Step 1: Understanding the Concept:
The question asks for the grounds on which a court can grant the remedy of rescission of a contract under the Specific Relief Act, 1963. Rescission is the unwinding of a contract, restoring the parties to the position they were in before the contract was made.
Step 2: Key Formula or Approach:
The relevant provision is Section 27 of the Specific Relief Act, 1963, titled "When rescission may be adjudged or refused."
Section 27(1) lists the grounds:
"Any person interested in a contract may sue to have it rescinded, and such rescission may be adjudged by the court in any of the following cases, namely:—
(a) where the contract is voidable or terminable by the plaintiff;
(b) where the contract is unlawful for causes not apparent on its face and the defendant is more to blame than the plaintiff."
Step 3: Detailed Explanation:
Both options provided in the question are direct quotes from the clauses of Section 27(1).
- Option (A) refers to situations like contracts entered into due to coercion, fraud, misrepresentation, or undue influence (which are voidable), or contracts that are terminable by their own terms.
- Option (B) refers to illegal contracts where the illegality is not obvious, and the defendant is the guiltier party, allowing the less guilty plaintiff to seek rescission.
Since both are valid and distinct grounds listed in the Act, the correct choice is the one that includes both.
Step 4: Final Answer:
The correct answer is Both (a) and (b).