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The Specific Relief Act, 1877. Notes
The Specific Relief Act, 1877. Notes
In case of immovable property, case against the dispossession must be brought within
6 months to Court after dispossession.
1.Possession must be lawful as who comes for equity must do equity and come with
clean hands. Ejection from lawful possession invites lawsuit against unlawful
dispossession. It also invites claim against unlawful ejection.
3. Person who comes for specific relief must do equity and refrain from the use of
unlawful means.
4. Specific relief aims that law should not be taken into hands of an individual and just
State should remain sole authority in granting the relief to the aggrieved party.
How the specific relief is granted: Following are the methods by which it is
granted:
1.Relief and remedy: The person who has been dispossessed wrongfully and
unlawfully is granted relief and remedy against such illegitimate act.
2.Re-delivery of goods: Goods which have been converted or stolen are redelivered to
its principal owner even he has not title mere on the grounds of his immediate
possession and possession in fact.
3.Compel to do obligatory act: It is specific performance of the contract in which
parties under obligation to perform contract is compelled to do for which party is
obliged to do certain things. Here Court orders to do obligatory act.
4.Prevention to do act obligatory: A party is compelled to prevent to do the act for
which party is obliged not to do.
For example, party is not allowed to resell the plot to another party. That
party may be compelled not to do that act being obligation.
5.By declaration: Court may declare the right of party by way of decree other than
award of compensation. It is relief without consequential compensation.
6. By appointing receiver: Receiver is an officer of the Court who collects and receives
rents, profits, produce, or things in question. He also provides safety to the property
in dispute pending litigation and to preserve property in danger being destroyed.
When the right of specific performance arises: It arises when right is infringed. A right
is violated by breach of contract, trespass, and unlawful dispossession. A was tenant
in house of B for one year. B dispossessed A before completions of tenancy period
without serving notice required under agreement or after expiry of period but with
unlawful means. A may bring lawsuit against B for re-entry or re-delivery. Only notice
and/or lawful means may give right to B for re-entry or dispossession.
A (seller) agrees to sell B (purchaser) property for Rs. 500,000/-. B pays Rs.
100,000/- as an advance and agrees to pay balance amount of Rs. 400,000/- till
February 28, 2001. B pays the balance amount on due date but A refuses to deliver
property. Following conditions may be applied to A:
Lawsuit in case of moveable property must be brought into Court within one month
but it extends upto six months in case of immovable property.
S. 11 of Specific Relief Act lays down provisions in which contract cannot be
specifically enforced. When a trustee makes contract, which is in excess of his powers
or in breach of trust, cannot be specifically enforced.
For instance, A is trustee on a certain land and empowered to lease out such land for
a period of ten years. He leases out that land for ten years. It is neither excessive use
of his powers nor breach of trust. After the expiry of ten years he renews the lease
agreement for further period. It is excessive use of his powers thus this contract
cannot be specifically enforced as it is in excess of A’s powers as a trustee.
A trustee sells trust property below than of market price or a director of company sells
the company property without proper sanctions are the instances of excessive use of
powers therefore they are set aside and are not able to perform or enforce
specifically.
Part performance of contract: Following are the cases in which part
performance of contract is enforced specifically u/s 13 to 17 in contrast to S.
56 of The Contract Act:
According to Specific Relief Act, when subject matter ceases to exist at the time of its
performance, it does not render performance of contract impossible wholly. Inevitable
accident is no reason to show inability to perform contract.
There may be a contract small portion of that may remain unperformed due to certain
reasons. In this case where party remains unable to perform contract wholly and
unperformed part is small and admits compensation in money, Court may direct
defaulter for the performance of contract and awards compensation in money for the
portion unperformed.
For example, A contracts with B for the sale of 100 acres land. Later on it
reveals (turns out) that A is only owner of 95 acres and rest five acres are
related to C who does not agree to convey his five acres. In a suit Court may
direct A for the conveyance of 95 acres to B along-with compensation in
money for rest five acres.
Vendee would also pay full purchase money, which was agreed at the time of contract
even than large part of contract is impossible to perform due to imperfect title.
For instance, A contracts to sell B 100 bushels (hamper, creel, basket, crate, bin,
hopper) of wheat. It reveals later on that A is unable to convey half of the bushels
being related to other person. Court may direct A in suit for the performance of
contract upto the extent of possibility provided vendee waives off his right of further
performance and pays full purchase money.
4.Performance of independent part of contract: There may be case where contract
consists on several independent parts some of which are able to perform and rest are
impossible to perform. Independent part or parts, which are possible to perform, may
be enforced specifically. Court may direct defendant for the performance of
independent part of contract performance of that is possible. For this purpose contract
must be separable without interference of Court however courts are not competent to
separate the parts of contract.
5.Specific performance of part of contract: There may be three conditions where part
performance of contract may be enforced specifically. That three cases can be
summed up as:
Only these are three cases where Court may direct for specific performance
of part of contract.
4.Where monetary compensation is not recoverable. For instance, defendant has gone
bankrupt or insolvent.
Contracts which are not enforceable specifically u/s 21:
1.Where adequate relief is admitted: Contract to pay a sum of money in installments.
Contract non-performance of which admits an adequate relief in money cannot be
specifically enforced. Contract in which agreement is made to lend money is not
specifically enforceable. Neither borrower can be compelled to accept loan, nor
borrower can compel for the compulsory advance of money. If in the opinion of the
Court damages are an adequate relief, specific performance of contract shall not be
decreed.
For example, A agrees to sell B, 40 chairs at Rs. 500/- each. This is not
specifically enforceable because an adequate relief can be granted.
2.Court being incapable to supervise: Contracts incapable of supervision by courts
such as having minute or numerous details or dependant on personal qualifications or
violation of parties or otherwise in which Court become unable to enforce specifically
its material terms.
For example, a trustee is empowered to lease out certain land for ten years.
Its renewal after expiry of ten years shall amounts breach of trust.
Director can dispose of company’s property with prior sanction in meeting from
shareholders. If he contracts to sell property without any such sanction shall amount
excessive use of power thus not specifically enforceable.
6.Ultra vires: Ultra vires of company cannot be specifically enforced. Contract made
by or on behalf of company, which is not within scope of powers, conferred by the
Memorandum of Association (MOA), amounts ultra vires, thus not specifically
enforceable.
For instance, a company is formed for the manufacturing of tractors, makes chemicals
that Memorandum of Association (MOA) does not allow, amounts ultra vires, therefore
not specifically enforceable.
7.Time barred contract: A contract continuity of which exceeds than three years
also falls in this category.
For instance, Continuous duty as legal advisor or medical advisor for a period of
fifteen years falls, u/s 21(g).
For example, A agrees to sell B a horse. It turns out later that at the date of
contract, horse had been died. Contract cannot be specifically enforced.
(1)Where learning, skill, solvency, or any personal quality of such party is a material
ingredient in contract.
(2)Where contract provides against assignment but he shall be entitled to specific
performance in case his part of contract has already been performed.
3.Entitled person for family settlement: Any person beneficially entitled under contract
of settlement on marriage or a compromise of doubtful right between members of
same family.
7.New company: New company, which arises out of amalgamation, when a public
company has entered into a contract and subsequently, becomes amalgamated with
another public company.
Non-enforcement of contract except with variation u/s 26: For whom contracts cannot
be specifically enforced except with a variation. Plaintiff cannot obtain specific
performance, except with variation set up in defence by defendant in cases, such as:
1.Varied terms of contract: Where the terms of contract are different from that which
defendant supposed it to be when entered into due to fraud or mistake of fact.
A and B sign a bond making themselves liable upto Rs. 1,000/- each. In a
suit they proves that word “each” is inserted by mistake that the intention
was that they should give a joint bond for Rs. 1,000/-.
2.Contract by act of fraud: Where the defendant entered into contract under a
reasonable misapprehension as to its effect between himself and plaintiff due to fraud,
mistake, or surprise.
4.Uncalculated legal result: Where production of legal result in contract was not
calculated which parties had object to produce.
For example, A and B negotiate for the purpose of securing land for B for his
life, with remainder to his issue. They execute a contract which confers an
absolute ownership on B. The contract so framed cannot be specifically
enforced.
For instance, A agrees to let his house to B at rent Rs. 100/- per month, putting first
into tenantable repair. Later on it turns out that house at no worth repairing. A with
consent of B pulls it down and erects new building in its place and B agrees to pay Rs.
120/- rent per month, orally. B then sues for the enforcement of specific performance
of the contract writing. He cannot enforce it specifically except with the variation
made by the subsequently oral contract.
Against whom contract may be specifically enforced u/s 27: Specific
performance can be enforced against:
For instance, A agrees to convey certain land to B on particular day. A, dies before the
day comes. B may compel to legal heirs or other representative in interest of A to
perform the contract specifically.
3.Displaced claimant: Any person who claims under title and defendant has displaced
him, though prior to contract and plaintiff knows it.
4.New company: Where a public company enters into contract and later on becomes
amalgamated with another public company. The new company shall be responsible for
all previous contracts.
5.Promoter: Where the company has ratified the contracts made by promoters prior
to the incorporation of the company.
For whom contracts cannot be specifically enforced u/s 24: Following are the persons
for whom contracts cannot be specifically enforced:
1.Defective character: Where character of person is defective by way of fraud,
negligence, void-able contract, and he remains unable to recover compensation due to
his own fault.
For example, A, act as agent of B in sale proceed of a house but in reality he
does not act as agent of B but on his own account. This contract cannot be
specifically performed in favour of A, because his defective conduct has
deprived him from legal remedy.
2.Incapable person: Who become incapable like mentally or physical condition or
bankrupt or insolvent or by violation of essential clauses of contract partly or wholly
by way of fraud or contravention of the contract or variance or subversion of contract.
For instance, A, contracts B to sell a house and to become as a tenant for ten years at
specified annual rent from the date of sale. Later on A becomes insolvent and
becomes unable to pay rent. Neither he nor his assignee can enforce specific
performance of the contract.
In another example, A, leases out land to B for cultivation but B commits waste
and treats the land in un-husband-like manner. B cannot enforce specific
performance of the contract.
3.Where remedy is admitted: One who has chosen remedy against the breach of
contract cannot enforce contract specifically. Since he has already obtained
satisfaction therefore he cannot enforce specific performance of contract.
For instance, A agrees to sell B certain books on certain date. A fails to perform
contract. B sues A and obtains compensation for the breach. B cannot obtain specific
performance of the contract.
4.Where party knows facts: One who already had notice of the right of third party in a
contract. Where contract of sale is made and purchaser was aware the fact about the
right of third party, he cannot enforce contract specifically.
5. Defective title: U/s 25, whose title is defective for selling or letting the property.
For example, A sell property to B which in-fact belongs to C and C has not
authorized A to do so. A cannot enforce specific performance.
6.Non-acquisition of full right: Where seller has not acquired the full right to sell
property.
For instance, A, gives his land to trustees, declaring that they may sell it with written
consents of B. B gives his general assents for its sale. Trustees sell the property to C.
C refuses to perform contract. Trustees cannot enforce the contract specifically as in
absence of B’s written consents to the particular sale.
7.Prior settlement: One who has made settlement prior to enter into contract.
For example, A has possession of certain land and agrees to sell it to C. Later on it
turns out that A claims as heir in the estate of B who has left the country several
years ago and is generally believed to be dead, but there is no sufficient proof of it. A
cannot compel C to perform the contract specifically.
Fraud or mutual mistake of parties in contract may put it in situation where it may not
express their intention. Either party or representative-in-interest may institute a suit
to have the instrument rectified.
If proved, fraud or mistake, in framing instrument, and Court ascertains the real
intention of the parties may in its discretion rectify the instrument keeping in view of
the interest of third party. Interest of third person should not be infringed.
For instance, A agrees to sell house to B and one of three gardens adjacent to it. In
the execution of the instrument, fraudulently B includes all three gardens. This
conveyance may be rectified as against B. Where a garden is leased out to third party,
cannot be rectified because interest of third party is effected.
Principals of rectification: Two points are noteworthy while rectifying the instrument.
First intention of the instrument made, and secondly intention of its legal consequence
is important. “Equity looks to intent rather than form” applies here.
If a field is sold which has right to use way and seller conceals this right while the
execution of instrument, buyer can get the contract rescinded.
2.Unlawful contract: Contract is unlawful on the part of defendant for the causes not
apparent on its face.
Where a person induces his client for transfer of his property in his name so that he
may defraud his client’s creditors is an example of unlawful contract. Client may get
the instrument rescinded.
4.Rescission of mistake: Mistake per se will not justify a decree for rescission unless
the parties can be restored to status quo ante. Placement of both parties in their
original position is taken into consideration so that right of anybody may not infringe.
6.Requirement of equity: Court may order for the making compensation to other party
while rescinding. Basic principle of making compensation is “he who seeks equity
must do equity.”
7.Order of cancellation, when, u/s 39: Where there is reasonable apprehension that if
contract is left outstanding shall cause him serious injury, plaintiff may sue either for
its declaration as void or void-able.
Essential conditions for the grant of relief in cancellation: Following are the
essential conditions in which relief is granted:
1. Void written instrument: It is to be proved that either the written instrument is void
or void-able against the plaintiff.
2. Serious injury: Plaintiff has reasonably apprehended the serious injury from the
instrument being left outstanding.
3.Satisfaction of Court: In view of all the circumstances of the case the Court has
considered it reasonable and proper to administer the protective and preventive
justice as for.
4.Limitation for suit of cancellation of instrument: Where a suit is brought for
cancellation of instrument, three years’ limitation period applies.
5.Copy of decree to Registration Officer: In case the cancelled instrument was got
registered, Court also sends a copy of decree to the officer concerned for the
endorsement in books for its cancellation.
For example, a ship, which is not seaworthy, cannot be insured as seaworthy.
But if insured as seaworthy and later on discloses not seaworthy, its
insurance may be cancelled.
6. Forged transfer: Instrument of forged transfer of land can also be got cancelled.
7.Failure in transfer: Instrument can also be got cancelled in which due consideration
has been received but the agreed object has not been transferred against which
consideration was received.
For example, A agrees to sell car for Rs. 250,000/- to B. B has paid the entire
amount to A, but A has not delivered car as agreed. B may obtain the
cancellation of instrument.
Declaration u/s 42: This section lays down rule regarding the suit instituted upon
denial of interest or title in property or is case interested in denial of right or
character. Court may declare that he is so entitled.
Essential conditions for maintenance a suit: Following essentials must be
established for suit:
1 Plaintiff is entitled to any legal character or right as to property.
2.Defendant has denied or interested in denial the title of such character or right of
plaintiff.
3 Declaration for which plaintiff has applied is the legal character or right.
4.Whether the plaintiff is able to seek further relief than a mere declaration of title, he
must seek such relief.
Example: A has lawful possession of certain land. The inhabitant of
neighboring village claims the right of way across the land. He may sue far a
declaration that they are not entitled to the right so claimed.
Court may order for specific performance and issues mandatory order. This order is
issued against for which he has been deprived. Intention of contract is always
considered to perform contract for transfer of ownership.
Burney defines an injunction as “a judicial process by which one who has invade
(attack, assault, trespass) or is threatening to invade the rights, legal or equitable of
another restrained from continuing or commencing such wrongful act.”
According to Joyee it is “an order remedial, the general purpose of which is to restrain
the commission or continuance of some wrongful act of the party informed.”
Lord Halsbory says in his Laws of England, “a judicial process whereby a party is
ordered to refrain from doing or to do particular act or thing.”
Kinds of injunctions: There are three main kinds of injunctions, such as:
1.Temporary injunctions: As by its name is cleared that these injunctions are issued
for a specified time or till the further order of the Court. Civil Procedure Code (CPC)
regulates it. Injunctions are issued only against a named person. Equity acts in
personam and an injunction must be addressed to the defendant personally. It is
issued without hearing the case. It is granted during the case is pending.
2.Perpetual injunction: It is issued in term of decree after hearing the case and
satisfaction of the Court. Defendant is ordered to stop to commit certain act, which is
contrary to the right of plaintiff.
1.Breach of trust: Where defendant is trustee of the property for the plaintiff and
commits breach of trust.
10. Personal interest: There must be violation of personal right and not infringement
of right of world at large as equity acts in personam and not in rem.
11.Existence of right: Right must be existent and present and not of the nature of
future. If legacy is not distributed then no right is created.
1.Judicial proceedings: When such proceedings are pending in Court, Court may
refuse to grant injunction.
2.Superior Court: When it is requested against the order of superior Court. Injunctions
are always granted against the lower courts.
7.Public nuisance: Injunctions are refused in the cases of public nuisance, as equity
acts in personam. Only personal interest is subject of injunction.
8.Defective conduct: Where plaintiff himself is wrong and his conduct is defective.
9.Personal interest: There must be violation of personal right. Where plaintiff has no
personal interest injunction is refused, as equity acts in personam.
10. Alternative remedy: Where alternative remedy is available.