Section 19A explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 19A says what happens when consent is caused by undue influence: the agreement is a contract voidable at the option of the party whose consent was so caused, and the Court may set it aside either absolutely or, if that party has received a benefit, on terms the Court thinks just.
When consent to an agreement is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused. Any such contract may be set aside either absolutely or, if the party entitled to avoid it has received any benefit under it, upon such terms and conditions as to the Court may seem just. The section was inserted by Act 6 of 1899, section 3, alongside the substituted section 16. Undue influence itself is defined in section 16.
Where section 19A comes from
The footnote in the source says that section 19A was inserted by Act 6 of 1899, section 3. The same Act substituted section 16 (the definition of undue influence) and, as the footnote to section 19 records, repealed the words "undue influence" from section 19. The effect is that coercion, fraud and misrepresentation are dealt with in section 19, and undue influence has its own section, 19A.
The two paragraphs
| Paragraph | Text in short |
|---|---|
| First | When consent is caused by undue influence, the agreement is a contract voidable at the option of the party whose consent was so caused |
| Second | Any such contract may be set aside absolutely, or, if the party entitled to avoid it has received any benefit, upon such terms and conditions as to the Court may seem just |
If you believe you signed a bond, agreement or transfer under undue influence, or you are defending a claim that you exercised it, our legal dispute resolution service can help you look at the position.
First paragraph: voidable at the option
The language mirrors section 19: "the agreement is a contract voidable at the option of the party whose consent was so caused". The party whose consent was caused by undue influence holds the option. "So caused" takes its meaning from section 14: the consent would not have been given but for the undue influence. See our articles on section 14 and on section 16.
Second paragraph: the Court's power
"Any such contract may be set aside either absolutely or, if the party who was entitled to avoid it has received any benefit thereunder, upon such terms and conditions as to the Court may seem just."
Break the sentence into two cases:
- No benefit received. The contract may be set aside "absolutely".
- Benefit received. The contract may be set aside "upon such terms and conditions as to the Court may seem just". The text leaves the terms to the Court.
The paragraph uses the word "may", so the power is the Court's, and the text does not say how it is to be exercised beyond the words "as to the Court may seem just".
The Act's own illustrations
The Act gives two illustrations, restated in plain words.
(a) A's son has forged B's name to a promissory note. B, under threat of prosecuting A's son, obtains a bond from A for the amount of the forged note. If B sues on this bond, the Court may set the bond aside.
(b) A, a money-lender, advances Rs. 100 to B, an agriculturist, and, by undue influence, induces B to execute a bond for Rs. 200 with interest at 6 per cent per month. The Court may set the bond aside, ordering B to repay the Rs. 100 with such interest as may seem just.
Illustration (b) shows the second paragraph working where the party entitled to avoid the contract has received a benefit: B received Rs. 100, so the bond is set aside on terms that B repays the Rs. 100 with such interest as may seem just. Illustration (a) shows that the Court may set the bond aside when the person who obtained it sues on it. (The illustration is the Act's own; the text does not say here which paragraph of section 16 it falls under.)
How section 19A fits with sections 16 and 19
| Section | Role |
|---|---|
| 14 | Defines when consent is said to be free and the "but for" test |
| 16 | Defines undue influence and lists who is deemed to be in a position to dominate |
| 19 | Voidability for coercion, fraud or misrepresentation |
| 19A | Voidability for undue influence, and the Court's power to set aside on just terms |
See our article on section 19 for the corresponding rule on the other three factors.
A modern example (ours, not the Act's)
Rekha, a widow in her seventies, depends on her nephew Manoj, who manages her affairs. He persuades her to sign a document promising him a large monthly sum for "managing her accounts", far beyond any reasonable fee. In return he gives her a small advance amount, which she accepts. If a Court finds the contract was induced by undue influence under section 16, section 19A makes it voidable at Rekha's option. Because she has received a benefit, the Court may set the contract aside on terms such as returning the advance, in the way illustration (b) deals with the Rs. 100. The actual terms are for the Court.
What can the parties change?
Section 19A gives the option and the Court's power. The parties cannot remove either by agreeing that undue influence has not been used. What parties can do is deal on fair terms, give the weaker party time and the opportunity to obtain independent advice, and keep records. If you hold the option, remember that the text gives no time limit, but delay can raise other questions that this article does not cover.
Practical points
- Do not use your position. Advisers, relatives, lenders and employers should not use a dominant position to gain an advantage.
- If you received a benefit, expect terms. The Court may set a contract aside on just terms if you have received a benefit, as in illustration (b).
- Act without delay. Take advice as soon as you believe consent was caused by undue influence.
- Keep records of the benefit. If you are asked to restore a benefit, evidence of what you received matters.
Need help with a contract you want set aside?
If you want to challenge a bond, loan or agreement made under pressure from someone in a position of influence over you, or you are defending one, our legal dispute resolution team can review the documents and explain how section 19A may apply.
Key takeaways
- A contract whose consent was caused by undue influence is voidable at the option of the party so affected (s.19A).
- The Court may set it aside absolutely, or on just terms if a benefit has been received.
- The section was inserted by Act 6 of 1899.
- Undue influence is defined in section 16; the "but for" test is in section 14.
Read next
- Section 16: undue influence
- Section 19: voidable agreements
- Sections 20 to 22: mistake
- Free consent: sections 13 to 22
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.