Step 1: Understanding the Concept:
The question asks for the section in the Specific Relief Act, 1963, that empowers a court to award compensation.
Step 2: Detailed Explanation:
Let's look at the relevant sections in the Specific Relief Act, 1963 (prior to the 2018 amendment, which is relevant for a 2017 exam paper).
- Section 20 (prior to amendment): This section dealt with the discretion of the court to grant specific performance. It laid down the principles for when a court may properly exercise its discretion not to decree specific performance. It did not directly deal with awarding compensation.
- Section 21: This section is titled "Power to award compensation in certain cases." It explicitly provides that in a suit for specific performance of a contract, the plaintiff may also claim compensation for its breach, either in addition to, or in substitution of, such performance. It lays down the rules for how and when this compensation can be claimed and awarded by the court.
- Section 22: Deals with the power to grant relief for possession, partition, refund of earnest money, etc.
- Section 23 and 24: Deal with liquidation of damages and bar of suit for compensation after dismissal of a suit for specific performance.
The primary section that grants the power to award compensation in a suit for specific performance is Section 21.
Step 3: Final Answer:
The court's power to award compensation in a suit for specific performance is provided under Section 21 of the Specific Relief Act.