SRA 1963 Vs 2018 AMENDMENT ACT

Introduction
The Specific Relief Act, 1963, is an important Act in India pertaining to the remedies available for civil wrongs arising out of specific performance of contracts, including injunction and declaratory decrees. The Act has, after many deficiencies in its provisions and operation, undergone far-reaching amendments in 2018 aimed at removing various deficiencies and updating its provisions.
The Act was basically intended for the grant of remedies concerning specific performance of contracts, injunctions, and rectification of instruments.
Detailed Comparison:
Scope and Purpose
1963 Act:
- Specific Relief Act, 1963, was enacted as a comprehensive statute for the enforcement of remedies in cases of breach of contract and for the enforcement of various rights. It contained provisions relating to specific performance, injunctions, and rectification, among other reliefs.
2018 Amendment Act:
- The Amendment Act of 2018 reworks and refines the 1963 Act in such a manner that it will be more apt to meet the new demands of law while streamlining the process of granting relief and ensuring effectiveness of the mechanism of enforcement relating to contracts and injunctions.
Specific Performance of Contracts
1963 Act:
- While Section 10 of the 1963 Act specified that a contract shall be specifically enforced, unless the contract is determinable. No order for specific performance was made where the contract itself was determinate or monetary compensation was an adequate remedy for breach of the contract.
- The Act provided a general right to specific performance of contracts.
- Section 14 defined the contracts which could not be specifically enforced, especially those of a determinate nature.
- Section 20 gave the discretion to the courts to refuse specific performance even if the contract was viewed as enforceable because of hardship or any form of delay.
Amendment Act, 2018:
- The Amendment Act, 2018 brings a sea change to the concept of specific performance. Section 14 now defines specifically those contracts which would fall outright excluded from specific performance, such as those that are inherently determinable in nature. Section 12 defines what would be included in granting specific performance, although it also contains special exclusions on contracts relating to land except if the contract is for sale thereof.
- Section 14: The amendment refines the definition of contracts that are exempt from specific performance, with a particular emphasis on contracts of a determinable nature-for example, personal service contracts.
- Section 20: The ambit of judicial discretion, refusing an order of specific performance, is now better defined. This amendment restricts the grounds on which refusal can be based, and it develops the notion that specific performance should indeed be granted, unless compelling reasons exist for refusing to do so. Hardship or delay, except when affecting fairness of the relief, no longer provide as broad an avenue for refusing to grant relief.
Contracts for Sale of Immovable Property
1963 Act:
- The 1963 Act allowed specific performance of a contract for sale of immovable property, subject to certain restrictions depending upon whether the contract was determinable or not.
2018 Amendment Act:
- This amendment provides for less ambiguous restraints upon the enforcement of contracts relating to the sale of immovable property. It enumerates prerequisites with regard to which specific performance is enforceable, making certain that such an order is only issued when the contract in question has been unequivocally accepted and the property concerned is "determinable."
Injunctions
1963 Act:
- Sections 36 to 42 of the 1963 Act dealt with the injunctions, and thus both temporary and permanent injunctions were included. Injunctions were thus issued either to restrain the parties from doing a certain thing or to perform a certain thing.
2018 Amendment Act:
- It has also retained the structure of the injunctions, but with distilled directions and limitations to its award. The recent statute has balanced a middle course between the injunctive relief and in not causing undue hardship on the parties. It explains that an injunction is not to be awarded so as to involve undue hardship on or even injustice to either party, nor so as to conflict with a provision concerned with specific performance.
Rectification of Instruments
1963 Act:
- Section 26 of the 1963 Act provided for rectification of instruments so that wrong documents are corrected.
2018 Amendment Act:
- The 2018 Amendment Act also provides for rectification but perhaps with more detailed guidelines on how to be fair and open in the process of rectification.
Limitation Period
1963 Act:
- The Limitation Act, 1963, prescribes the limitation period for filing suits for specific performance, generally providing the statutory time limits.
- Limitations within which the suit for specific relief could be instituted were provided under the original Act but the limitations were not so succinctly explained.
2018 Amendment Act:
- The 2018 Amendment Act might have brought specific provisions for the limitation period on various kinds of suits under the Specific Relief Act, spelling out categorically such time limits and ensuring such time limits meet the legislative objectives of the amendment.
- The amendment enumerates specific limitation periods for filing suits relating to specific performance, injunctions, and declaratory decrees. This is in an attempt to encourage timely action by parties so that parties do not suffer avoidable delays in coming for judicial relief from the Courts
Declaratory Decrees
1963 Act:
- Section 34 gave any person the right to apply for declaratory decrees on the determination of his rights concerning any property or legal relationship.
2018 Amendment:
- This amendment amends the aforesaid provisions so as to restrict the availment of declaratory decrees. It mandates that there should be an interested party who first demonstrates that no other legal remedy would be adequate and necessary for the plaintiff to have a declaratory decree to protect his rights.
Contracts of Personal Service
1963 Act:
- The Act exempted the general enforceability of contracts relating to personal services, such as employment or partnership contracts.
2018 Amendment:
- Moreover, the amendment crystallizes the unavailability of specific performance for personal service contracts upon the principle that personal services cannot be compelled through the courts.
Alternative Remedies
1963 Act:
- Specific performance, under the 1963 Act was awarded, generally in cases when compensation by way of damages was found inadequate.
2018 Amendment Act:
- Alternative remedies are highlighted and cases explained wherein monetary compensation or otherwise would be more apposite than the specific performance award.
General and Special Provisions
1963 Act:
- The Act delineated different types of general and special provisions to be applied to specific relief.
2018 Amendment Act:
- The 2018 Amendment Act seeks to revisit and refine these provisions through the provision of more specific directions as to how the application of particular reliefs, and the grant or refusal thereof are to be applied.
Suit for Possession
1963 Act:
- The Act provided suits for possession of immovable property upon specific performance.
2018 Amendment:
- This amendment restricts the scope of such suits, with an emphasis on the requirement for a direct and clear right to possession. It addresses contemporary issues pertaining to the enforceability of such rights.
Effectiveness and Efficiency
1963 Act:
- In so being, the 1963 Act was often viewed as restrictive and time-consuming in its practice.
2018 Amendment Act:
- The amendment will guarantee that the legal process is more effective by laying down some of the requirements and procedures in such a manner as to enhance the effectiveness of granting specific relief.
Conclusion:
Specific Relief Act, 2018, has explained and fine-tuned many aspects of Specific Relief Act, 1963, concerning clarity, efficiency, and equity in contract laws, injunctive reliefs, and rectification of instruments.
Summary
The Specific Relief (Amendment) Act, 2018, introduces modernization into the Specific Relief Act, 1963, by refining and clarifying the provisions related to specific performance, injunctions, and declaratory decrees. Thus, the amendments are proposed to be more express, efficacious, and in line with the prevailing legal and commercial practices. They tend to make a balance for granting adequate relief without allowing their misuse and ensuring fairness in the judicial process.