Specific Relief Act, 1963 and Allied Statutes — Bare Act Sections for Unit V

Except as otherwise provided herein, nothing in this Act shall be deemed—(1) to deprive any person of any right to relief, other than specific performance, which he may have under any contract; or (2) to affect the operation of the Indian Registration Act, 1908, on documents.

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.

A person entitled to the possession of specific immovable property may recover it in the manner provided by the Code of Civil Procedure, 1908.

(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. (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.

A person entitled to the possession of specific movable property may recover it in the manner provided by the Code of Civil Procedure, 1908.

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.

A special or temporary right to the present possession of movable property is sufficient to support a suit under this section.

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: (1) when the thing claimed is held by the defendant as the agent or trustee of the plaintiff; (2) when compensation in money would not afford the plaintiff adequate relief for the loss of the thing claimed; (3) when it would be extremely difficult to ascertain the actual damage caused by its loss; (4) when the possession of the thing claimed has been wrongfully transferred from the plaintiff.

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.

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.

(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.

(1) Except as otherwise hereinafter provided, the court shall not direct the specific performance of a part of a contract. (2) Where a party is unable to perform the whole of his part, but the unperformed part is only a small proportion, admitting of compensation in money, the court may direct specific performance of so much as can be performed, with compensation for the deficiency. (3) Where the unperformed part forms a considerable part of the whole, or does not admit of compensation in money, the plaintiff is not entitled to a full decree; but the court may direct the defaulting party to perform specifically so much as he can, if the other party pays the full consideration and relinquishes claims to the remaining part and to compensation. (4) Where a severable part of a contract can and ought to be specifically performed independently of another part which cannot or ought not to be, the court may direct specific performance of the former part.

Where a person contracts to sell or let immovable property having no title or only an imperfect title, the purchaser or lessee may, among other rights: compel the vendor/lessor to make good the contract out of any interest subsequently acquired; compel him to procure necessary concurrence or conveyance from third persons bound to give it; compel him to redeem a mortgage not exceeding the purchase money; and, where the vendor's own suit for specific performance is dismissed for want of title, recover his deposit with interest and costs, secured by a lien on the vendor's interest in the property.

The following contracts cannot be specifically enforced, namely: (1) where a party has obtained substituted performance of contract under Section 20; (2) a contract, the performance of which involves the performance of a continuous duty which the court cannot supervise; (3) 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 (4) a contract which is in its nature determinable.

Without prejudice to the provisions of the Code of Civil Procedure, 1908, in any suit under this Act where the court considers it necessary to get expert opinion on a specific technical issue, it may engage one or more experts, direct them to report on the issue, and examine them in open court; the expert's opinion forms part of the record, and the expert is entitled to fees as the court may fix.

Specific performance may be obtained by: any party to the contract; the representative in interest or principal of a party (subject to a proviso excluding cases turning on personal skill/solvency or a no-assignment term, unless already performed or accepted); a beneficiary under a marriage settlement or family compromise; a remainderman where a tenant for life exercised a power; a reversioner in possession or in remainder under a covenant; the new LLP arising from an amalgamation of LLPs (15(fa)); the new company arising from an amalgamation of companies (15(g)); and a company that has accepted a pre-incorporation contract made by its promoters and communicated that acceptance (15(h)).

Specific performance of a contract cannot be enforced in favour of a person—(1) who has obtained substituted performance of contract under Section 20; or (2) 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 (3) 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.

A contract to sell or let immovable property cannot be specifically enforced in favour of a vendor or lessor who, knowing he has no title, contracted to sell or let it; or who, though believing he had good title, cannot at the time fixed for completion give a title free from reasonable doubt. The provisions also apply, as far as may be, to contracts for sale or hire of movable property.

Where a plaintiff seeks specific performance of a written contract to which the defendant sets up a variation, the plaintiff cannot obtain performance except with that variation, where: fraud, mistake of fact, or misrepresentation caused the written contract to differ from the parties' actual agreement, or to omit agreed terms; the object was to produce a legal result the contract as framed does not achieve; or the parties later varied its terms.

Specific performance may be enforced against either party to the contract; any other person claiming under him by a title arising subsequently to the contract, except a bona fide transferee for value without notice of the original contract; a person claiming under a title prior to the contract but known to the plaintiff and displaceable by the defendant; the new LLP arising from an LLP amalgamation (19(ca)); and the new company arising from a company amalgamation, or a company that has accepted and communicated acceptance of a pre-incorporation contract.

(1) Where a contract is broken due to non-performance of a promise, the party who suffers by such breach has the option of substituted performance through a third party or his own agency, and may recover the expenses and costs actually incurred from the party committing the breach. (2) No substituted performance shall be undertaken unless the injured party has given a written notice of not less than thirty days calling upon the party in breach to perform, and he refuses or fails to do so. (3) Where the injured party has got the contract performed through a third party or his own agency after such notice, he is not entitled to claim relief of specific performance against the party in breach. (4) Nothing in this section prevents the injured party from claiming compensation from the party in breach.

(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. (2) The Central Government may, by notification in the Official Gazette, amend the Schedule relating to any category of projects or infrastructure sub-sectors. (3) Every such notification shall be laid before each House of Parliament for a total period of thirty days, which may modify or annul it.

The State Government, in consultation with the Chief Justice of the High Court, shall designate, by notification, one or more Civil Courts as Special Courts, within the local limits of the area, to try a suit under this Act in respect of contracts relating to infrastructure projects.

Notwithstanding anything contained in the Code of Civil Procedure, 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.

Five categories, each with detailed sub-sectors: (1) Transport — roads and bridges, ports, shipyards, inland waterways, airports, railway infrastructure, urban public transport. (2) Energy — electricity generation/transmission/distribution, oil pipelines, oil/gas/LNG storage, gas pipelines. (3) Water and Sanitation — solid waste management, water supply/treatment, sewage systems, irrigation, storm-water drainage. (4) Communication — fixed-network telecommunication, telecom towers and services. (5) Social and Commercial Infrastructure — education institutions, sports infrastructure, hospitals, tourism infrastructure, industrial parks/SEZs, post-harvest storage/cold chain, terminal markets, affordable housing.

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.

(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) does not express their real intention, either party may institute a suit for rectification, or claim it within a pending suit, or raise it as a defence. (2) The court may, in its discretion, direct rectification 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 may first be rectified, and then, if prayed for, specifically enforced.

(1) Any person interested in a contract may sue to have it rescinded where the contract is voidable or terminable by the plaintiff, or where it is unlawful for causes not apparent on its face and the defendant is more to blame than the plaintiff. (2) The court may refuse to rescind where the plaintiff has ratified the contract; where the parties cannot be substantially restored to their original position due to a change of circumstances not caused by the defendant; where third parties have acquired rights in good faith and for value; or where only a severable part is sought to be rescinded.

Where a decree for specific performance of a contract for sale/lease of immovable property has been made, and the purchaser/lessee fails to pay within the allowed period, the vendor/lessor may apply in the same suit to have the contract rescinded; the court may then direct restoration of possession and payment of accrued rents/profits, subject to justice requiring a refund of earnest money. No separate suit lies for relief under this section.

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.

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.

(1) Any person against whom a written instrument is void or voidable, and who has reasonable apprehension that it may cause him serious injury if left outstanding, may sue to have it adjudged void or voidable; the court may, in its discretion, order it to be delivered up and cancelled. (2) If the instrument has been registered, the court sends a copy of its decree to the registering officer, who notes the cancellation.

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.

On adjudging cancellation, the court may require restoration of any benefit received and compensation as justice requires. Where a defendant successfully resists a suit on the ground that the instrument against him is voidable, or void because he was not competent to contract under Section 11 of the Indian Contract Act, 1872, the court may require him to restore any benefit received under it, to the extent his estate has benefited.

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.

A declaration made under this Chapter is binding only on the parties to the suit, persons claiming through them respectively, and, where any of the parties are trustees, on the persons for whom, if in existence at the date of the declaration, such parties would be trustees.

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

(1) Temporary injunctions continue until a specific time or the further order of the court, 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 a decree made at the hearing and upon the merits of the suit; the defendant is thereby perpetually enjoined from asserting a right, or committing an act, contrary to the plaintiff's rights.

(1) A perpetual injunction may be granted to prevent the breach of an obligation existing in the plaintiff's favour, expressly or by implication. (2) Where the obligation arises from contract, the court is guided by the rules in Chapter II. (3) Where the defendant invades or threatens to invade the plaintiff's right to, or enjoyment of, property, an injunction may be granted where: the defendant is a trustee of the property; no standard exists for ascertaining actual damage; compensation in money would not afford adequate relief; or the injunction is necessary to prevent a multiplicity of judicial proceedings.

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.

The plaintiff in a suit for perpetual or mandatory injunction may also claim damages, either in addition to or in substitution for the injunction, if claimed in the plaint (or added by amendment). Dismissal of a suit to prevent breach of an obligation bars a separate suit for damages for that same breach.

An injunction cannot be granted, among other situations: to restrain a person from prosecuting a pending judicial proceeding, unless necessary to prevent multiplicity of proceedings (a); to prevent the breach of a contract whose performance would not be specifically enforced (e); to prevent a continuing breach in which the plaintiff has acquiesced (g); where equally efficacious relief can certainly be obtained by any other usual mode of proceeding, except in a case of breach of trust (h); if it would impede or delay an infrastructure project or interfere with a related facility or service (ha); where the plaintiff's own conduct disentitles him to assistance (i); or where the plaintiff has no personal interest in the matter (j).

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 circumstance 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.

(1) A limited liability partnership is a body corporate formed and incorporated under this Act and is a legal entity separate from that of its partners. (2) A limited liability partnership shall have perpetual succession. (3) Any change in the partners of a limited liability partnership shall not affect the existence, rights or liabilities of the limited liability partnership.

(1) Every limited liability partnership shall have at least two designated partners who are individuals and at least one of them shall be a resident in India. Explanation—“resident in India” means a person who has stayed in India for a period of not less than one hundred twenty days during the financial year. (3) An individual shall not become a designated partner unless he has given his prior consent. (4) Particulars of every designated partner shall be filed with the Registrar within thirty days of his appointment.

For a limited liability partnership to be incorporated, two or more persons associated for carrying on a lawful business with a view to profit must subscribe their names to an incorporation document, file it with the Registrar in the prescribed manner along with fees, and file a statement by an advocate/company secretary/chartered accountant/cost accountant that the requirements of the Act have been complied with. Making a false statement of compliance is punishable with imprisonment up to two years and a fine of not less than ₹10,000, extending up to ₹5,00,000.

(1) In this Part, “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing.

A judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.

An arbitral award may be set aside, among other grounds, where the court finds that the award is in conflict with the public policy of India.

An award is in conflict with the public policy of India only if: the making of the award was induced or affected by fraud or corruption, or was in violation of Section 75 or Section 81; or it is in contravention with the fundamental policy of Indian law; or it is in conflict with the most basic notions of morality or justice.

Testing contravention of the fundamental policy of Indian law shall not entail a review on the merits of the dispute.

In addition, for domestic (non-international-commercial) arbitrations, an award may also be set aside if it is vitiated by patent illegality appearing on the face of the award — provided an award shall not be set aside merely for an erroneous application of the law or by reappreciation of evidence.