Application for Rectification:

A party to a written instrument, including every contract or deed, may approach the court with an application for rectification in cases where the instrument has failed to express the real intention of the parties because of an error.

Grounds for Rectification:

Mutual Mistake: Existence of an error, where the common intention of the parties to the instrument has not been correctly expressed in the said instrument.

Unilateral Mistake

with Knowledge, when one party has made a mistake and the other party is actually aware of this mistake.

If there is sufficient evidence as to the mistake and the true intention of the parties, the court will rectify the instrument to conform to the true intention of the parties.

Procedure:

– The party seeking rectification has to file a petition in a competent court praying for a decree for rectification (in a civil court).

– The petitioner has to establish that some mistake or error had occurred and prove what originally had been agreed upon. This may be done by producing the relevant documents, correspondence, or other material to bring out the true intention.

– A decree of rectification would be granted by the courts if satisfied with the proof and where the case is proved. The said decree will correct that document, recording correctly what had been agreed to between the parties.

Criteria for Rectification:

– There should be an actual and valid agreement between parties.

– The deed is required to have an established mistake or error that could include clerical errors and misunderstandings.

– Clear evidence needs to be brought about by the party seeking rectification for establishing correct terms or contents of the document and proving the true intention of the parties in original form.

Limitations:

– An application for rectification should be made in a prescribed period, usually three years from the date on which the mistake was discovered or ought to have been discovered by the party with reasonable diligence.

– Undue delay in seeking the remedy may be a reason for the courts to deny rectification.

– Rectification is an equitable remedy and will be granted only if it is fair and just upon the facts of the particular case.

– After the rectification is granted, the court will change the existing document to express the actual intention of the parties. This does not create a new contract but corrects the original instrument.

Example:

An example would be when two parties entered into a contract for the sale of property and, through some clerical mistake, rectification may be sought to correct clerical errors in a deed of sale either in describing the property or consideration amounts.

Interlinked with Indian Contract Act:

Rectification is a legal remedy provided under the Specific Relief Act, 1963, for correcting written documents in cases where their contents do not correctly express the agreement actually arrived at between the parties on account of some mistake or error committed by one of the parties. The doctrine is, therefore, inextricably intertwined with certain provisions of the Indian Contract Act, 1872, notably Sections 62 and 63, relating to the performance and variation of contracts.

Section 62: Discharge of Contract by Agreement

Various ways in which a discharge may take place on grounds of an agreement between the parties are listed under Section 62 of the Indian Contract Act, 1872. This section concerns the doctrine of rectification because any agreed modification in a contract needs to be adequately reflected in the written document of that contract. If such modifications are not properly recorded, then rectification may become necessary to have the document represent the parties' true intentions.

For example, if two parties agree to a change in their contractual terms but the written document incorrectly captures this modification, rectification under the Specific Relief Act may be resorted to amend the document.

Section 63: Performance of Promises

Section 63 of the Indian Contract Act enforces the performance of promises as agreed to, permitting excuses in specific circumstances. Where the agreement in writing fails to express accurately what was agreed upon between the parties due to error, rectification may be granted so that the instrument may conform to the agreed terms so that the obligations under Section 63 are fulfilled.

For example, If there is an error on the part of a contract specifying the date of performance due to a clerical error, then rectification would modify such a document to reflect the correct terms and keep the integrity and performance of a contract intact.

Rectification ensures that written instruments correctly reflect the parties' agreement consistent with the parties' true agreement and in conformance with applicable legal standards governing contract performance and modification.

Case Law:

Rameshwar Prasad vs. Shyam Sundar

This case demonstrated that rectification on proof of mistake is possible when the original agreement was expressed in unambiguous terms and without any ambiguity.

Smt. K.K. Verma vs. Union of India

The court in this case held that the rectification should be made in the form of a document against which, from its four corners, the real agreement between the parties is not manifested.