THE SPECIFIC RELIEF ACT, 1963                                                                                                                                        

_______ 

ARRANGEMENT OF SECTIONS                                                                                                            

________ 

PART I 

PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

3. Savings. 

4. Specific relief to be granted only for enforcing individual civil rights and not for enforcing penal 

laws. 

PART II 

SPECIFIC RELIEF 

CHAPTER I 

RECOVERING POSSESSION OF PROPERTY 

5. Recovery of specific immovable property. 

6. Suit by person 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. Defences respecting suits for relief based on contract. 

CONTRACTS WHICH CAN BE SPECIFICALLY ENFORCED 

10. Specific performance in respect of contracts. 

11. Cases in which specific performance of contracts connected with trusts 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. 

14A. Power of court to engage experts. 

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. 

1 

 
 
 
Substituted performance of contracts, etc. 

SECTIONS 

20. Substituted performance of contract. 

20A. Special provisions for contract relating to infrastructure project. 

20B. Special Courts. 

20C. Expeditious disposal of suits. 

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. When 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. 

36. Preventive relief how granted. 

PART III 

PREVENTIVE RELIEF 

CHAPTER VII 

INJUNCTIONS GENERALLY 

2 

 
SECTIONS 

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. [Repealed.]. 

44. [Repealed.]. 

THE SCHEDULE. 

3 

 
 
THE SPECIFIC RELIEF ACT, 1963 

ACT NO. 47 OF 1963 

[13th December, 1963.] 

An Act to define and amend the law relating to certain kinds of specific relief. 

BE it enacted by Parliament in the Fourteenth Year of the Republic of India as follow:— 

PART I 
PRELIMINARY 

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  date1as  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 (39 of 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 (2 of 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 (9 of 1872), have the  meanings respectively assigned to them in that Act. 

3. Savings.—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 (16 of 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. 

PART II 
SPECIFIC RELIEF 
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                 (5 
of 1908). 

6. Suit by person 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 2[through whom 
he has been in possession or any person] claiming through him may, by suit, recover possession thereof, 
notwithstanding any other title that may be set up in such suit. 

1.  1st  March,  1964,  vide  notification  No.  S.O.  189,  dated  13th  January,  1964,  see  Gazette  of  India,  Extraordinary,  Part  II,                             

sec. 3(ii). 

2. Ins. by Act 18 of 2018, s. 2 (w.e.f. 1-10-2018). 

4 

 
 
                                                           
(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. 

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 (5 of 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.  Defences  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 defence any ground which is available to him under any law relating to 
contracts. 

CONTRACTS WHICH CAN BE SPECIFICALLY ENFORCED 

1[10. Specific performance in respect of contracts.—The specific performance of a contract shall be 
enforced by the court subject to the provisions contained in sub-section (2) of section 11, section 14 and 
section 16.] 

1. Subs. by Act 18 of 2018, s 3, for section 10 (w.e.f. 1-10-2018). 

5 

 
 
 
                                                           
11.  Cases  in  which  specific  performance  of  contracts  connected  with  trusts  enforceable.—(1) 
Except as otherwise provided in this Act, specific performance of a 1[contract shall], 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  be  a  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 the 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 in a case falling 
under  clause  (b)  2[pays  or  has  paid]  the  consideration  for  the  whole  of  the  contract  without  any 
abatement; and 

(ii) in either case, relinquishes 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 a part 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 person 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; 

1. Subs. by Act 18 of 2018, s. 4, for “contract may, in the discretion of the court” (w.e.f. 1-10-2018). 
2. Ins. by Act 52 of 1964, s. 3 and the Second Schedule (w.e.f. 29-12-1964). 

6 

 
                                                           
(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 lesser 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 

1[14.  Contracts  not  specifically  enforceable.—The  following  contracts  cannot  be  specifically 

enforced, namely:— 

(a) where a party to the contract has obtained substituted performance of contract in accordance with 

the provisions of section 20; 

(b) a contract, the performance of which involves the performance of a continuous duty which the 

court cannot supervise; 

(c) a contract which is so dependent on the personal qualifications of the parties that the court cannot 

enforce specific performance of its material terms; and 

(d) a contract which is in its nature determinable. 

14A. Power of court to engage experts.—(1) Without prejudice to the generality of the  provisions 
contained in the Code of Civil Procedure, 1908 (5 of 1908), in any suit under this Act, where the court 
considers it necessary to get expert opinion to assist it on any specific issue involved in the suit, it may 
engage one or more experts and direct to report to it on such issue and may secure attendance of the expert 
for providing evidence, including production of documents on the issue. 

(2) The court may require or direct any person to give relevant information to the expert or to produce, 

or to provide access to, any relevant documents, goods or other property for his inspection. 

(3) The opinion or report given by the expert shall form part of the record of the suit; and the court, or 
with the permission of the court any of the parties to the suit, may examine the expert personally in open 
court on any of the matters referred to him or mentioned in his opinion or report, or as to his opinion or 
report, or as to the manner in which he has made the inspection. 

(4) The expert shall be entitled to such fee, cost or expense as the court may fix, which shall be payable 

by the parties in such proportion, and at such time, as the court may direct.] 

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 

remainderman; 

(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; 

1. Subs. by Act 18 of 2018, s. 5, for section 14 (w.e.f. 1-10-2018). 

7 

 
                                                           
(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; 

1[(fa) when a limited liability partnership has entered into a contract and  subsequently becomes 
amalgamated  with  another  limited  liability  partnership,  the  new  limited  liability  partnership  which 
arises out of the amalgamation.] 

(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 favour of a 

person— 

2[(a) who has obtained substituted performance of contract under section 20; 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 wilfully acts at variance with, or in 
subversion of, the relation intended to be established by the contract; or 

(c) 3[who fails to 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 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  4[must  prove]  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 favour of a vendor or 
lessor— 

(a) who, knowing himself 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 of fact or mis-representation, 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 contact; 

1. Ins. by Act 18 of 2018, s. 6 (w.e.f. 1-10-2018). 
2. Subs. by s. 7, ibid., for clause (a) (w.e.f. 1-10-2018). 
3.Subs. by s. 7, ibid., for “who fails to aver and prove” (w.e.f. 1-10-2018). 
4. Subs by Act 18 of 2018, s. 7, for “must aver” (w.e.f. 1-10-2018). 

8 

 
                                                           
(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; 

1[(ca) when a limited liability partnership has entered into a contract and subsequently becomes 
amalgamated  with  another  limited  liability  partnership,  the  new  limited  liability  partnership  which 
arises out of the amalgamation.] 

(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. 

2[Substituted performance of contracts, etc.] 

3[20. Substituted performance of contract.—(1) Without prejudice to the generality of the provisions 
contained in the Indian Contract Act, 1872 (9 of 1872), and, except as otherwise agreed upon by the parties, 
where the contract is broken due to non-performance of promise by any party, the party who suffers by 
such 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. 

(2) No substituted performance of contract under sub-section (1) shall be undertaken unless the party 
who suffers such breach has given a notice in writing, of not less than thirty days, to the party in breach 
calling upon him to perform the contract within such time as specified in the notice, and on his refusal or 
failure to do so, he may get the same performed by a third party or by his own agency: 

Provided that the party who suffers such breach shall not be entitled to recover the expenses and costs 
under sub-section (1) unless he has got the contract performed through a third party or by his own agency. 

(3) Where the party suffering breach of contract has got the contract performed through a third party or 
by his own agency after giving notice under sub-section (1), he shall not be entitled to claim relief of specific 
performance against the party in breach. 

(4) Nothing in this section shall prevent the party who has suffered breach of contract from claiming 

compensation from the party in breach. 

20A. Special provisions for contract relating to infrastructure project.—(1) No injunction shall be 
granted by a court in a suit under this Act involving a contract relating to an infrastructure project specified 
in the Schedule, where granting injunction would cause impediment or delay in the progress or completion 
of such infrastructure project. 

1. Ins. by Act 18 of 2018, s. 8 (w.e.f. 1-10-2018). 
2. Subs. by s. 9, ibid., for “Discretion and powers of Court”(w.e.f. 1-10-2018). 
3. Subs. by s. 10, ibid., for section 20 (w.e.f. 1-10-2018). 

9 

 
                                                           
Explanation.—For  the  purposes  of  this  section,  section  20B  and  clause  (ha)  of  section  41,  the 
expression “infrastructure project” means the category of projects and infrastructure Sub-Sectors specified 
in the Schedule. 

(2) The Central Government may, depending upon the requirement for development of infrastructure 
projects, and if it considers necessary or expedient to do so, by notification in the Official Gazette, amend 
the Schedule relating to any Category of projects or Infrastructure Sub-Sectors. 

(3) Every notification issued under this Act by the Central Government shall be laid, as soon as may be 
after it is issued, before each House of Parliament, while it is in session, for a total period of thirty days 
which may be comprised in one session or in two or more successive sessions, and if, before the expiry of 
the session immediately following the session or the successive sessions aforesaid, both Houses agree in 
making any modification in the notification or both Houses agree that the notification should not be made, 
the notification shall thereafter have effect only in such modified form or be of no effect, as the case may 
be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that notification. 

20B. Special Courts.—The State Government, in consultation with the Chief Justice of the High Court, 
shall designate, by notification published in the Official Gazette, one or more Civil Courts as Special Courts, 
within  the  local  limits  of  the  area  to  exercise  jurisdiction  and  to  try  a  suit  under  this  Act  in  respect  of 
contracts relating to infrastructure projects. 

20C.  Expeditious  disposal  of  suits.—Notwithstanding  anything  contained  in  the  Code  of  Civil 
Procedure, 1908 (5 of 1908), a suit filed under the provisions of this Act shall be disposed of by the court 
within a period of twelve months from the date of service of summons to the defendant: 

Provided  that  the  said  period  may  be  extended  for  a  further  period  not  exceeding  six  months  in 

aggregate after recording reasons in writing for such extension by the court.] 

21.  Power  to  award  compensation  in  certain  cases.—(1)  In  a  suit  for  specific  performance  of  a 

contract, the plaintiff may also claim compensation for its breach 1[in addition to] 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 (9 of 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 circumstances 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 (5 of 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 

1. Subs. by Act 18 of 2018, s. 11, for “, either in addition to, or in substitution of,” (w.e.f. 1-10-2018). 

10 

 
                                                           
(b)  any  other  relief  to  which  he  may  be  entitled, including  the  refund  of  any  earnest  money  or 

deposit paid or 1[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: 

Provident 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 plaintiff’s 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 2[the Arbitration 
and Conciliation Act, 1996 (26 of 1996)], 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 (1 of 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 defence 

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. 

1. Subs. by Act 52 of 1964, s. 3 and the Second Schedule, for “made to” (w.e.f. 29-12-1964). 
2. Subs. by Act 18 of 2018, s. 12, for “the Arbitration Act, 1940 (10 of 1940)” (w.e.f. 1-10-2018). 

11 

 
                                                           
(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. When 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 (4 of 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 purchase 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 reliefs, namely:— 

(a) the execution of a proper conveyance or lease by the vendor or lessor; 

12 

 
(b) the delivery of 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 (16 of 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 ground— 

(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 (9 of 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. 

13 

 
Explanation.—A trustee of property is a “person interested to deny” a title adverse to the title of some 

one who is not inexistence, 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 the declaration, such parties would be trustees. 

PART III 
PREVENTIVE RELIEF 
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 injunctions 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 (5 of 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 would 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 favour, 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 favour of the plaintiff shall 

bar his right to sue for damages for such breach. 

14 

 
 
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             sub-

ordinate 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; 

1[(ha)  if  it  would  impede  or  delay  the  progress  or  completion  of  any  infrastructure  project  or 
interfere with the continued provision of relevant facility related thereto or services being the subject 
matter of such project.] 

(i)  when  the  conduct  of  the  plaintiff  or  his  agents  has  been  such  as  to  disentitle  him  to  be  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 circumstance 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. 

2* 

* 

* 

* 

* 

1. Ins. by Act 18 of 2018, s. 13 (w.e.f. 1-10-2018). 
2. Sections 43 and 44 rep. by the Repealing and Amending Act, 1974 (56 of 1974), s. 2 and the First Schedule  
     (w.e.f. 20-12-1974). 

15 

 
 
                                                           
1[THE SCHEDULE 

[See sections 20A and 41 (ha)] 

Category of projects and Infrastructure Sub-Sectors 

Sl. No.  

Category 

Infrastructure Sub-Sectors 

1 

1. 

2 

3 

Transport 

(a) Road and bridges 

(b) Ports (including Capital Dredging) 

(c)  Shipyards  (including  a  floating  or  land-based  facility  with  the 
essential  features  of  waterfront,  turning  basin,  berthing  and  docking 
facility, slipways or ship lifts, and which is self-sufficient for carrying on 
shipbuilding/repair/breaking activities) 

(d) Inland Waterways 

(e) Airports 

(f)  Railway  Track,  tunnels,  viaducts,  bridges,  terminal  infrastructure 
including stations and adjoining commercial infrastructure 

(g) Urban Public Transport (except rolling stock in case of urban road 
transport) 

2. 

Energy 

(a) Electricity Generation 

(b) Electricity Transmission 

(c) Electricity Distribution 

(d) Oil pipelines 

(e)  Oil/Gas/Liquefied  Natural  Gas  (LNG)  storage  facility(including 
strategic storage of crude oil) 

(f) Gas pipelines (including city gas distribution network) 

3. 

Water and 
Sanitation 

(a) Solid Waste Management 

(b) Water supply pipelines 

(c) Water treatment plants 

(d) Sewage collection, treatment and disposal system 

(e) Irrigation (dams, channels, embankments, etc.) 

(f) Storm Water Drainage System 

(g) Slurry pipelines 

4. 

Communication 

(a) Telecommunication (Fixed network including optic fibre/wire/cable 
networks which provide broadband/internet) 

(b) Telecommunication towers 

(c) Telecommunications and Telecom Services 

1. Ins. by Act 18 of 2018, s. 14 (w.e.f. 1-10-2018). 

16 

 
 
                                                           
Sl. No.  

Category 

Infrastructure Sub-Sectors 

1 

5. 

2 

Social and 
Commercial 
Infrastructure 

(a) Education Institutions (capital stock) 

3 

(b)  Sports  infrastructure  (including  provision  of  Sports  Stadia  and 
Infrastructure for Academies for Training/Research in Sports and Sports-
relating activities) 

(c)  Hospitals  (capital  stock  including  Medical  Colleges,  Para  Medical 
Training Institutes and Diagnostic Centres) 

(d) Tourism infrastructure viz. 

(i)  three-star  or  higher  category  classified  hotels  located  outside 

cities with population of more than one million; 

(ii) ropeways and cable cars 

(e)  Common  infrastructure  for  industrial  parks  and  other  parks  with 
industrial  activity  such  as  food  parks,  textile  parks,  Special  Economic 
Zones, tourism facilities and agriculture markets 

(f)  Post-harvest  storage  infrastructure  for  agriculture  and  horticulture 
produce including cold storage 

(g) Terminal markets 

(h) Soil-testing laboratories 

(i) Cold chain (including cold room facility for farm level pre-cooling, 
for  preservation  or  storage  of  agriculture  and  allied  produce,  marine 
products and meat) 

(j) Affordable Housing (including a housing project using at least 50% 
of the Floor Area Ratio (FAR)/Floor Space Index (FSI) for dwelling units 
with carpet area of not more than 60 square meters 

Explanation.—For the purposes of this sub-clause, the term “carpet area” 
shall have the same meaning as assigned to it in clause (k) of section 2 of 
the Real Estate (Regulation and Development) Act, 2016 

(16 of 2016).] 

17 

 
 
