Specific Relief Act, 1963Specific Relief Act, 1963-The Act contains -The Act contains ThreeThree parts and parts and EightEight Chapters.Chapters.

-PART 1 -PART 1 [[PreliminaryPreliminary]] contains contains fourfour sections. Important section is section sections. Important section is section twotwo in which there are definitions of in which there are definitions of different terms used in Act. It also different terms used in Act. It also states that the term which is not states that the term which is not defined in this act has same definitions defined in this act has same definitions as defined in Indian Contract Act.as defined in Indian Contract Act.

-Section 4 states that specific relief is -Section 4 states that specific relief is only granted for enforcing civil rights only granted for enforcing civil rights and not penal rights.and not penal rights.

Part II : Part II : Specific Specific ReliefReliefThis part contains six chapters.This part contains six chapters.

Chapter IChapter I : : Recovering Possession of Recovering Possession of Property.Property.

Chapter IIChapter II : : Specific Performance of Specific Performance of Contracts.Contracts.

Chapter IIIChapter III : : Rectification of Instruments.Rectification of Instruments.

Chapter IVChapter IV : : Rescission of Contracts.Rescission of Contracts.

Chapter VChapter V : : Cancellation of Instruments.Cancellation of Instruments.

Chapter VIChapter VI : : Declaratory Decrees.Declaratory Decrees.

Chapter IChapter IRecovering Possession Of Property.Recovering Possession Of Property.

-Under this chapter the person can recover -Under this chapter the person can recover movable and immovable property.movable and immovable property.

-The suit for possession of immovable -The suit for possession of immovable property must be filed within six months property must be filed within six months from the dispossession. from the dispossession.

-Such suit cannot be filed against -Such suit cannot be filed against Government.Government.

-The possession is claimed on basis of -The possession is claimed on basis of previous possession and Title is immaterial.previous possession and Title is immaterial.

Chapter IChapter IRecovering Possession Of Property.Recovering Possession Of Property.

Any person is possession of movable property of which Any person is possession of movable property of which he is not owner may be compelled specifically to deliver he is not owner may be compelled specifically to deliver it to person entitled in following cases:-it to person entitled in following cases:-

When the thing claimed is held by the defendant as the When the thing claimed is held by the defendant as the agent or trustee of the plaintiff;agent or trustee of the plaintiff;

When compensation in money would not afford the plaintiff When compensation in money would not afford the plaintiff adequate relief for the loss of the thing claimed;adequate relief for the loss of the thing claimed;

When it would be extremely difficult to ascertain the actual When it would be extremely difficult to ascertain the actual damage caused by its loss;damage caused by its loss;

When the possession of the thing claimed has been When the possession of the thing claimed has been wrongfully transferred from the plaintiff.wrongfully transferred from the plaintiff.

Chapter IIChapter IISpecific Performance of Specific Performance of

Contracts.Contracts.This is important chapter and can be sub This is important chapter and can be sub

divided as under:divided as under:

- Contracts which can be specifically - Contracts which can be specifically enforced.enforced.

- Contracts which cannot be specifically - Contracts which cannot be specifically enforced.enforced.

- Persons for or against whom contracts - Persons for or against whom contracts may be specifically enforced.may be specifically enforced.

- Discretion and powers of Courts.- Discretion and powers of Courts.

Contracts which can be Contracts which can be specifically enforced.specifically enforced.

- When there exists no standard for ascertaining the actual - When there exists no standard for ascertaining the actual damage caused by the non- performance of the act agreed to damage caused by the non- performance of the act agreed to be done; orbe done; or

- When the act agreed to be done is such that compensation in - When the act agreed to be done is such that compensation in money for its non- performance would not afford adequate money for its non- performance would not afford adequate relief.relief.

- In case of immovable property the Court would presumed that - In case of immovable property the Court would presumed that breach cannot be compensated by money.breach cannot be compensated by money.

- In case of movable property the Court would presumed that - In case of movable property the Court would presumed that breach could be adequately compensated unless:breach could be adequately compensated unless:

- Such property is not an ordinary article of commerce; or- Such property is not an ordinary article of commerce; or

- Such property is of special value or interest to the plaintiff; or- Such property is of special value or interest to the plaintiff; or

- Such property is not easily obtainable in the market; or- Such property is not easily obtainable in the market; or

- Where the property is sold by the defendant as the agent or - Where the property is sold by the defendant as the agent or trustee of plaintiff.trustee of plaintiff.

When Court will grant specific When Court will grant specific performance of contractperformance of contract

- When part unperformed bears only small - When part unperformed bears only small proportion to the whole in value and admits proportion to the whole in value and admits compensation in money.compensation in money.

- Where the other party pays or paid the - Where the other party pays or paid the agreed consideration for the whole contract.agreed consideration for the whole contract.

- If the other party relinquishes all claims to - If the other party relinquishes all claims to the performance of the remaining part of the performance of the remaining part of the contract and all right of compensation.the contract and all right of compensation.

- Where a part of contract stands on - Where a part of contract stands on independent and separate footing.independent and separate footing.

Rights of purchaser against Rights of purchaser against person with no title or person with no title or

imperfect titleimperfect title-If subsequent interest is acquired, the purchaser -If subsequent interest is acquired, the purchaser

may compel to make good the contract.may compel to make good the contract.

-Where concurrence or conveyance is required -Where concurrence or conveyance is required from persons who at the request of vendor can from persons who at the request of vendor can give such concurrence or conveyance necessary give such concurrence or conveyance necessary to validate the title the purchaser may compel to validate the title the purchaser may compel him to procure such concurrence or conveyance.him to procure such concurrence or conveyance.

- Purchaser can compel vendor to redeem - Purchaser can compel vendor to redeem mortgage.mortgage.

- Where vendor's suit is dismissed for want of - Where vendor's suit is dismissed for want of perfect title the purchaser-defendant is entitled perfect title the purchaser-defendant is entitled for return of deposit with interest.for return of deposit with interest.

Contracts which cannot be Contracts which cannot be specifically enforced.specifically enforced.

- when non-performance can be compensated - when non-performance can be compensated by money.by money.

- which runs into minute or numerous details.- which runs into minute or numerous details.

- which is dependent on the personal - which is dependent on the personal qualifications or volition of parties.qualifications or volition of parties.

- which is in nature determinable.- which is in nature determinable.

- which involves the performance of continuous - which involves the performance of continuous duty which court cannot supervise.duty which court cannot supervise.

- contract to refer present or future differences - contract to refer present or future differences to arbitration.to arbitration.

When Court may grant specific When Court may grant specific performance of contractperformance of contract

- to execute mortgage or furnishing any other - to execute mortgage or furnishing any other security for repayment of loan.security for repayment of loan.

- to take up or pay for any debentures of a company.- to take up or pay for any debentures of a company.

- the execution of formal partnership deed when - the execution of formal partnership deed when parties have commenced partnership business.parties have commenced partnership business.

- the purchase of a share of a partner.- the purchase of a share of a partner.

- for construction of building or execution of any - for construction of building or execution of any other work on land. Provided building or other other work on land. Provided building or other work is described in contract, that compensation work is described in contract, that compensation would not be adequate relief and defendant had would not be adequate relief and defendant had taken possession of building or land on which taken possession of building or land on which construction is to be carried out. construction is to be carried out.

Who may obtain specific Who may obtain specific performance.performance.

- any parties thereto.- any parties thereto.

- the representative-in-interest or the principal of any - the representative-in-interest or the principal of any party thereto.party thereto.

- where contract is a settlement on marriage, or a - where contract is a settlement on marriage, or a compromise of doubtful rights between same members compromise of doubtful rights between same members of family any person beneficially entitled.of family any person beneficially entitled.

- remainderman of tenant.- remainderman of tenant.

- a reversioner in possession.- a reversioner in possession.

- a reversioner in remainder.- a reversioner in remainder.

- new amalgamated company.- new amalgamated company.

- the company on behalf of its promoters- the company on behalf of its promoters

Specific performance cannot Specific performance cannot be enforced in favour of be enforced in favour of

person-person-- who would not be entitled to recover compensation for its - who would not be entitled to recover compensation for its

breach;breach;

- who has become incapable of performing contract;- who has become incapable of performing contract;

- who violates any essential term of contract;- who violates any essential term of contract;

- who acts in fraud of the contract;- who acts in fraud of the contract;

- willfully acts at variance with or in subversion of contract.- willfully acts at variance with or in subversion of contract.

- who fails to aver and prove that he has performed or has - who fails to aver and prove that he has performed or has always been ready and willing to perform essential terms always been ready and willing to perform essential terms of the contract.of the contract.

No Title No PerformanceNo Title No Performance

Vendor cannot be given specific performance Vendor cannot be given specific performance when he knew he has no title and then also when he knew he has no title and then also he enter into contract;he enter into contract;

Who at the time of contract believed that he Who at the time of contract believed that he has good title but cannot give purchaser title has good title but cannot give purchaser title free from reasonable doubt at the time of free from reasonable doubt at the time of sale.sale.

Specific Performance of Contract Specific Performance of Contract may be enforce against-may be enforce against-

- either party thereto;- either party thereto;

- any other person claiming on subsequent - any other person claiming on subsequent contract;contract;

- any person claiming on prior contract known to - any person claiming on prior contract known to plaintiff and who had displaced defendant;plaintiff and who had displaced defendant;

- company;- company;

- promoters;- promoters;

Discretion and Powers of CourtDiscretion and Powers of CourtThe discretion is to be used not arbitrary but sound and The discretion is to be used not arbitrary but sound and

reasonable guided by judicial principles.reasonable guided by judicial principles.

In following cases no specific performance to be granted:-In following cases no specific performance to be granted:-

-Gives plaintiff an unfair advantage over defendant;-Gives plaintiff an unfair advantage over defendant;

-Performance of contract involves some hardship on defendant;-Performance of contract involves some hardship on defendant;

-Makes contract inequitable to enforce specific performance;-Makes contract inequitable to enforce specific performance;

Grant specific performance where plaintiff has done substantial Grant specific performance where plaintiff has done substantial acts or suffered losses in consequence of a contract;acts or suffered losses in consequence of a contract;

Grant specific performance even though the contract is not Grant specific performance even though the contract is not enforceable at the instance of other party.enforceable at the instance of other party.

Power to Award CompensationPower to Award Compensation

In a suit plaintiff may also claim compensation as In a suit plaintiff may also claim compensation as additional or substitutional relief.additional or substitutional relief.

Court can grant compensation either in case where Court can grant compensation either in case where specific performance is granted or rejected.specific performance is granted or rejected.

Such compensation could only be granted if it is Such compensation could only be granted if it is claimed by plaintiff in a suit.claimed by plaintiff in a suit.

Even if the contract has become incapable of specific Even if the contract has become incapable of specific performance the court could grant compensation.performance the court could grant compensation.

Where suit is dismissed plaintiff cannot file fresh suit Where suit is dismissed plaintiff cannot file fresh suit for compensation.for compensation.

Power to grant reliefs.Power to grant reliefs.Plaintiff may also claim additional relief of Plaintiff may also claim additional relief of

possession or partition and separate possession possession or partition and separate possession of property orof property or

Refund of earnest amount or deposit paid alongwith Refund of earnest amount or deposit paid alongwith compensation in case specific performance is compensation in case specific performance is refused.refused.

Such reliefs cannot be granted unless specifically Such reliefs cannot be granted unless specifically prayed.prayed.

When there is clause in contract that in case of its When there is clause in contract that in case of its breach certain amount would be paid then also breach certain amount would be paid then also Court can grant specific relief.Court can grant specific relief.

Chapter IIIChapter III : : Rectification of Rectification of Instruments.Instruments.

When through fraud or mutual mistake of the parties a When through fraud or mutual mistake of the parties a contract does not express their real intention then-contract does not express their real intention then-

Either party or his representative in interest may institute a Either party or his representative in interest may institute a suit to have the instrument rectified;orsuit to have the instrument rectified;or

In any suit pray for rectification of instrument;orIn any suit pray for rectification of instrument;or

A defendant may ask for rectification.A defendant may ask for rectification.

The court may in its discretion direct rectification of the The court may in its discretion direct rectification of the instrument.instrument.

A contract may first be rectified and then specifically A contract may first be rectified and then specifically enforced;enforced;

No relief unless specifically claimed.No relief unless specifically claimed.

Chapter IVChapter IV : : Rescission of Rescission of Contracts.Contracts.

Any person interested in a contract may sue to Any person interested in a contract may sue to rescind contract and court may grant such rescind contract and court may grant such rescission if:-rescission if:-

A contract is voidable or terminable by plaintiff; orA contract is voidable or terminable by plaintiff; or

A contract is unlawful for causes not apparent on A contract is unlawful for causes not apparent on its face and defendant is more to blame than the its face and defendant is more to blame than the plaintiff.plaintiff.

Chapter IVChapter IV : : Rescission of Rescission of Contracts.Contracts.

But court may refuse to rescind the contract;-But court may refuse to rescind the contract;-

Where the plaintiff has expressly or impliedly ratified Where the plaintiff has expressly or impliedly ratified the contract; orthe contract; or

Where owing to change of circumstances the parties Where owing to change of circumstances the parties cannot be substantially restored to the position in cannot be substantially restored to the position in which they stood when the contract was made;orwhich they stood when the contract was made;or

Where third parties have acquired rights in good faith Where third parties have acquired rights in good faith without notice and for value;without notice and for value;

Where part is not severable from the rest of the Where part is not severable from the rest of the contract.contract.

Rescission of contract after Rescission of contract after decree.decree.

- Where a suit for specific performance of contract is - Where a suit for specific performance of contract is decreed and purchaser does not pay the purchase decreed and purchaser does not pay the purchase money which the court has ordered him to pay, the money which the court has ordered him to pay, the vendor may apply in same suit to have contract vendor may apply in same suit to have contract rescinded and court may rescind the contract and may rescinded and court may rescind the contract and may direct:-direct:-

- Restoration of possession;- Restoration of possession;

- Refund of earnest money and other profits;- Refund of earnest money and other profits;

- Restore any benefits received;- Restore any benefits received;

- To give compensation.- To give compensation.

Chapter VChapter V : : Cancellation of Cancellation of Instruments.Instruments.

Any person against whom a written instrument is void Any person against whom a written instrument is void or voidable and who has reasonable apprehension or voidable and who has reasonable apprehension that such instrument if left outstanding may cause that such instrument if left outstanding may cause him serious injury may sue to have it adjudged void him serious injury may sue to have it adjudged void or voidable and the court may in its discretion so or voidable and the court may in its discretion so adjudge it and order it to be delivered up and adjudge it and order it to be delivered up and cancelled.cancelled.

If the instrument has been registered the court shall If the instrument has been registered the court shall also send a copy of its decree to registration office.also send a copy of its decree to registration office.

The instrument can be cancelled partially.The instrument can be cancelled partially.

The court may direct plaintiff to restore benefits taken The court may direct plaintiff to restore benefits taken or grant compensation to defendant.or grant compensation to defendant.

Chapter VIChapter VI : : Declaratory Declaratory Decrees.Decrees.

- Any person - Any person

- entitled to any legal character or to any right- entitled to any legal character or to any right

- as to any property - as to any property

- may institute a suit - may institute a suit

- against any person denying his title or right- against any person denying his title or right

- Court in its discretion make such declaration.- Court in its discretion make such declaration.

- Such declaration is binding only on parties.- Such declaration is binding only on parties.

PART IIIPART IIIChapter VII: Injunctions GenerallyChapter VII: Injunctions Generally

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

Temporary injunctions are for specific time.Temporary injunctions are for specific time.

Perpetual injunction at the end of suit.Perpetual injunction at the end of suit.

Chapter VIII: Perpetual Chapter VIII: Perpetual Injunctions.Injunctions.

- Perpetual injunctions may be granted- Perpetual injunctions may be granted

- To prevent the breach of an obligation existing in his - To prevent the breach of an obligation existing in his favour; orfavour; or

- When defendant invades or threatens to invade the right - When defendant invades or threatens to invade the right of plaintiff andof plaintiff and

- Where there exists no standard for ascertaining the actual - Where there exists no standard for ascertaining the actual damage caused;damage caused;

- Where invasion is such that compensation in money - Where invasion is such that compensation in money would not afford adequate relief;would not afford adequate relief;

- Where injunction is necessary to prevent a multiplicity of - Where injunction is necessary to prevent a multiplicity of judicial proceedings.judicial proceedings.

Mandatory Injunctions.Mandatory Injunctions.

- When to prevent the breach of obligation- When to prevent the breach of obligation

- It is necessary to compel the performance of - It is necessary to compel the performance of certain actscertain acts

- Which the court is capable of enforcing- Which the court is capable of enforcing

- The court may grant mandatory injunction- The court may grant mandatory injunction

- To prevent the breach complained of- To prevent the breach complained of

- And also to compel performance of the requisite - And also to compel performance of the requisite acts.acts.

Injunction when refusedInjunction when refusedTo restrain from prosecuting a judicial proceeding pending To restrain from prosecuting a judicial proceeding pending

To restrain from insituting or prosecuting any proceeding in a courtTo restrain from insituting or prosecuting any proceeding in a court

To restrain from applying to any legislative body;To restrain from applying to any legislative body;

To restrain from instituting or prosecuting any proceeding in a criminal matter.To restrain from instituting or prosecuting any proceeding in a criminal matter.

To prevent the breach of a contract the performance of which would not be To prevent the breach of a contract the performance of which would not be specifically enforced.specifically enforced.

To prevent on the ground of nuisance an act of which it is not reasonably clear To prevent on the ground of nuisance an act of which it is not reasonably clear that it will be a nuisance.that it will be a nuisance.

To prevent a continuing breach in which the plaintiff has acquiesced.To prevent a continuing breach in which the plaintiff has acquiesced.

When equally efficacious relief can certainly be obtained by any other usual When equally efficacious relief can certainly be obtained by any other usual mode of preceeding except in case of breach of trust;mode of preceeding except in case of breach of trust;

When the conduct of the plaintiff or is agents has been such as to disentitle When the conduct of the plaintiff or is agents has been such as to disentitle him to the assistance of the Court.him to the assistance of the Court.

When the plaintiff has no personal interest in the matter.When the plaintiff has no personal interest in the matter.

Injunction to perform negative Injunction to perform negative agreement.agreement.

When contract comprises an affirmative agreement to When contract comprises an affirmative agreement to do a certain act,do a certain act,

Coupled with a negative agreement not to do certain Coupled with a negative agreement not to do certain act,act,

The circumstances are such that the Court cannot The circumstances are such that the Court cannot grant specific performance of affirmative agreement,grant specific performance of affirmative agreement,

It shall not preclude Court from granting an injunction It shall not preclude Court from granting an injunction to perform negative agreement,to perform negative agreement,

Provided plaintiff has not failed to perform his part of Provided plaintiff has not failed to perform his part of contract.contract.

THANK YOUTHANK YOU Presented byPresented by

Mahesh S. LoneMahesh S. Lone

(Maharashtra, India)(Maharashtra, India)