Question:

Court's power to award compensation is provided in Specific Relief Act

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Remember the relationship between specific performance and compensation under the Act. Compensation under Section 21 can be granted in addition to specific performance (if performance alone isn't enough) or in substitution of it (if performance is denied but the plaintiff deserves compensation).
Updated On: Oct 30, 2025
  • Under Section 20
  • Under Section 21
  • (a) and (b)
  • None of the above
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Concept:
The Specific Relief Act, 1963, primarily deals with compelling a party to perform their contractual obligation (specific performance). However, it also provides for monetary compensation in certain situations.

Step 2: Detailed Explanation:
Let's look at the relevant sections:
- Section 20 of the Act deals with the "Substituted performance of contract". It allows the aggrieved party to get the contract performed by a third party at the cost of the defaulting party. While this involves recovery of expenses, it's not a direct award of compensation by the court itself in the same vein as damages. (Note: The Specific Relief (Amendment) Act, 2018 has significantly altered this part of the law, making specific performance more of a rule than an exception).
- Section 21 is explicitly titled "Power to award compensation in certain cases". It provides that in a suit for specific performance, the plaintiff may also claim compensation for the breach of contract, either in addition to, or in substitution of, such performance. The court can award this compensation if it finds that specific performance ought not to be granted, or that it is not sufficient to satisfy the justice of the case.
Therefore, the direct power of the court to award compensation in a suit for specific performance is found in 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.

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