SPECIFIC
RELIEF ACT, 1963 (Amended Upto 2019)
[Act, No. 47 of 1963]
[13th December, 1963]
PREAMBLE
An act to
define and amend the law relating to certain kinds of specific relief.
BE it
enacted by Parliament in the Fourteenth Year of the Republic of India as follow.
Section 1 - Short title, extent and commencement
(1)
This Act may
be called the Specific Relief Act, 1963.
(2)
It extends
to the whole of India [1][***].
(3)
(3) It shall
come into force on such date[2] as
the Central Government may, by notification in the Official Gazette,
appoint.
Section 2 ? Definitions.
In this Act, unless the context
otherwise requires,
(a)
"Obligation"
includes every duty enforceable by law;
(b)
"Settlement"
an instrument (other than a will or codicil as defined by the Indian Succession
Act, 1925 (39 of 1925) whereby the destination or devolution of successive
interests movable or immovable property is disposed of or is agreed be disposed
of;
(c)
"trust"
has the same meaning as in section 3 of the Indian Trusts Act, 1882
(2 of 1882), and includes an obligation in the nature of a trust within the
meaning of Chapter IX of that Act;
(d)
"trustee"
includes every person holding property in trust;
(e)
all other
words and expression used herein, but not defined, and defined in the Indian
Contract Act 1872 (9 of 1872), have the meanings respectively assigned to them
in that Act.
Section 3 ? Savings.
Except as otherwise provided
herein, nothing in this Act shall be deemed--
(a)
to deprive
any person of any right to relief, other than specific performance, which he
may have under any contract; or
(b)
to affect
the operation of the Indian Registration Act, 1908, on documents.
Section 4 - Specific relief to be granted only for enforcing individual civil rights and not for enforcing penal laws.
Specific relief can be granted
only for the purpose of enforcing individual civil rights and not for the mere
purpose of enforcing a penal law.
Section 5 - Recovery of specific immovable property.
A person entitled to the
possession of specific immovable property may recover it in the manner provided
by the Code of Civil Procedure,1908 (5 of 1908).
Section 6 - Suit by person dispossessed of immovable property.
(1)
If any
person is dispossessed without his consent of immovable property otherwise than
in due course of law, he or any person [3][through whom he has been in possession or any person] claiming through
him may, by suit, recover possession thereof, notwithstanding any other title
that may be set up in such suit.
(2)
No suit
under this section shall be brought.
(a)
after the
expiry of six month from the date of dispossession; or
(b)
against the
Government.
(3)
No appeal
shall lie from any order or decree passed in any suit instituted under this
section, nor shall any review of any such order or decree be allowed.
(4)
Nothing in
this section shall bar any person from suing to establish his title to such
property and to recover possession thereof.
Section 7 - Recovery of specific movable property.
A person entitled to the
Possession of specific movable property may recover it in the manner provided
by the Code of Civil Procedure, 1908 (5 of 1908).
Explanation 1. A trustee may sue
under this section for the possession of movable property to the beneficial
interest in which the person for whom he is trustee is entitled.
Explanation 2. A special or
temporary right to the present possession of movable property is sufficient to
support a suit under this section.
Section 8 - Liability of person in possession, not as owner, to deliver to persons entitled to immediate possession.
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 to
its 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 in the thing claimed has been wrongfully transferred from the
plaintiff.
Explanation. Unless and until the
contrary is proved, the court shall, in respect of any article of movable
property claimed under clause (b) or clause (c) of this section, presume.
(a)
that
compensation in money would not afford the plaintiff adequate relief for the
loss the thing claimed, or, as the case may be;
(b)
that it
would be extremely difficult to ascertain the actual damages caused by its
loss.
Section 9 - Defences respecting suits for relief based on contract.
Except as otherwise provided
herein, where any relief is claimed under this Chapter in respect of a
contract, the person against whom the relief is claimed may plead by way of
defence any ground which is available to him under any law relating to
contracts.
Section 10 - Specific performance in respect of contracts.
[4][10. Specific performance in respect of contracts
The specific performance of a
contract shall be enforced by the court subject to the provisions contained in
sub-section (2) of section 11, section 14 and section 16.]
Section 11 - Cases in which specific performance of contracts connected with trusts enforceable.
(1)
Except as
otherwise provided in this Act, specific performance of a [5][contract shall], be enforced when the act agreed to be done is in the
performance wholly or partly of a trust.
(2)
A contract
made by a trustee in excess of his powers or in breach of trust cannot be
specifically enforced.
Section 12 - Specific performance of part of contract.
(1)
Except as
otherwise hereinafter provided in this section the court shall not direct the
specific performance of a part of a contract.
(2)
Where a
party to a contract is unable to perform the whole of his part of it, but the
part which must be left unperformed be a only a small proportion to the whole
in value and admits of compensation in money, the court may, at the suit of
either party, direct the specific performance of so much of the contract as can
be performed, and award compensation in money for the deficiency.
(3)
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, at the suit of the other
party, direct the party in default to perform specifically so much of his part
of the contract as he can perform, if the other party.
(i)
in a case
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 a case falling under clause (b), [6][pays or had paid] the consideration for the whole of the contract
without any abatement; and
(ii)
in either
case, relinquishes all claims to the performance of the remaining part of the
contract and all right to compensation, either for the deficiency or for the
loss or damage sustained by him through the default of the defendant.
(4)
When a part
of a contract which, taken by itself, can and ought to be specifically
performed, stands on a separate and independent footing from another part of
the same contract which cannot or ought not to be specifically performed, the
court may direct specific performance of the former part.
Explanation. For the purposes of
this section, a party to a contract shall be deemed to be unable to perform the
whole of his part of it if a portion of its subject matter existing at the date
of the contract has ceased to exist at the time of its performance.
Section 13 - Rights of purchaser or lessee against person with no title or imperfect title.
(1)
Where a
person contracts to sell or let certain immovable property having no title or
only an imperfect title, the purchaser or lessee (subject to the other
provisions of this chapter), has the following rights, namely.
(a)
if the
vendor or less or has subsequently to the contract acquired any interest in the
property, the purchaser or lessee may compel him to make good the contract out
of such interest;
(b)
where the
concurrence of other person is necessary for validating the title, and they are
bound to concur at the request of the vendor or less or, the purchaser or
lessee may compel him to procure such concurrence, and when a conveyance by
other persons is necessary to validate the title and they are bound to convey
at the request of the vendor or less or, the purchaser or lessee may compel him
to procure such conveyance;
(c)
where the
vendor professes to sell unencumbered property, but the property is mortgaged
for an amount not exceeding the purchase money and the vendor has in fact only
a right to redeem it, the purchaser may compel him to redeem the mortgage and
to obtain a valid discharge, and, where necessary, also a conveyance from the
mortgagee;
(d)
where the
vendor or less or sues for specific performance of the contract and the suit is
dismissed on the ground of his want of title or imperfect title, the defendant
has right to a return of his deposit, if any, with interest thereon, to his
costs of the suit, and to a lien for such deposit, interest and costs on the
interest, if any, of the vendor or lesser in the property which is the
subject-matter of the contract.
(2)
The
provisions of sub-section (1) shall also apply, as far as may be, to contracts
for the sale or hire of movable property.
Section 14 - Contracts not specifically enforceable.
[7][14. Contracts 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 qualifications of the parties that the
court cannot enforce specific performance of its material terms; and.
(d)
a contract
which is in its nature determinable]
Section 14A - Power of court to engage experts.
[8][14A. Power of court to engage experts
(1)
Without
prejudice to the generality of the provisions contained in the Code of Civil
Procedure, 1908 (5 of 1908), 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.
(2)
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.
(3)
The opinion
or report given by the expert shall form part of the record of the suit; and
the court, or with the permission of the court any of the parties to the suit,
may examine the expert personally in open court on any of the matters referred
to him or mentioned in his opinion or report, or as to his opinion or report,
or as to the manner in which he has made the inspection.
(4)
The expert
shall be entitled to such fee, cost or expense as the court may fix, which
shall be payable by the parties in such proportion, and at such time, as the
court may direct.]
Section 15 - Who may obtain specific performance.
Except as otherwise provided by
this Chapter, the specific performance of a contract may be obtained by.
(a)
any party
thereto;
(b)
the
representative in interest or the principal, of any party thereto:
Provided that where the learning,
skill, solvency or any personal quality of such party is a material ingredient
in the contract, or where the contract provides that his interest shall not be
assigned, his representative in interest or his principal shall not be entitled
to specific performance of the contract, unless such party has already
performed his part of the contract, or the performance thereof by his
representative in interest, or his principal, has been accepted by the other
party;
(c)
where the
contract is a settlement on marriage, or a compromise of doubtful rights
between members of the same family, any person beneficially entitled
thereunder;
(d)
where the
contract has been entered into by a tenant for life in due exercise of a power,
the remainderman;
(e)
a
reversioner in possession, where the agreement is a covenant entered into with
his predecessor in title and the reversioner is entitled to the benefit of such
covenant;
(f)
a
reversioner in remainder, where the agreement is such a covenant, and the
reversioner is entitled to the benefit thereof and will sustain material injury
by reason of its breach;
[9][(fa) when a limited liability partnership has entered into a contract
and subsequently becomes amalgamated with another limited liability
partnership, the new limited liability partnership which arises out of the
amalgamation.]
(g)
when a
company has entered into a contract and subsequently becomes amalgamated with
another company, the new company which arises out of the amalgamation;
(h)
when the
promoters of a company have, before its incorporation, entered into a contract
for the purposes of the company, and such contract is warranted by the terms of
the incorporation, the company:
Provided that the
company has accepted the contract and has communicated such
acceptance to the other party to the contract.
Section 16 - Personal bars to relief.
Specific performance of a
contract cannot be enforced in favour of a person--
[10][(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) [11][who fails to prove] that he has performed or has always been ready and
willing to perform the essential terms of the contract which are to be
performed by him, other than terms of the performance of which has been
prevented or waived by the defendant.
Explanation. For the purposes of
clause (c),
(i)
where a
contract involves the payment of money, it is not essential for the plaintiff
to actually tender to the defendant or to deposit in court any money except
when so directed by the court;
(ii)
the
plaintiff [12][must prove] performance of, or readiness and willingness to perform,
the contract according to its true construction.
Section 17 - Contract to sell or let property by one who has no title, not specifically enforceable.
(1)
A contract
to sell or let any immovable property cannot be specifically enforced in favour
of a vendor or lessor.
(a)
who, knowing
himself not to have any title to the property, has contracted to sell or let
the property;
(b)
who, though
he entered into the contract believing that he had a good title to the
property, cannot at the time fixed by the parties or by the court for the
completion of the sale or letting, give the purchaser or lessee a title free
from reasonable doubt?
(2)
The
provisions of sub-section (1) shall also apply as far as may be, to contracts
for the sale or hire of movable property.
Section 18 - Non-enforcement except with variation.
Where a plaintiff seeks specific
performance of a contract in writing, to which the defendant sets up a
variation, the plaintiff cannot obtain the performance sought, except with the
variation so set up, in the following case, namely.
(a)
where by
fraud, mistake of fact or misrepresentation, the written contract of which
performance is sought is in its terms or effect different from what the parties
agreed to, or does not contain all the terms agreed to between the parties on
the basis of which the defendant entered into the contact.
(b)
where the
object of the parties was to produce a certain legal result which the contract
as framed is not calculated to produce;
(c)
where the
parties have, subsequently to the execution of the contract, varied its terms.
Section 19 - Relief against parties and persons claiming under them by subsequent title.
Except as otherwise provided by
this Chapter, specific performance of a contract may be enforced against.
(a)
either party
thereto;
(b)
any other
person claiming under him by a title arising subsequently to the contract,
except a transferee for value who has paid his money in good faith and without
notice of the original contract;
(c)
any person
claiming under a title which, though prior to the contract and known to the
plaintiff, might have been displaced by the defendant;
[13][(ca) when a limited liability partnership has entered into a contract
and subsequently becomes amalgamated with another limited liability
partnership, the new limited liability partnership which arises out of the
amalgamation.]
(d)
when a
company has entered into a contract and subsequently becomes amalgamated with
another company, the new company which arises out of the amalgamation;
(e)
when the
promoters of a company have, before its incorporation, entered into a contract
for the purpose of the company and such contract is warranted by the terms of
the incorporation, the company:
Provided that the company has
accepted the contract and communicated such acceptance to the other party to
the contract.
Section 20 to 24 - Substituted performance of contracts, etc.
[14][Substituted performance of contracts, etc.]
Section 20 - Substituted performance of contract.
[15][Substituted performance of contracts, etc.]
[16][20. Substituted performance of contract
(1)
Without
prejudice to the generality of the provisions contained in the Indian Contract
Act, 1872, and, except as otherwise agreed upon by the parties, 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.
(2)
No
substituted performance of contract under sub-section (1) shall be undertaken
unless the party who suffers such breach has given a notice in writing, of not
less than thirty days, to the party in breach calling upon him to perform the
contract within such time as specified in the notice, and on his refusal or
failure to do so, he may get the same performed by a third party or by his own
agency:
Provided that the party who
suffers such breach shall not be entitled to recover the expenses and costs
under sub-section (1) unless he has got the contract performed through a third
party or by his own agency.
(3)
Where the
party suffering breach of contract has got the contract performed through a
third party or by his own agency after giving notice under sub-section (1), he
shall not be entitled to claim relief of specific performance against the party
in breach.
(4)
Nothing in
this section shall prevent the party who has suffered breach of contract from
claiming compensation from the party in breach.
Section 20A - Special provisions for contract relating to infrastructure project.
[17][20A. Special provisions for
contract relating to infrastructure project
(1)
No
injunction shall be granted by a court in a suit under this Act involving a
contract relating to an infrastructure project specified in the Schedule, where
granting injunction would cause impediment or delay in the progress or
completion of such infrastructure project.
Explanation. For the purposes of this section, section 20B and clause
(ha) of section 41, the expression "infrastructure project" means the
category of projects and infrastructure Sub-Sectors specified in the Schedule.
(2)
The Central Government
may, depending upon the requirement for development of infrastructure projects,
and if it considers necessary or expedient to do so, by notification in the
Official Gazette, amend the Schedule relating to any Category of projects or
Infrastructure Sub-Sectors.
(3)
Every
notification issued under this Act by the Central Government shall be laid, as
soon as may be after it is issued, before each House of Parliament, while it is
in session, for a total period of thirty days which may be comprised in one
session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid,
both Houses agree in making any modification in the notification or both Houses
agree that the notification should not be made, the notification shall
thereafter have effect only in such modified form or be of no effect, as the
case may be; so, however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that
notification.]
Section 20B - Special Courts.
[18][20B. Special Courts
The State Government, in consultation with the Chief Justice of the High
Court, shall designate, by notification published in the Official Gazette, one
or more Civil Courts as Special Courts, within the local limits of the area to
exercise jurisdiction and to try a suit under this Act in respect of contracts
relating to infrastructure projects.]
Section 20C - Expeditious disposal of suits.
[19][20C. Expeditious disposal of
suits
Notwithstanding anything contained in the Code of Civil Procedure, 1908
(5 of 1908), a suit filed under the provisions of this Act shall be disposed of
by the court within a period of twelve months from the date of service of
summons to the defendant:
Provided that the said period may be extended for a further period not
exceeding six months in aggregate after recording reasons in writing for such
extension by the court.]
Section 21 - Power to award compensation in certain cases.
(1)
In a suit
for specific performance of a contract, the plaintiff may also claim
compensation for its breach, [20][in addition to], such
performance.
(2)
If, in any
such suit, the court decides that specific performance ought not to be granted,
but that there is a contract between the parties which has been broken by the
defendant, and that the plaintiff is entitled to compensation for that breach,
it shall award him such compensation accordingly.
(3)
If, in any
such suit, the court decides that specific performance ought to be granted, but
that it is not sufficient to satisfy the justice of the case, and that some
compensation for breach of the contract should also be made to the plaintiff,
it shall award him such compensation accordingly.
(4)
In
determining the amount of any compensation awarded under this section, the
court shall be guided by the principles specified in section 73 of
the Indian Contract Act, 1872.
(5)
No
compensation shall be awarded under this section unless the plaintiff has
claimed such compensation in his plaint:
Provided that where the plaintiff has not claimed any such compensation
in the plaint, the court shall, at any stage of the proceeding, allow him to
amend the plaint on such terms as may be just, for including a claim for such
compensation.
Explanation. The circumstances that the contract has become incapable of
specific performance does not preclude the court from exercising the
jurisdiction conferred by this section.
Section 22 - Power to grant relief for possession, partition, refund of earnest money, etc.
(1)
Notwithstanding
anything to the contrary contained in the Code of Civil Procedure, 1908 (5 of
1908), any person suing for the specific performance of a contract for the
transfer of immovable property may, in an appropriate case, ask for.
(a)
possession, or
partition and separate possession, of the property, in addition to such
performance; or
(b)
any other
relief to which he may be entitled, including the refund of any earnest money
or deposit paid or [21][made by] him, in case his
claim for specific performance is refused.
(2)
No relief
under clause (a) or clause (b) of sub-section (1) shall be granted by the Court
unless it has been specifically claimed:
Provided that where the plaintiff has not claimed any such relief in the
plaint, the Court shall, at any stage of the proceeding, allow him to amend the
plaint on such terms as may be just for including a claim for such relief.
(3)
The power of
the Court to grant relief under clause (b) of sub-section (1) shall be without
prejudice to its powers to award compensation under section 21.
Section 23 - Liquidation of damages not a bar to specific performance.
(1)
A contract,
otherwise proper to be specifically enforced, may be so enforced, though a sum
be named in it as the amount to be paid in case of its breach and the party in
default is willing to pay the same, if the court, having regard to the terms of
the contract and other attending circumstances,, is satisfied that the sum was
named only for the purpose of securing performance of the contract and not for
the purpose of giving to the party in default an option of paying money in lieu
of specific performance.
(2)
When
enforcing specific performance under this section, the court shall not also
decree payment of the sum so named in the contract.
Section 24 - Bar of suit for compensation for breach after dismissal of suit for specific performance.
The dismissal of a suit for specific performance of a contract or part
thereof shall bar the plaintiff's right to sue for compensation for the breach
of such contract or part, as the case may be, but shall not bar his right
to sue for any other relief to which he may be entitled, by reason of such
breach.
Section 25 - Application of preceding sections to certain awards and testamentary directions to execute settlements.
Enforcement of awards and directions to execute settlements
The provisions of this Chapter as to contracts shall apply to awards to
which [22][the Arbitration and Conciliation
Act, 1996 (26 of 1996)], does not apply and to directions in a will or codicil
to execute a particular settlement.
Section 26 - When instrument may be rectified.
(1)
When,
through fraud or a mutual mistake of the parties, a contract or other
instrument in writing (not being the articles of association of a company to
which the Companies Act, 1956, applies) does not express their real intention,
then.
(a)
either party
or his representative in interest may institute a suit to have the instrument
rectified; or
(b)
the
plaintiff may, in any suit in which any right arising under the instrument is
in issue, claim in his pleading that the instrument be rectified; or
(c)
a defendant
in any such suit as is referred to in clause (b), may, in addition to any other
defence open to him, ask for rectification of the instrument.
(2)
If, in any
suit in which a contract or other instrument is sought to be rectified under
sub-section (1), the court finds that the instrument, through fraud or mistake,
does not express the real intention of the parties, the court may, in its
discretion, direct rectification of the instrument so as to express that
intention, so far as this can be done without prejudice to rights acquired by
third persons in good faith and for value.
(3)
A contract
in writing may first be rectified, and then if the party claiming rectification
has so prayed in his pleading and the court thinks fit, may be specifically
enforced.
(4)
No relief
for the rectification of an instrument shall be granted to any party under this
section unless it has been specifically claimed:
Provided
that where a party has not claimed any such relief in his pleading,
the court shall, at any stage of the proceeding, allow him to amend the
pleading on such terms as may be just for including such claim.
Section 27 - When rescission may be adjudged or refused.
(1)
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.
(2)
Notwithstanding
anything contained in sub-section (1), the court may refuse to rescind the
contract.
(a)
where the
plaintiff has expressly or impliedly ratified the contract; or
(b)
where, owing
to the change of circumstances which has taken place since the making of the
contract (not being due to any act of the defendant himself), the parties
cannot be substantially restored to the position in which they stood when
the contract was made; or
(c)
where third
parties have, during the subsistence of the contract, acquired rights in good
faith without notice and for value; or
(d)
where only a
part of the contract is sought to be rescinded and such part is not severable
from the rest of the contract.
Explanation.
In this section "contract", in relation to the territories to which
the Transfer of Property Act, 1882, does not extend, means a contract in
writing.
Section 28 - Rescission in certain circumstances of contracts for the sale or lease of immovable property, the specific performance of which has been decreed.
(1)
Where in any
suit a decree for specific performance of a contract for the sale or lease of
immovable property has been made and the purchaser or lessee does not, within
the period allowed by the decree or such further period as the court may allow,
pay the purchase money or other sum which the court has ordered him to pay, the
vendor or lessor may apply in the same suit in which the decree is made, to
have the contract rescinded and on such application the court may, by order,
rescind the contract either so far as regards the party in default or
altogether, as the justice of the case may require.
(2)
Where a
contract is rescinded under sub-section (1), the court.
(a)
shall direct
the purchaser or the lessee, if he has obtained possession of the property
under the contract, to restore such possession to the vendor or lessor; and.
(b)
may direct
payment to the vendor or lessor of all the rents and profits which have accrued
in respect of the property from the date on which possession was so obtained by
the purchaser or lessee until restoration of possession to the vendor or
lessor, and if the justice of the case so requires, the refund of any sum paid
by the vendee or the lessee as earnest money or deposit in connection with the contract.
(3)
If the
purchase or lessee pays the purchase money or other sum which he is ordered to
pay under the decree within the period referred to in sub-section (1), the
court may, on application made in the same suit, award the purchaser or lessee
such further relief as he may be entitled to, including in appropriate cases
all or any of the following relief's, namely.
(a)
the
execution of a proper conveyance or lease by the vendor or lessor;
(b)
the delivery
of possession, or partition and separate possession, of the property on the
execution of such conveyance or lease.
(4)
No separate
suit in respect of any relief which may be claimed under this section shall lie
at the instance of a vendor, purchaser, lessor or lessee, as the case may be.
(5)
The costs of
any proceedings under this section shall be in the discretion of the court.
Section 29 - Alternative prayer for rescission in suit for specific performance.
A plaintiff
instituting a suit for the specific performance of a contract in writing may
pray in the alternative that, if the contract cannot be specifically enforced,
it may be rescinded and delivered up to be cancelled; and the court, if it
refuses to enforce the contract specifically, may direct it to be rescinded and
delivered up accordingly.
Section 30 - Court may require parties rescinding to do equity.
On adjudging
the rescission of a contract, the court may require the party to whom such
relief is granted to restore, so far as may be, any benefit which he may have
received from the other party and to make any compensation to him which justice
may be require.
Section 31 - When cancellation may be ordered.
(1)
Any person
against whom a written instrument is void or voidable, and who has reasonable
apprehension that such instrument, if left outstanding may cause him serious
injury, may sue to have it adjudged void or voidable; and the court may, in its
discretion, so adjudge it and order it to be delivered up and cancelled.
(2)
If the
instrument has been registered under the Indian Registration Act, 1908, the court
shall also send a copy of its decree to the officer in whose office the
instrument has been so registered; and such officer shall note on the copy of
the instrument contained in his books the fact of its cancellation.
Section 32 - What instruments may be partially cancelled.
Where an
instrument is evidence of different rights or different obligations, the court
may, in a proper case, cancel it in part and allow it to stand for the residue.
Section 33 - Power to require benefit to be restored or compensation to be made when instrument is cancelled or is successfully resisted as being void or voidable.
(1)
On adjudging
the cancellation of an instrument, the court may require the party to whom such
relief is granted, to restore, so far as may be any benefit which he may have
received from the other party and to make any compensation to him which justice
may require.
(2)
Where a
defendant successfully resists any suit on the ground.
(a)
that the
instrument sough to be enforced against him in the suit is voidable, the court
may if the defendant has received any benefit under the instrument from the
other party, require him to restore, so far as may be, such benefit to that
party or to make compensation for it;
(b)
that the
agreement sought to be enforced against him in the suit is void by reason of
his not having been competent to contract under section 11 of the
Indian Contract Act, 1872 (9 of 1872), the court may, if the defendant has
received any benefit under the agreement from the other party, require him to
restore, so far as may be, such benefit to that party, to the extent to which
he or his estate has benefited thereby.
Section 34 - Discretion of court as to declaration of status or right.
Any person
entitled to any legal character, or to any right as to any property, may
institute a suit against any person denying, or interested to deny, his title
to such character or right, and the court may in its discretion make therein a
declaration that he is so entitled, and the plaintiff need not in such suit ask
for any further relief:
Provided
that 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.
Explanation.
A trustee of property is a "person interested to deny" a title
adverse to the title of someone who is not inexistence, and for whom, if in
existence, he would be a trustee.
Section 35 - Effect of declaration.
A
declaration 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.
Section 36 - Preventive relief how granted.
Preventive
relief is granted at the discretion of the court by injunction, temporary
orperpetual.
Section 37 - Temporary and perpetual injunctions.
(1)
Temporary
injunctions are such as are to continue until a specific time, or until the
further order of the court, and they maybe granted at any stage of a suit, and
are regulated by the Code of Civil Procedure, 1908 (5 of 1908).
(2)
A perpetual
injunction can only be granted by the decree made at the hearing and upon the
merits of the suit; the defendant is thereby perpetually enjoined from the
assertion of a right, or from the commission of an act, which would be contrary
to the rights of the plaintiff.
Section 38 - Perpetual injunction when granted.
(1)
Subject to
the other provisions contained in or referred to by this Chapter, a perpetual
injunction may be granted to the plaintiff to prevent the breach of an
obligation existing in his favour, whether expressly or by implication.
(2)
When any
such obligation arises from contract, the court shall be guided by the rules
and provisions contained in Chapter II.
(3)
When the
defendant invades or threatens to invade the plaintiff's right to, or enjoyment
of, property, the court may grant a perpetual injunction in the following
cases, namely.
(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, by the invasion;
(c)
where the
invasion is such that compensation in money would not afford adequate relief;
(d)
where the
injunction is necessary to prevent a multiplicity of judicial proceedings.
Section 39 - Mandatory injunctions.
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 in its
discretion grant an injunction to prevent the breach complained of, and also to
compel performance of the requisite acts.
Section 40 - Damages in lieu of, or in addition to, injunction.
(1)
The
plaintiff in a suit for perpetual injunction under section 38, or mandatory
injunction under section 39, may claim damages either in addition to, or in
substitution for, such injunction and the court may,if it thinks fit, award
such damages.
(2)
No relief
for damages shall be granted under this section unless the plaintiff has
claimed such relief in his plaint:
Provided
that where no such damages have been claimed in the plaint, the court shall, at
any stage of the proceedings, allow the plaintiff to amend the plaint on such
terms as may be just for including such claim.
(3)
The
dismissal of a suit to prevent the breach of an obligation existing in favour
of the plaintiff shall bar his right to sue for damages for such breach.
Section 41 - Injunction when refused.
An
injunction cannot be granted.
(a)
to restrain
any person from prosecuting a judicial 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 a court not
subordinate to that from which the injunction is sought;
(c)
to restrain
any person from applying to any legislative body;
(d)
to restrain
any person from instituting or prosecuting any proceeding in a criminal matter;
(e)
to prevent
the breach of a contract the performance of which would not be specifically
enforced;
(f)
to prevent,
on the ground of nuisance, an act of which it is not reasonably clear that it
will be a nuisance;
(g)
to prevent a
continuing breach in which the plaintiff has acquiesced;
(h)
when equally
efficacious relief can certainly be obtained by any other usual mode of
proceeding except in case of breach of trust;
[23][(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.]
(i)
when the
conduct of the plaintiff or his agents has been such as to disentitle him to
the assistance of the court;
(j)
when the
plaintiff has a no personal interest in the matter.
Section 42 - Injunction to perform negative agreement.
Notwithstanding
anything contained in clause (e) of section 41, where a contract comprises an
affirmative agreement to do a certain act, coupled with a negative agreement,
express or implied, not to do a certain act, the circumstances that the court
is unable to compel specific performance of the affirmative agreement shall not
preclude it from granting an injunction to perform the negative agreement:
Provided
that the plaintiff has not failed to perform the contract so far as it is
binding on him.
Section 43 - Amendment of Act 10 of 1940 [REPEALED]
43. Amendment of Act 10 of 1940
[24][***]
Section 44 - Repeal [REPEALED]
[Rep. by the
Repealing and Amending Act, 1974 (56 of 1974), section.2, Schedule. I].
Schedule - THE SCHEDULE
[25][THE SCHEDULE
[See sections 20A and 41 (ha)]
Category of projects and
Infrastructure Sub-Sectors
Sl. No. |
Category |
Infrastructure
Sub-Sectors |
1 |
2 |
3 |
1. |
Transport |
(a) Road
and bridges |
(b) Ports
(including Capital Dredging) |
||
(c)
Shipyards (including a floating or land-based facility with the essential
features of waterfront, turning basin, berthing and docking facility,
slipways or ship lifts, and which is self-sufficient for carrying on
shipbuilding/repair/breaking activities) |
||
(d) Inland
Waterways |
||
(e)
Airports |
||
(f)
Railway Track, tunnels, viaducts, bridges, terminal infrastructure including
stations and adjoining commercial infrastructure |
||
(g) Urban
Public Transport (except rolling stock in case of urban road transport) |
||
2. |
Energy |
(a) Electricity
Generation |
(b)
Electricity Transmission |
||
(c)
Electricity Distribution |
||
(d) Oil
pipelines |
||
(e)
Oil/Gas/Liquefied Natural Gas (LNG) storage facility (including strategic
storage of crude oil) (f) Gas
pipelines (including city gas distribution network) |
||
3. |
Water and
Sanitation |
(a) Solid
Waste Management |
(b) Water
supply pipelines |
||
(c) Water
treatment plants |
||
(d) Sewage
collection, treatment and disposal system |
||
(e)
Irrigation (dams, channels, embankments, etc.) |
||
(f) Storm
Water Drainage System (g) Slurry
pipelines |
||
4. |
Communication |
(a) Telecommunication
(Fixed network including optic fibre/wire/cable networks which provide
broadband/internet) (b)
Telecommunication towers (c)
Telecommunications and Telecom Services |
5. |
Social and
Commercial Infrastructure |
(a) Education
Institutions (capital stock) |
(b) Sports
infrastructure (including provision of Sports Stadia and Infrastructure for
Academies for Training/Research in Sports and Sports-relating activities) |
||
(c) Hospitals
(capital stock including Medical Colleges, Para Medical Training Institutes
and Diagnostic Centres) |
||
(d)
Tourism infrastructure viz. (i) three-star or higher category classified
hotels located outside cities with population of more than one million; (ii)
ropeways and cable cars |
||
(e) Common
infrastructure for industrial parks and other parks with industrial activity
such as food parks, textile parks, Special Economic Zones, tourism facilities
and agriculture markets |
||
(f) Post-harvest
storage infrastructure for agriculture and horticulture produce including
cold storage |
||
(g) Terminal
markets |
||
(h) Soil-testing
laboratories (i) Cold
chain (including cold room facility for farm level pre-cooling, for
preservation or storage of agriculture and allied produce, marine products
and meat) |
||
|
|
(j) Affordable
Housing (including a housing project using at least 50% of the Floor Area
Ratio (FAR)/Floor Space Index (FSI) for dwelling units with carpet area of
not more than 60 square meters Explanation. For
the purposes of this sub-clause, the term "carpet area" shall have
the same meaning as assigned to it in clause (k) of section 2 of
the Real Estate (Regulation and Development) Act, 2016 (16 of 2016).] |
SPECIFIC
RELIEF ACT 1963
STATEMENT OF OBJECTS AND REASONS
This Bill
seeks to implement the recommendations of the Law Commission contained in its
Ninth Report on the Specific Relief Act, 1877, except in regard to section 42
which is being retained as it now stands. An earlier Bill on the subject
introduced in the Lok Sabha on the 23rd December, 1960, lapsed on its
dissolution. The notes on clauses, extracted from the Report of the Law
Commission, explain the changes made in the existing Act.
[1] Omitted
by Jammu And Kashmir Reorganisation Act, 2019, w.e.f. 31.10.2019 the
previous text was.
"except the State of Jammu and Kashmir"
[2] Brought into
force on 01.03.1964 vide Notification No. S.O. 189 dated 01.03.1964, see
Gazette of India, Pt.II, Section 3 (ii), P.214. Enforced in Sikkim w.e.f.
01.09.1984 vide Notification No. 529(E), dated 22.07.1983.
[3] Inserted by
the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018.
[4] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following.
?10. Cases in which specific performance of contract enforceable Except
as otherwise provided in this Chapter, the specific performance of any contract
may, in the discretion of the court, be enforced.
(a) when there exists no standard for ascertaining actual damage caused
by the non-performance of the act agreed to be done; or
(b) when the act agreed to be done in such that compensation in money
for its non-performance would not afford adequate relief.
Explanation. Unless and until the contrary is proved, the court shall
presume.
(i) that the breach of a contract to transfer immovable property cannot
be adequately relieved by compensation in money; and
(ii) that the breach of a contract to transfer movable property can be
so relieved except in the following cases.
(a) where the property is not an ordinary article of commerce, or is of
special value or interest to the plaintiff, or consists of goods which are not
easily obtainable in the market;
(b) where the property is held by the defendant as the agent or trustee
of the plaintiff.
[5] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following
:-
"contract may, in the discretion of the court"
[6] Inserted
by Act 52 of 1964, Schedule II.
[7] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following.
"14. Contracts not specifically enforceable
(1) The following contracts cannot be specifically enforced, namely.
(a) a contract for the non-performance of which compensation is an
adequate relief;
(b) a contract which runs into such minute or numerous details or which
is so dependent on the personal qualifications or volition of the parties, or
otherwise from its nature is such, that the court cannot enforce specific
performance of its material terms;
(c) a contract which is in its nature determinable;
(d) a contract the performance of which involves the performance of a
continuous duty which the court cannot supervise.
(2) Save as provided by the Arbitration Act, 1940, no contract to
refer present of future differences to arbitration shall be specifically
enforced; but if any person who has made such a contract (other than
arbitration agreement to which the provisions of the said Act apply) and has
refused to perform it, sues in respect of any subject which he has contracted to
refer, the existence of such contract shall bar the suit.
(3) Notwithstanding anything contained in clause (a) or clause (c) or
clause (d) of sub-section (1), the court may enforce specific performance in
the following cases.
(a) where the suit is for the enforcement of a contract,
(i) to execute a mortgage or furnish any other security for securing the
repayment of any loan which the borrower is not willing to repay at once:
Provided that where only a part of the loan has been advanced the vender
is willing to advance the remaining part of the loan in terms of the contract;
or
(ii) to take up and pay for any debentures of a company;
(b) where the suit is for,
(i) the execution of a formal deed of partnership, the parties having
commenced to carry on the business of the partnership; or
(ii) the purchase of a share of a partner in a firm;
(c) where the suit is for the enforcement of a contract for the
construction of any building or the execution of any other work on land:
Provided that the following conditions are fulfilled, namely.
(i) the building or other work is described in the contract in terms
sufficiently precise to enable the court to determine the exact nature of the
building or work;
(ii) the plaintiff has a substantial interest in the performance of the
contract and the interest is of such a nature that compensation in money for
non- performance of the contract is not adequate relief; and
(iii) the defendant has, in pursuance of the contract, obtained
possession of the whole or any part of the land on which the building is to be
constructed or other work is to be executed. Persons for or against whom
contracts may be specifically enforced."
[8] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018.
[9] Inserted by
the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018.
[10] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following
:-
"(a) who would not be entitled to recover compensation for its
breach; or"
[11] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following
:-
"who fails to aver and prove"
[12] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following
:-
"must aver"
[13] Inserted by
the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018..
[14] Substituted
by the Specific Relief (Amendment) Act, 2018 for the following
:-
"Discretion and powers of Court"
[15] Substituted
by Act 18 of 2018, Section 9, for "Discretion and powers of
Court" (w.e.f. 01.10.2018).
[16] Substituted
by Act 18 of 2018, Section 10, for Section 20 (w.e.f. 01.10.2018).
Prior to its substitution, Section 20 read as under.
"20. Discretion as to decreeing specific performance-
(1) The jurisdiction to decree specific performance is discretionary, and
the Court is not bound to grant such relief merely because it is lawful to do
so; but the discretion of the Court is not arbitrary but sound and reasonable,
guided by judicial principles and capable of correction by a Court of
appeal."
[17] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018..
[18] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018..
[19] Substituted by
the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018..
[20] Substituted
by the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018. for the following
:-
"either in addition to, or in substitution of"
[21] Substituted
by act 52 of 1964, S.3 and Schedule II, for "made to".
[22] Substituted
by the Specific Relief (Amendment) Act, 2018, Section 12, w.e.f.
01.10.2018 vide Notification No. SO4888(E) dated 19.09.2018. for the
following.
"the Arbitration Act, 1940"
[23] Inserted by
the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018
vide Notification No. SO4888(E) dated 19.09.2018..
[24] Omitted by
the Repealing and Amending Act, 1974 (56 of 1974), section.2,
Schedule. I, the previous text was.
"43. Amendment of Act 10 of 1940
In section 32 of the Arbitration Act, 1940, after the
words "nor shall any arbitration, agreement or award be", the word,
"enforced" shall be inserted.
[25] Inserted by
the Specific Relief (Amendment) Act, 2018 w.e.f. 01.10.2018 vide
Notification No. SO4888(E) dated 19.09.2018.