Specific Relief Act Section 26 — When instrument may be rectified
CHAPTER III RECTIFICATION OF INSTRUMENTS
General
Summary
If a written contract or document does not reflect what the parties actually agreed on because of fraud or a mutual mistake, the law allows a party to ask a court to correct, or "rectify," the document. This request can be made by filing a separate lawsuit, or by raising it as part of another lawsuit where the document's terms are being argued. A defendant in such a lawsuit can also ask for the correction as part of their defence.
If the court finds that the document was indeed wrong due to fraud or mistake, it has the power to order the correction, as long as this does not harm the rights of third parties who honestly paid for something based on the original document. A written contract can be corrected first and then, if the party asked for it and the court agrees, the corrected contract can be enforced.
A court will not correct a document unless the party specifically asked for that correction in their legal papers. However, if a party forgot to ask, the court must allow them to amend their papers at any point during the case to include that request, on fair terms.
Official Text
(1) When, through fraud or a mutual mistake of the parties, a contract or other instrument in writing [not being the articles of association of a company to which the Companies Act, 1956 (1 of 1956), applies] does not express their real intention, then—
(a) either party or his representative in interest may institute a suit to have the instrument rectified; or
(b) the plaintiff may, in any suit in which any right arising under the instrument is in issue, claim in his pleading that the instrument be rectified; or
(c) a defendant in any such suit as is referred to in clause (b), may, in addition to any other defence open to him, ask for rectification of the instrument.
(2) If, in any suit in which a contract or other instrument is sought to be rectified under sub-section (1), the court finds that the instrument, through fraud or mistake, does not express the real intention of the parties, the court may, in its discretion, direct rectification of the instrument so as to express that intention, so far as this can be done without prejudice to rights acquired by third persons in good faith and for value.
(3) A contract in writing may first be rectified, and then if the party claiming rectification has so prayed in his pleading and the court thinks fit, may be specifically enforced.
(4) No relief for the rectification of an instrument shall be granted to any party under this section unless it has been specifically claimed:
Provided that where a party has not claimed any such relief in his pleading, the court shall, at any stage of the proceeding, allow him to amend the pleading on such terms as may be just for including such claim.