The Specific Relief Act, 1963
The Specific Relief Act, 1963
A person
which the
Aspecial|oor temporary right to the present possession of movable property is sufficient to support a
under
section. [Explanation 2]
this
suit
of
Section 7contemplates recovery movable property itself and not the substitute of the property.
wrongfully detained Ithen a suit can be filed for its claim.
property is The plaintiff must have the
: Ifthe possession.
right to immediate
Liability of person in possession, not as owner, to deliver to persons
entitled to immediate possession Section 8]
. Section 8provides that any person having the possession or control of a particular article of movable
property, of which he is not the owner, may be compelled specifically to deliver it to the person entitled
toits immediate possession, in any of the following cases:
(a) When the thing claimed is held by the defendant as the agent or trustee of the plaintiff;
(b) When compensation in money would not afford the plaintiff adequate relief for the loss of the
thing claimed;
(c) When it would be extremely difficult to ascertain the actual damage caused by its loss;
(d) When the possession of the thing claimed has been wrongfully transferred from the plaintiff.
3 With respect to clause (b) and (c) the court shall presume the following unless and until the contrary
is
proved:
(a) that compensation in money would not afford the plaintiff adequate relief for the loss of the thing
claimed, or, as the case may be;
(0) that it would be extremely difficult to ascertain the actual damage caused by its loss.
3 In Satish Kumar v. Karan Singh, (2016)4 SCC 352, Supreme Court held that the jurisdichion .
specitic performance of contract is based on existence of avalid and enforceable contract. If ia
and enforceable contract has not been made, the court cannot order specitic performance of cont..valid
In Zarina Siddiqui v. A. Ramalingam, (2015) 1 SCC 705, Supreme Court held that remed.t
specific performance of contract is an equitable remedy.
Restrictions on specific performance of contracts
Section 11(2) provides that a contract made by a trustee in excess of his powers or in breach of trues
cannot be specifically enforced.
9 Section 14 provides for contracts that are not specifically enforceable. The following contracts cannot
be specifically enforced, namely:
(a) Where a party to the contract has obtained substituted performance of contract in accordance with
the provisions of section 20;
(b) A contract, the performance of which involves the performance of a continuous duty which the
court cannot supervise;
(c) A
contract which is so dependent on the personal qualificationsof the parties that the court cannot
enforce specific performance of its material terms; and
(d) A contract which is in its nature determinable.
Section 16 provides for personal bars to relief. It provides that specific performance ofa contract
cannot be enforced in favour of a person:
(a) Who has obtained substituted performance of contract under section 20; or
(b) Who has:
become incapable of performing; or
violates any essential term of, the contract that on his part remains to be performed; or
acts in fraud of the contract; or
wilfully acts at variance with; or
in subversion of, the relation intended to be established by
the contract; or
(c) who fails to prove that he has performed or has always been ready and
willing to pertorm tne
essential terms of the contract which are to be performed by him, other than terms of the
perror
mance of which has been prevented or waived by the defendant.
3 For the purposes of clause (c):
() Where a contract involves the payment of money, it is not essential for
the plaint1itf to actuany
tender to the defendant or to deposit in court any money except when so directed by the
courl
(1) The plaintiff must prove performance of, or readiness and willingness to perform, the contract
according to its true construction. [Explanation]
Specific Relief Act, 1963
Specific performance of part of contract [Section 12]
. Section 12(1) provides that as ageneral rule the court shall not direct the specific performance of a
Dart of acontract. However, this provision is subject to the provisions made in this section.
lt means that Section 12 itself laysdown certain circumstances where specific performance of part of
contract is allowed by the court.
In Jaswinder Kaur v. Gurmeet Singh, (2017) 12SCC 810, Supreme Court held that relief of part
performance cannot be granted where the inability to perform arises because of plaintiff's own conduct.
Circumstances in which court can allow specific performance of part of contract
These circumstances are provided under Sections 12(2), 12(3) and 12(4)
Section 12(2) provides the following:
Where a party to a contract is unable to perform the whole of his part of it;
The part which must be left unperformed is only asmall proportion to the whole in value; and
The party admits of compensation in money;
The court may direct the specific performance of so much of the contract as can be performed,
and award compensation in money for the deficiency.
Section 12(3) provides the following:
Where a party to a contract is unable to perform the whole of his part of it, and the part which must
be left unperformed either:
(a) Forms a considerable part of the whole, though admitting of compensation in money; or
(b) Does not admit of compensation in money;
he is not entitled to obtain a decree for specific performance; but the court may direct the party in
default to perform specifically so much of his part ofthe contract as he can perform, in the following
situations
0) In acase falling under clause (a), pays or has paid the agreed consideration for the whole of the
contract reduced by the consideration for the part which must be left unperformed and in a case
falling under clause (b) pays or has paid the consideration for the whole of the contract withouranw.
abatement; and
() In either case, relinguishes allclaims to the performance of the remaining part of the contract and
all right to compensation, cither for the deficiency ar tor the lOss or damage sustained by bim
through the default of the defendant.
Section 12(4) provides that when a part of acontract which, taken by itself, can and oucht to be
specifically performed, stands on aseparate and independent footing from another part of the same
contract which cannot or ought not to be specifically performed the court may direct specific perfor
mance of the former part.
Section 13 deals with rights of purchaser or lessee against person with no title or imperfect titl,
Specaific Relief Ad, 1963
Power of court to engage experts (Section 14A|
3 This provision was added by Amendment Act of 2018.
Section 14A provides that in any suit under this Act, where the court considers
it necessary to get expert
opinion to assist it on any specific issue involved in the suit, it may
engage one or more experts and
direct to report to it on such issue and may secure attendance of
the expert for providing evidence
including production of documents on the issue.
The court may require or direct any person to give relevant
information to the expert or to produce, or
to provide access to, any relevant documents, goods
or other property for his inspection. [Section
14A(2)]
Who may obtain specific performance [Section 15]
3 Section 15 provides that except as otherwise
contract may be obtained by the provided by this Chapter, the specific performance of a
following persons:
(a) Any party;
(b) The representative in interest or
the principal, of any party
However in the following conditions
mance of contract unless such party has
representative in interest shall not be entitled to
specific perfor
mance by his representative in interest, or hisalready performed his part of the contract, or
principal, has been accepted by the other the perfor
where the learning, skill, solvency or any party:
contract; or
personal quality of such party is a material ingredient in
the
where the contract provides that his
interest shall not be assigned
(c) Beneficiary of contract
relating to settlement on marriage, or a
between members of the same family. compromise of doubtful rights
(d) The remainderman in case where the contract
exercise of a power. has been entered into by a
tenant for life in due
(e) Areversioner in
possession, where the agreement is a
title and the reversioner is covenant entered into with his
entitled to the benefit of such predecessor in
() A reversioner in covenant;
remainder, where the agreement is
to the benefit and will such a covenant, and the
sustain material injury by reason of its reversioner isent1tled
(fa) When a limited liability breach;
partnership has entered into a contract
gamated with another limited and subsequently becomes
out of the amalgamation. liability partnership, the new limited liability amal
(8) When acompany has
partnership which arises
entered into a
company, the new company which contract and subsequently becomes amalgamated
arises out of the with another
(h) When the
promoters of a company have, before amalgamation;
purposes of the company, and its incorporation,
such entered into a contract for the
contract is warranted by the terms
Company: of the incorporation,
Provided that the company has the
the other party to the accepted the contract and has
contract. communicated such acceptance to
668
Substituted performance of contract [Section 20]
Section 20(1) provides that where the contract is broken due to non-performance of promise by any
party, the party who suffers by such breach shall have the option of substituted performance through
a third party or by his own agency, and, recover the expenses and other costs actually incurred, spent or
suffered by him, from the party committing such breach.
This provisionis subject to agreement between the parties.
Nosubstituted performance of contract shall be undertaken unless:
The party who suffers such breach has given a noticein writing;
Such notice must not be of less than thirty days;
Notice must be given to the party who commits breach;
Such notice should require him to perform the contract within time specified in the notice, and on his
refusal or failure to do so, he may get the same performed by athird party or by his own agency.
unless he has
The party whosuffers such breach shall not be entitled to recover the expenses and costs
got the contract performed through a third party or by his own agency.
Where the party suffering breach of contract has got the contract performed through a third party or
performance
by his own agency after giving notice he shall not be entitled to claim relief of specific
against the party in breach.
who has breached the
S Party who has suffered breach can also claim compensation from the party
Contract.
Acontract in writing may first be rectified, and then if theparty claiming rectification has so prayed in
his pleading and the court thinks fit, may be specifically enforced.
3 Mistake in order to secure rectification of instrument must be mutual and not unilateral.
In Joseph John Peter Sandy v. Veronica Thomas Rajkumar, (2013) 3SCC 801,Supreme Court
held that rectification under Section 26 is possible only by the parties to the instrument and no one else.
This section is applicable only when it is pleaded and proved that through fraud or mutual mistake of
the parties, the real intention of the parties is not expressed.
RESCISSION OF CONTRACTS
[Chapter IV, Sections 27-30]
When rescission may be adjudged or refused (Section 27|
Section 27 provides that 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:
(2) Where the contract is voidable or terminable by the plaintiff:
(D) Where the contract is unlawful for causes not apparent on its face and the defendant is more to
blamethan the plaintiff.
Ketusal to rescind the contract: In the following circumstances the court may refuse to rescind the
Contract:
la) Where the plaintiff has expressly or impliedly ratified the contract; or
Keliej 1C, T963
No court shall make any such declaration where the plaintiff, being able to seek further relief than a
mere declaration of title, omits to do so. [Proviso to Section 34]
trustee of property is a 'person interested to deny' a title adverse to the title of someone who is not
A
inexistence, and for whom, if in existence, he would be atrustee. [Explanation]
Section 35 provides that adeclaration made under this Chapter is binding only on:
> The parties to the suit;
Persons claiming through them respectively; and
Where any of the parties are trustees, on the persons for whom, if in existence at the date of the
declaration, such parties would be trustees.
In JagdishPrasad Patel v. Shivnath, (2019) 6SCC 82, Supreme Court held that in asuit for declara
tion of title and possession, the plainitff could succeed only on the strength of their own title andnot
on the weakness of the case of defendant. The burden is on the plaintiff to establish their title to the suit
properties.
3 InKandala Port v. Hargovind Hasrai (2013) 3SCC 182, Supreme Court held that grant of declara
tory decree is discretionary in nature. Court may in appropriate cases refuse to grant declaratory decre.
PREVENTIVE RELIEF
[Part II, Chapters VIl and VII]
INJUNCTIONS GENERALLY
[Chapter VII, Sections 36 and 37]
lnjunction is to restrain undue exercise of rights, prevention of threatened wrongs, restoration of
violated possessions and securing of permanent enjoyment of rights.
It is aremedy of equitable nature and in personam.
Section 36 provides that preventive relief is granted at the discretion of the court by injunction.
temporary or perpetual.
Speciftc Relicf Ac, 1963
time, or uea:t
injunctjons are such as are to continue until aspecific
Section 37 provides that temporary
the further order of the court.
and are regulated by the Code of CivilProcedure, 1908
stage of a suit,
3 They are granted at any
Code of Civil Procedure deals with grant of temporary injunctions.
Order 39 of the conclusion of
temporary injunction is to preserve the subject matter of dispute until the
The object of
the case.
v. Manali
temporary injunctions is guided by sound judicialprinciples. In Ravi Singhal
3 Grant of interim relief
(2001) 8 SCC 1, Supreme Court held that exercise of discretion in grant of
Singhal,
should not be irrational and arbitrary.
merits of
injunction can only be granted by the decree made atthe hearing and upon the
3 A perpetual
the suit.
commission of
defendant is thereby perpetually enjoined from the assertion of aright, or from the
The
of the plaintiff.
an act, which would be contrary to the rights
PERPETUAL INJUNCTIONS
3 Section 38(3) provides that when the defendant invades or threatens to invade the plaintiff's r1ght to,
or enjoyment of, property, the court may grant a perpetual injunction in the following cases:
(a) Where the defendant is trustee of the property for the plaintiff;
(b) Where there exists no standard for ascertaining the actual damage caused, or likely to be caused, y
the invasion;
(c) Where the invasion is such that compensation in money would not afford adequate reliet;
(d) Where the injunction is necessary to prevent a multiplicity of judicial proceedings.
In Balakrishna Dattatraya Galande v. Balakrishna Rambharose Gupta(2019), Supreme
can be
observed that in a suit filed under Section 38 of the Specific Relief Act, permanent injunction
granted only to a person who is in actual possession of the property onthe date of suit.
Specaic Relef Act, 1963
Mandatory injunctions (Section 39]
Section 39 provides that when, to prevent the breach of an obligation. it is necessary to compel the
performance of certain acts which the court is capable of enforcing, the court may grant an
injunco
to prevent the breach complained of, and also to compel performance of the requisite acts.
Followingtwo things are required to be seen by the court in granting mandatory injunctions:
> It should be in order to prevent breach of an obligation; and
The acts must be such that the court is capable of enforcing it.
Damages in lieu of, or in addition to, injunction [Section 40|
9 Section 40 provides that the plaintiff in a suit for perpetual injunction (Section 38], or mandatory
injunction Section 39|, may claim damages either in addition to, or in substitution for, such injunction
and the court may, ifit thinks fit, award such damages.
The dismissal of asuit to prevent the breach of anobligation existing in favour of the plaintiff shall bar
his right to sue for damages for such breach. [Section 403)1
Injunction when refused (Section 41]
Section 41 provides that an injunction cannot be granted in the following circumstances:
(a) to restrain any person from prosecuting ajudicial proceeding pending at the institution of the suit
in which the injunction is sought, unless such restraint is necessary to prevent a multiplicity of
proceedings;
(b) to restrain any person from instituting or prosecuting any proceeding in acourt not sub-ordinate to
that from which the injunction is sought;
(c) to restrain any person from applying to any legislative body;
(a) to restrain any person from instituting or prosecuting any proceeding in acriminal matter;
(e) to prevent the breach of a contract the performance of which would not be specifically enforced;
(9) to prevent, on the ground of nuisance, an act of which it is not reasonably clear that it will be a
nuisance;
8) to prevent acontinuing breach in which the plaintiff has acquiesced;
h) when equally efficacious relief can certainly be obtained by any other usual mode of proceding
except in case of breach of trust;
(ha) if it would impede or delay the progress or completion of any infrastructure project or interfere
with the continued provision of relevant facility related thereto or services being the subject matter
of such project.
() when the conduct of the plaintiff or his agents has been such as to disentitle him to be the assistance
of the court;