Specific Relief Act
1. Short title, extent and commencement
2. Definitions
3. Saving
4. Specific relief to be granted only for enforcing individual civil rights and not for enforcing penal laws
Chapter I - Recovering Possession Of Property
5. Recovery of specific immovable property
6. Suit by persons dispossessed of immovable property
7. Recovery of specific movable property
8. Liability of person in possession, not as owner, to deliver to persons entitled to immediate possession
Chapter II - Specific Performance Of Contracts
9. Defense respecting suits for relief based on contract
Contracts Which Can Be Specifically Enforced
10. Cases in which specific performance of contract enforceable
11. Cases in which specific performance of contracts connected with trust enforceable
12. Specific performance of part of contract
13. Rights of purchaser or lessee against person with no title or imperfect title
Contracts Which Cannot Be Specifically Enforced
14. Contracts not specifically enforceable
Persons For Or Against Whom Contracts May Be Specifically Enforced
15. Who may obtain specific performance
16. Personal bars to relief
17. Contract to sell or let property by one who has no title, not specifically enforceable
18. Non-enforcement except with variation
19. Relief against parties and persons claiming under them by subsequent title
Discretion And Powers Of Court
20. Discretion as to decreeing specific performance
21. Power to award compensation in certain cases
22. Power to grant relief for possession, partition, refund of earnest money, etc.
23. Liquidation of damages not a bar to specific performance
24. Bar of suit for compensation for breach after dismissal of suit for specific performance.
Enforcement Of Awards And Directions To Execute Settlements
25. Application of preceding sections to certain awards and testamentary directions to execute settlements
Chapter III - Rectification Of Instruments
26. When instrument may be rectified
Chapter IV - Rescission Of Contracts
27. Where rescission may be adjudged or refused
28. Rescission in certain circumstances of contracts for the sale or lease of immovable property, the specific performance of which has been decreed
29. Alternative prayer for rescission in suit for specific performance
30. Court may require parties rescinding to do equity
Chapter V - Cancellation Of Instruments
31. When cancellation may be ordered
32. What instruments may be partially cancelled
33. Power to require benefit to be restored or compensation to be made when instrument is cancelled or is successfully resisted as being void or voidable
Chapter VI - Declaratory Decrees
34. Discretion of court as to declaration of status or right
35. Effect of declaration
Chapter VII - Injunctions Generally
36. Preventive relief how granted
37. Temporary and perpetual injunctions
Chapter VIII - Perpetual Injunctions
38. Perpetual injunction when granted
39. Mandatory injunctions
40. Damages in lieu of, or in addition to, injunction
41. Injunction when refused
42. Injunction to perform negative agreement
43. Amendment of Act 10 of 1940 [Repealed by the Repealing and Amending Act, 1974 (56 of 1974)]
44. Repeal [Repealed by the Repealing and Amending Act, 1974 (56 of 1974)]
1. Short title, extent and commencement
(1) This Act may be called the Specific Relief Act, 1963.
(2) It extends to the whole of India except the State of Jammu
and Kashmir.
(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint.
2. Definitions
In this Act, unless the context otherwise requires,-
(a) "obligation" includes every duty enforceable by
law;
(b) "settlement" means an instrument (other than a will
or codicil as defined by the Indian Succession Act, 1925) whereby the
destination or devolution of successive interests in movable or immovable
property is disposed of or is agreed to be disposed of;
(c) "trust" has the same meaning as in section 3 of
the Indian Trusts Act, 1882, and includes an obligation in the nature of a
trust within the meaning of Chapter IX of that Act:
(d) "trustee" includes every person holding property
in trust;
(e) all other words and expressions used herein, but not defined, and defined in the Indian Contract Act, 1872, have the meanings respectively assigned to them in that Act.
3. Saving
Except as otherwise provided herein, nothing in this Act shall
be deemed,-
(a) to deprive any person of any right to relief, other than
specific performance, which he may have under any contract; or
(b) to affect the operation of the Indian Registration Act, 1908, on documents.
4. Specific relief to be granted only for enforcing individual civil rights and not for enforcing penal laws
Specific relief can be granted only for the purpose of enforcing individual civil rights and not for the mere purpose of enforcing a penal law.
Chapter I - Recovering Possession Of Property
5. Recovery of specific immovable property
A person entitled to the possession of specific immovable property may recover it in the manner provided by the Code of Civil Procedure, 1908.
6. Suit by persons dispossessed of immovable property
(1) If any person is dispossessed without his consent of
immovable property otherwise than in due course of law, he or any person
claiming through him may, by suit, recover possession thereof, notwithstanding
any other title that may be set up in such suit.
(2) No suit under this section shall be brought-
(a) after the expiry of six months from the
date of dispossession; or
(b) against the government.
(3) No appeal shall lie from any order or decree passed in any
suit instituted under this section, nor shall any review of any such order or
decree be allowed.
(4) Nothing in this section shall bar any person from suing to
establish his title to such property and to recover possession thereof.
Comment: The next question is : whether the decree for possession could be granted in favor of the appellant. It is true that the suit was not filed within six months under Section 6 of the Specific Relief Act. But, as seen earlier, the proceedings under S.145 were initiated at the instance of the respondent Ram Gopal and were pending for long time until the revision was dismissed by the High Court giving liberty to the appellant to file the suit for possession. Under these circumstances, the suit came to be filed immediately after the proceedings came to a terminus, no doubt, after issue of notice to the Government under Section 80 CPC and after expiry of 60 days time required under S.80 CPC. Under these circumstances, it must be concluded that in substance the suit is one under S.6 of the Specific Relief Act. Beharilal v. Smt. Bhuri Devi, AIR 1997 SUPREME COURT 1879
7. Recovery of specific movable property
A person entitled to the possession of specific movable property
may recover it in the manner provided by the Code of Civil Procedure, 1908.
Explanation 1 : A trustee may sue under this section for the
possession of movable property to the beneficial interest in which the person
for whom he is trustee is entitled.
Explanation 2 : A special or temporary right to the present possession of movable property is sufficient to support a suit under this section.
8. Liability of person in possession, not as owner, to deliver to persons entitled to immediate possession
Any person having the possession or control of a particular
article of movable property of which he is not the owner may be compelled
specifically to deliver it to the person entitled to its immediate possession,
in any of the following cases:
(a) when the thing claimed is held by the defendant as the agent
or trustee of the plaintiff;
(b) when compensation in money would not afford the plaintiff adequate
relief for the loss of the thing claimed;
(c) when it would be extremely difficult to ascertain the actual
damage caused by its loss;
(d) when the possession of the thing claimed has been wrongfully
transferred from the plaintiff.
Explanation: Unless and until the contrary is proved, the
court shall, in respect of any article of movable property claimed under clause
(b) or clause (c) of this section, presume-
(a) that compensation in money would not afford the plaintiff
adequate relief for the loss of the thing claimed, or, as the case may be;
(b) that it would be extremely difficult to ascertain the actual damage caused by its loss.
Chapter II - Specific Performance Of Contracts
9. Defense respecting suits for relief based on contract
Except as otherwise provided herein, where any relief is claimed under this Chapter in respect of a contract, the person against whom the relief is claimed may plead by way of defense any ground which is available to him under any law relating to contracts.
Contracts Which Can Be Specifically Enforced
10. Cases in which specific performance of contract enforceable
Except as otherwise provided in this Chapter, the specific
performance of any contract may, in the discretion of the court, be enforced-
(a) when there exists no standard for ascertaining actual damage
caused by the non-performance of the act agreed to be done; or
(b) when the act agreed to be done is such that compensation in
money for its non-performance would not afford adequate relief.
Explanation: Unless and until the contrary is proved, the
court shall presume-
(i) that the breach of a contract to transfer immovable property
cannot be adequately relieved by compensation in money; and
(ii) that the breach of a contract to transfer movable property
can be so relieved except in the following cases:
(a) where the property is not an ordinary
article of commerce, or is of special value or interest to the plaintiff, or
consists of goods which are not easily obtainable in the market;
(b) where the property is held by the defendant as the agent or trustee of the plaintiff.
11. Cases in which specific performance of contracts connected with trust enforceable
(1) Except as otherwise provided in this Act, specific
performance of a contract may, in the discretion of the court, be enforced when
the act agreed to be done is in the performance wholly or partly of a
trust
(2) A contract made by a trustee in excess of his powers or in breach of trust cannot be specifically enforced.
12. Specific performance of part of contract
(1) Except as otherwise hereinafter provided in this section the
court shall not direct the specific performance of a part of a contract.
(2) Where a party to a contract is unable to perform the whole
of his part of it, but the part which must be left unperformed by only a small
proportion to the whole in value and admits of compensation in money, the court
may, at the suit of either party, direct the specific performance of so much of
the contract as can be performed, and award compensation in money for the
deficiency.
(3) Where a party to a contract is unable to perform the whole
of his part of it, and the part which must be left unperformed either-
(a) forms a considerable part of the whole,
though admitting of compensation in money; or
(b) does not admit of compensation in money;
he is not entitled to obtain a decree for specific performance;
but the court may, at the suit of other party, direct the party in default to perform
specifically so much of his part of the contract as he can perform, if the
other party-
(i) in a case falling under clause (a), pays
or has paid the agreed consideration for the whole of the contract reduced by
the consideration for the part which must be left unperformed and a case
falling under clause (b), 2[pays or had paid] the consideration for the whole
of the contract without any abatement; and
(ii) in either case, relinquished all claims
to the performance of the remaining part of the contract and all right to
compensation, either for the deficiency or for the loss or damage sustained by
him through the default of the defendant.
(4) When apart of a contract which, taken by itself, can and
ought to be specifically performed, stands on a separate and independent
footing from another part of the same contract which cannot or ought not to be
specifically performed, the court may direct specific performance of the former
part.
Explanation: For the purposes of this section, a party to a contract shall be deemed to be unable to perform the whole of his part of it if a portion of its subject matter existing at the date of the contract has ceased to exist at the time of its performance.
13. Rights of purchaser or lessee against person with no title or imperfect title
(1) Where a person contracts to sell or let certain immovable
property having no title or only an imperfect title, the purchaser or lessee
(subject to the other provisions of this Chapter), has the following rights,
namely,-
(a) if the vendor or lessor has subsequently
to the contract acquired any interest in the property, the purchaser or lessee
may compel him to make good the contract out of such interest;
(b) where the concurrence of other persons is
necessary for validating the title, and they are bound to concur at the request
of the vendor or lessor, the purchaser or lessee may compel him to procure such
concurrence, and when a conveyance by other persons is necessary to validate
the title and they are bound to convey at the request of the vendor or lessor,
the purchaser or lessee may compel him to procure such conveyance;
(c) where the vendor professes to sell
unencumbered property, but the property is mortgaged for an amount not
exceeding the purchase money and the vendor has in fact only a right to redeem
it, the purchaser may compel him to redeem the mortgage and to obtain a valid
discharge, and, where necessary, also a conveyance from the mortgagee;
(d) where the vendor or lessor sues for
specific performance of the contract and the suit is dismissed on the ground of
his want of title or imperfect title, the defendant has a right to a return of
his deposit, if any, with interest thereon, to his costs of the suit, and to a
lien for such deposit, interest and costs on the interest, if any, of the
vendor or lessor in the property which is the subject-matter of the contract.
(2) The provisions of sub-section (1) shall also apply, as far as may be, to contracts for the sale or hire of movable property.
Contracts Which Cannot Be Specifically Enforced
14. Contracts not specifically enforceable
(1) The following contracts cannot be specifically enforced,
namely,-
(a) a contract for the non-performance of
which compensation is an adequate relief;
(b) a contract which runs into such minute or
numerous details or which is so dependent on the personal qualifications or
volition of the parties, or otherwise from its nature is such, that the court
cannot enforce specific performance of its material terms;
(c) a contract which is in its nature
determinable;
(d) a contract the performance of which
involves the performance of a continuous duty which the court cannot supervise.
(2) Save as provided by the Arbitration Act, 1940, no contract
to refer present or future differences to arbitration shall be specifically
enforced; but if any person who has made such a contract (other than
arbitration agreement to which the provisions of the said Act apply) and has
refused to perform it, sues in respect of any subject which he has contracted
to refer, the existence of such contract shall bar the suit.
(3) Notwithstanding anything contained in clause (a) or clause
(c) or clause (d) of sub-section (1), the court may enforce specific
performance in the following cases:
(a) where the suit is for the enforcement of a
contract,-
(i) to execute a mortgage or furnish any other
security for securing the repayment of any loan which the borrower is not
willing to repay at once:
PROVIDED that where only a part of the loan has
been advanced the vendor is willing to advance the remaining part of the loan
in terms of the contract; or
(ii) to take up and
pay for any debentures of a company;
(b) where the suit is for,-
(i) the execution of a formal deed of
partnership, the parties having commenced to carry on the business of the
partnership; or
(ii) the purchase of a
share of a partner in a firm;
(c) where the suit is for the enforcement of a
contract for the construction of any building or the execution of any other
work on land:
PROVIDED that the following conditions are
fulfilled, namely,-
(i) the building or other work is described in
the contract in terms sufficiently precise to enable the court to determine the
exact nature of the building or work;
(ii) the plaintiff has a substantial interest
in the performance of the contract and the interest is of such a nature that
compensation in money for non-performance of the contract is not an adequate
relief; and
(iii) the defendant has, in pursuance of the contract, obtained possession of the whole or any part of the land on which the building is to be constructed or other work is to be executed.
Persons For Or Against Whom Contracts May Be Specifically Enforced
15. Who may obtain specific performance
Except as otherwise provided by this Chapter, the specific
performance of a contract may be obtained by-
(a) any party thereto;
(b) the representative in interest or the principal, of any
party thereto:
PROVIDED that where the learning, skill, solvency or
any personal quality of such party is a material ingredient in the contract, or
where the contract provides that his interest shall not be assigned, his
representative in interest or his principal shall not be entitled to specific
performance of the contract, unless such party has already performed his part
of the contract, or the performance thereof by his representative in interest,
or his principal, has been accepted by the other party;
(c) where the contract is a settlement on marriage, or a
compromise of doubtful rights between members of the same family, any person
beneficially entitled thereunder;
(d) where the contract has been entered into by a tenant for
life in due exercise of a power, the remainder man;
(e) a reversioner in possession, where the agreement is a
covenant entered into with his predecessor in title and the reversioner is
entitled to the benefit of such covenant;
(f) a reversioner in remainder, where the agreement is such a
covenant, and the reversioner is entitled to the benefit thereof and will
sustain material injury by reason of its breach;
(g) when a company has entered into a contract and subsequently
becomes amalgamated with another company, the new company which arises out of
the amalgamation;
(h) when the promoters of a company have, before its
incorporation, entered into a contract for the purposes of the company, and
such contract is warranted by the terms of the incorporation, the company:
PROVIDED that the company has accepted the contract and has communicated such acceptance to the other party to the contract.
16. Personal bars to relief
Specific performance of a contract cannot be enforced in
favor of a person-
(a) who would not be entitled to recover compensation for its
breach; or
(b) who has become incapable of performing, or violates any
essential term of, the contract that on his part remains to be performed, or
acts in fraud of the contract, or willfully acts at variance with, or in
subversion of, the relation intended to be established by the contract; or
(c) who fails to aver and prove that he has performed or has
always been ready and willing to perform the essential terms of the contract
which are to be performed by him, other than terms of the performance of which
has been prevented or waived by the defendant.
Explanation : For the purposes of clause (c),-
(i) where a contract involves the payment of money, it is not
essential for the plaintiff to actually tender to the defendant or to deposit
in court any money except when so directed by the court;
(ii) the plaintiff must aver performance of, or readiness and willingness to perform, the contract according to its true construction.
17. Contract to sell or let property by one who has no title, not specifically enforceable
(1) A contract to sell or let any immovable property cannot be
specifically enforced in favor of a vendor or lessor-
(a) who, knowing not to have any title to the
property, has contracted to sell or let the property;
(b) who, though he entered into the contract
believing that he had a good title to the property, cannot at the time fixed by
the parties or by the court for the completion of the sale or letting, give the
purchaser or lessee a title free from reasonable doubt.
(2) The provisions of sub-section (1) shall also apply as far as may be, to contracts for the sale or hire of movable property.
18. Non-enforcement except with variation
Where a plaintiff seeks specific performance of a contract in
writing, to which the defendant sets up a variation, the plaintiff cannot
obtain the performance sought, except with the variation so set up, in the
following cases, namely,-
(a) where by fraud, mistake or fact or misrepresentation, the
written contract of which performance is sought is in its terms or effect
different from what the parties agreed to, or does not contain all the terms
agreed to between the parties on the basis of which the defendant entered into
the contract;
(b) where the object of the parties was to produce a certain
legal result which the contract as framed is not calculated to produce;
(c) where the parties have subsequently to the execution of the contract, varied its terms.
19. Relief against parties and persons claiming under them by subsequent title
Except as otherwise provided by this Chapter, specific
performance of a contract may be enforced against-
(a) either party thereto;
(b) any other person claiming under him by a title arising
subsequently to the contract, except a transferee for value who has paid his
money in good faith and without notice of the original contract;
(c) any person claiming under a title which, though prior to the
contract and known to the plaintiff, might have been displaced by the
defendant;
(d) when a company has entered into a contract and subsequently
becomes amalgamated with another company, the new company which arises out of
the amalgamation;
(e) when the promoters of a company have, before its
incorporation, entered into a contract for the purpose of the company and such
contract is warranted by the terms of the incorporation, the company:
PROVIDED that the company has accepted the contract and communicated such acceptance to the other party to the contract.
Discretion And Powers Of Court
20. Discretion as to decreeing specific performance
(1) The jurisdiction to decree specific performance is
discretionary, and the court is not bound to grant such relief merely because
it is lawful to do so; but the discretion of the court is not arbitrary but
sound and reasonable, guided by judicial principles and capable of correction
by a court of appeal.
(2) The following are cases in which the court may properly
exercise discretion not to decree specific performance:
(a) where the terms of the contract or the
conduct of the parties at the time of entering into the contract or the other
circumstances under which the contract was entered into are such that the
contract, though not voidable, gives the plaintiff an unfair advantage over the
defendant; or
(b) where the performance of the contract
would involve some hardship on the defendant which he did not foresee, whereas
its non-performance would involve no such hardship on the plaintiff; or
(c) where the defendant entered into the contract
under circumstances which though not rendering the contract voidable, makes it
inequitable to enforce specific performance.
Explanation 1 : Mere inadequacy of
consideration, or the mere fact that the contract is onerous to the defendant
or improvident in its nature, shall not be deemed to constitute an unfair
advantage within the meaning of clause (a) or hardship within the meaning of
clause (b).
Explanation 2: The question whether
the performance of a contract would involve hardship on the defendant within
the meaning of clause (b) shall, except in cases where the hardship has
resulted from any act of the plaintiff subsequent to the contract, be
determined with reference to the circumstances existing at the time of the
contract.
(3) The court may properly exercise discretion to decree
specific performance in any case where the plaintiff has done substantial acts
or suffered losses in consequence of a contract capable of specific
performance.
(4) The court shall not refuse to any party specific performance of a contract merely on the ground that the contract is not enforceable at the instance of the party.
21. Power to award compensation in certain cases
(1) In a suit for a specific performance of a contract, the
plaintiff may also claim compensation for its breach, either in addition to, or
in substitution of, such performance.
(2) If, in any such suit, the court decides that specific
performance ought not to be granted, but that there is a contract between the
parties which has been broken by the defendant, and that the plaintiff is
entitled to compensation for that breach, it shall award him such compensation
accordingly.
(3) If, in any such suit, the court decides that specific
performance ought to be granted, but that it is not sufficient to satisfy the
justice of the case, and that some compensation for breach of the contract
should also be made to the plaintiff, it shall award him such compensation
accordingly.
(4) In determining the amount of any compensation awarded under
this section, the court shall be guided by the principles specified in section
73 of the Indian Contract Act, 1872.
(5) No compensation shall be awarded under this section unless
the plaintiff has claimed such compensation in his plaint:
PROVIDED that where the plaintiff has not claimed any
such compensation in the plaint, the court shall, at any stage of the
proceeding, allow him to amend the plaint on such terms as may be just, for
including a claim for such compensation.
Explanation : The circumstance that the contract has become incapable of specific performance does not preclude the court from exercising the jurisdiction conferred by this section.
22. Power to grant relief for possession, partition, refund of earnest money, etc.
(1) Notwithstanding anything to the contrary contained in the
Code of Civil Procedure, 1908, any person suing for the specific performance of
a contract for the transfer of immovable property may, in an appropriate case,
ask for-
(a) possession, or partition and separate
possession, of the property, in addition to such performance; or
(b) any other relief to which he may be
entitled, including the refund of any earnest money or deposit paid or 3[made
by] him, in case his claim for specific performance is refused.
(2) No relief under clause (a) or clause (b) of sub-section (1)
shall be granted by the court unless it has been specifically claimed:
PROVIDED that where the plaintiff has not
claimed any such relief in the plaint, the court shall, at any stage of the
proceeding, allow him to amend the plaint on such terms as may be just for
including a claim for such relief.
(3) The power of the court to grant relief under clause (b) of sub-section (1) shall be without prejudice to its powers to award compensation under section 21.
23. Liquidation of damages not a bar to specific performance
(1) A contract, otherwise proper to be specifically enforced,
may be so enforced, though a sum be named in it as the amount to be paid in
case of its breach and the party in default is willing to pay the same, if the
court, having regard to the terms of the contract and other attending
circumstances, is satisfied that the sum was named only for the purpose of
securing performance of the contract and not for the purpose of giving, to the
party in default an option of paying money in lieu of specific performance.
(2) When enforcing specific performance under this section, the court shall not also decree payment of the sum so named in the contract.
24. Bar of suit for compensation for breach after dismissal of suit for specific performance.
The dismissal of a suit for specific performance of a contract or part thereof shall bar the plaintiffs right to sue for compensation for the breach of such contract or part, as the case may be, but shall not bar his right to sue for any other relief to which he may be entitled, by reason of such breach.
Enforcement Of Awards And Directions To Execute Settlements
25. Application of preceding sections to certain awards and testamentary directions to execute settlements
The provisions of this Chapter as to contracts shall apply to awards to which the Arbitration Act, 1940, does not apply and to directions in a will or codicil to execute a particular settlement.
Chapter III - Rectification Of Instruments
26. When instrument may be rectified
(1) When, through fraud or a mutual mistake of the parties, a
contract or other instrument in writing (not being the articles of association
of a company to which the Companies Act, 1956, applies) does not express their
real intention, then
(a) either party or his representative in
interest may institute a suit to have the instrument rectified; or
(b) the plaintiff may, in any suit in which
any right arising under the instrument is in issue, claim in his pleading that
the instrument be rectified; or
(c) a defendant in any such suit as is
referred to in clause (b), may, in addition to any other defense open to him,
ask for rectification of the instrument.
(2) If, in any suit in which a contract or other instrument is
sought to be rectified under sub-section (1), the court finds that the
instrument, through fraud or mistake, does not express the real intention of
the parties, the court may, in its discretion, direct rectification of the
instrument so as to express that intention, so far as this can be done without
prejudice to rights acquired by third persons in good faith and for value.
(3) A contract in writing may first be rectified, and then if
the party claiming rectification has so prayed in his pleading and the court
thinks fit, may be specifically enforced.
(4) No relief for the rectification of an instrument shall be
granted to any party under this section unless it has been specifically
claimed:
PROVIDED that where a party has not claimed any such relief in his pleading, the court shall, at any stage of the proceeding, allow him to amend the pleading on such terms as may be just for including such claim.
Chapter IV - Rescission Of Contracts
27. Where rescission may be adjudged or refused
(1) Any person interested in a contract may sue to have it
rescinded, and such rescission may be adjudged by the court in any of the
following cases, namely,-
(a) where the contract is voidable or
terminable by the plaintiff;
(b) where the contract is unlawful for causes
not apparent on its face and the defendant is more to blame than the plaintiff.
(2) Notwithstanding anything contained in sub-section (1), the
court may refuse to rescind the contract-
(a) where the plaintiff has expressly or
impliedly ratified the contract; or
(b) where, owing to the change of
circumstances which has taken place since the making of the contract (not being
due to any act of the defendant himself), the parties cannot be substantially
restored to the position in which they stood when the contract was made; or
(c) where third parties have, during the
subsistence of the contract, acquired rights in good faith without notice and
for value; or
(d) where only a part of the contract is
sought to be rescinded and such part is not severable from the rest of the contract.
Explanation : In this section "contract", in relation to the territories to which the Transfer of Property Act, 1882, does not extend, means a contract in writing.
28. Rescission in certain circumstances of contracts for the sale or lease of immovable property, the specific performance of which has been decreed
(1) Where in any suit a decree for specific performance of a
contract for the sale or lease of immovable property has been made and the
purchaser or lessee does not, within the period allowed by the decree or such
further period as the court may allow, pay the purchase money or other sum
which the court has ordered him to pay, the vendor or lessor may apply in the
same suit in which the decree is made, to have the contract rescinded and on
such application the court may, by order, rescind the contract either so far as
regards the party in default or altogether, as the justice of the case may
require.
(2) Where a contract is rescinded under sub-section (1), the
court-
(a) shall direct the purchaser or the lessee,
if he has obtained possession of the property under the contract, to restore
such possession to the vendor or lessor; and
(b) may direct payment to the vendor or lessor
of all the rents and profits which have accrued in respect of the property from
the date on which possession was so obtained by the purchaser or lessee until
restoration of possession to the vendor or lessor, and if the justice of the
case so requires, the refund of any sum paid by the vendee or the lessee as
earnest money or deposit in connection with the contract.
(3) If the purchaser or lessee pays the purchase money or other
sum which he is ordered to pay under the decree within the period referred to in
sub-section (1), the court may, on application made in the same suit, award the
purchaser or lessee such further relief as he may be entitled to, including in
appropriate cases all or any of the following relief�s, namely,-
(a) the execution of a proper conveyance or
lease by the vendor or lessor;
(b) the delivery or possession, or partition
and separate possession, of the property on the execution of such conveyance or
lease.
(4) No separate suit in respect of any relief which may be
claimed under this section shall lie at the instance of a vendor, purchaser,
lessor or lessee, as the case may be.
(5) The costs of any proceedings under this section shall be in the discretion of the court.
29. Alternative prayer for rescission in suit for specific performance
A plaintiff instituting a suit for the specific performance of a contract in writing may pray in the alternative that, if the contract cannot be specifically enforced, it may be rescinded and delivered up to be cancelled; and the court, if it refuses to enforce the contract specifically, may direct it to be rescinded and delivered up accordingly.
30. Court may require parties rescinding to do equity
On adjudging the rescission of a contract, the court may require the party to whom such relief is granted to restore, so far as may be, any benefit which he may have received from the other party and to make any compensation to him which justice may require.
Chapter V - Cancellation Of Instruments
31. When cancellation may be ordered
(1) Any person against whom a written instrument is void or
voidable, and who has reasonable apprehension that such instrument, if left
outstanding may cause him serious injury, may sue to have it adjudged void or
voidable; and the court may, in its discretion, so adjudge it and order it to
be delivered up and cancelled.
(2) If the instrument has been registered under the Indian Registration Act, 1908, the court shall also send a copy of its decree to the officer in whose office the instrument has been so registered; and such officer shall note on the copy of the instrument contained in his books the fact of its cancellation.
32. What instruments may be partially cancelled
Where an instrument is evidence of different rights or different obligations, the court may, in a proper case, cancel it in part and allow it to stand for the residue.
33. Power to require benefit to be restored or compensation to be made when instrument is cancelled or is successfully resisted as being void or voidable
(1) On adjudging the cancellation of an instrument, the court
may require the party to whom such relief is granted, to restore, so far as may
be any benefit which he may have received from the other party and to make any
compensation to him which justice may require.
(2) Where a defendant successfully resists any suit on the
grounds-
(a) that the instrument sought to be enforced
against him in the suit is voidable, the court may if the defendant has
received any benefit under the instrument from the other party, require him to
restore, so far as may be, such benefit to that party or to make compensation
for it.
(b) that the agreement sought to be enforced against him in the suit is void by reason of his not having been competent to contract under section 11 of the Indian Contract Act, 1872, the court may, if the defendant has received any benefit under the agreement from the other party, require him to restore, so far as may be, such benefit to that party, to the extent to which he or his estate has benefited thereby.
Chapter VI - Declaratory Decrees
34. Discretion of court as to declaration of status or right
Any person entitled to any legal character, or to any right as
to any property, may institute a suit against any person denying, or interested
to deny, his title to such character or right, and the court may in its
discretion make therein a declaration that he is so entitled, and the plaintiff
need not in such suit ask for any further relief:
PROVIDED that no court shall make any such declaration
where the plaintiff, being able to seek further relief than a mere declaration
of title, omits to do so.
Explanation: A trustee of property is a "person interested to deny "a title adverse to the title of someone who is not in existence, and for whom, if in existence, he would be a trustee.
35. Effect of declaration
A declaration made under this Chapter is binding only on the parties to the suit, persons claiming through them respectively, and, where any of the parties are trustees, on the persons for whom, if in existence at the date of declaration, such parties would be trustees.
Chapter VII - Injunctions Generally
36. Preventive relief how granted
Preventive relief is granted at the discretion of the court by injunction, temporary or perpetual.
37. Temporary and perpetual injunctions
(1) Temporary in junctions are such as are to continue until a
specific time, or until the further order of the court, and they may be granted
at any stage of a suit, and are regulated by the Code of Civil Procedure, 1908.
(2) A perpetual injunction can only be granted by the decree made at the hearing and upon the merits of the suit; the defendant is thereby perpetually enjoined from, the assertion of a right, or from the commission of an act, which could be contrary to the rights of the plaintiff.
Chapter VIII - Perpetual Injunctions
38. Perpetual injunction when granted
(1) Subject to the other provisions contained in or referred to
by this Chapter, a perpetual injunction may be granted to the plaintiff to prevent
the breach of an obligation existing in his favor, whether expressly or by
implication.
(2) When any such obligation arises from contract, the court
shall be guided by the rules and provisions contained in Chapter II.
(3) When the defendant invades or threatens to invade the
plaintiff�s right to, or enjoyment of, property, the court may grant a
perpetual injunction in the following cases, namely,-
(a) where the defendant is trustee of the
property for the plaintiff;
(b) where there exists no standard for
ascertaining the actual damage caused, or likely to be caused, by the invasion;
(c) where the invasion is such that
compensation in money would not afford adequate relief;
(d) where the injunction is necessary to prevent a multiplicity of judicial proceedings..
39. Mandatory injunctions
When, to prevent the breach of an obligation, it is necessary to compel the performance of certain acts which the court is capable of enforcing, the court may in its discretion grant an injunction to prevent the breach complained of, and also to compel performance of the requisite acts.
40. Damages in lieu of, or in addition to, injunction
(1) The plaintiff in a suit for perpetual injunction under
section 38, or mandatory injunction under section 39, may claim damages either
in addition to, or in substitution for, such injunction and the court may, if
it thinks fit, award such damages.
(2) No relief for damages shall be granted under this section
unless the plaintiff has claimed such relief in his plaint:
PROVIDED that where no such damages have been claimed
in the plaint, the court shall, at any stage of the proceedings, allow the
plaintiff to amend the plaint on such terms as may be just for including such
claim.
(3) The dismissal of a suit to prevent the breach of an obligation existing in favor of the plaintiff shall bar his right to sue for damages for such breach.
41. Injunction when refused
An injunction cannot be granted-
(a) to restrain any person from prosecuting a judicial
proceeding pending at the institution of the suit in which the injunction is
sought, unless such restraint is necessary to prevent a multiplicity of
proceedings;
(b) to restrain any person from instituting or prosecuting any
proceeding in a court not subordinate to that from which the injunction is
sought;
(c) to restrain any person from applying to any legislative
body;
(d) to restrain any person from instituting or prosecuting any
proceeding in a criminal matter;
(e) to prevent the breach of a contract the performance of which
would not be specifically enforced;
(f) to prevent, on the ground of nuisance, an act of which it is
not reasonably clear that it will be a nuisance;
(g) to prevent a continuing breach in which the plaintiff has
acquiesced;
(h) when equally efficacious relief can certainly be obtained by
any other usual mode of proceeding except in case of breach of trust;
(i) when the conduct of the plaintiff or his agents has been
such as to disentitle him to the assistance of the court;
(j) when the plaintiff has no personal interest in the matter.
42. Injunction to perform negative agreement
Notwithstanding anything contained in clause (e) of section 41,
where a contract comprises an affirmative agreement to do a certain act,
coupled with a negative agreement, express or implied, not to do a certain act,
the circumstances that the court is unable to compel specific performance of
the affirmative agreement shall not preclude it from granting an injunction to
perform the negative agreement:
PROVIDED that the plaintiff has not failed to perform the contract so far as it is binding on him.