Cheat Sheet: Specific Relief Act, 1963

1. Preliminary Provisions

1.1 Short Title, Extent and Commencement

• Short title: The Specific Relief Act, 1963
• Extends to whole of India except Jammu and Kashmir
• Came into force on 1st March, 1964
• Repealed the Specific Relief Act, 1877

1.2 Definitions - Section 2

2. Recovering Possession of Property - Sections 5-8

2.1 Recovery of Specific Immovable Property - Section 5

• Person entitled to possession of specific immovable property may recover it through suit
• Applies when: (a) property wrongfully dispossessed; (b) person entitled but wrongfully prevented from possession
• Relief subject to provisions of Limitation Act and any law for time being in force

2.2 Suit by Person Dispossessed - Section 6

• Person dispossessed of immovable property may recover possession even against person with better title
• Suit must be filed within 6 months from date of dispossession
• Remedy available only if dispossession is wrongful

2.3 Recovery of Specific Movable Property - Section 7

• Person entitled to possession of specific movable property may recover it
• Compensation alone awarded if: (a) property cannot be found; (b) defendant parts with possession
• Court may order defendant to deliver or pay assessed value plus damages for wrongful detention

2.4 Liability of Persons Holding as Agents - Section 8

• Person in possession as agent for another cannot defend on ground that principal has better title
• Agent cannot dispute title under which he took possession
• Exception: if agent ceases to be agent before suit filed, can defend on any ground

3. Specific Performance of Contracts - Sections 9-25

3.1 Cases Where Specific Performance Enforceable - Section 10

3.2 Contracts Not Specifically Enforceable - Section 14

• (a) Compensation adequate relief for breach
• (b) Contract runs into minute or numerous details or personal qualifications
• (c) Contract is determinable in nature
• (d) Performance involves some act to be done after filing suit
• (e) Contracts of purely personal service or contracts based on personal qualifications
• (f) Contract performance not capable of court supervision

3.3 Contract to Sell or Let Property by One Who Has No Title - Section 15

• No specific performance if seller has no title at contract date and fails to acquire title before performance time
• Exception: if contract is made for valuable consideration and buyer acted in good faith
• Amended in 2018: seller must show readiness and willingness to perform from date of contract

3.4 Personal Bars to Relief - Section 16

3.5 Contract Caused by Mistake of Law - Section 17

• No specific performance if contract caused by mistake of law or fraudulently informed about law

3.6 Relief Against Parties and Persons Claiming Under Them - Section 18

• Specific performance enforceable against party and persons claiming under him
• Exceptions: transferee for consideration without notice, tenant, person with lease or easement, or holder of decree

3.7 Relief When No Personal Bar - Section 19

• Contract enforceable against third party if: (a) no personal bar; (b) possess property with notice or without consideration

3.8 Discretion of Court - Section 20

• Court has discretion to decree or refuse specific performance considering all circumstances
• Relevant factors: conduct of parties, multiplicity of litigation, adequacy of compensation
• Amended 2018: plaintiff must prove readiness and willingness to perform on due date and thereafter until decree

3.9 Power to Award Compensation in Addition or Alternative - Section 21

• Court may award compensation for breach in addition to or instead of specific performance
• Compensation calculated as per Section 73, Indian Contract Act, 1872
• Amendment 2018: if defendant fails to comply with decree, plaintiff entitled to compensation calculated as on date of decree with interest

3.10 Power to Grant Relief for Part Performance - Section 22

• When specific performance of entire contract not enforceable, court may direct specific performance of part
• Compensation awarded for part not specifically performed

3.11 Liquidation of Damages Not Bar - Section 23

• Contract terms for payment on default not bar to specific performance
• Amendment 2018: court must grant specific performance unless contrary stipulation expressly mentioned and such stipulation not unjust, inequitable or unconscionable

3.12 Bar on Specific Performance in Certain Cases - Section 14A

• Added in 2018 Amendment
• No specific performance for contracts where time is essence and becomes impossible due to delay
• No specific performance if suit filed after 3 years from due performance date
• Exception: if defendant received substantial part of benefit and is willing to compensate for loss caused by delay

3.13 Substituted Performance - Section 20A

• Added in 2018 Amendment
• Entitles obligee to substitute performance if promisor fails to perform non-contract obligation within reasonable time
• Obligee must give notice to promisor specifying reasonable period for performance
• Obligee entitled to recover expenses and compensation from promisor

4. Rectification of Instruments - Sections 26-31

4.1 When Instrument May Be Rectified - Section 26

• Rectification granted when instrument does not express real intention of parties due to fraud or mutual mistake
• Rectification relates to execution and not formation of contract
• Available for written instruments including deeds, bonds, contracts

4.2 Rectification of Registered Instrument - Section 27

• Registered instrument can be rectified by court decree
• Certified copy of decree to be sent to registering officer for endorsement

4.3 Rectification at Instance of Lessor or Vendor - Section 28

• Lessor or vendor cannot obtain rectification against lessee or purchaser already in possession
• Exception: lessee/purchaser consents or had notice of alleged mistake or obtained possession by fraud/misrepresentation

4.4 Instruments Which May Be Cancelled - Section 31

5. Declaratory Decrees - Section 34

5.1 Discretion of Court - Section 34

• Court may make binding declaration of legal rights or status without consequential relief
• Plaintiff must show legal character exists requiring determination
• No declaration when plaintiff can seek other relief
• No declaration made when contract is void under law

6. Injunctions - Sections 36-42

6.1 Preventive Relief - Section 36

• Injunction restrains person from doing particular act
• Relief granted by temporary or perpetual injunction

6.2 Temporary Injunction - Section 37

• Granted at any stage of suit to prevent breach of obligation
• Continues until specified time or further order of court
• Governed by Order 39, Rules 1 and 2, CPC

6.3 Perpetual Injunction When Granted - Section 38

• Granted when: (a) defendant invades or threatens plaintiff's legal right; (b) plaintiff has no adequate remedy
• Available to prevent breach of obligation when compensation not adequate

6.4 Perpetual Injunction When Refused - Section 39

• Refused when: (a) relief under Specific Relief Act would not be granted; (b) defendant acted openly without knowledge
• Not granted to restrain judicial proceedings unless abuse of process

6.5 Mandatory Injunction - Section 37

• Court may require defendant to perform positive act
• Granted to compel performance of specified act when damage threatened cannot be compensated

6.6 Injunction When Refused - Section 41

6.7 Injunction to Perform Negative Agreement - Section 42

• Specific performance of part of contract involving negative covenant enforceable even if positive covenant not enforceable
• Applies when breach of negative covenant results in injury to plaintiff
• Defendant can avoid injunction by paying damages assessed by court

7. Specific Performance Amendments 2018

7.1 Key Changes

7.2 Impact of 2018 Amendments

• Specific performance changed from discretionary to mandatory subject to personal bars
• Plaintiff burden to prove readiness and willingness throughout
• Time-bound remedy with 3-year limitation from due performance date
• Government contracts made specifically enforceable
• Enhanced protection for buyers and enhanced liability for sellers

8. Important Case Law Principles

8.1 Specific Performance

• Readiness and willingness must be continuous from contract date to decree date
• Part performance doctrine: possession with part payment gives equity for specific performance
• Time is essence unless otherwise stated or implied from conduct
• Plaintiff must come with clean hands and without unreasonable delay

8.2 Injunctions

• Prima facie case, balance of convenience and irreparable injury required for temporary injunction
• Mandatory injunction requires stronger case than prohibitory injunction
• No injunction where damages adequate remedy
• Injunction discretionary remedy subject to equitable considerations

8.3 Rectification and Cancellation

• Rectification requires proof of common continuing intention
• Unilateral mistake not ground for rectification unless induced by fraud
• Cancellation granted when instrument causes cloud on title

9. Exam-Critical Points

9.1 Section Numbers to Remember

9.2 Key Distinctions

9.3 Limitation Periods

• Recovery under Section 6: 6 months from dispossession
• Specific performance suit: 3 years from due performance date (Section 14A)
• General limitation: as per Limitation Act, 1963