SPECIFIC RELIEF ACT, 1963

Introduction
Specific performance of contract
Rectification of Instrument
Recission of Contract
Cancellation of Contract
Injunction

Introduction

The Specific Relief Act, 1963 is an Act of the Parliament of India which provides remedies for persons whose civil or contractual rights have been violated. The enumeration of rights and duties must be supplemented by legal devices which help the individual to enforce his rights. Social redress must be provided to every person who is injured in the social process. Basically, the mission of the Specific Act is to assure that whenever there is a wrong there must be a remedy. Major things in the specific relief act are:

Specific Performance of contract
Rectification of contract
Recission of contract
Cancellation of contract.
Discretion of court
Injunction

Specific performance of contract

In simple terms, specific performance means fulfilling the obligations exactly as promised in a contract. This legal concept is enshrined in the Specific Relief Act, 1963, and empowers courts to ensure that promises made in valid contracts are honored—especially when monetary compensation isn’t enough.

Defences to Specific Performance (Section 9)

As per Section 9, a defendant facing a claim for specific performance may raise any valid defence available under contract law. According to Snell’s Principles of Equity, common defences include:

No effective contract
Absence of writing (where required by law)
Plaintiff’s misrepresentation
Mistake (mutual or otherwise)
Misdescription of subject matter
Plaintiff at default
Lapse of time
Trickiness or fraud
Great hardship to defendant
Illegality of contract
Defective title

Section 10: When Specific Performance is Enforceable

A contract may be specifically enforced subject to the provisions of Section 11(2), Section 14, and Section 16.

Section 11: Specific Performance in Case of Trusts

Section 11(1): Enforces specific performance when the contract involves the execution of a trust.
Section 11(2): No specific enforcement of contracts made by a trustee that exceed their powers or breach the trust.

Section 12: Specific Performance of Part of Contract

General Rule: Section 12(1) provides that courts do not order partial performance , except in the following cases:

Section 12(2): Section 12(2) provides that when minor part is unperformed and monetary compensation is possible then in such a case partial performance may be allowed.
Section 12(3): Section 12(3) provides that when major part of a contract is unperformed:
- If it admits compensation then partial performance is allowed if plaintiff agrees to adjusted payment.
- If it does not admit compensation then court may enforce part that can be performed, if the plaintiff relinquishes other rights.
Section 12(4): This clause provides that when part of a contract is separate and independent then the contract can be specifically enforced

Section 14: Contracts Not Specifically Enforceable

Section 14 of the specific relief act provides that the court will not enforce the following types of contracts:

Where substituted performance has already been obtained.
Where constant supervision is required by the court.
Where personal skills or qualifications are involved.
Where contract is determinable in nature.

Section 17: Vendor/Lessor with No Title

Section 17 of the specific relief act, 1963 defines that contract to sell or let any immovable property cannot be specifically enforceable in favour of a vendor or lessor :

1. who, knowing himself not to have any title to the property, has contracted to sell or let the property.
2. Who, though he entered into the contract believing that he had a good title to property but the title to the ownership is disputed at the time by the party or by the court for selling and letting the property

Section 15: Who May Obtain Specific Performance?

According to this section specific performance can be obtained by:

Any party thereto
the representative in interest or the principal, of any party thereto

Where the contract is of settlement of marriage or compromise of doubtful rights of family, any person beneficially entitled thereunder.
where the contract has been entered into by a tenant for life in due exercise of a power, the remainderman
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.
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
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.
when a company has entered into a contract and subsequently becomes amalgamated with another company, the new company which arises out of the amalgamation
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

Section 16: Personal Bars to Relief

This section provides that specific performance will not be granted to a person who:

Has obtained substituted performance under Section 20
Has violated an essential term or become incapable of performing
Has committed fraud or acted contrary to the contract’s purpose
Was unwilling to perform from the start

Rectification of Instrument

Rectification is a powerful remedy in equity. It allows a court to amend a written contract or document so that it truly reflects the original intention of the parties. This remedy is especially crucial when mistakes—either due to fraud or mutual misunderstanding—cause the document to diverge from what was actually agreed upon.

Section 26 of the Specific Relief Act, 1963 lays down the framework for rectification of instruments. This section covers following points:

Section 26(1): When Rectification Can Be Claimed

This clause provides that if a contract, due to fraud or a mutual mistake of the parties, fails to express the real intention of the parties, then:

Either party or their legal representative may institute a suit for rectification.
The plaintiff in any existing suit involving rights under such a contract may also seek rectification within that suit.
A defendant can also claim rectification as a defense by invoking clause (b).

Section 26(2): Power of the Court

Section 26(2) provides that once the court is satisfied that the contract fails to reflect the true intention of the parties due to fraud or mutual mistake, it may order rectification of the instrument so that it represents the actual agreement.

Section 26(3): Enforcement After Rectification

Section 26(3) provides that a contract that has been rectified may then be specifically enforced by the court, just like any other valid contract.

Section 26(4): Specific Claim Required

Section 26(4) provides that no relief for rectification shall be granted unless it is specifically claimed in the pleadings. This means the party seeking rectification must clearly ask for it in their legal documents—it’s not something the court will assume on its own.

Recission of Contract

In contract law, rescission means the cancellation or unmaking of a contract between the parties. The purpose of rescission is to undo the contract and restore both parties to their original positions—as if the contract had never existed.

When Can a Contract Be Rescinded?

Section 27(1) provides that a contract may be rescinded in the following cases:

When the contract is voidable or terminable by the plaintiff.
When the contract is unlawful for reasons not evident on its face and the defendant is more at fault.

Conditions Where Court May Refuse Rescission (Section 27(2))

When the plaintiff has ratified the contract.
When circumstances have changed (not due to defendant’s fault), and the parties can no longer be restored to their original position.
When third parties have acquired rights in good faith and for value.
When only a part of the contract is rescinded and it cannot be separated from the rest.

Section 28 – Rescission in Case of Specific Performance Decree

Section 28(1)

This section provides that if a decree for specific performance of a contract involving the sale or lease of immovable property is passed, but the purchaser or lessee fails to pay the amount within the time fixed by the court, the vendor or lessor can apply for rescission of the contract.

Section 28(2)

This section provides that when the court has passed a specific performance decree and the purchaser fails to pay, the court may:

Direct the return of possession if it was already transferred.
Order the purchaser to pay rent or compensation for the time they had possession.

Section 28(3)

If the purchaser or lessee later pays the full amount as ordered by the court, then the court may grant them:

A proper conveyance or lease from the vendor or lessor.
Possession, or in case of joint property, partition and separate possession.

Section 28(4)

No separate suit may be filed for claiming reliefs under this section.

Section 28(5)

The court has complete discretion to decide who should bear the costs of such proceedings.

Section 29 – Rescission When Specific Performance Is Not Possible

Under Section 29, if a plaintiff files a suit for specific performance but the contract cannot be specifically enforced, the court may instead order the contract to be rescinded and cancelled.

Section 30 – Restoration After Rescission

This section provides that if the court grants a decree of rescission, it may require the decree holder to restore any benefits received under the contract, as far as is required to ensure justice and fairness.

Cancellation of Contract

Section 31 – When Cancellation May Be Ordered

Under Section 31(1) of the Specific Relief Act, 1963, the court may order the cancellation of an instrument if the following three essential conditions are met:

The instrument is void or voidable.
The plaintiff has a reasonable apprehension of serious injury if the instrument is left outstanding.
The court, using its discretion, finds that the instrument should be delivered up and cancelled under the circumstances of the case.

Section 31(2) adds that if the instrument is registered under the Indian Registration Act, 1908, the court shall send a copy of the decree to the registration officer. The officer will then record the fact of cancellation in their books.

Partial Cancellation – Section 32

Section 32 provides that where rights and obligations in an instrument are separable, the court may cancel only that part of the instrument which affects those rights, leaving the rest intact.

Section 33 – Restoration of Benefits After Cancellation

Section 33(1)

It provides that when a court orders cancellation of an instrument, it may require the party obtaining the relief to restore any benefit received under the contract to maintain justice between the parties.

Section 33(2)

This subsection outlines two key scenarios where a defendant can resist a suit by offering to return the benefit or compensation:

Where the instrument is voidable and the court considers it appropriate to order the defendant to restore benefits or pay compensation.
Where the agreement is void due to incapacity of the defendant (e.g., minor or legally incompetent), and the court may similarly require restoration or compensation.

Injunction

An injunction is a judicial order that either restrains a party from performing a specific act or compels them to perform a certain act. It is a form of preventive relief granted when monetary compensation is inadequate.

Section 36 – Preventive Relief

Section 36 empowers courts to grant preventive relief through injunctions. This may be either:

Temporary Injunction
Perpetual Injunction

Section 37 – Temporary & Perpetual Injunction

Section 37(1): Temporary Injunctions continue until a specific time or further court order. They can be granted at any stage of the suit and are governed by Order 39, Rules 1 & 2 of the CPC.
Section 37(2): Perpetual Injunctions are granted through a decree after the case is decided on merits.

Section 38 – When Perpetual Injunction Can Be Granted

Perpetual injunctions can be granted under the following circumstances:

To prevent breach of an obligation in favour of the plaintiff.
If the obligation arises from a contract, the court is guided by Chapter II of the Act.
When the defendant threatens the plaintiff’s rights or property enjoyment in following ways:
- The defendant is a trustee of the property.
- There is no standard to ascertain damages.
- Compensation is inadequate.
- To avoid multiplicity of proceedings.

Section 39 – Mandatory Injunctions

This section allows courts to issue injunctions that compel the performance of certain acts to prevent breach and enforce rights where appropriate.

Section 40 – Claim for Damages

Section 40(1): It provides that plaintiff may claim damages alongside or in place of injunction.
Section 40(2): It provides that no relief for damages should be grant except which are written in plaint, provided that where no such damage has been claimed in the plaint, the court shall at any stage of proceedings, allow the plantiff to amend the plaint on such terms as may be just.
Section 40(3): It provides that, “The dismissal of a suit to prevent the breach of an obligation existing in favour of the plaintiff shall bar his right to sue for damages for such breach.”

Section 41 – When Injunction Cannot Be Granted

The court shall not grant an injunction in the following situations:

To restrain judicial proceedings, unless necessary to prevent multiple lawsuits.
To restrain proceedings in a court not subordinate to the court in which the injunction is sought.
To restrain application to a legislative body.
To restrain criminal prosecutions.
Where contract performance cannot be specifically enforced.
Where nuisance is not clearly proven.
Where the plaintiff has acquiesced in the breach.
Where other effective legal remedies are available (except breach of trust).
If plaintiff’s conduct is questionable or unworthy.
If plaintiff lacks personal interest in the subject matter.

Difference Between Temporary and Perpetual Injunction

Basis	Temporary Injunction	Perpetual Injunction
Nature	Provisional or till further order	Final in nature
Purpose	Maintain status quo	Protect established rights
Stage of Suit	Granted during the pendency of suit	Granted only after trial
Regulation	Code of Civil Procedure, Order 39	Section 38 to 42 of the Act
Dissolution	Can be dissolved	Cannot be dissolved

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