Full text containing the act, Specific Relief Act, , with all the sections, Be it enacted by Parliament in the Fourteenth Year of the Republic of India as. BILL further to amend the Specific Relief Act, BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:—. 1. The Law of Specific Relief in India was originally codified by Specific Relief Act, The provision of this enactment was considered by the.


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The amendments are aimed at realigning the existing provisions to enable ease of doing business in India, while continuing to provide stronger contractual enforcement and strengthen investor protection. Key Amendments Introduced a Specific Performance no longer discretionary The relief of specific performance evolved as specific performance act india discretionary remedy granted by English specific performance act india of equity in cases where either the common law courts could not provide a remedy, or the remedy was inadequate.

In India, the Principal Act was enacted embodying this same outlook towards specific performance.


Prior to the amendment, the Principal Act gave courts a discretionary power to grant specific performance of specific performance act india contract under two circumstances i. Consequently, grant of specific relief for breach of contract was more of specific performance act india exception, with courts granting damages as a general rule.

A major change introduced by the Amendment Act, is that it now makes it mandatory for courts to enforce specific performance of contracts, except for certain types of contracts where performance is not specifically enforceable.

The discretion granted to courts previously while granting the remedy of specific performance including the two circumstances under which specific performance could be granted as discussed above have been removed. This change is aimed at providing greater protection of contractual expectations by ensuring that a non-defaulting party can obtain the performance he bargained for.

With specific performance as the new rule, the likelihood of a judicial order mandating specific performance may well act as a deterrent for defaulting parties.

Where the damage caused by the breach of specific performance act india is ascertainable then the remedy of specific performance is not available to the plaintiff. For example, a person enters into a contract for the purchase of a painting of dead painter specific performance act india is only one in the market and its value is unascertainable then he is entitled to the same.

Specific Relief (Amendment) Act, - Corporate/Commercial Law - India

When compensation of money is not adequate relief: In following cases compensation of money would not provide adequate relief: Where specific performance act india subject matter of the contract is an immovable property. Where the subject matter of the contract is movable property and, Such property or goods are not an ordinary article of commerce i.

The article is of special specific performance act india or interest to the plaintiff. The article is of such nature that is not easily available in the market. The property or goods held by the defendant as an agent or trustee of the plaintiff.

In Case of Ram Karan v. Section 16 of the SRA has been amended to provide that specific performance cannot be enforced in favour of a person: The Amendment Act has also amended Section 16 of the SRA to suggest that a party seeking specific performance, only has to "prove" that such party has performed or has been ready and willing to perform the essential terms of the contract and an averment to such effect in the specific performance act india is no longer mandatory when seeking specific performance.

Therefore, in case the courts can infer that a party seeking relief has performed or has been ready and willing to perform the essential terms of the contract, courts can still grant specific relief, even if the pleadings do not contain an averment to such effect.

Section 20 of the SRA now permits a party suffering from a breach of contract, to have the contract performed by a third-party or through its agent and recover the costs and expenses incurred in substituting such performance, from the defaulting party unless agreed otherwise under the contract.

Specific Relief Act - Wikipedia

However, before substituting such performance, the non-defaulting party will be specific performance act india to provide a 30 days' prior notice to the defaulting party, requiring the defaulting party to perform the contract within a specified time frame and notifying the defaulting party that the non-defaulting party intends to have the contract performed by substitution.

In case a non-defaulting party exercises the option of such substituted performance, then, such party can no longer seek any specific performance of contract; although such party will still be entitled to claim damages from the defaulting party on account of specific performance act india defaulting party's breach of contract.

Pursuant to the Amendment Act, courts are not permitted to grant an injunction in respect of infrastructure projects listed in the schedule to the Amendment Actif such injunction would cause an impediment or delay in the progress or completion of the infrastructure project or interfere with related facility or services that are a part of such a project.

For example, a person undertakes a contract to sing at a particular place and also undertakes not to sing anywhere else during the same period. In case the singer threatens breach, the court cannot force him to sing. The positive side of the bargain is not specifically enforceable. But the negative undertaking i.

Specific Performance of Contract and its enforceability

When he is prevented from resorting to other openings, it may exert some pressure upon his mind and he may be persuaded specific performance act india go ahead with the performance of his contract.

This type of remedy is known as preventive relief. This is granted by issuing an order known as injunction.