– Specific Performance of Contract entails forcing a party to execute some act and usually to fulfill the contractual relationship agreed upon. It applies to cases where money is considered not a sufficient or practical option in lieu of breach of contract.

– The Act provides for preventative remedies by way of an injunction, which is a judicial order given to either restrain a party from doing a particular act or direct the party to do an act.

– The Act has provided for declaratory decrees where the court formally declares the rights of parties without giving any relief. This provision is availed of in order to establish the legal rights or obligations.

– The Act provides that where a written document or contract is expressed in a manner not representing the real intention of parties, for instance, due to fraud, mistake, or misrepresentation, such instruments may be rectified or cancelled upon order to meet the actual intention of the parties.

– The Act provides for the rescission of contracts, either in events where the contract is voidable or wherein the performance thereof has subsequently become impossible or unlawful. It will relieve the parties from their contractual obligations under given circumstances.

Principles of the Act

o Principles of Fairness and Equity:

The Act is based on principles of fair treatment and equity in that a party should not get unjust enrichment at the expense of another, and each party should answer to the law without bias.

o Discretion of the Court:

The Act allows discretionary powers on the part of the courts when specific relief is to be given on an analysis of facts and particular circumstances of each case.

o Inadequacy of Monetary Compensation:

The adequacy of monetary compensation is one basic consideration under the Act. Special relief is available if damages are not an adequate remedy for breach.

Purpose and Scope

Purpose of the act are as follows:

• Restoration of Rights:

The Specific Relief Act, 1963 has been enacted to afford remedy for enforcement of civil rights by restoring the party injured to the very position which he would have occupied but for the infringement of his right.

• Equitable Relief:

The Act aims at providing equitable relief, not necessarily monetary compensation alone because in many cases this would be inadequate. It gives specific relief whenever there is no alternative remedy or monetary compensation would work inadequately.

• Prevention of Injustice:

The Act aims at the avoidance of undue enrichment and unfair deprivation. It grants to the injured party specific performance of a contract, injunction to prevent further harm, or order for the recovery of possession.

• Legal Clarity and Certainty:

The Act has tried to bring clarity and certainty in the enforcement of civil rights by laying down the circumstances in which specific relief would be available and what conditions are necessary for granting such relief, thus giving the courts some legal principle to operate upon in the case of the grant of specific relief.

Scope of the act are as follows:

Recovery of Possession of Property:

Sections 5 and 6 of the Act provide remedies for recovery of possession in respect of immovable property. Section 5 allows recovery based on title, while Section 6 provides a summary remedy for possession against a person who has dispossessed him without his consent or otherwise than in due course of law.

The provisions relating to recovery of movable property are contained in Sections 7 and 8. Whereas Section 7 empowers the person entitled to the possession of any specific movable property, to recover such property through the medium of a civil court, Section 8 provides for delivery of specific movable property under certain circumstances.

Specific Performance of Contracts:

Sections 10-13 deal with the kind of contracts that can be specifically enforced. This equitable remedy at law compels a party in default to perform the contract.

Sections 14 and 15 list the contracts which cannot be specifically enforced. These include, for instance, contracts whose performance depends on personal skill or will and too uncertain to enforce.

Application of Rules:

Judicial Discretion (section 16 to 24) give the instances where a decree for specific performance may be granted or refused, based upon the discretion of the court, considering the conduct of parties and the equity of the contract.

Injunctions:

Preventive Relief (section 36 to 42) deal with the injunction, which is essentially a judicial order restraint against a party from committing an act or directing a party to perform an act. The Act covers both temporary and perpetual injunctions.

Temporary injunctions are issued during the pendency of the suit, while perpetual injunctions permanently prevent a breach of obligation in favor of the plaintiff.

Declaratory Relief:

The Act, in its Section 34, gives a party declaratory of his/her rights upon a contract without including any other relief.

Substituted Performance:

The amended Act in the year 2018 stipulated the concept of substituted performance under the meaning of Section 20. According to this provision, the party who is affected may opt for third-party performance or performance by its arrangement and claim restitution of costs against the defaulting party.

Preventive Relief through Injunctions

Injunctions are equitable remedies to prevent a wrong act from being committed. Temporary injunctions fall under the Code of Civil Procedure, 1908, whereas perpetual injunctions fall under the Specific Relief Act. The latter lays down cases where granting an injunction may prevent an act causing an injury or a wrong and when it should not be so granted or given.

Features:

i. Specific performance can be granted when the terms of the contract were express and the contract, in itself, was capable of enforcement.

ii. The specific performance is left to the discretion of judges when considerations of fairness, feasibility, and the nature of the breach are observed.

iii. A limitation period is provided by the Act within which the claim for specific performance has to be instituted, usually three years from the date of breach.

Applicability:

The Act is applicable to the whole of India.

Specific Performance of Contracts:

The Act allows the courts to approve the performance of the contract on cases where damages would not be enough to rectify the breach.

Injunctions:

It allows the courts to grant injunctions against a party from not carrying out an act which would cause some sort of damage.

Declaratory Decrees:

This Act allows declaratory relief for a person to secure the declaration of rights or legal condition of one without necessarily requesting enforcement of such rights.

Contracts of Personal Service:

Generally, the Act excludes contracts of personal service from specific performance because normally an order to one to execute personal work will be grossly counterproductive.

Contracts Relating to Land and Immovable Property:

Special provision for specific performance of the contracts relating to immovable property is made, since real estates are unique and not replaceable.

Exceptions: Specific performance will be refused if impracticable, or where its effect would be unduly harassing, or if the contract is unenforceable under other heads of law.

Interaction with Other Laws

Limitation Act, 1963

The Limitation Act, 1963, provides the period beyond which no action can be taken. This Act has to be read along with the Specific Relief Act in the following manner:

Limitation for Filing Claims for Reliefs: The Specific Relief Act provides for the period for filing suits for specific performance and injunctions. Normally, a suit of this nature is to be filed within a period of three years from the date of the commission of breach.

Indian Contract Act, 1872

The Specific Relief Act, 1963, provides supplementary legislation regarding specific performance of contracts as an addendum to the Indian Contract Act, 1872. If the Indian Contract Act, 1872, in brief, covers the areas of contractual obligations and the main remedies, such as those concerned with damages, the Specific Relief Act, 1963, has laid down the law relating to specific enforcement of a contract upon the failure of one of the parties in the performance of his part of it.

The Specific Relief Act does not generally apply to the contracts for personal service. Such contracts are usually governed by the principles laid down under the Indian Contract Act along with such employment law rules as may be applicable.

Transfer of Property Act, 1882

In cases where a contract relates to the transfer of property, such as sale or lease, in the event of non-performance by one party in carrying out his portion of the agreement, the Specific Relief Act allows for remedies through specific performance. The specific section operates in concurrency with the Transfer of Property Act as well, which is used to address the legal processes related to properties in transaction.

Civil Procedure Code (CPC)

The Specific Relief Act also provides for the grant of injunctions, by which court orders are used to restrain or hold a person to certain acts. These are, however, issued by the procedures under the CPC, as it provides the rules for both civil suits and enforcement of decrees. Application and issuance of an injunction are summarized in the Code of Civil Procedure above.

The Act impacts the equivalence in the execution of decrees, where the court orders specific performance to be done. It lays down a suitable train of procedure to ensure the observance of court judgments.

Companies Act, 2013

The Specific Relief Act is applied to corporate contracts, disputes, shareholders' agreements, or joint ventures. If the company defaults on the perform of its contractual obligations, then one can plead specific performance or injunction under the Specific Relief Act.

Consumer Protection Laws

When conflicts are reported under consumer transactions, where specific performance of a contract has been reported for instance delivery of goods or services, among others, the act can be invoked without the consumer protection act for enforcing the contractual terms and narrowing the scope of the consumer rights.

Intellectual Property Laws

The rights enforceable under the Specific Relief Act may be enforced by injunctions in relation to cases falling under intellectual property rights or to avail of any enforcement related to a contract of intellectual property assets.

Arbitration and Conciliation Act, 1996

Whenever arbitration has been used for dispute resolution, the provisions relating to specific performance and injunctions in the Specific Relief Act either supplement or supplement the arbitral awards if the latter entails equitable relief.

In cases of family disputes regarding inheritance or settlements, if some specific term has been agreed to by all the parties, then the same can be enforced, and the Specific Relief Act can come for rescue of the distressed.

The Specific Relief Act, 1963 provides equitable remedies for enforcing civil rights, focusing on specific performance of contracts, injunctions, and declaratory decrees. It complements other laws by addressing cases where monetary compensation is inadequate, ensuring justice through targeted relief. The Act’s provisions intersect with various legal frameworks, reinforcing its broad applicability and importance in achieving fair outcomes.