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SRA Notes Final
SRA Notes Final
SRA Notes Final
General Introduction:
Equity means to do unto all men as we would they should do unto us.
Specific Relief was granted by the Courts of Equity is England, in the cases
where there was no Common Law Relief or in such cases where the relief
granted by the common law courts was inadequate.
Specific Relief:
The law of Specific Relief aims at providing the remedy to the suitor in specie,
i.e. the very thing which the other party was bound to perform.
Where pecuniary compensation is not adequate relief for the non- performance
of the contract, the specific relief may be granted.
The Specific Relief Act, 1963 is based on the Ninth Report of the Law
Commission of India on the Specific Relief Act, 1877. Specific Relief is a
discretionary remedy, i.e., the court is not bound to grant the specific relief
merely because it is lawful to do so or that the suitor has a right to get such
relief.
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Chapter- 1, Recovering Possession of Property:
Section 4
Section 5
If a person is “dispossessed”
Any person is not barred under section 6 from suing to established his title
and recover possession thereof.
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Any ground which is available to him under any law relating to contracts.
S-12 would include cases which fall under s-56 of the contract act
This provision applies where the contracting parties know of and contemplate
the possibility of the whole contract being incapable for reason beyond the
control of either party.
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so subject to her relinquishing both compensation and the specific
performance.
Section 12(3)
Section 12(4)
For the purposes of this section, a party to a contract shall be deemed to be unable
to perform the whole of his part if a portion of its subject- matter existing at the
date of the contract has ceased to exist at the time of its performance.
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(d) a contract which is in its nature determinable.
The party who suffers by breach shall have the option of substituted
performance through a third party or by his own agency, and, recover the
expenses and other costs actually incurred, spent or suffered by him, from the
party committing such breach.
Where the party suffering breach of contract has got the contract performed
through a third party or by his own agency after giving notice, he shall not be
entitled to claim relief of specific performance against the party in breach.
Nothing in this section shall prevent the party who has suffered breach of
contract from claiming compensation from the party in breach.
S-13. Rights of purchaser or lessee against person with no or imperfect title
This section applies:
When the seller of immovable property has no title or imperfect title and if the
seller subsequently acquire interest in the property, the purchaser can compel
him to make good the contract out of such interest
When the vendor has agreed to sell unencumbered property, but if the property
sold is mortgaged property and the vendor has only right to redeem it, the
purchaser can compel him to redeem the mortgage.
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If the vendor approach the court of law for specific performance and the relief
is refused for invalid title, the purchaser is entitled to a return of his deposit
Section 15-who may obtain specific performance
where the contract has been entered into by a tenant for life in due exercise of a
power, the remainderman
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:
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Provided that the company has accepted the contract and has communicated
such acceptance to the other party to the contract.
Section 16. Personal bars to relief
Specific performance cannot be enforced in favour of person:
who fails to prove that he has performed or has always been ready and willing
to perform
Section 17, Contract to sell or let property by one who has no title, not
specifically enforceable:
A contract to sell or let any immovable or movable property cannot be special
enforceable in favour of a lessor or vendor, who –
(a) Knowing not to have any title, contracted so.
(b) Believing good title, but can not give title free from reasonable doubt at
the fixed time.
The above provisions shall also apply, as far as may be, to contracts for the sale or
hire of movable property.
By granting injunction
o To stop mischief
If such obligation arises out of the contract, the court will be guided by
principles of specific performance
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The court may grant a perpetual injunction in the following cases, namely
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Injunction can not be granted to restrain any person from applying to any
legislative body
Where the conduct of the plaintiff or agent is such so as to disentitle him the
assistance of court
No injunction can be granted when the plaintiff has no personal interest in the
matter
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For Section 7 & 8 – provisions of Order XX Rule 10 and Order XXI Rule 31 CPC
are attracted.
Section 7 is on the same lines as Section 5 and is self-explanatory.
Section 8 simply states that any person entitled to immediate possession of any
movable property may recover the same in given four conditions from (a) to (d).
And further Explanation states that the Court shall presume in favour of clause (b)
and (c).
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SPECIFIC PERFORMANCE – CHAPTER II – SECTION 9 TO 24 AND
SECTION 38(2)
Section 9 SRA links the Act with Contract Act, 1872 and says that all the defences
available in Contract Act can be availed in a suit under Chapter II of the SRA.
To simplify things – it is better to break the series and study Section 10, 14, 16,
(13&17) and 20 together – they more or less tells when and when not the specific
performance can be granted. Then study 15(who can be plaintiff) and 19(who can
be defendant). Section 11 (Trust) & 12 (Part-Performance) and Section 18 are case
specific. And then as miscellaneous we have Section 21, 22, 23 and 24.
SECTION 10
If the Plaintiff wants specific performance of any contract relating to immovable
property, then he has to prove either (a) or (b), but the Explanation (i) to the
Section directs the Court to presume (word used is shall) that clause (b) exists.
Hence the burden of proof is on the Defendant to prove that in their particular case
of specific performance of contract relating to immovable property the
compensation would be adequate relief.
If the Plaintiff wants specific performance of any contract relating to movable
property, then he has to prove either (a) to (b), and Explanation (ii) directs the
Court to presume that the plaintiff can be so relieved (by payment of
compensation). Therefore, the burden on the Plaintiff to prove (a) and (b) is even
more strict.
But by way of exception (a) and (b) in explanation (ii), the Court cannot presume
that compensation will be adequate relief if the movable 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 obtained in the market”. The same
exception is created if the property is held by the defendant in trust. This means
that if plaintiff is seeking specific performance for movable property which falls
under exception (a) and (b) of Explanation (ii) – there is no presumption to be
made by the Court.
SECTION 14
Section 14 at times requires a number of reading and is itself self-explanatory. The
object and policy of the Act i.e. doing equity and justice is the key while making
decision under SRA. So Section 14 is not exhaustive and mandatory, the Court can
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in each case decide depending on the facts and circumstances. Section 14(2) saves
the Arbitration Act, it only bars filing a suit for specific performance of arbitration
agreement/ clause. A similar remedy was available in Arbitration Act, 1940 and
now Arbitration and Conciliation Act, 1996. Subsection (3) is case specific.
Section 16 relates to personal bar created on the Plaintiff and it is easy to break
down the section in parts and identify each condition stated therein.
Section 16(c) deals with a situation when the Plaintiff fails to aver and prove that
he has performed or has been ready and willing to perform his part of the contract.
This performance or readiness or willingness is required as and when agreed in the
contract. At times upon filing of the suit for specific performance involving
payment of money, the plaintiff only needs to prove that he was ready and willing
to make the payment, he is not required to actually deposit the sum upon filing the
suit, but only has to show (may be showing his bank statement with enough cash,
etc.) that he was ready and willing to perform his part. The Court at times may
even direct the plaintiff to deposit the sum (not mandatory, but the Court may in
circumstances of the case), and if the plaintiff fails to deposit the sum even when
so specifically directed, that is proof that the plaintiff was not ready and willing to
perform his part. This can be a ground to refusal by Court for the relief sought.
The explanation to Section 16 relates to the above.
Section 20 manifests what is underlining the object and policy of the Act. Specific
Reliefs are very case specific and depends on facts and circumstances of each
case. The conditions in Section 20 are only directory and not exhaustive, they
serve more like illustration as to when can the relief be granted or refused.
Section 13 and 17 are related to defect in title. There may be a situation when the
plaintiff is not the owner or unable to prove his absolute title to the property
(immovable or movable), but want to seek specific performance to enforce a sale
or lease. Then in that case, section 17 bars the plaintiff. To illustrate, A claims to
be owner of property P, and contracts to sell it to B. Later, B defaults and A i.e.
vendor files a suit to enforce the contract. However, if A in the trial fails to prove
that he has absolute title, the Court may refuse and dismiss his suit. Section 13
talks about the opposite situation. In the above example, suppose A defaults and B
wants to file suit for specific performance, here the suit will be granted if any of
the clause (a) to (d) is fulfilled i.e. subsequently A gets a perfect title capable of
transfer.
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Section 15 and 19 are a list and important for the preliminary examination.
Section 11 provides for two situations – firstly, a person agrees to be a trustee –
this can be specifically enforced – wholly or in part; and secondly, a trustee
contracts doing an act, which is in excess of his powers or in breach of the terms
of the trust – this cannot be specifically enforced. However, Section 11 itself is
subject to the other provisions, like specific performance seeking a person to
perform his functions as a trustee can even fall under Section 14(1)(b) i.e. personal
volition. Therefore, the discretion is with the Court to do equity and justice.
Section 12 is part performance. The general rule is subsection (1). But in specific
situations provided in (2), (3) and (4) part performance may be granted.
Subsection (2) is self-explanatory.
Subsection (3) in very brief provides as – the plaintiff seeking part performance
leaving considerable portion unperformed, then the plaintiff has to pay the whole
consideration (or only for the part which he wants to be performed), but he has to
relinquish performance of the remaining part and even the right to seek
compensation of that unperformed part. In the above case, the specific
performance of part may be granted. Again all depends on the facts and
circumstances of the case and greater discretion lies with the Court.
Finally, Section 21 to 24 are self-explanatory.
RECISSION – SECTION 27 – 30
Section 27 Subsection (1) clause (a) and (b) provides two circumstances which
needs to be proved by the Plaintiff before the Court can rescind the contract.
Subsection (2) clause (a) to (d) on the other hand provides circumstances under
which the Court may refuse rescission. Again the word ‘may’ suggests there is
more discretion with the Court to decide in light of equity and justice on the facts
and circumstances of each case.
Section 29 allows the plaintiff to seek specific performance and if not granted the
alternative relief for specific performance can be pleaded.
Section 30 empowers the Court to do equity in light of restoring any benefit which
has already been accrued to any party.
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Section 34 has the following key words – Any person entitled to any legal
character or to any right to any property …… may against any person – denying or
interested to deny his title to such character or right …… the plaintiff need not in
such suit ask for any further relief …… Proviso – no Court shall …… further
relief ……
Entitled – means the title is already existing and not any title which will be
accrued in future. This entitled is in respect of date of filing of the suit. The
plaintiff must be entitled to the declaratory relief as on the date of filing the suit.
legal character or to any right to any property – it includes two types of rights -
personal rights and right as to property. Section 9 of the Code of Civil Procedure is
to be attracted here, which states the Civil Court can try ‘any suit of civil nature’,
therefore, any personal right which is of civil nature will falls under Section 34
SRA. For example, Right to Speech, Right to Privacy, etc. but Right to be a
member of a social group without any official post is not a suit of civil nature and
hence no declaration can be sought. Right to property will include both movable
and immovable right.
Another noteworthy point here is- can declaration be positive as well as negative.
Section 34 uses the phrase ‘any person entitled…’ which is a positive declaration
as to entitlement. However, there may be a case wherein a negative declaration
may be sought. For illustration, take the example of Rohit v. N.D. Tiwari. R
sought a positive declaration that he is son of N, which was a positive declaration
and in real N finally accepted his paternity. However, there may be case where
some N seeks a negative declaration that R is not his son. The Section does not
speak about the same, however, a negative declaration if coupled with a positive
declaration will be permissible. Like in the above example, the negative
declaration that R is not the son of N also includes the positive declaration that N
has no son named R.
Denying or interested to deny – denying is in present continuous tense, which
connotes that the defendant is denying the title or character to the plaintiff. And
interest to deny includes any circumstances which may arise in future wherein
there will be hostility in the interests of the plaintiff and the defendant. The burden
to prove this issue is on the plaintiff to satisfy the Court that facts and
circumstances of his case calls for the grant of this discretionary remedy. If the
Court is not satisfied that the defendant is not denying or there is no immediate
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reason that the defendant will be interested in denying the title or character to the
plaintiff, the Court can refuse to grant the remedy.
Further relief – the main provision says that the plaintiff is not duty bound to claim
any other relief alongwith the declaratory suit. However, the proviso cautions the
Court to not grant any relief unless further relief is also prayed. One practical
illustration to this is suit of declaration and possession, there is a very nominal
Court fee in Declaratory suit, however for seeking possession the Court fee can go
as high as 1.1% of the suit value. So at times only declaration is claimed and
possession is deliberately not sought. However, a declaration without possession
will bear no fruit. Therefore, proviso takes these cases into picture and it also
avoids multiplicity of proceedings because even though declaration and possession
are based on two different cause of action, they can be claimed together as allowed
in Order II Rule 3 of the CPC, 1908.
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The three basic requirements of granting a temporary injunction always have to be
met, namely – (a) prima facie case in favour of the plaintiff; (b) balance of
convenience lies in favour of the plaintiff; and (c) irreparable losses which cannot
be compensated by money will be suffered by the plaintiff if injunction is not
granted.
Perpetual/ Permanent – Section 36, 37(2), 38 SRA
Section 37 states that perpetual injunction can only be granted after hearing the
case on merits and rightly so, because by granting perpetual injunction, the
defendant is perpetually enjoined from asserting a right. The provision of Section
38 is self-explanatory and Sub-section (3) is not exhaustive rather is provided only
to illustrate.
Mandatory Injunction – Section 39 is peculiar as it talks about an injunction which
casts a positive duty upon the defendant to perform. Perpetual injunction is granted
to perpetually enjoin the defendant from asserting his right, however, in mandatory
injunction the Court is empowered to Order the Defendant to do some positive act
in the interest of justice and in the facts and circumstances of the case.
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Section 40 is self-explanatory and Section is not exhaustive, but only inclusive.
CASES
Shashi Properties & Industries Ltd. v. Sunil Akash Sinha 2004 SC
Plaintiff must prove that he had possession – both animus (physical/actual) and
corpus (desire) to prove his settled possession
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S.34 is not exhaustive on declaratory suit, even when sec.34 SRA not fulfilled,
such relief can be sought u/S.9 of the CPC r/w OVII R7 CPC, 1908.
Lumley v Wagner
Facts: Wagner contracted to sing in Lumley's theatre for a fixed period. She also
promised that, during this period, she would not to perform anywhere else. After a
breach by Wagner, Lumley wished to enforce both of these promises through an
order of specific performance.
Held, Actual performance of this promise would not be ordered.
Also held, The court would issue an order (an injunction) to stop Wagner singing
elsewhere.
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