The power of the court to grant injunctions, a remedy preventing a party from certain actions, is subject to certain limitations outlined under the law.

Section 41 of the Specific Relief Act delineates instances where the court cannot grant an injunction. These limitations are designed to balance the interests of justice, prevent abuse of legal processes, and ensure that injunctions are issued judiciously. Understanding these restrictions is crucial in comprehending the nuanced nature of equitable remedies and the circumstances under which a court may or may not intervene.

Section 41 of the Specific Relief Act

Section 41 of the Specific Relief Act, 1963 outlines circumstances where a court may refuse to grant an injunction. An injunction is a legal remedy restraining a party from engaging in certain actions. This section provides a set of conditions where the court, in the exercise of its discretion, may decide against issuing an injunction. These conditions range from situations where other legal remedies are more suitable to instances where the plaintiff’s behaviour disentitles them to court assistance.

Section 41(a)

According to this provision, an injunction cannot be granted to restrain any person from prosecuting a judicial proceeding that is already pending at the institution of the suit in which the injunction is sought. However, there’s an exception: if such restraint is necessary to prevent a multiplicity of proceedings, the court may still grant the injunction.

Example:

Suppose there is a complex property dispute between two parties, and both parties have filed separate suits in different courts to resolve the matter. One party, recognizing the impracticality and potential injustice of having multiple proceedings on the same issue, seeks an injunction to restrain the other party from prosecuting the judicial proceeding initiated in another court. In this scenario, the court may grant the injunction to prevent the multiplicity of proceedings and ensure a more efficient and fair dispute resolution.

Section 41(b)

According to this provision, an injunction cannot be granted to restrain any person from instituting or prosecuting any proceeding in a court not subordinate to the injunction sought.

Example:

Suppose a scenario where Party A and Party B are involved in a contractual dispute related to a significant construction project. Dissatisfied with the progress, Party A seeks an injunction to prevent Party B from initiating or continuing legal proceedings in a higher court, say, a superior district court, which is not subordinate to the court where Party A has filed its suit.

If Party A were allowed to obtain an injunction against proceedings in a court not subordinate to the court where the injunction is sought, it could lead to a situation where one party has significant strategic advantages based on the choice of the legal forum. Section 41(b) prevents such a scenario and ensures that each party can choose the appropriate legal forum for their case without undue interference through injunctions.

This provision reinforces the principle of legal autonomy and prevents one party from unduly influencing or restricting the legal choices available to the other party. It also contributes to the fair administration of justice by allowing parties to choose the appropriate legal forum based on their case assessment and legal strategy.

Section 41(c)

According to this provision, an injunction cannot be granted to restrain any person from applying to any legislative body.

Example:

Consider a case where Party A, a concerned citizen, is dissatisfied with certain environmental practices of a factory owned by Party B. Party A wishes to bring attention to this matter and believes that raising the issue before a legislative body, such as a parliamentary committee or a local council, is an effective way to address the concern.

If Party B seeks an injunction to prevent Party A from applying to or raising the issue before the legislative body, section 41(c) would come into play. Under this provision, the court would be restricted from granting such an injunction. This ensures that individuals retain the right to address grievances through appropriate legislative channels without facing legal hindrance through injunctions.

The rationale behind this provision is to safeguard the democratic process and the right of individuals to participate in civic affairs. It prevents the misuse of legal mechanisms to stifle or restrain individuals from engaging with legislative bodies on matters of public interest.

Section 41(d)

According to this provision, an injunction cannot be granted to restrain any person from instituting or prosecuting any proceeding in a criminal matter.

Example:

Let’s say that Party A believes they have been defamed by Party B through certain statements made in a public forum. Party A filed a criminal complaint against Party B under defamation laws, seeking redress for the alleged harm to their reputation.

If Party B seeks an injunction to prevent Party A from initiating or continuing the criminal proceeding, invoking section 41(d), the court would be barred from granting such an injunction. This provision ensures that individuals can initiate or continue criminal proceedings for offences recognized by law, and injunctions should not interfere with criminal justice.

The purpose of this provision is to uphold the principles of criminal justice, ensuring that legal mechanisms like injunctions do not impede the prosecution or defence in criminal matters.

Section 41(e)

According to this provision, an injunction cannot be granted to prevent the breach of a contract, the performance of which would not be specifically enforced.

Example: Consider a scenario where Party A contracts with Party B to deliver certain goods. The contract specifies a delivery date, but Party A cannot fulfil their end of the bargain and deliver the goods on time for various reasons.

Now, Party B, disappointed with the delay, seeks an injunction to prevent the breach of contract and compel Party A to deliver the goods. However, suppose the performance of this particular contract is such that it cannot be specifically enforced (for example, because the goods are unique or the circumstances make it impractical to compel performance). In that case, an injunction cannot be granted under section 41(e).

This provision recognizes that not all breaches of contract can or should be addressed through injunctions. It preserves the principle that equitable remedies, like injunctions, are generally applicable when the specific performance of the contract is feasible and just.

Section 41(f)

Section 41(f) of the Specific Relief Act specifies a situation where an injunction cannot be granted. In particular, an injunction cannot be granted to prevent, on the ground of nuisance, an act of which it is not reasonably clear that it will be a nuisance.

Example: Suppose a dispute exists between two neighbours, A and B. A wants an injunction to prevent B from constructing a new structure on his property, claiming that it will create a nuisance. However, at the time of filing the suit, it was not definitively clear that the proposed construction would result in a nuisance.

In this case, section 41(f) would come into play. The court would be hesitant to grant an injunction at the initial stage if it’s uncertain whether the act (construction) will lead to a nuisance. The provision ensures that injunctions are not issued based on speculative claims of nuisance but require a reasonable certainty that the act will cause a nuisance.

Section 41(g)

This section implies that if the plaintiff has, by his actions or inaction, indicated acceptance or approval of a continuing breach, the court may not grant an injunction to prevent that breach.

Example: If a property owner knows that his neighbour is regularly encroaching on his land but takes no action or raises no objection over an extended period, the court might consider that the owner has consented to the encroachment. In such a case, the court may refuse to grant an injunction.

Section 41(h)

According to this provision, if another legal remedy is available that is as effective as an injunction, the court may deny the injunction.

Example: If damages are a sufficient remedy, and there is no need for an injunction to prevent harm, the court may reject the injunction.

Section 41(i)

According to this provision, If the plaintiff’s conduct or that of his representatives is improper or disentitles him to the court’s assistance, the court may refuse an injunction.

Example: If the plaintiff has engaged in fraudulent conduct related to the subject matter of the injunction, the court may disentitle him from obtaining an injunction

Section 41(j)

According to this provision, the court may deny an injunction if the plaintiff lacks a genuine personal interest in the subject matter.

Example: If someone brings a suit to stop construction on a piece of land but has no legal or rightful claim, the court may refuse the injunction due to lack of personal interest.

Limitation on Granting Injunctions Under Specific Relief Act
Suhani Dhariwal

Rectification of instruments is a legal remedy available under the Specific Relief Act of 1963, which allows parties to correct errors or mistakes in written instruments such as contracts, deeds, agreements, or other legal documents.

The remedy of rectification aims to bring the written instrument in line with the actual intentions and understanding of the parties involved in its formation.

Legal document mistakes can occur for various reasons, including typographical errors, clerical mistakes, or misunderstandings between the parties. These errors can lead to unintended consequences and may jeopardize the validity and enforceability of the instrument. Rectification provides a means to rectify such mistakes and ensure that the instrument accurately reflects the original agreement.

Rectification of instruments in India is governed by section 26 of the Specific Relief Act. This section provides the legal framework for rectifying mistakes in written instruments. Certain requirements must be met to obtain rectification, and important implications are associated with this remedy. Let’s explore them further.

Requirements of Rectification

The points below describe the requirements of rectification.

1. Mutual Mistake

Rectification can be sought when there is a mutual mistake, meaning both parties to the contract are in agreement that there is an error or mistake in the written instrument. The mistake should be of such a nature that it does not reflect the true intentions or understanding of the parties at the time of contract formation.

2. Document Does Not Reflect Intention

The mistake in the instrument should be such that it results in the document not reflecting the parties’ true intention. The mistake should be substantial and not a mere clerical error or a minor discrepancy.

3. Clear and Convincing Evidence

The party seeking rectification bears the burden of proving that there was a mistake in the instrument and that the rectification is necessary to correct that mistake. The evidence presented should be clear, convincing, and beyond any reasonable doubt.

Implications of Rectification

The following points describe the implications of rectification.

1. Correcting Mistakes

The primary implication of rectification is that it allows for correcting mistakes in written instruments. Once rectified, the instrument will reflect the true intentions and understanding of the parties, thereby avoiding any unintended consequences that may have arisen due to the mistake.

2. Validity and Enforceability

Rectification ensures that the corrected instrument is valid and enforceable. It removes any doubts or ambiguities caused by the mistake and provides legal certainty to the parties involved.

3. Impact on Rights and Obligations

Rectification may have implications on the rights and obligations of the parties. Once the instrument is rectified, the parties will be bound by its corrected terms, and any obligations or duties arising from the instrument will be based on the rectified version.

4. Retroactive Effect

Rectification operates retroactively, meaning it is effective from the original contract date. It is as if the mistake had never occurred, and the corrected terms are deemed to have been in place from the beginning.

Rectification is a significant legal remedy ensuring written instruments’ accuracy and integrity. Rectifying mistakes upholds the parties’ intentions and maintains the contracts’ fairness and enforceability. It provides a mechanism to correct errors and avoid any unjust or unintended consequences arising from mistakes in legal documents.

Example of Rectification of Instruments

Let’s consider an example of rectification of instruments involving a business partnership agreement.

Mr X and Mr Y enter a partnership agreement to start a new business venture. They draft a written agreement that outlines the terms and conditions of their partnership, including the profit-sharing ratio and the duration of the partnership. However, during the drafting process, a typographical error mistakenly stated Mr X’s profit share as 60% instead of the intended 40%.

Upon discovering the error, Mr X and Mr Y realize that the incorrect profit-sharing ratio does not accurately reflect their original agreement and may lead to disputes in the future. To rectify the instrument, they decide to seek legal intervention.

They file a rectification suit before the court, providing evidence such as their initial negotiations, emails, and other supporting documents demonstrating their original intention for Mr X to have a 40% profit share. Both parties argue that the incorrect ratio was a genuine mistake and request the court to rectify the instrument to reflect the accurate profit-sharing arrangement.

After carefully reviewing the evidence and considering the circumstances, the court grants the remedy of rectification. It orders the correction of the agreement by substituting the incorrect profit-sharing ratio of 60% with the correct ratio of 40%. By rectifying the instrument, the court ensures that the partnership agreement accurately reflects the parties’ original intention, avoiding potential conflicts or disputes arising from the incorrect provision.

This example highlights how rectification of instruments can be used to correct errors or mistakes in written agreements, ensuring that the parties’ true intentions are accurately reflected. It emphasizes the significance of rectification in maintaining the integrity of contractual relationships and promoting fairness and justice among the parties involved.

Conditions Under Which Rectification May Be Granted

Here are four conditions under which rectification may be granted.

1. Mutual Mistake

Rectification can be granted when there is a mutual mistake, meaning both parties to the contract agree that there is an error or mistake in the written instrument. The mistake must be material and should not reflect the true intentions or understanding of the parties at the time of contract formation.

2. Clear Evidence

The party seeking rectification must provide clear and convincing evidence of the mistake in the instrument. This evidence should demonstrate that the written document does not accurately represent the intended terms of the agreement.

3. Intention to Rectify

It is necessary for the party seeking rectification to establish an intention to rectify the mistake when entering into the contract. This means that the parties recognized the error and intended to correct it.

4. Prompt Action

The party seeking rectification should promptly apply for rectification. Delay in seeking rectification may affect the court’s decision, as it can raise questions about the party’s sincerity or the importance of rectifying the mistake.

Role of the Courts in Rectifying Instruments

The role of the courts in rectifying instruments is crucial in ensuring the fair and just resolution of disputes arising from errors or mistakes in written agreements. When parties seek rectification, they rely on the judicial system to correct and align the instrument with their original intentions. The courts play several key roles in this process. Some of them are:

1. Discretionary Power

The courts have discretionary power when granting rectification. They carefully consider the evidence and circumstances of each case to determine whether rectification is warranted.

2. Application for Rectification

The party seeking rectification must apply to the appropriate court, providing evidence of the mistake and the need for rectification. The court evaluates the evidence presented and assesses whether the requirements for rectification are met.

3. The burden of Proof

The burden of proof lies with the party seeking rectification. On a balance of probabilities, they must demonstrate that there was a mistake and that rectification is necessary to correct it.

4. Objective Approach

The courts take an objective approach when rectifying instruments. They consider the parties’ intentions during contract formation, documentary evidence, and surrounding circumstances to determine the true intentions and rectify any mistakes.

5. Retroactive Effect

Once the court grants rectification, it operates retroactively. The corrected terms are deemed to have been in place from the beginning, and any rights, obligations, or consequences arising from the rectified instrument are applied retroactively.

The role of the courts in rectifying instruments is to ensure fairness and accuracy in contractual relationships. They carefully review the evidence, assess the parties’ intentions, and exercise their discretionary power to rectify mistakes and uphold the integrity of written instruments.

Conclusion

The remedy of rectification serves as a safeguard to uphold the integrity and enforceability of written agreements, fostering confidence and trust in the legal system and contractual relationships. When mistakes occur, seeking rectification ensures that parties can rely on the accurate representation of their agreements, promoting fair and just outcomes in contract law.

Rectification of Instruments Under Specific Relief Act
Suhani Dhariwal

In India, the Specific Relief Act, 1963, provides remedies for persons whose civil or contractual rights have been violated. Questions from the Specific Relief Act are asked as MCQ or short answers in law exams. To help you prepare better for your exam, here is a list of the most important sections of the Specific Relief Act.

All the useful sections mentioned here cover popular law exams. Still, you should match it with your syllabus and definitely read other sections too. Now that we are clear, here are the important sections of the Specific Relief Act.

Important Sections of Specific Relief Act

Section 1 – Short title, extent, and commencement.
Section 2 – Definitions.
Section 5 – Recovery of specific immovable property.
Section 6 – Suit by person dispossessed of immovable property.
Section 7 – Recovery of specific movable property.
Section 9 – Defences respecting suits for relief based on contract.

Section 10 – Cases in which specific performance of contract enforceable.
Section 12 – Specific performance of part of contract.
Section 14 – Contracts not specifically enforceable.
Section 14A – Power of court to engage experts.
Section 15 – Who may obtain specific performance.
Section 16 – Personal bars to relief.

Section 20 – Substituted performance of contract.
Section 20C – Expeditious disposal of suits.
Section 21 – Power to award compensation in certain cases.

Section 23 – Liquidation of damages not a bar to specific performance.
Section 26 – When instrument may be rectified.
Section 27 – Where rescission may be adjudged or refused.

Section 31 – When cancellation may be ordered.
Section 34 – Discretion of court as to declaration of status or right.
Section 35 – Effect of declaration.

Section 37 – Temporary and perpetual injunctions.
Section 38 – Perpetual injunction when granted.
Section 39 – Mandatory injunctions.
Section 40 – Damages in lieu of, or in addition to, injunction.
Section 41 – Injunction when refused.

These were the important sections of the Specific Relief Act. If you like, you may read this full Act here. Use the PDF or bare act book and highlight all the useful sections shown above. After you do that, it will be easy to prepare well for your law exams.

For Specific Relief Act Exams

It is recommended that you give maximum time to these sections. However, this does not give you the excuse to completely ignore the rest. Before appearing for an exam, it is of prime importance that you read the full Specific Relief Act at least once. The list of important sections above is to only help you once you have read the entire act.

Important Sections of the Specific Relief Act
WritingLaw

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 follows:-

Part I of Specific Relief Act – Preliminary

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. (The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019).)

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions.

In this Act, unless the context otherwise requires,-

(a) “obligation” includes every duty enforceable by law;

(b) “settlement” means 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 to 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 expressions used herein but not defined, and defined in the Indian Contract Act, 1872, have the meanings respectively assigned to them in that Act.

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.

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.

Part II of Specific Relief Act – Specific Relief

Chapter I – Recovering Possession of Property

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.

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 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. Amended in 2017: Here is the Amendment PDF.

(2) No suit under this section shall be brought-
(a) after the expiry of six months 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.

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.

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.

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 of 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 of the thing claimed, or, as the case may be;
(b) that it would be extremely difficult to ascertain the actual damage caused by its loss.

Chapter II

SPECIFIC PERFORMANCE OF CONTRACTS

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.

Law Note: Specific Performance of Contracts

CONTRACTS WHICH CAN BE SPECIFICALLY ENFORCED

10. Cases in which specific performance of contract enforceable.

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.

11. Cases in which specific performance of contracts connected with trusts enforceable.

(1) Except as otherwise provided in this Act, specific performance of a 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.

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 by 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 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), 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.

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 lessor 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 persons is necessary for validating the title, and they are bound to concur at the request of the vendor or lessor, 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 lessor, 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 lessor 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 a 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 lessor 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.

CONTRACTS WHICH CANNOT BE SPECIFICALLY ENFORCED

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.

14A. Power of court to engage experts.

(1) Without prejudice to the generality of the provisions contained in the Code of Civil Procedure, 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.

PERSONS FOR OR AGAINST WHOM CONTRACTS MAY BE SPECIFICALLY ENFORCED

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 reminder-man;

(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;

(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.

16. Personal bars to relief.

Specific performance of a 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 perform the essential terms of the contract which are to be performed by him, other than terms 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 must prove* performance of, or readiness and willingness to perform, the contract according to its true construction.

*Amendments in 2017 with effect from 1-10-2018. Here is the amendment PDF.

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 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.

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 cases, 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 contract;

(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.

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;

(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.

Substituted performance of contracts, etc.

20. Substituted performance of contract.

(1) Without prejudice to the generality of the provisions contained in the Indian Contract Act, 1872 (9 of 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.

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.

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.

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.

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, either 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 circumstance that the contract has become incapable of specific performance does not preclude the court from exercising the jurisdiction conferred by this 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, 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 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.

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.

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.

ENFORCEMENT OF AWARDS AND DIRECTIONS TO EXECUTE SETTLEMENTS

25. Application of preceding sections to certain awards and testamentary directions to execute settlements.

The provisions of this Chapter as to contracts shall apply to awards to which the Arbitration and Conciliation Act, 1996, does not apply and to directions in a will or codicil to execute a particular settlement.

Chapter III – Rectification of Instruments

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 (1 of 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.

Chapter IV – Rescission of Contracts

27. Where 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.

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 lessee as earnest money or deposit in connection with the contract.

(3) If the purchaser 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 reliefs, 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.

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.

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 require.

Chapter V – Cancellation of Instruments

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.

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.

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 sought 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, 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.

Chapter VI – Declaratory Decrees

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 some one who is not in existence, and whom, if in existence, he would be a trustee.

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 declaration, such parties would be trustees.

Part III of Specific Relief Act – Preventive Relief

Chapter VII – Injunctions Generally

36. Preventive relief how granted.

Preventive relief is granted at the discretion of the court by injunction, temporary or perpetual.

37. Temporary and perpetual injunctions.

(1) Temporary injunctions are such as are to continue until a specified time, or until the further order of the court, and they may be granted at any stage of a suit, and are regulated by the Code of Civil Procedure, 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.

Chapter VIII – Perpetual Injunctions

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.

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.

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.

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;

(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 no personal interest in the matter.

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.

43. Amendment of Act 10 of 1940.

[Rep. by the Repealing and Amending Act, 1974 (56 of 1974), sec. 2, Sch. I (w.e.f. 20-12-1974).]

44. Repeal.

[Rep. by the Repealing and Amending Act, 1974 (56 of 1974), sec. 2, Sch. I (w.e.f. 20-12-1974).]

The Schedule

Click here to go to the original 2017 Amendment PDF. You will find the Schedule there.

You may also like to see:

• Transfer of Property Act, 1882
• Sale of Goods Act, 1930
• Hindu Succession Act, 1956
• Hindu Marriage Act, 1955

Specific Relief Act, 1963
WritingLaw

What is a Contract?

As per section 2(h) of the Indian Contract Act, 1872, a contract is a legally binding agreement. A contract can be both written and oral agreement. Certain elements are required to convert an agreement into a contract.

Section 10 of the Indian Contract Act, 1872 lays down certain essentials which are required to form a valid contract, such as free consent, competency, lawful consideration, and a lawful object.

• What is a Contract?
• What is Specific Performance of a Contract?
• Who May Obtain Specific Performance?
• Case Laws

What is Specific Performance of a Contract?

Halsbury said that specific performance is an equitable remedy given by the court in case of breach of contract in the form of a judgment that the dependent perform the contract following its terms and conditions.

The accused party has the option to file a suit for specific performance against the one who has not performed the contractual obligations.

Example: A has a piece of land that can be used for commercial purposes. A and B had a contract, and B paid the half amount for purchasing his land and decided that rest of the amount will be paid when A will transfer his land to B. But later on, A refused to sell his land. B sued A and is entitled to recovery of the losses incurred by him.

In Beemaneni Maha Lakshmi vs Gandumalla Appa Rao, Honourable Supreme Court held that in the case of a specific contract, the defendant is required to mention the losses in the written statement which he might have suffered if he would have performed the specific contract.

Who May Obtain Specific Performance?

According to section 15 of the Specific Relief Act, 1963, specific performance of a contract may be obtained by:

1. any party;
2. the principle or the representative in interest, of any party;
3. any beneficiary is entitled to specific performance if the contract involves a marital settlement or a compromise of disputed rights between members of the same family.
4. if a tenant for life has entered into a contract in the due exercise of a power, the remainderman;
5. a reversioner in possession, if an agreement is a covenant entered into with his predecessor in title and the reversioner is entitled to the benefit of such covenant;
6. if an agreement is a covenant and the reversioner suffers material injury in case of breach of contract, then reversioner in remainder will be entitled to the benefit.
   • 6A. when a limited liability partnership has entered into a contract and subsequently becomes amalgamated with another limited liability partnership, the new limited liability partnership arises out of the amalgamation.
7. if a company merges with another company under the terms of a contract, the new company will form as a result of the merger (amalgamation).
8. if the promoters of a company entered into a contract before for the company’s purposes before its incorporation and such contract is warranted by the terms of the incorporation, the company has to accepted that contract and communicated such acceptance to the other party of the contract.

1. Any party: Illustration: In a contract, there are two parties, A and B. Therefore, either of the parties can obtain specific performance of the contract.

2. The principle or the representative in interest, of any party.

Representative in Interest: It is a broader term that includes an agent, assignee, or legal representative.

Illustration: A has an interest in B’s property. Then A or his principal (if A is an agent) will be considered as a representative in interest.

Conditions in which a representative in interest or his principal cannot obtain specific performance of the contract are-

i. If the knowledge, ability, solvency, or any personal trait of such party is a material factor in the contract.
ii. If the contract provides that his interest shall not be assigned.

Illustration: A made a contract with B for painting (skill). Hence A cannot obtain the specific performance of this contract as it is made on an individual’s skills.

3. Any beneficiary is entitled to specific performance if the contract involves a marital settlement or a compromise of disputed rights between members of the same family.

Illustration 1: A made a contract with B to marry C for a specified amount, and if B denied paying then, A can obtain specific performance of the contract.

Illustration 2: A, B, C, D are brothers and have a joint property in the village. A, B, C made a contract to give whole property to D. D is the beneficiary entitled here and can claim specific performance of such contract.

4. If a tenant for life has entered into a contract in the due exercise of a power, the remainderman;

Tenant for life: A person who is beneficially entitled under a settlement to possession of settled land to use a property for the rest of his life. He is entitled to hold the legal estate but only for the duration of his life.

Illustration: A gave his house to B for his life but had a contract that after his death, the property will accelerate to C.

Remainderman: A person who inherits or is entitled to inherit property upon the termination of the estate of the former owner. A remainderman is a person who has an interest in the remaining property and will eventually own it at some time in the future.

Illustration: A gave his house to B for lifetime. B is a tenant for life but had a contract that after B’s death, the property will accelerate to C. C is remainderman.

5. A reversioner in possession, if an agreement is a covenant entered into with his predecessor in title and the reversioner is entitled to the benefit of such covenant;

Reversioner in possession: Any person to whom the property is reversed back, and he is in possession of that particular property. When a property owner effectively transfers property to another yet retains some future rights in the property, it is known as a reversioner in possession.

Covenant: It is a legal promise or an agreement between two people, or companies, or even countries.

Illustration: A (grandfather), B (father), and C (son). A does not want to give his property to B. Instead, he wanted to give his property to C. A entered into a contract with Z (tenant for life) to enjoy his property till his life and pay the rent to C, and after Z’s death, the property will be accelerated to C (reversioner in possession).

Here, the reversioner in possession also has the right to obtain the specific performance of the contract entered by another person.

6. If an agreement is a covenant and the reversioner suffers material injury in case of breach of contract, then reversioner in remainder will be entitled to the benefit.

The reversioner will be responsible for the injury caused by the non-performance of the contract by the remainder.

Illustration: A gave his house to B and asked to pay the rent to C. If B does not pay the rent, then C has to bear the injury caused.

6A. when a limited liability partnership has entered into a contract and subsequently becomes amalgamated with another limited liability partnership, the new limited liability partnership arises out of the amalgamation.

This clause has been inserted by the Specific Relief Amendment Act, 2018.

Illustration: A (LLP) merged into B (LLP) and formed C (LLP). Therefore a contract entered by A can be specifically performed by C as it emerged as a result of an amalgamation of A and B.

7. If a company merges with another company under the terms of a contract, the new company will form as a result of the merger (amalgamation).

8. If the promoters of a company entered into a contract before for the company’s purposes before its incorporation and such contract is warranted by the terms of the incorporation, the company has to accepted that contract and communicated such acceptance to the other party of the contract.

Case Laws

1. Robin Ramjibhai Patel vs Anandibai Rama Rajaram Pawar & Ors, 2016: In this case, the Supreme Court said that when a plaintiff wants to implead certain persons as defendants in a suit for specific performance on the ground that they may be adversely affected by the outcome of the suit, then the interest of justice also requires allowing such a prayer so that those likely to be affected are aware of the proceedings and can take appropriate defence as suited to their vendors.
2. Kerala High Court in 2017 ruled that a plaintiff is entitled to specific performance of a contract only if he follows the original provisions of the contract. In case of any variation in terms of the contract, let it be for the defendant’s benefit, the plaintiff will still not be entitled to seek specific performance.
3. Bommaka Nagabhushna Reddy vs W Srinivasa Rao
4. Swiss Bank Corpn vs Lloyds bank Ltd.
5. Hari Krishna Agarwala vs K C Gupta
6. HPA International vs Bhagwandas Fateh Chand Daswani

Read Next: What Is the Doctrine of Part Performance Under the Transfer of Property Act?

Who May Obtain Specific Performance – Section 15 of Specific Relief Act
Anushka Saxena

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