Specific Relief Act (SRA)
Bar of Suit for Compensation After Dismissal: Section 24
Section 24 is the counterpart of Section 21. Because compensation can, and should, be claimed within the specific-performance suit, the law does not let a plaintiff hold it back for a second action. If his suit for specific performance is dismissed, he cannot afterwards bring a fresh suit for compensation for the breach of the same contract. It is a specific statutory bar against splitting one claim into two. This note explains the bar, why it exists, and what it does and does not shut out.
Figure: Section 24: the timeline from a dismissed specific-performance suit to the bar on a fresh compensation suit, and what survives
1. The Provision
Section 24 ▪ The rule. The dismissal of a suit for specific performance of a contract, or part of it, bars the plaintiff's right to sue for compensation for the breach of that contract or part, as the case may be. ▪ But it saves other reliefs. The dismissal does not bar the plaintiff's right to any other relief to which he may be entitled, by reason of the same breach. |
2. Why the Bar Exists
A bar on claim-splitting ▪ One cause of action. The breach of the contract is a single cause of action; performance and compensation are two remedies for it, not two separate wrongs. ▪ Claim both together. Section 21 lets the plaintiff claim compensation within the specific-performance suit. He is expected to do so. ▪ No second bite. If the suit is dismissed, he cannot start again to claim the compensation he could and should have sought the first time. It is a specific statutory form of the rule against re-litigation. |
3. What Is and Is Not Barred
Position | Effect |
|---|---|
Barred | A fresh suit for compensation for the breach of the contract, or the part of it, on which performance was refused |
Not necessarily barred | Other reliefs, such as the return of earnest money, not adjudicated in the dismissed suit |
Dismissal for default | A dismissal for non-appearance is not a decision on the merits and does not attract the bar in the same way |
The safe course | Claim compensation in the specific-performance suit itself under Section 21, or by timely amendment |
4. Section 24 and Claim-Splitting
i. A companion to Section 21. Section 21 gives the plaintiff the means to claim compensation within the suit; Section 24 penalises the failure to use that means by barring a later, separate claim.
ii. A practical warning. A plaintiff who omits a compensation claim, and whose performance suit is then dismissed on the merits, may lose the compensation remedy altogether.
5. Frequently Asked Questions
Q. What does Section 24 bar?
A. It bars the plaintiff from bringing a fresh suit for compensation for the breach of a contract, or part of it, once his suit for specific performance of that contract or part has been dismissed.
Q. Why does the law impose this bar?
A. To prevent claim-splitting. Compensation can be claimed within the specific-performance suit under Section 21, so a plaintiff cannot hold it back for a second action.
Q. Does the dismissal bar every other relief?
A. No. Section 24 bars a fresh compensation claim for the same breach, but it does not bar other reliefs to which the plaintiff may be entitled and which were not decided.
Q. How should a plaintiff avoid the bar?
A. By claiming compensation in the specific-performance suit itself under Section 21, or by amending the plaint in time to include it.
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