Special provision relating to contract for infrastructure projects [S. 20A]
An injunction is not to be granted by any court in a suit under this Act in respect of a contract relating to an infrastructure project (as specified in the Schedule) if such injunction would cause impediment or delay in the progress or completion of such project.
Amendment of Schedule [Sub-s(2)]
The Central Government may, depending upon the requirement for the development of infrastructure projects, and if it considers necessary to do so, amend the Schedule relating to any category of projects or infrastructure sub-sectors.
Notification to be laid before Parliament [Sub-s (3)]
Every notification has to be laid before each House of Parliament while it is in session for a total period of 30 days. Parliament may cause modification in the notification or say that it should not be made.
Special Courts [S. 20-B]
The special courts which are to be established in furtherance of this section have to be designated by the State Government in consultation with the Chief Justice of the High Court, and can exercise their jurisdiction over the cases on contracts relating to infrastructure projects.
Expeditious disposal of suits [S. 20-C]
A suit filed under the provisions of this Act has to be disposed of by the court within a period of 12 months from the date of service of summons to the defendant. This is notwithstanding anything contained in CPC, 1908.
The proviso says that the said period may be extended for a further period not exceeding six months in aggregate.
Power of court to award compensation [S. 21]
21. Power to award compensation in certain cases.- (1) In a suit for specific performance of a contract, the plaintiff may also claim compensation for its breach 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 circumstance that the contract has become incapable of specific performance does not preclude the court from exercising the jurisdiction conferred by this section.
Every party seeking the relief of specific performance is allowed by this section to claim compensation for the breach of the contract. Such relief may be claimed either in addition to specific performance or in substitution of it.
If the court is of opinion that specific performance ought not to be ordered, the court may award compensation if a valid contract and its breach are established.
Relief of possession, partition, etc. [S. 22]
Where the relief sought is for the transfer of immovable property, the court may also grant, if so prayed by the party, relief by way of possession, partition and separate possession.
Relief for possession has to be pleaded
Relief of possession can be granted only if it is specifically prayed for.
Sub-section (1) of Section 22 of the Specific Relief Act, 1963 is an enabling provision. A plaintiff in a suit for specific performance may ask for further reliefs mentioned in clauses (a) and (b) thereof.
Liquidation of damages no bar [S. 23]
Where the parties to the contract have fixed the amount of compensation which would be payable in the event of default, this would not constitute any bar to the relief of specific performance.
If they show that compensation was fixed in order to secure performance and not to allow the defaulting party an option to pay compensation, the court may allow specific performance.
Alternative relief provided in the contract
When the agreement itself allows for contingencies pertaining to (a) the seller refusing to sell and (b) the purchaser refusing to buy by stipulating the return of earnest money plus another sum, it is observed that there was no obligation on the seller to complete the sale and the contract is not specifically enforceable.
Bar of suit [S. 24]
24. Bar of suit for compensation for breach after the dismissal of the suit for specific performance.- The dismissal of a suit for specific performance of a contract or part thereof shall bar the plaintiff's right to sue for compensation for the breach of such contact or part, as the case may be, but shall not bar his right to sue for any other relief to which he may be entitled, by reason of such breach.
