Specific Relief Act Briefly Explained
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Purpose: The Specific Relief Act (SRA) of 1963 is a procedural and equitable law that provides non-monetary remedies for the enforcement of civil rights.
- It is NOT a source of rights itself but a mechanism to enforce rights and obligations established by other laws, such as the Indian Contract Act.
Jurisprudential Essence: The Act is founded on the maxim Ubi Jus Ibi Remedium, which means "where there is a right, there is a remedy".
- It provides "specific" or "equitable" reliefs as an alternative to the general remedy of monetary damages.
Nature of the Act:
Civil Law: It applies ONLY to civil matters and not to criminal laws.
Procedural Law: It provides the method for obtaining a remedy but does not create the substantive right or cause of action.
Non-Exhaustive: The Act's preamble states that it defines the law relating to "certain kinds" of specific relief, indicating that it is NOT a complete legal code.
Prospective: It applies to suits filed after its commencement date of March 1, 1964.
7 Kinds of Relief in Specific Relief Act
Recovering Possession of Property
Specific Performance of Contracts
Rectification of Instruments
Rescission of Contracts
Cancellation of Instruments
Declaratory Decree
Injunctions
Key Amendment of 2018: The 2018 amendment introduced a paradigm shift by making specific performance of contracts mandatory under Section 10.
- It also introduced special provisions for infrastructure projects, including special courts and a time limit for disposal of suits, and extended the application of specific performance to Limited Liability Partnerships (LLPs) and companies.
Part I
Preliminary
Section 1 - It establishes the name, territorial scope (whole of India), and effective date (March 1, 1964) of the Act.
Section 2 - It provides an inclusive definition for obligation to include “every duty enforceable by law” [Sec. 2(a)]
- It also states that any undefined terms in this Act will have the same meaning as in the Indian Contract Act, 1872 [Sec. 2(e)]
Section 3 - It is a saving clause which clarifies that this Act is NOT an exclusive remedy and does NOT supersede other laws, such as the Indian Contract Act or the Indian Registration Act.
Section 4 - This Section limits the application of this Act to ONLY civil disputes.
- It explicitly excludes criminal matters.
- However, It can apply to a civil claim arising from facts that may also constitute a criminal offense, such as defamation.
Part II
Specific Relief
Chapter I
Recovering Possession of Property
Property - Can be either movable or immovable.
- The Act provides distinct legal mechanisms for the recovery of possession, distinguishing between immovable and movable property.
- Sections 5 and 6 govern recovery of immovable property; and
- Sections 7 and 8 govern the recovery of movable property.
Immovable Property (Sections 5 & 6):
Section 5 (Recovery through Title): A person "entitled to the possession" of an immovable property can recover it by filing a civil suit under the Civil Procedure Code (CPC).
- This section is based on the legal right to the property and has a limitation period of 12 years.
- This section does NOT provide any distinct relief.
- It merely acts as a signboard directing the aggrieved to go to CPC for relief.
Section 6 (Special Relief for Dispossessed Persons): This is a summary remedy for a person who has been illegally dispossessed of immovable property.
- It serves to discourage individuals from taking the law into their own hands, however good their title may be.
Essentials:
Dispossessed,
Without consent,
Immovable property, AND
Otherwise than in due course of law,
Irrespective of the title,
Within 6 months of dispossession.
Key Feature: The court only considers whether the plaintiff was in possession and was illegally dispossessed; it does not consider the title to the property.
- The court's decision is final and not subject to appeal or review.
Limitations: Suit against Government CANNOT be filed under Section 6.
- Suits against the Government can be filed under Section 5.
I. T. C. Limited v. Adarsh Co-operative Housing Society Ltd. (2012)
- In a suit under Section 6 of the Act, the ONLY question that has to be determined by the Court is whether the plaintiff was in possession of the disputed property and whether he had been illegally dispossessed therefrom on any date within six months prior to the filing of the suit.
Movable Property (Sections 7 & 8):
Section 7 (Recovery based on Title): This is the general provision for recovering specific movable property based on the plaintiff's ownership, in the manner prescribed by the CPC.
- This is a similar provision as Section 5, only difference being that this section is applicable for movable property.
Section 8 (Recovery of Specific Articles): This equitable remedy compels the defendant (who is not the owner of the property) to deliver a specific movable item to the person who is entitled to its immediate possession.
- Applicable in Four Cases:
The defendant holds the item as a trustee or agent;
Monetary compensation is inadequate relief;
It is difficult to ascertain damages; or
The possession was wrongfully transferred from the plaintiff.
Presumption: In cases where compensation is inadequate or damages are difficult to ascertain, the court will presume the plaintiff is entitled to the specific return of the item, unless the defendant proves otherwise.
Chapter II
Specific Performance of Contracts
Section 9 (Defences relating to contracts): All defences in law relating to contracts can be taken by the defendant in against any suit under this Chapter (Specific Performance of Contracts).
- Law relating to contracts means → Indian Contract Act, Indian Partnership Act, Sale of Goods Act, Transfer of Property Act, etc.
- Any defence under these Acts can be used against suits under this Chapter.
- Examples for defences under Contract Act → Coercion, Undue Influence, Fraud, Misrepresentation, Minor, Unsound Mind.
Section 10 (Mandatory Specific Performance):
General Rule → Specific performance of a contract SHALL be enforced by the Court.
Exception → These SHALL NOT be performed if they fall under Sections 11(2), 14, OR 16.
The 2018 amendment changed the court's discretion from "may" to "shall”, making specific performance a mandatory relief for a court to grant, subject ONLY to certain limited exceptions.
Section 11 (Contracts Related to Trusts): Specific performance is generally enforced for contracts related to trusts.
- But NOT if the trustee acts in breach of their trust or exceeds their powers.
Section 12 (Part of a Contract): The general rule is that a court will NOT direct the specific performance of a part of a contract. [Sec. 12(1)]
- However, there are exceptions:
If the unperformed part is a minor portion that can be compensated with money. [Sec. 12(2)]
If the defaulting party CANNOT perform a major part, the aggrieved party may still seek performance of the part that can be done, provided they relinquish all claims to the unperformed part and compensation. [Sec. 12(3)]
If the contract has independent, severable parts, the court may compel performance of the parts that can be fulfilled. [Sec. 12(4)]
Section 13 (Imperfect Title): A purchaser or lessee can compel a vendor or lessor with no or an imperfect title to specifically perform the contract.
- Especially if the vendor later acquires the title or the sale is subject to a third party's concurrence.
Section 14 (Contracts That Cannot be Specifically Enforced): This section limits the application of Section 10 by listing 4 types of contracts that a court CANNOT specifically enforce.
Category | Section | Rationale & Example |
Substituted Performance | Section 14 (a) | CANNOT be enforced if the aggrieved party has already obtained performance from a third party in accordance with Section 20. |
Continuous Duty | Section 14 (b) | A contract, the performance of which involves the performance of a continuous duty which the Court CANNOT supervise, such as overseeing the daily construction of a building. |
Personal Qualifications | Section 14 (c) | The contract depends on the unique skill or qualification of a party, such as a painter or musician. |
Determinable Nature | Section 14 (d) | The contract is by its nature terminable by a party at their own will, such as a partnership at will. |
Section 15 (Who may obtain Specific Performance): Specific performance can be obtained by :-
Either Party to the Contract;
Representative in interest or principal;
Beneficiary → Settlement of marriage OR in a compromise between members of family;
Remainderman;
Reversioner in possession;
Reversioner in remainder;
Limited liability partnership;
Company;
Company after incorporation.
Section 19 (Against whom Specific Performance may be obtained):
- Any party to the Contract;
- Any person claiming under him by a title arising subsequently to Contract;
- Any person claiming under title;
- Limited Liability Partnership;
- Company;
- Company after incorporation.
Section 16 (Personal Bars to Relief): A person CANNOT obtain specific performance if they have:
Already obtained substituted performance under Section 20.
Become incapable of performing, committed fraud, or willfully violated an essential term of the contract which remains to be performed on his part.
Failed to prove that they have been "ready and willing" to perform their part of the contract.
Section 17 (Imperfect Title knowingly): When seller has knowledge that he has NO title, still he enters in contract to sell, then the seller has NO right to obtain specific performance of the Contract.
- Similarly, if the seller has a doubtful title, then also he has NO right to obtain specific performance of the Contract.
Section 20 (Substituted Performance): A party who has suffered a breach of contract can issue a written notice of NOT less than 30 days to the defaulting party, and if the default continues, the aggrieved party can get the work done by a third party.
- In this case, they can only claim compensation from the defaulting party, and not specific performance.
- Compensation CANNOT be claimed by the aggrieved party unless he has sent the requisite notice and subsequently gotten the work completed by a third party.
Section 20A (Infrastructure Project): In a suit involving a Contract relating to an infrastructure project as specified in the Schedule, the Court SHALL NOT grant injunction against such projects.
- Only the Central Government has the power to amend the Schedule.
Section 20B (Special Courts): State Government SHALL establish special courts with consultation of the Chief Justice of the High Court for such cases.
Section 20C (Expeditious Disposal of Suits): This Section supersedes the provisions of CPC.
- A suit filed under the provisions of this Act SHALL be disposed of by the Court within 12 months from the date of service of summons to the defendant.
- This time limit can be extended by 6 months, for reasons to be recorded in writing.
Section 21 (Compensation in certain cases):
Plaintiff have the option to claim compensation in addition to specific performance of the contract.
If Specific Performance of contract is NOT granted; and
- The Defendant is guilty for breach of contract; THEN
- The Court SHALL award compensation to the Plaintiff.
If Specific performance of contract is granted, but it is not sufficient to satisfy justice, the Court SHALL also award compensation accordingly.
Compensation is to be calculated according to the principles of Section 73 of the Indian Contract Act 1872.
If the plaintiff has NOT asked for compensation in his plaint, then the Court SHALL NOT award him compensation.
Proviso: Where the Plaintiff has NOT claimed compensation, the Court shall allow the plaintiff to amend the plaint, at any stage of proceeding.
Explanation: Just because contract has become incapable of specific performance, it does NOT mean that the Court CANNOT exercise jurisdiction conferred by this Section.
- The object of Section 21 is to avoid multiplicity of proceedings.
Section 22 (Power to grant relief): This Section supersedes the provisions of CPC.
- Any person suing for specific performance of Contract for the transfer of immovable property may also ask for :-
Possession, or partition and separate possession, of the property, in addition to such performance; OR
Any other relief to which he may be entitled, including refund of earnest money or deposit paid in case where specific performance of contract is rejected.
- These reliefs CANNOT be granted by the Court unless they have been specifically pleaded in the plaint.
Proviso: Where the Plaintiff has NOT claimed compensation, the Court SHALL allow the plaintiff to amend the plaint, at any stage of proceeding.
Section 23 (Liquidated damages NOT a bar to specific performance):
- If in a contract, a sum is specified as compensation for the breach of contract.
- The Court will, having regard to the terms of the contract and other circumstances, satisfy itself as to whether this sum was specified ONLY for the purpose of securing performance of the contract and NOT for the purpose of taking money in lieu of the Contract.
- If the Court is convinced as to the former, the Court may grant specific performance of such a contract even though the defaulting party is willing to pay the mentioned amount.
- But if the latter is proved, then the Court shall NOT grant specific performance of the Contract.
- If the Court grants specific performance under this Section, then the party cannot claim money under the Contract.
- But, if the Court does NOT grant specific performance under this Section, then the party may claim the money.
Section 24 (Bar of suit for compensation): If the suit for specific performance of Contract or part thereof is dismissed,
- It SHALL bar the plaintiff’s right to sue for compensation,
- But, it SHALL NOT bar his right to sue for any other relief to which he may be entitled, by reason of such breach.
- Example → damages under Indian Contract Act.
Chapter III
Rectification of Instruments
Section 26 (Rectification of Instruments): Rectification means to correct the mistake done by the parties.
When through fraud or a mutual mistake of the parties;
- A contract or other instrument;
- Which is in writing;
- Does NOT express the real intention of the parties;
- Then it can be rectified.
Either party or representative in interest may file suit for rectification; OR
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
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.
NOTE: In clause a, a new suit is being filed for the purposes of rectification while in clauses b and c, pleading is being made in an ongoing suit.
The Court has discretionary power to direct rectification of instrument even though all the essentials are fulfilled.
- But, the Court will NOT direct rectification in cases where a third party has acquired rights in good faith and for value.
Where a contract is in writing, then both rectification and specific performance of the contract can be claimed in the same suit.
Relief for Rectification shall NOT be granted unless it is specifically claimed.
Proviso: Where party has NOT claimed such relief for rectification, Court shall allow him to amend the pleadings at any stage.
Chapter IV
Rescission of Contracts
Section 27 (Rescission of Contracts): It means putting an end to a contract.
Any person interested in a contract,
- May sue to have it rescinded,
- Court may adjudge such rescission in the following cases :-
Contract is voidable or terminable by the plaintiff;
The contract is unlawful, not apparent on its face, and the defendant is more to blame than the plaintiff.
Court may refuse rescinding the contract where :-
Where the plaintiff has expressly or impliedly ratified the contract; OR
Where circumstances have changed and parties CANNOT be substantially restored to the position when the contract was made; OR
Where the third party during subsistence of contract acquired rights in good faith, without notice and for value.
Where only a part of the contract is sought to be rescinded and such part is NOT severable from the rest of the contract.
Section 28 (Recission in certain circumstances):
If a decree for specific performance of a contract for sale or lease of immovable property has been made; and
- The purchaser or lessee does not, pay the purchase money or other sum within the prescribed time, as has been ordered by the court,
- Then the vendor or lessor may in the same suit, apply to have the contract rescinded.
If a contract is rescinded under sub-section (1), then the court :-
SHALL direct the purchaser or lessee, if he has obtained the property under contract, to restore such possession to the vendor or lessor, AND
MAY direct payment to the vendor or lessor of all the rents and profits have accrued in the time being, and also if justice requires, refund of any sum paid by the vendee or the lessee as earnest money or deposit in connection with the contract.
If purchaser or lessee pays the purchase money or other sum which is ordered to pay under the decree as referred in sub-section (1), then the court may, on application in the same suit,
- Award the purchaser or lessee such further relief as he may be entitled to, namely :-
Execution of a proper conveyance or lease by the vendor or lessor;
Delivery of possession, or partition and separate possession, of the property on the execution of such conveyance or lease.
NO separate suit under this section.
The costs of any proceedings under this section shall be at the discretion of the court.
Section 29 (Alternative prayer for rescission): 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 (Equity in rescinding): If a contract is being rescinded by the court,
- The Court MAY require the party to whom such relief is granted to restore, as far as practicable,
- 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
Section 31 (When cancellation may be ordered):
Essentials:-
- Any person against whom a written instrument;
- Is VOID OR VOIDABLE;
- Who has reasonable apprehension that such instrument, if left outstanding may cause him serious injury,
- MAY sue to have to adjudged VOID OR VOIDABLE,
- The Court MAY, so adjudge it and order it to be delivered up and cancelled.
If the instrument is registered under the Indian Registration Act,
- The court SHALL send a copy of the decree to the registrar, to make entry of cancellation of instrument.
Section 32 (Instrument partly cancelled): Where an instrument is evidence of different rights or obligations,
- The court MAY, cancel it in part; and
- Allow it to stand for the residue.
- But, the instrument must be severable.
Section 33 (Equity in cancellation): This provision is similar to Section 30.
If an instrument is being cancelled by the court,
- The Court MAY require the party to whom such relief is granted to restore, as far as practicable,
- Any benefit which he may have received from the other party, AND
- To make any compensation to him which justice may require.
Where a defendant successfully resists any suit on the ground :-
a. That the instrument sought to be enforced against him is VOIDABLE, AND
- If the defendant has received any benefit under the instrument from the other party,
- The Court may require him to restore such benefit or to make compensation for it, as far as practicable.
b. The the instrument sought to be enforced against him is void by reason of his NOT been competent to contract under Section 11 of ICA,
- If the defendant has received any benefit under the instrument from the other party,
- The Court may require him to restore such benefit or to make compensation for it,
- To the extent to which he or his estate has benefited thereby.
Chapter VI
Declaratory Decrees
Section 34 (Declaration of status or right): In a declaratory decree, right is NOT created but merely declared.
- Right is already with the person himself.
- Essentials :-
Any person entitled to any legal character (ex - wife, minor, etc.); OR
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 make a declaration that he is so entitled,
The plaintiff need NOT in such a suit ask for any further relief.
- Proviso: Where further relief is required but it has NOT been pleaded, then NO declaratory decree shall be awarded.
- This is because, if a declaratory decree is granted then there will be multiplicity of proceedings.
Section 35 (Effect of declaration): A declaration made under this Chapter is binding ONLY on the :-
Parties;
Persons claiming through the parties; and
Where any of the parties are trustees, then on the persons for whom such parties are trustees.
Part III
Preventive Relief
Chapter VII
Injunctions Generally
Section 36 (Preventive Relief): Preventive relief is granted at the discretion of the court by Injunction -
Temporary ; OR
Perpetual
- Injunction is a court-ordered remedy that requires a party to do; OR
- Refrain from doing a specific act;
- To prevent a legal wrong or to enforce rights.
- This is NOT a right, the court may or may NOT grant an injunction.
Section 37 (Injunctions):
It defines temporary injunctions as :-
- Such that continue until a specific time; OR
- Until the further order of the Court;
- Temporary injunction may be granted at any stage of a suit.
- These are regulated by the CPC [Order 39, Section 94(c)]
Perpetual injunctions can ONLY be granted by the decree,
- Made at the hearing and upon the merits of the suit.
- Thereby, the defendant is perpetually enjoined from the assertion of:-
A right; OR
From the commission an act;
Either of which would be contrary to the rights of the plaintiff.
Section 38 (Perpetual Injunction when granted):
Subject to the other provisions (mainly Sec. 41) 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.
When any such obligation arises from a contract, the court shall be guided by the rules and provisions contained in Chapter II.
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 :-
Where the defendant is trustee of the property for the plaintiff;
Where there exists NO standard for ascertaining the actual damage cause, OR likely to be caused by the invasion;
Where invasion is such that compensation in money would NOT afford adequate relief;
Where the injunction is necessary to prevent a multiplicity of judicial proceedings.
Section 39 (Mandatory Injunctions): Mandatory Injunction is an injunction in a positive form requiring a person or party to a suit to do a particular thing.
- When, to prevent 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.
- If ONLY mandatory injunction is required, then separate suit.
- But, if mandatory injunction and permanent injunction are required together, then it can be asked in the same suit.
Section 40 (Damages in alternative/addition to injunction): In lieu of means in place of/ instead.
When the plaintiff files a suit for perpetual injunction under Section 38 OR for mandatory injunction under Section 39,
- The plaintiff may claim damages either :-
In addition to, OR
In substitution for;
- Such injunction, AND
- The Court MAY award such damages.
NO relief for damages SHALL be granted under this Section unless the plaintiff has claimed such relief in his plaint.
Proviso: Where NO such damages have been claimed in the plain, the Court shall, at any stage of the proceedings, allow the plaintiff to amend the plain on such terms as may be just for including such claims.
Where the plaintiff's suit for injunction is dismissed, this shall bar his right to sue for damages afterwards (in a separate suit).
Section 41 (Injunction when refused): This section provides a list where injunction CANNOT be granted.
- This list is ONLY illustrative.
- Even if a case does NOT fall within Section 41, the court can still refuse to grant injunction because it is within the discretionary power of the Court.
- An Injunction CANNOT be granted :-
To restrain any person from prosecuting a judicial proceeding which is already pending at the institution of the suit (in which injunction is being sought),
- Unless such restraint is necessary to prevent a multiplicity of proceedings;
To restrain any person from instituting or prosecuting any proceeding in a court, NOT sub-ordinate to that from which the injunction is sought;
- Hence, the lower court CANNOT grant an injunction stopping a party from instituting a suit, but the Higher court can do so.
To restrain any person from applying to any legislative body;
To restrain any person from instituting or prosecuting any proceeding in a criminal matter;
To prevent the breach of a contract the performance of which would NOT be specifically enforced;
To prevent, on the ground of nuisance, an act of which it is NOT reasonably clear that it will be a nuisance;
To prevent a continuing breach in which the plaintiff has acquiesced (passively consent to it or silently accepted it);
When equally efficacious relief can certainly be obtained by any other usual mode of proceeding, except in case of breach of trust;
If it would impede or delay the progress or completion of any infrastructure project.
When the conduct of the plaintiff or his agents has been such as to disentitle him to the assistance of the court;
When the plaintiff has NO personal interest in the matter.
Section 42 (Negative agreement): Section 41(e) will NOT apply here.
- Where a contract comprises of an affirmative and a negative clause, AND
- The circumstances are such that the court is unable to compel specific performance of affirmative part, AND
- The affirmative part has NO effect over the negative part.
- This SHALL NOT affect the court from granting an injunction to perform the negative agreement.
Proviso: This can ONLY be done if the plaintiff has NOT failed to perform the contract so far as it is binding on him.
From specific performance to injunctions — the Specific Relief Act, 1963 provides important remedies when legal rights are violated and monetary compensation may not be enough.
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