Law: Specific Relief Act, 1877

Section: 39

Law: Civil Procedure Code (V of 1908)

Section: O.VII,R.11

(a) Specific Relief Act (I of 1877)--S. 39, illustration (d) Cancellation of instrument Bill of exchange or cheque issued in consideration of agreement between drawer and payee Validity Even though a bill of exchange or cheque is meant to be a self contained instrument creating rights and obligations between drawer and payee even then the same can be cancelled where such instrument is issued in consideration of an agreement between drawer and payee and the payee has been in material breach of such agreement Voidability of the bill or cheque can result from a breach of agreement even though the instrument has been issued by the drawer through exercise of his free will Such instrument can be cancelled in permissible circumstances. (b) Specific Relief Act (I of 1877) S. 39 Civil Procedure Code (V of 1908), O. VII, R.11 Plaint, rejection of Absence of cause of action ¬Cancellation of two cheques was sought by the plaintiff on the ground that the defendant, failed to perform their part of agreement on the basis of which the disputed cheques were issued Trial Court rejected the plaint under O. VII, R. 11, C.P.C. for want of cause of action Validity Averment made in the plaint showed that the plaintiff was entitled to claim cancellation of the cheques as the same fell within the ambit of illustration (d) to S.39 of the Specific Relief Act, 1877 Plaint which disclosed a cause of action, could not have been rejected by the Trial Court under O. VII, R. 11, C.P.C. Order passed by the Trial Court was set aside and the case was remanded to the Trial Court for deciding the suit after proper trial. JUDGMENT JAWWAD S. KHAWAJA, J. The appellant Iftikhar Ahmed Shaffi who is a member of the Lahore Stock Exchange filed a suit against the said Stock Exchange and 32 others including defendants Nos.2 to 29 (respondent Nos.2 to 29 in this appeal) who are Members of the Lahore Stock Exchange. The said suit, inter alia, prayed for a declaration that two agreements, dated 3 6 2000 and 5 6 2000 entered between the appellant and the Lahore Stock Exchange, are void and liable to be cancelled. A further declaration was sought to the effect that Cheque No.00851832 for Rs.50.0 million drawn on…

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