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PART II SPECIFIC RELIEF · CHAPTER II SPECIFIC PERFORMANCE OF CONTRACTS · PERSONS FOR OR AGAINST WHOM CONTRACTS MAY BE SPECIFICALLY ENFORCED · Substituted performance of contracts, etc

Section 21: Power to award compensation in certain cases

The Specific Relief Act, 1963

(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.

Footnotes in the official text

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

Questions on this section

5 questions in 19 of our papers cite Section 21. Try these from the free papers:

  1. 1. Consider the following statements regarding Section 21 of the Specific Relief Act, 1963: 1. If the court decides that specific performance ought not to be granted, but that there is a contract which the defendant has broken and the plaintiff is entitled to compensation, it shall award him such compensation. 2. If the court decides that specific performance ought to be granted but is not sufficient to satisfy the justice of the case, it shall also award the plaintiff compensation for the breach. 3. Where specific performance is refused, compensation cannot be awarded in the same suit, and the plaintiff must file a separate suit for it. Which of the statements given above is/are correct?

Practise questions on Specific Relief Act