Specific Relief Act
Specific Relief Act
subiect.
construction of the building. The
matter of the tenancy was completely
destroyed and the lease automaticallv
terminated. But even so the landlord
could claim and recover possession only
through the court process.
The Court explained the basic
Ramchandra Sakharam the
(4)
Mahajan . Damodar requirements of the suit. It is for
Trimbak Tanksale plaintiff to prove his own case and the
weakness in the case of the defence does
not entitle the plaintiff to any benefit.
POINTS TO REMEMBER
Possession impiics to elements
possess an apparent
0 corpus, 1.e. some actual power over the object
COntIol over t
QUESTIONS
What is the difference berween injunction and specific perfornmance
Is mere possession before being dispossessed enough to prove wnership?
Explaín with illustrarion.
What are the types of actionable claims in a suit for recovery Of
immovable property? Which of these claims are covered under this
Act?
What is the meaning of adverse possession?
Y Wht are the remedics available for recovery of possession to a perSOE
entitledtoan immovable
SECTION 6 BY P'ERSON DiSPossESSED OF IMMOVABLE PROPERTY
OUESTIONS
What is the main objective of this section?
What are theessential conditionsprescribedfor possession under this
section
Can legal possession cxist without actual possession Give examples.
Will dispossession by Government be covered by this section?
How can an order or decree under this section be
contested?
SECTION 7 RECoVERY OF SPECIFIC MoVABLE PROPERTY
Recovery of specific movable property.- Aperson entitled to the possession
of specific movable property may recover it in the
Code of Civil Procedure, 1908 (5 of 1908). manner provided by the
sue under this section for the possession of Explanation 1-A trustee may
interest in which the person for whom hemovable property to the benefica.
is trustee is entitled.
wplanation 2-A special or temporary right to the present possesion of
movable property is sufficient to support a suit
under this section.
ability of person in possesston, not as owner, to
to immediate possession. deliver to persons entiice
QUESTIONS
What kind of goods can be recovered under this section?
Is possession/dispossession required to be provcd for movable
ProperCIes?
Who can bring a suit of wrongful possession in case of a baifment
Any person baving the possession or control ofa particular article of movabl:
property, of which he is not the owner, may be compelled specifically to
deliver it to the person entitled to its immediate posession, in any of the
following Cases:
cas
when the thing claimed is held by the defendant as the agent or
trustee of the plaintiff;
wben compensation in money would not afford the plaini
adequate relief for the lss of the thing claimed;
when it would be extremely difficult to ascertain the actual damage
caused by its loss;
hen the possession of the thing claimed has been wrongfuly
transferred from the plaintiff
Explanation. Unless and until the contrary is proved, the clause
count (0 r
1m respect of any article of' movable property claimed under
clause (c) of this section, presume
Recovering Possession of Property 37
OBJECT
The relice under this section can only be granted against a person
having the possession control of the particular article claimed by the
plaintiff.
The object of this section is to provide special remedy so that persons
having the possession or control of particular articles of movable
property, although not their owners, may be compelled specifically
to deliver them to the persons entitled to their immediate possession.
Possession is foundation of that suit though a suit is not competent
under this section against one who is the owner of the movable
property.
36
AIR 1999 SC 1999.
44 The Specific Relief Act, 1963
(1) The partjes have clearly agreedthat the agreement shall not be
complete unless agreed upon and executed in writing. 4
Privy Council in Motilal v. Nanbelal, for coming to the conclusion
that there was a completed contract between the parties and that the
condition in the agreement that the vendor would obtain the sanction
of the Chief Conmissioner to the transaction of sale did not render
the contract incomplete.
POINTSTO REMEMBER
The law relating to specific performance, was developed in England by
equity courts.
Section 9 of the Specific Relief Act 1930, lays down that in a suit
for specific performance of a contract the defendant can plead all the
defences available to the defendant in a suit for damages for breach of
a contract.
t the terms of the contract are uncertath or
nconmpiete, the parties
cannot have reached an agreement.
QUESTIONS
List the remedies available under
suit
contract law for a specific pertormance
NAcontract has to be entorceable by law to maintain a suit of specatic
pertormance. What are the essential ingreaients for a valid contract!
What would De the conscquences of an
invalid provision of a vahd
contract in a sut for spectfic performance?
How does a void contract affect
specitic performance?
CONTRACTS WHICH CAN BE SPECIFICALLY ENFORCED
(SECTIONS 10-13)
SECTION 10 CASES IN WHICH SPECIEIC PEREORMANCE OF CONTRACI
ENFORCEABLE
Cases in which specificperformance of
contract enforceable
Except as otherwise provided in this Chapter,
any contract may, in the the specific performance
discretion of the ourt, be enforced
4
5
Simon v. Haji Shaikh, 24 Bom LR 466.
I.L.R. (1930) IndAp 333.
Specific Performance of Contracs 45
Doctrine of Mutuality
The contract to be specifically enforced must be mutual. No one
can sue for specific performance if he cannot be sued for it, whether
because he is ninor or tor any other reason.
The contract must be mutually enforceable by each party against the
other to establish the doctrine of mutuality. Each party to the contrac
must have the freedom to enforce his right under the contract against
cach other 24
The doctrine of mutuality though a technical on is founded on
common sense and amounts to this that the party to the contract
24
AIR 1998 Pat 88, 1998 (46) BLJR 1361.
Dasdràth Gayan v. Satyanarain Ghose, AIR 1963 Cal 325.
Specific Performance of Contracts 53
The contract for transter of property should specify the time within
which the performance of the obligations contemplated in such contract
is expected to be fulfilled. In the event the contract does not specify the
time period within which the performance of the obligations should be
completed, then it is deemed that time is not essence of contract.
When, concededly, the tine was not of the essence of the contract,
the appellant-plaintiff was required to approach the court of law within
areasonable time.26 The aforesaid principle was elaborately discussed
by the Hon'ble Supreme Court in Chand Rani v. Kamal Rani7
wherein it was held that in case of sale of immovable property there is
no presumption as to time being of the essence of the contract. Even
if it is not of the essence of contract, the court may infer that it is to
be performed in a reasonable time if the conditions are:
() from the express terms of the contract;
(ii) from the nature of the property; and
(ii) from thesurrounding circumstances, for example, the object of
making the contract. For the purposes of granting relicf. the
reasonable time has to be ascertained from all the facts and
CIrcumstances of the case.
QUESTIONS
Under what citcumstances can the Court enforce specific performance
of contracts connected with trusts?
Who are the trusteces under this section?
In what cases will the contr¡ct be rendered unenforceable pursuant to
this section?
When can a conditional contractbe specifically entorced? llustrate
with case law.
Can specific performance be granted where plaintiff is guilty of making
material alterations in the contract? Illustrate with case law
APPLICABILITY
Section 12() is the general rule and the circumstance provided in sub
sections (2), (3) and (4) are exceptions to the general rule provided
in sub-section (1).
Section 12(2) shall be applicable when the part of contract which
cannot be performed is the conveyance of an item which is ouly a smal
portion of the whole in value and admits of compensation in nioney.
An inability to perform a contract may be by reason of deficiency in
40
Merchants Trading Co. v. Banner, 1871 (12) EQ 21
title, then the d.
gets dismissed for want of proper
performance
i.e. the purchaser has a right to get arefund defendant
of the deposited amou
defend the suit of amount
along with inte and cost incurred to
interest
performance. Further, in the event a suit for specitic performa.
filed by the vendor or the lessor is dismissed pursuant to the lack of
specific
proper title then, in that case, the purchaser, in addition to the refund
of deposit and interest thereon, will also be entitled to lien for such
deposit, interest and cost on the right, title of interest of the vend
or the lessor in the property agreed to be sold of let.
POINTS TO REMEMBER
Section 13 of the Specific Relief Act, 1963 has no application when the
transfer has been affected in respect of a property to which the vendor
nas no titie or nas an title.
QUESTIONS
What is doctrine of estoppel? What is its impact on this
section?
V What are the rights that a purchaser or lessee has against a
promisor with no title or imperect title?
What are the limitations to the applicability of this section?
Under what conditions can third parties caim their right under
this section?
What is the effect of encumbrance on specific pertormne
under this provision?
CONTRACTS WHICH CANNOT BE SPECIFICALLY
ENFORCED
SECTION 14 CONTRACTS NOT SPECIFICALLY ENFORCEABLE
14. Contracts not specifically enforceable
(1) The following contracts cannot be specifically enforced, namey
a contract for the non performance of which compensation
yoney is an udequate relifi
Specific Performance of Contracts 75
POINTS TO REMEMBER
Contracts notspecifically enforceable have been enumerated in secte
14 of the Specific Relief Act, 1963.
Jurisdicrion of the court to enforce specific performance of a contra
is discretionary,
An agreement to torm a
partnership is
part pertormanceof the contract carriedenforced where parties hav
on the Dartnership busine
A contract tor the sale of a
patent can be specifically enforced.
>A contract to assign acopyright is
specifically enforceable.
Specific Performance of Contracts 85
QUESTIONS
Tist out the types of contfacts which cannot be
J What are the exceptions provided?
specifically enforced.
SWhy are service conttacts not
exceptions to this tule?
specifically enforceable? What are the
What are the principles which guide the Court in decree of
performance? specific
Dnder. what conditions can a conttact for arbitration be
enforced? specifically
Rectification of Instruments
144
Rectification of Instruments 145
pleading, the court shal. at any stage of the proceedimg, alow him
to amend the pleading on such terms as may be just for including
such claim.
DOCTRINE OF RECTIFICATION
Rectrification means cOrreCtion of an error in an instrument in order
-to give ctfect to the real intention of the parties. Where a contract has
been reduced intowIting, in pursuance of a previous engagement and
the writing, owning to fraud or mutual mistake, fails to express the real
intention of the parties, the court will rectify the writing instrurment in
axcordance with their true intent.")Here the fundamental assumption
is that there exists in between the parties a complete and perfectly
unobjectionable contract but the writing designed to embody it, either
from fraud or mutual mistake is incorrect or imperfect and the relief
sought is to rectify the writing so as to bring it into conformity with
true intent. In such a case to enforce the instrument as its stand must
be to injure at least one party to i; to rescind it all together must be
to injure both, but rectify it and then enforce it is to injure neither but
to carry out the intention of both. In cases of rectification the court
does not put it to the other party to submit to the variation alleged
but makes the instrument confirmable to the intention of the parties
without such offer or submission.
The Court in administering quitable principles permits mistakes
of
to be proved where they are common; that is where the expression
parties. In
the contract is contrary to the concurrent intention of the
to
Dagduv. Bhana it was observed that a mistake known at the time
accordance wich
the other party may be proved and performance Inalso said that this
the terms of the error will not be compelled. He
supposed chat
rule appliced when the party could not have reasonably
parties. If such mistakes
the words expressed the real intentions of the rectificaion, but what
be established, then the court can give relief of
mistaken expression of it.
IS rectified is not the agreement, but the
3 ibid.
Durga Prasad v. Bhujan, 31 Cal 614 (P.C).
AlR 1937 Assam 49: AlR 1954 Nag 328.
Ladha Singh v. Munshiram, AIR 1927 Cal 605.
Rescission of Contracts
RESCISSION
If a partyto a contract commits a breach of contract, the aggrieved
aarty can seck a remedy of rescission under scction 27 of the Specific
Relief Act. It means that the aggrieved party can withdraw fron the
contract and in this way he can free himself fromn all the obligations
of the contract.
The aggrieved party can, by way of specific relief, seek a direction
from the Court to rescind the contract. The primary objective of the
relief of rescission is to extinguish all the rights and liabilities of the
narties to the contract and restore the status co-ante of the parties to
the contract.
In a suit for specific performance of açontract the plaintiff may also
seek an alternative relief of rescissionSo if the Court hasrefused to
grant specitic pertormance of the contract, it may allow the party to
withdraw from the same in accordance with section 29 of the Specific
Relief Act, provided that the aggrieved party has made a prayer to
this effect If the contract is rescinded, the Court may ask the party
to restore benefits he received from the contract in accordance with
section 30 of the Specific Relief Act.)Thus where a contract, therefore.
is voidable or terminable by the pláintiff or where it becomes unlawful
for causes not apparent on its face, and the defendant is more to blame
then the plaintiff, such contract can be rescinded under section 27!
Rescission is available in the following cases:
(g Where contract is voidable or terminable by the plaintiff A
contract is voidable under section 19-19A of the Indian Contract
Act when it is vitiated by fraud, misrepresentation, coercion,
and undue influence. Though mistake makes the contract
void, under section 20 of the Indian Contract Act, this is also
-a ground for rescission. (S. 27(1)(a));
bWhere the contract is unlawful for causes not apparent on is face
and the defendant is more to blame than the plaintiff: If a contract is
unlawful on its very face or the party seeking equitable relief is more
to blame than the plaintiff, there is no question of granting chis relietf.
But it would be granted in other cases of unlawful agreements.
2
Thomas v. Hanuman Prasad, AIR 1929 AIl 837.
Sarkar on Specific Relief Act, 16" Edn., 2012, p. 438.
19b3
152 The Speific ReliefAct,
af
Where a decree of specific performance of a contract of sale, or
lease has been made and the purchaser or the lessee makes default in
to pay, the
payment of the sum which the Court has ordered him party
cannot get a lease or sale without the payment of the consideration
directed to be paid by the Court.
Where the defendant did not disclose a material defect in the
have known it wil
property sold by him, and the buyer would not
ordinary care, the buyer is entitled to the returns of purchase money
such acat
This remedy is independent of3 a suit for rescission and in
he may also sue for damages.
Limits to the Right of Rescission of Voidable Contract
[sub clause (2)]:
(a) Affirmation of contract: Where the party, who has the option
to rescind the contract, by way of either an act or omission,
affirms the contract, then such party looses the right to seek
rescission of contract under this section 27. Thus where a
transfer was made by a person in favour of his mistress and
after keeping her for several years, he fell out and wanted to
rescind the transfer on account of immoral purpose, the Court
will not assist such a person responsible for the immorality to
get back what he has given. Similarly where third parties have
been misled by the inactivity of the person having the right o
rescind, lapse of time would amount to affirmation.
Ratification relates back to the date of making the contract
and therefore a contract which was then yoid cannot be made
valid by subsequent ratification.
Restitution in interim imposible: The relief of rescission is granted so
as to restore the status co-ante of the parties to the contract. Howeve
this relief of rescission cannot be granted by che Court where there ub
Were
no way of restoring the status of the parties to the state thcy
before the execution of the contract because the subject matter of the
contract has been destroyed.
QUESTIONS
Y Whar is the naturc of relicf under this section?
V In what cases is the remedy of rescission available?
YWhat are the limitations to the right of rescission?
V What are the kinds of contracts under which rescission may be
granted?
Will the Cour nccessarily restore bencfits under a conract in case of
its rescission?
Cancellation of Instruments 167
Cancellation Rescission
The relief of cancellation is granted In contract law, rescission has been
hefore any violation of the plaintiff's defined as the unmaking of
rights takes place and though no cOntract between parties. It reverts
actual injury has been sustained the contract to the day it had not
been signed as if the contract had
not been made.
Cancellation of a contract is in Rescission of a contract terminates
effect a declaration that the rights liability and restores the parties to
and liabilities of the party(s) to the their former positions by requiring
contract never existed. each party to return whatever
benefits he or she received during
the subsistence of the contract.
Certain documents may be An instrument may fail to express the
|mistakenly executed, such category intention of the involved parties
of documents which are at a later
point found to be void or which
become void. These documents
ought to be cancelled.
3
4
Muppudarhi v. Krishnaswamy, AIR 1960 Mad I (FB).
Khema v. Bhagwan, AIR 1995 Raj 94, 97.
Xhhangalal v. Dhondu, ILR 27 Bom 607
Cancellation of Instruments 171
The Court may refuse to grant a relief to the plaintiff if the Court
hasthe reason to believe that there exists delay on the part of the
plaintiffwhich may have altered the position of the defendant. 26
Written nstrument
POINTS TO REMEMBER
Cancellation ofinstrument can be granted if the instrument isvoidor
voidable.
Cancellation under section 31 can be claimed
(a) by party to the instrument
(6) by any person against whom the instrument is void or voidable
(c) in respect of any instrument not necessarily a contract
Conditions requisire for the exercise of the jurisdictionto cancelan
Instrument are:
2Y the instrument is void or voidable against the plaintiff;
plaintiff may reasonably apprehend serious injury by the instrument
being left outstanding;
18 in the circumstances of the case the Court considers it proper to
grant this relief of preventive justice.
Declaratory Decrees
VoBJECT
The object of such decrees is that where a person's status or legal
character has been denied or where a cloud has been cast upon his
titles to rights and interests in some property, he may
have the c
removed by having his legal status or rights declared by the court. Buc
it is not a matter of absolute right to
obtain a
is discretion of the Court. The object of Sectiondeclaratory decree
34 is to perpetua
strengthen testimony regarding title and protect it from advers
attacks. The policy of legislature is not only to secure to a wronged
party possession of the property taken away from him båt also tO sec
that he is allowed to enjoy that
property peacefully.
180
fresh decision the notinjunction
casernent of claim in the cascment way ground LSectiothrecThfeold
n 34
AIR AlRMohd.
performance A (i) 0) suit In basis be that support Whether plaintiffs of In (3) (2 ) cont
(1) ext
Classification of
1973 1982 fo r D. where rclicf,
Manjural
declaratorywhich A Qabool
right For iscorrect
of right defence Ramanatha that grantcd whatpresentany what of
AlI Kant rclief, right
to could
injunction, of right. the Section
a no a casement it was were
158. and ought declaratory establish
not Singh authorityprayer to alone the to declaration plaintiff
314.Haque
right wi l be get by
Easement is by classification the of the
no
decree only say only the in mercly
34
v. not the allowedis prayerinjunction the v. form
v. award that
necessary th e right of Scope
Bisseswara
to to on Board that
for
standinjunction defendant for Court.
S. by
ishave which decree
th e for right S. restoring of declaratory, the
declaratory Declaratory
of a right." the without question
or is injunction right ofDecrees
compensation. mode been date of as injunction
not. claimed Razaack, Speific
Banerjee, accrued Revenue, the a
position to without in Decdaratory
of but is
of
claimed defence cannot the grant Proof to that scope
AlR
plaintiff
th e by and
made his but
defining Relicf
relief after right a case the deprived
1943 sui t itwithout that be or of
be orway brought
declaration. as in
Therewhere in was considered
existence
retuse by not suit of Relief
filing but has in
allowed being was introductory cffect Act
declaratory ,
Cal the of of by fo r was rights
hel
to d : an defend offence not rights, are:' in
361. is a legally the way gave
only
thereplaint. the also show injunction or
counter or declaration dismissed the
suit on prayer. is put but
a is refused. non-existence whether to in of an d
instarnt
a declared forward
any offence to not relicf Context
declaration no subsidiary is the resist the
specitic notdecree. claim suit lt action of on giving in 181
That ma y the relief relief the
one or an on the byby the the of
182 The Specific Relief Act, 1963
of rights of the parties without any consequential relief which can be
enforced by the execution of the decree. In other words,
declar
decrees are those where some right is declared in favour of theator y
plainttiff
but nothing is sought to be paid or performed by the defendant.
Shiromani Gurudvara Prabandhak Committee Amritsar v. Shri t
Nath Das. They are as under: On the issue of whether the
Guru
Granth Sahib could be treated as a juristic person ór not. Coe
observed that the very words "Juristic Person" connote recognition of
an entity o be in law a person which otherwise it is not.
ESSENTIAL REQUISITES FOR A DECLARATORY ACTION
The plaintiff must be entitled to aiy legal character or to any
ight as to any property.
In Prabhakar Adsule v. State of M.P wherein the respondent
herein Prabhakar Adsule filed an appeal for declaration that he
was the sole owner in possession of the plot in dispute and also
for injunction restraining the defehdants from interfering with
his possession ovet the said plot in' any manner. The appeal
was dismissed on ground that the docúments were suspicious
in nature and could'not have been relied upon.
The defendant should have denied or be interested in denying
the character or title of the plaintiff. It is this denial which
gives a cause of action for declaratory relief.
eplaintiff is not in a position to claim further relief than
mere declaration of his title, or where he is so able to seek
further relief, he seeking such reliçf also.
In S. Madasamy v. A,M. Arjuna Raja,° it has been held that in a
suit for declaration of title and consequential injunction, the burden
is on the plaintiff to prove his right and possession over
property.
the plaintiff fails to prove his clear title to he is no enticled to such
declaration and consequential injunction.
1f these conditions are satisfied, the plaintiff need not ask for an
further relief then amere declaration. But the court shall not
mas
4
AIR 2000 SC 1421.
AIR 2004 SC 3557.
6
AIR 2000 Mad 465.
Declaratory Decrees 185
Injunctions Generally
OBJECT
The purpose of temporary injunction is, thus, to maintain the status
quo.
4
AIR 1988 Cal. 312.
National Airport Authority v. Vijaydutt, AIR 1990 M.P. 326.
In cases where plaintiff's right to enioy vroperty is in danger, when
does a COurt grant perpetual
injunction?
What considerations decide that a perpetual
granted instead of a temporary injunction should be
injunction?
SECTION 39 MANDATORY INJUNCTIONS
Mandatory injunctions.-When, to prevent the breach of an obligation, it
eceary to compel the performance of certain acts which the court is
ohable of enforcing, the court may in its discretion grant an injunction
t0 prevent the breach complained of and also to compel performance of
the requisite acts.