Specific Relief Act (SRA)
The Specific Relief (Amendment) Act, 2018: A Complete Note
The Specific Relief (Amendment) Act, 2018 is the most important change to the law of specific relief since 1963. It rewrote the central provision, Section 10, to make specific performance the rule rather than a discretionary exception; recast Section 14 on what cannot be enforced; added substituted performance in Section 20; and inserted special provisions for infrastructure projects in Sections 20A to 20C. It came into force on 1 October 2018 and, as the Supreme Court has held, applies prospectively. This note sets out the changes and their effect.
Figure: The main changes made by the 2018 amendment, section by section
1. Why the Amendment Came
i. Ease of doing business. The Government sought to strengthen the enforceability of contracts, a factor in India's ease-of-doing-business ranking.
ii. An Expert Committee. A committee constituted in 2016 reviewed the Act and recommended making specific performance a general remedy and adding provisions to protect infrastructure projects.
iii. The enactment. The recommendations became the Specific Relief (Amendment) Act, 2018, in force from 1 October 2018.
2. The Main Changes
Provision | The change |
|---|---|
Section 10 | Specific performance SHALL be enforced by the court, subject only to Sections 11(2), 14 and 16; the discretion in the old Section 10 was removed |
Section 11(2) | A contract to do an act the performance of which would involve a breach of trust remains unenforceable |
Section 14 | Rewritten: a contract cannot be specifically enforced where substituted performance has been obtained, where it involves the performance of a continuous duty the court cannot supervise, where it is so dependent on personal qualifications that the court cannot enforce its material terms, or where it is determinable |
Section 14A | New: the court may engage experts to assist it on any specific question in the suit, and their opinion forms part of the record |
Sections 15 and 19 | Extended to cover limited liability partnerships and companies in amalgamation, so that specific performance may be obtained by or against the resulting entity |
Section 16 | The bar of readiness and willingness recast; the plaintiff must aver and prove he has performed, or was ready and willing to perform, the essential terms |
Section 20 | Replaced with SUBSTITUTED PERFORMANCE: a party may, after notice, get the contract performed by a third party or by his own agency and recover the cost from the defaulting party |
Sections 20A to 20C | New: no injunction in a suit concerning an INFRASTRUCTURE project if it would cause impediment or delay (20A); special courts to try such suits (20B); disposal within twelve months (20C) |
Section 21 | Damages may be awarded in addition to, or in substitution for, specific performance |
3. Substituted Performance: The New Section 20
A self-help remedy ▪ The idea. Where a contract is broken, the aggrieved party need not always sue for performance; he may have the contract performed by a third party or by his own agency, and recover the cost and expenses from the party in breach. ▪ The condition. He must first give written notice of at least thirty days requiring performance; only if the other party still fails may he arrange substituted performance. ▪ No double remedy. A party who obtains substituted performance is not entitled to also claim specific performance of the same contract; but he may claim compensation. ▪ The purpose. To let a business get on with its affairs rather than wait years for a decree. |
4. Infrastructure Projects: Sections 20A to 20C
Keeping projects moving ▪ Section 20A: no injunction. In a suit concerning a contract relating to an infrastructure project specified in the Schedule, the court shall not grant an injunction where it would cause impediment or delay in the progress or completion of the project. ▪ Section 20B: special courts. State Governments, in consultation with the Chief Justice of the High Court, may designate special courts to try suits concerning infrastructure project contracts. ▪ Section 20C: time limit. Such a suit is to be disposed of within twelve months from the date of service of summons, extendable by up to a further six months for reasons recorded. ▪ The Schedule. The Act carries a Schedule listing the categories of infrastructure, such as transport, energy, water and sanitation, and communication. Verify the current Schedule before relying on it. |
5. Before and After the Amendment
Matter | Before 1 October 2018 | On or after 1 October 2018 |
|---|---|---|
Specific performance | Discretionary and exceptional | The rule, subject to Sections 14 and 16 |
Adequacy of damages | A precondition to performance | No longer the gateway; performance is the norm |
Self-help | None | Substituted performance under Section 20 |
Infrastructure | Injunctions available like any other case | No injunction that would delay a notified project |
Experts | No express power | Section 14A allows the court to engage experts |
6. Prospective Application
Katta Sujatha Reddy v Siddamsetty Infra Projects Pvt Ltd (2022) The Supreme Court held that the 2018 amendment is prospective, not retrospective. It governs contracts executed on or after 1 October 2018. Contracts made before that date continue to be governed by the pre-amendment law, under which specific performance was a discretionary remedy. The date of the contract, not the date of the suit, is decisive. |
7. Frequently Asked Questions
Q. What is the most important change made by the 2018 amendment?
A. It rewrote Section 10 to make specific performance a general remedy that the court shall enforce, subject only to Sections 11(2), 14 and 16, removing the old discretion.
Q. What is substituted performance under Section 20?
A. A remedy that lets an aggrieved party, after thirty days' notice, get the contract performed by a third party or his own agency and recover the cost from the party in breach, instead of suing for performance.
Q. What do Sections 20A to 20C do for infrastructure projects?
A. Section 20A bars an injunction that would delay a notified infrastructure project; Section 20B provides for special courts; and Section 20C requires disposal within twelve months.
Q. Is the 2018 amendment retrospective?
A. No. In Katta Sujatha Reddy (2022), the Supreme Court held it prospective, applying to contracts executed on or after 1 October 2018.
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