Which instruments may be partially cancelled [Section 32]

Where an instrument is evidence of different rights or different obligations, the court may, in a proper case, cancel it in part and allow it to stand for the residue.

Example: A draws a bill on B, who endorses it to C, by whom it appears to be endorsed to D, who endorses it to E. C’s endorsement is forged. C is entitled to have such endorsement cancelled, leaving the bill to stand in other respects.

Proper case: Significantly, proper case covers the case where the instrument fulfill the essentials of Section 31(1).

In Karodi v. Dasai, The Allahabad High Court held that a sale f joint property made by one joint owner without consent of other joint owners can be cancelled to the extent of shares of those joint owners who did not consent to the sale.

In Inder Pershad Singh v. Campbell, A agreed to grow indigo for E on twenty and a half bighas of land for a period of nine years at the rate of Rs. 2 per bighas per annum. Of these, 16 and a half bighas were situated in village R, and were held by A under sub-lease from X, Y being the superior landlord. The remaining four bighas were situated in village K and belonged to A. X failed to pay the rent to Y, and in 1874 Y resumed possession of land. The contract becoming impossible of performance, A might obtain cancellation of the agreement as regards the sixteen and a half bighas situated in village.

However, in Khub Singh v. Jahan Lal, the Court held that Section 32 is applicable where the rights and duties mentioned in an instrument are distinct and separate. Therefore, where such rights and duties mentioned in an instrument are not distinct and separate then no relief can be granted under this Section.

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