Section 27 Specific Relief Act, 1963: When rescission may be adjudged or refused

Bare Act text

27. When rescission may be adjudged or refused.—(1) Any person interested in a contract may sue to have it rescinded, and such rescission may be adjudged by the court in any of the following cases, namely:—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 voidable 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.

(2) Notwithstanding anything contained in sub-section (1), the court may refuse to rescind the contract—

(a) where the plaintiff has expressly or impliedly ratified the contract; or

(b) where, owing to the change of circumstances which has taken place since the making of the contract (not being due to any act of the defendant himself), the parties cannot be substantially restored to the position in which they stood when the contract was made; or

(c) where third parties have, during the subsistence of the contract, acquired rights in good faith without notice and for value; or

(d) where only a part of the contract is sought to be rescinded and such part is not severable from the rest of the contract.

Explanation.—In this section “contract” in relation to the territories to which the Transfer of Property Act, 1882 (4 of 1882), does not extend, means a contract in writing.

Text of the Specific Relief Act, 1963 (Act No. 47 of 1963), as amended up to the Specific Relief (Amendment) Act, 2018. Source: India Code, Government of India.

In simple words

Under sub-section (1), any person interested in a contract can sue to have it rescinded. The court can order rescission in two cases. Under clause (a), the contract is voidable or terminable by the plaintiff. Under clause (b), the contract is unlawful for causes not apparent on its face and the defendant is more to blame. Under sub-section (2), the court may refuse rescission in four cases. Under clause (a), the plaintiff has ratified the contract, expressly or impliedly. Under clause (b), circumstances have changed, other than by the defendant's own act, so the parties cannot substantially be restored. Under clause (c), third parties have acquired rights in good faith, without notice and for value. Under clause (d), only part is sought to be rescinded and it is not severable. The Explanation says a contract means a contract in writing, in territories where the Transfer of Property Act, 1882 does not extend.

Section 27 Specific Relief Act: When rescission may be adjudged or refused

Bare Act text

In simple words

Chapter IV: Rescission Of Contracts