applies when the instrument has been registered under the Indian Registration Act, 1908.
If the court cancels the instrument, it must also send a copy of its decree to the registration officer where the document is registered.
The registration officer must then record the fact of cancellation on the copy of the instrument kept in his official records.
32. What instruments may be partially cancelled.
Some instruments create multiple rights or obligations within the same document.
In appropriate situations, the court may cancel only a part of such an instrument.
The remaining valid portion of the instrument is allowed to continue in force.
This is done when cancelling only the problematic part is sufficient to achieve justice.
33. Power to require benefit to be restored or compensation to be made when instrument is cancelled or is successfully resisted as being void or voidable.
33(1).
When the court cancels an instrument, it can impose certain conditions on the party receiving the relief.
The court may require that party to return any benefit they received from the other party under the instrument.
The court may also direct them to pay compensation, if necessary.
33(2).
Where a defendant successfully defends a lawsuit on the ground that:
(a).
If , in a suit, the defendant claims that the instrument being enforced against him is voidable.
If the defendant has received any benefit under that instrument from the other party, the court may step in.
The court can require the defendant to return the benefit, as far as possible.
If returning the benefit is not possible, the court may require the defendant to pay appropriate compensation instead.
(b).
In a suit where the defendant claims that the agreement is void because he was not competent to contract under Section 11 of the Indian Contract Act, 1872.
(Such as being a minor or of unsound mind), the court can intervene.
If the defendant has received any benefit under the agreement from the other party, the court may require him to return that benefit, as far as possible.
If full restoration isn’t possible, the defendant must return the benefit to the extent that he or his estate has actually benefited.
34. Discretion of court as to declaration of status or right.
A person who has a legal character or a right related to property can file a suit for declaration.
The suit can be filed when someone denies or challenges that legal character or property right.
The suit can be filed even if the denial is not fully made yet.
The aim of the suit is to get a formal declaration from the court confirming that the plaintiff is entitled to that legal character or right.
The court has the discretion to grant this declaration if the facts and circumstances justify it.
The plaintiff does not have to ask for any additional relief in the same suit and asking only for the declaration is enough.
However , if the plaintiff is capable of asking for further relief but chooses not to do so, then the court cannot grant only a declaration.
So , you cannot file a declaratory suits and avoid seeking proper and complete remedies when those remedies are available.
Explanation
A trustee holds property on behalf of another person.
If the beneficiary is not yet in existence (for example, an unborn person), the trustee still represents that future beneficiary’s interests.
Because of this, the trustee is considered a “person interested to deny” any title that is adverse to the title of that future beneficiary.
35. Effect of declaration.
A declaration given by the court under this Chapter is binding only on the parties who are part of the suit.
It is also binding on any persons who claim through those parties.
If any party to the suit is a trustee, the declaration is also binding on the beneficiaries for whom that party would be a trustee.
It would also bind the beneficiaries who were not yet in existence at the time of the declaration.
36. Preventive relief how granted.
Preventive relief is a type of legal protection meant to stop a wrongful act before it happens or continues.
This kind of relief is granted at the discretion of the court.
The court grants preventive relief by issuing an injunction.
An injunction may be temporary (for a limited period or until the case is decided) or perpetual (a permanent order in the final decree).
37. Temporary and perpetual injunctions.
37(1).
A temporary injunction remains in force only until a specified time or until the court issues a further order.
It can be granted at any stage of a suit, even before the final decision.
Temporary injunctions are governed and regulated by the Code of Civil Procedure, 1908.
37(2).
A perpetual injunction is granted only through the final decree passed after the court hears the case and evaluates the merits.
This type of injunction is permanent in nature.
The decree restrains the defendant forever from asserting a right that violates the plaintiff’s rights.
It may also restrain the defendant from committing any act that would be contrary to the plaintiff’s rights.
38. Perpetual injunction when granted.
38(1).
A perpetual injunction can be granted only after considering all other applicable provisions in this Chapter.
The injunction is meant to prevent the breach of an obligation that exists in favour of the plaintiff.
The obligation may be one that is expressly stated or one that is implied from the circumstances or relationship between the parties.
If such an obligation exists, the court may, in its discretion, grant a perpetual injunction to protect the plaintiff’s rights.
38(2).
Sometimes the obligation in favour of the plaintiff arises from a contract.
In such cases, the court must follow the rules and provisions laid down in Chapter II.
These rules guide the court in deciding whether a perpetual injunction should be granted.
38(3).
When the defendant invades or threatens to invade the plaintiff’s right to or enjoyment of property, the court may grant a perpetual injunction.
These situations include:
(a) Where the defendant is a trustee of the property for the plaintiff.
A trustee must protect the beneficiary’s property, so an injunction may be necessary.
(b) Where there is no fixed or reliable standard to measure the actual damage caused or likely to be caused by the invasion.
Since the damage cannot be precisely calculated, financial compensation is inadequate.
(c) Where compensation in money would not provide adequate relief for the harm caused by the invasion.
Certain harms cannot be fully remedied by money alone.
(d) Where granting the injunction is necessary to prevent multiple judicial proceedings.
An injunction avoids repeated or overlapping lawsuits about the same issue.
39. Mandatory injunctions.
Sometimes preventing the breach of an obligation requires someone to perform certain acts, not just refrain from doing something.
If the court is capable of enforcing those acts, it may step in.
In such cases, the court has the discretion to grant an injunction.
The injunction can both stop the breach and compel the person to perform the acts necessary to prevent that breach.
40. Damages in lieu of, or in addition to, injunction.
40(1).
In a suit for a perpetual injunction (under section 38) or a mandatory injunction (under section 39), the plaintiff can also claim damages.
These damages may be claimed in addition to the injunction or instead of the injunction.
The court has the discretion to award such damages if it considers it appropriate.
40(2).
The court cannot award damages under this section unless the plaintiff has specifically claimed those damages in the plaint.
If the plaintiff did not include a claim for damages in the plaint, the court must allow the plaintiff to amend the plaint at any stage of the proceedings.
This amendment is allowed on such terms as the court considers fair, so the plaintiff can properly include the claim for damages.
40(3).
The suit is filed to prevent the breach of an obligation in favour of the plaintiff.
If this suit is dismissed, it has a legal consequence.
The dismissal bars the plaintiff from filing a later suit for damages for the same breach.
41. Injunction when refused.
41(1).
An injunction cannot be granted:
(a).
An injunction cannot be granted to stop a person from continuing a judicial proceeding that was already pending when the new suit was filed.
The only exception is when stopping that proceeding is necessary to prevent multiple or repetitive cases on the same issue.
(b).
An injunction cannot be issued to stop someone from starting or continuing a case in a court that is not subordinate to the court issuing the injunction.
In other words, a court cannot restrain proceedings in a higher court or an equal-level court.
(c).
An injunction cannot be granted to stop any person from approaching or applying to a legislative body.
Courts cannot interfere with the legislative process or prevent someone from petitioning or representing matters before a legislature.
(d).
An injunction cannot be granted to prevent any person from starting or continuing criminal proceedings.
Criminal law must be allowed to function without interference from civil injunctions.
(e).
An injunction cannot be granted to prevent the breach of a contract that cannot be specifically enforced.
If the contract itself is not enforceable through specific performance, the court cannot use an injunction to enforce it indirectly.
(f).
An injunction cannot be granted to stop an act claimed to be a nuisance unless it is reasonably clear that the act will actually amount to a nuisance.
Courts do not block actions based on doubtful or speculative harm.
(g).
An injunction cannot be granted to prevent a continuing breach if the plaintiff has acquiesced.
Acquiesced in this case means that the plaintiff knowingly allowed or accepted the breach for some time).
A person who tolerated the breach earlier cannot later seek an injunction to stop it.
(h)
An injunction cannot be granted when an equally effective remedy is clearly available through another ordinary legal process.
Except in cases involving a breach of trust, where injunctions may still be granted.
(ha).
An injunction cannot be granted if it would slow down, obstruct, or delay the progress or completion of an infrastructure project.
It cannot also be granted if it interferes with the continued provision of any facility or service connected with that project.
This protects essential infrastructure works and related services from being halted by injunctions.
(i)
An injunction cannot be granted when the conduct of the plaintiff (or their agents) has been such that they are not deserving of the court’s help.
If the plaintiff has acted unfairly, dishonestly, or in bad faith, the court will refuse relief.
(j).
An injunction cannot be granted when the plaintiff has no personal interest in the subject matter.
Only someone directly affected or whose rights are at stake can seek an injunction.
42. Injunction to perform negative agreement.
Some contracts include two parts:
An affirmative agreement (an obligation to do something).
A negative agreement (an obligation not to do something).
These agreements can be either express or implied.
The court may not be able to enforce specific performance of the positive (affirmative) part of a contract.
However, this does not prevent the court from granting an injunction to enforce the negative part of the contract.
Such an injunction can be granted only if the plaintiff has performed his own obligations under the contract, to the extent that they are binding on him.
43. Repealed.
44. Repealed.
