Drafting of Suit for Rescission of Contract on the Ground of Fraud by Dr. Deepak Miglani

Fraud exists when it is shown that-

1. A false representation has been made (a) knowingly, or (b) without belief in its truth, or (c) recklessly, not caring whether it is true or false and the maker intended the other party to act upon it, or
2. There is concealment of material fact or that there is a partial statement of a fact in such a manner that the withholding of what is not stated makes that which is stated false.

According to Sec. 17 of the Indian Contract Act, 1872, “Fraud” means and includes any of the following acts committed by a party to a contract, or with his connivance (intentional active or passive acquiescence), or by his agent with intent to deceive or to induce a person to enter into a contract.

A contract can be rescinded under Sec. 27, Specific Relief Act, 1963, if it is voidable or terminable by the plaintiff, or when it is unlawful for any cause apparent on the face of it and the defendant is more to blame than the plaintiff.

The plaint in a suit for rescission must contain allegations (i) of the contract, and (ii) of the grounds on which it is sought to be rescinded. If fraud, undue influence, etc. are alleged as the ground, particulars of the same should be given. An allegation that the contract is unlawful is not sufficient. It must be shown that the unlawfulness is apparent on the face of the contract and the parties are not in pari delicto.

The limitation period is three years from the date when the facts entitling the plaintiff to the relief became known to him. The date of such knowledge should also be alleged in the plaint. The court fee must be paid on the value of the relief.

This video teaches the drafting of suit for rescission of contract on the ground of fraud.