Comprehension
“The Specific Relief Act, 1963 was enacted to define and amend the law relating to certain kinds of specific relief. It contains provisions, inter alia, specific performance of contracts, contracts not specifically enforceable, parties who may obtain and against whom specific performance may be obtained, etc. It also confers wide discretionary powers upon the courts to decree specific performance and to refuse injunction, etc. As a result of wide discretionary powers, the courts in majority of cases award damages as a general rule and grant specific performance as an exception. The tremendous economic development since the enactment of the Act have brought in enormous commercial activities in India including foreign direct investments, public private partnerships, public utilities infrastructure developments, etc., which have prompted extensive reforms in the related laws to facilitate enforcement of contracts, settlement of disputes in speedy manner. It has been felt that the Act is not in tune with the rapid economic growth happening in our country and the expansion of infrastructure activities that are needed for the overall development of the country.
In view of the above, it is proposed to do away with the wider discretion of courts to grant specific performance and to make specific performance of contract a general rule than exception subject to certain limited grounds. Further, it is proposed to provide for substituted performance of contracts, where a contract is broken, the party who suffers would be entitled to get the contract performed by a third party or by his own agency and to recover expenses and costs, including compensation from the party who failed to perform his part of contract. This would be an alternative remedy at the option of the party who suffers the broken contract. It is also proposed to enable the courts to engage experts on specific issues and to secure their attendance, etc.
A new section 20A is proposed for infrastructure project contracts which provides that the court shall not grant injunction in any suit, where it appears to it that granting injunction would cause hindrance or delay in the continuance or completion of the infrastructure project... Special courts are proposed to be designated to try suits in respect of contracts relating to infrastructure projects and to dispose of such suits within a period of twelve months from the date of service of summons to the defendant and also to extend the said period for another six months in aggregate, after recordings reasons therefor.” [Extracted from Statement of Objects and Reasons, the Specific Relief (Amendment) Bill, 2017].
In view of the above, it is proposed to do away with the wider discretion of courts to grant specific performance and to make specific performance of contract a general rule than exception subject to certain limited grounds. Further, it is proposed to provide for substituted performance of contracts, where a contract is broken, the party who suffers would be entitled to get the contract performed by a third party or by his own agency and to recover expenses and costs, including compensation from the party who failed to perform his part of contract. This would be an alternative remedy at the option of the party who suffers the broken contract. It is also proposed to enable the courts to engage experts on specific issues and to secure their attendance, etc.
A new section 20A is proposed for infrastructure project contracts which provides that the court shall not grant injunction in any suit, where it appears to it that granting injunction would cause hindrance or delay in the continuance or completion of the infrastructure project... Special courts are proposed to be designated to try suits in respect of contracts relating to infrastructure projects and to dispose of such suits within a period of twelve months from the date of service of summons to the defendant and also to extend the said period for another six months in aggregate, after recordings reasons therefor.” [Extracted from Statement of Objects and Reasons, the Specific Relief (Amendment) Bill, 2017].
Question: 1
At present, which of the following is the correct proposition as regards the specific performance of a contract
At present, which of the following is the correct proposition as regards the specific performance of a contract
Updated On: Nov 7, 2024
- As a general rule, the specific performance of a contract is now a general remedy
- As a general rule, the specific performance of a contract is enforced by the court when there exists no standard for ascertaining actual damage caused by the non-performance of the act agreed to be done
- As a general rule, the specific performance of a contract is enforced by the court when the act agreed to be done is such that compensation in money for its non-performance would not afford adequate relief
- Both (B) and (C).
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The Correct Option is A
Solution and Explanation
Specific performance is typically enforced when damages cannot be adequately
measured or monetary compensation is insufficient to address the harm caused by non-performance.
The correct option is (A): As a general rule, the specific performance of a contract is now a general remedy
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Question: 2
At present, the specific performance of a contract is enforced by the court subject to:
At present, the specific performance of a contract is enforced by the court subject to:
Updated On: Nov 7, 2024
- The provisions contained in sections 11(2) and 16 of the Specific Relief Act, 1963
- The provisions contained in sections 11(2), 16 and 20 of the Specific Relief Act, 1963.
- The provisions contained in sections 11(2), 14 and 20 of the Specific Relief Act, 1963.
- The provisions contained in sections 11(2), 14 and 16 of the Specific Relief Act, 1963.
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The Correct Option is D
Solution and Explanation
Specific performance is enforced based on Sections 11(2), 14, and 16 of the Specific
Relief Act, which outline conditions and exceptions.
The correct option is (D): The provisions contained in sections 11(2), 14 and 16 of the Specific Relief Act, 1963.
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Question: 3
Which of the following is the correct proposition regarding ‘substituted performance of a contract’?
Which of the following is the correct proposition regarding ‘substituted performance of a contract’?
Updated On: Nov 7, 2024
- Where the contract is broken due to non-performance of promise by any party, the party who suffers by such breach has 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
- The party who suffers by breach of contract can concurrently obtain substituted performance of the contract and specific performance against the party in breach
- Both (A) and (B).
- Neither (A) nor (B)
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The Correct Option is A
Solution and Explanation
Substituted performance allows the aggrieved party to have the contract performed
by a third party and recover expenses from the breaching party.
The correct option is (A): Where the contract is broken due to non-performance of promise by any party, the party who suffers by such breach has 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
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Question: 4
The dismissal of a suit for specific performance of a contract or part thereof _______ the plaintiff’s right to sue for compensation for the breach of such contract or part, as the case may be, ______ his right to sue for any other relief to which he may be entitled, by reason of such breach:
The dismissal of a suit for specific performance of a contract or part thereof _______ the plaintiff’s right to sue for compensation for the breach of such contract or part, as the case may be, ______ his right to sue for any other relief to which he may be entitled, by reason of such breach:
Updated On: Nov 7, 2024
- Shall not bar; but shall bar
- Shall bar; but shall not bar
- Shall bar; but shall bar
- Shall not bar; nor shall it bar.
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The Correct Option is B
Solution and Explanation
The dismissal of a specific performance suit does not bar the plaintiff from seeking
compensation or other reliefs for the breach.
The correct option is (B): Shall bar; but shall not bar
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Question: 5
The ___, in consultation with the ____, 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 the Specific Relief Act, 1963 in respect of contracts relating to infrastructure projects:
The ___, in consultation with the ____, 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 the Specific Relief Act, 1963 in respect of contracts relating to infrastructure projects:
Updated On: Nov 7, 2024
- Central Government; Chief Justice of India.
- State Government; Chief Justice of India
- State Government; Chief Justice of the High Cour
- Central Government; Chief Justice of the High Court.
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The Correct Option is C
Solution and Explanation
The State Government, in consultation with the Chief Justice of the High Court,
designates Special Courts for infrastructure-related contract disputes under the Specific Relief Act
The correct option is (C): State Government; Chief Justice of the High Cour
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Questions Asked in CLAT PG exam
- The Hon’ble Supreme Court in the case of ‘Nil Ratan Kundu and another v. Abhijit Kundu’ 2008(3) Apex Court Judgements 232 (SC), while granting the custody to the maternal grandparents observed: In our judgement, the law relating to custody of a child is fairly well settled and it is this. In deciding a difficult and complex question as to custody of minor, a Court of law should keep in mind relevant statutes and the rights flowing therefrom. But such cases cannot be decided solely by interpreting legal provisions. It is a humane problem in live in relationship and is required to be solved with human touch. A Court while dealing with custody cases, is neither bound by statutes nor by strict rules of evidence or procedure nor by precedents. In selecting proper guardian of a minor, the paramount consideration should be the welfare and well-being of the child. In selecting a guardian, the Court is exercising parens patriae jurisdiction and is expected, may bound, to give due weight to a child’s ordinary comfort, contentment, health, education, intellectual development and favorable surroundings. But over and above physical comforts, moral and ethical values cannot be ignored. They are equally, or we may say, even more important, essential and indispensable consideration. If the minor is old enough to form an intelligent preference or judgement, the Court must consider such preference as well, though the final decision should rest with the Court as to what is conducive to the welfare of the minor.
The Hon’ble Supreme Court in the case of ‘Gaurav Nagpal v. Semedha Nagpal’-(2009)1 SCC 42, while giving paramount importance to the welfare of the child, which should include moral and ethical values, besides ethical well-being, observed as under:
When the court is confronted with conflicting demands made by the parents, each time it has to justify the demands. The Court has not only to look at the issue on legalistic basis, in such matters human angles are relevant for deciding those issues. The Court then does not give emphasis on what the parties say, it has to exercise a jurisdiction which is aimed at the welfare of the minor. As observed recently in Mausami Moitra Ganguli case, the Court has to give due weightage to the child’s ordinary contentment, health, education, intellectual development and favorable surroundings, but over and above physical comforts, the moral and ethical values have also to be noted. They are equal if not more important than the others.
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Before parting with the case, it is necessary to express our anguish over the ineffectiveness of the alternative mechanism devised for judicial review. The judicial review and remedy are the fundamental rights of the citizens. The dispensation of justice by the tribunal is much to be desired.
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The court while quoting Rajkot Municipal Corporation v. Manjulben Jayantilal Nakum, 1997 stated that as a tort, negligence consists of legal duty to take care and breach of that duty. Duty determines whether the type of loss suffered by the plaintiff in the particular way in which to occurred can ever be actionable. The division of negligence into duty, breach and consequent damage is convenient for the purpose of exposition but it can be confusing because the issues will often overlap. The process of determining a breach of duty involves three steps: First, it is necessary to ascertain the qualities of the reasonable person, given the qualities attributed to him, would have taken in the circumstances. The factors that are permissible to take into account in this regard are prescribed by law, but the amount of care that the reasonable person would have taken is a question of fact. Thirdly, it must be determined whether the defendant took less care than the reasonable person would have taken.
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The impugned constitutional amendments by which Article 16 (4-A) and 16 (4-B) have been inserted, flow from Article 16 (4). They do not alter the structure of Article 16 (4). They retain the controlling factors or the compelling reasons which enables the State to provide for reservation keeping in mind the overall efficiency of the state administration under article 335. Sub-categorization within a class is a constitutional requirement to secure substantive equality in the event that there is a distinction between two sections of a class; Sub-classification must not lead to the exclusion of one of the categories in the class. A model that provides sufficient opportunities to all categories of the class must be adopted; and Sub-classification among a class must be on a reasonable basis.
Justice Bela Trivedi opined, in dissent, that presidential list of scheduled castes notified under Article 341 cannot be altered by the States. Any change to this list can only be made by a law enacted by Parliament. Sub-classification, according to her would amount to tampering with the Presidential List and undermine the object Article 341, which aims to eliminate political influence in the SC-ST List. Further, she emphasised the importance of adhering to the rule of plain and literal interpretation. She mentions that any preferential treatment for a sub-class within the presidential list would deprive other classes within the same category of their benefits. In the absence of executive or legislative power, state lack the competence to sub-classify castes and the benefit reserved for all SCs. Allowing states to do so would constitute a colourable exercise of power, which is impermissible under law. Justice Trivedi concluded by affirming that affirmative action by States must remain within constitutional boundaries and held that the law laid down in E.V. Chinnaiah case was correct and should be upheld.
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