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PART II SPECIFIC RELIEF · CHAPTER II SPECIFIC PERFORMANCE OF CONTRACTS · PERSONS FOR OR AGAINST WHOM CONTRACTS MAY BE SPECIFICALLY ENFORCED

Section 16: Personal bars to relief

The Specific Relief Act, 1963

Specific performance of a contract cannot be enforced in favour of a person—

1[(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) 2[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 3[must prove] performance of, or readiness and willingness to perform, the contract according to its true construction.

Footnotes in the official text

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

Questions on this section

7 questions in 32 of our papers cite Section 16. Try these from the free papers:

  1. 1. In Aniglase Yohannan v. Ramlatha (2005) 7 SCC 534, decided on Section 16(c) of the Specific Relief Act, 1963 as it then stood, the Supreme Court held that the plaintiff's plea of readiness and willingness:

  2. 2. Under Section 16(b) of the Specific Relief Act, 1963, specific performance of a contract cannot be enforced in favour of a person who:

  3. 3. B sues A for specific performance of an agreement to sell land. B neither tendered the balance price to A nor deposited it in court before or with the plaint, and the court has not directed any deposit. B proves that he had the funds and was always ready and willing to pay. Is B's suit barred by Section 16(c) of the Specific Relief Act, 1963?

Practise questions on Specific Relief Act