THE SPECIFIC RELIEF ACT, 1963 (AMENDMENTS)

SPECIFIC RELIEF ACT,1963

The tremendous economic development have brought in enormous commercial activities in India including foreign direct investments, public private partnerships, public utilities infrastructure developments, etc.; which have prompted extensive reforms in the related laws to facilitate enforcement of contracts, settlement of disputes in speedy manner. Since the Act was not in tune with the rapid economic growth happening in our country and the expansion of infrastructure activities that are needed for the overall development of the country therefore the amendments have been enacted to match the changing environment.

Legal Grounds

The Specific Relief Act, 1963 (referred hereinafter as ‘the Act’) has been amended to increase the scope of the specific relief granted to the person aggrieved. The Act has done away with the wider discretion of courts to grant specific performance and to make specific performance of contract a general rule than exception subject to certain limited grounds. Further, it has provided for substituted performance of contracts, where a contract is broken, the party who suffers would be entitled to get the contract performed by a third party or by his own agency and to recover expenses and costs, including compensation from the party who failed to perform his part of contract. This would be an alternative remedy at the option of the party who suffers the broken contract. It has also provided the provision to the courts to engage experts on specific issues and to secure their attendance, etc.

Amendments

Following are the amendments that have taken place with the enforcement of The Specific Relief (Amendment) Act, 2018:-

• Section 6 of the Act has been amended to widen the scope for who can file suit in case the person is dispossessed without his consent from his immovable property.Now the following person can file suit to claim possession of immovable property:-

• The person himself
• The person through whom the possession taken
• Any other person claiming through the person dispossessed

• Section 10 of the Act has been substituted by the provision that the specific performance shall   be enforced as per Section 11(2), 14 & 16 of the Act.
•  Section 11 of the Act has been amended to make it mandatory for specific performance of contract if it is to be done by a trust. Earlier it was at the discretion of the court to enforce the specific performance by the trust.
• Section 14 of the Act provides for contracts which are not specifically enforceable and amendment has reduce the scope of these cases by limiting to type of cases as mentioned below:-
• When the party to contract has obtained substituted performance of contract as per Section 20 of the Act i.e. substituted performance by third party or by his own agency.
• Where in a contract there involves the performance of continuous duty which the court cannot supervise
• Where the contract is dependent on the personal qualification of the parties that court cannot enforce specific performance of its material terms
• Where the nature of the contract is in its nature determinable

• Also section 14A has been inserted to give power to court to engage experts if necessary to get expert opinion on specific issue. The court can direct any person to give information to experts and opinion or report given by expert shall form part of record of the suit and also the fees, cost or expense shall be paid by the parties to suit proportionally.
• In Section 15  and 19 of the Act along with company, Limited Liability Partnership can also obtain specific performance and relief against parties respectively.
• In Section 16 of the Act specific performance of contract cannot be enforced in following cases:-
• Who has obtained substituted performance as per Section 20
• Earlier it was mandatory to state and prove that the person has performed or was ready to perform the terms of contract but now only the person failing to prove shall not be entitled to specific performance.
• Also in the explanation clause the plaintiff must prove instead of aver in case of readiness and willingness to perform.
• The sub heading after Section 19 has been substituted with ‘Substituted Performance of Contracts etc.’ from Discretion and Powers of Court.
• Section 20 has been amended to insert a new concept of Substituted Performance of Contract by a third party or an agency of the plaintiff which replaced the discretionary powers of court in case of specific performance of contract.
• Section 20A has been inserted for the contract involving infrastructure project there will be no injunction granted by court if it leads to delay in completion of project.
• Also Section 20B & 20C has been inserted for designation of special courts and expeditious disposal of suits under this Act respectively.
• Section 21 of the Act has been amended to delete the right to claim compensation in substitution of specific performance in a suit so now the plaintiff can claim compensation in addition to specific performance of contract.
• From Section 25 the Arbitration and Conciliation Act,1940 has been replaced with Arbitration and Conciliation Act, 1996
• In Section 41 new clause (ha) has been inserted in section injunction shall not be granted in case of infrastructure project will get delay the process.

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