Section 13 of Specific Relief Act 1963, deals with the cancellation deeds. There may be certain written documents, which by their nature or by operation of law or by some other reasons are void, violable. Such documents if left as they are and outstanding may harm the interest, right, titles privileges of some party. Such person may institute a suit, praying for cancellation of such written documents, and the court in its discretion if thinks it proper may order for Cancellation of such written document.
There may be documents of contract, which are void as they are against Law Public Policy or violable if they are vitiated by fraud coercion or other similar grounds. The parties to the document may also cancel such documents by mutual consent without referring to the court. An agreement for sale, lease, mortgage, license, partition, may be cancelled by the parties with consent of all parties.
But at times, the matter of cancellation of document may not be so simple as some parties may want to take undue advantage, or very mature of document may not make it simple task.
A deed of conveyance, which is duly executed and registered, cannot be cancelled by mere deed of cancellation. The proper course would be to execute a reconveyance deed and get it duly registered. But if of fraud, coercions or incase of any disagreement among the parties, the chances of mutual consent to cancel the agreement are very remote. In such cases, the affected party has to seek the intervention of the court by filing suit as per the provisions of section 13 of Specific Relief Act.
If any of the documents are unregistered, it may be cancelled by consent of all the parties by scoring off or by endorsing it about cancellation. But in both cases, all the parties should sign the document for having cancelled.
Cancellation deed attracts the stamp duty as per section 17 of Indian Stamp Act, that is stamp duty is payable only if it is attested by witness. A cancellation deed, which is not attested, attracts stamp duty as per agreement. If the main deed needs to be registered. Cancellation deed also needs to be registered.