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9 Specific Relief Act, 1877

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Legal Environment of Business

BUS 7305

Specific Relief Act, 1877


Specific Relief Act, 1877
To be continued from previous lecture…

s. 21(d) a contract which is in its nature revocable;


s. 21(e) a contract made by trustees either in excess of their
powers or in breach of their trust;
s. 21(f) a contract made by or on behalf of a corporation or
public company created for special purposes, or by the
promoters of such company, which is in excess of its
powers;
To be continued…
s. 21(g) a contract the performance of which
involves the performance of a continuous duty
extending over a longer period than three years from
its date;
s. 21(h) a contract of which a material part of the
subject- matter, supposed by both parties to exist,
has, before it has been made, ceased to exist.
To be continued…
Unregistered contract for sale not specifically
enforceable u/s. 21A of the SR Act, 1877.
s. 21A. Notwithstanding anything to the contrary contained
in this Act or any other law for the time being in force, no
contract for sale of any immovable property can be
specifically enforced unless–
To be continued…

s. 21A(a) the contract is in writing and registered under the


Registration Act, 1908, whether or not the transferee has
taken possession of the property or any part thereof; and
s. 21A(b) the balance amount of consideration of the
contract is deposited in the court at the time of filing the suit
for specific performance of the contract.]
To be continued…

2) Rectification of instrument:
When instrument may be rectified u/s. 31 -34 of
the SR Act. 1877
31. When, through fraud or a mutual mistake of
the parties, a contract or other instrument in
writing does not truly express their intention,
either party, or his representative in interest,
may institute a suit to have the instrument
rectified; and
To be continued…
if the Court find it clearly proved that there has been
fraud or mistake in framing the instrument, and ascertain
the real intention of the parties in executing the same, the
Court may in its discretion rectify the instrument so as to
express that intention, so far as this can be done without
prejudice to rights acquired by third persons in good faith
and for value.
To be continued…
For example:
(a) A, intending to sell to B his house and one of
three godowns adjacent to it, execute a conveyance
prepared by B, in which, through B's fraud, all three
godowns are included. Of the two godowns which
were fraudulently included, B gives one to C and lets
the other to D for a rent, neither C nor D having any
knowledge of the fraud. The conveyance may, as
against B and C, be rectified so as to exclude from it
the godown given to C; but it cannot be rectified so
as to affect D's lease.
To be continued…
Presumption as to intent of parties
s. 32 of the SR Act, 1872. For the purpose of rectifying a
contract in writing, the Court must be satisfied that all the
parties thereto intended to make an equitable and
conscientious agreement.
To be continued…

Principles of rectification
s. 33 of the SR Act, 1877. In rectifying a written instrument,
the Court may inquire what the instrument was intended to
mean, and what were intended to be its legal consequences,
and is not confined to the inquiry what the language of the
instrument was intended to be.
To be continued…
Specific enforcement of rectified contract
s. 34 of the SR Act, 1872. A contract in writing may be first
rectified and then, if the plaintiff has so prayed in his plaint
and the Court thinks fit, specifically enforced.
To be continued…
3) When rescission may be adjudged, u/s. 35 -38 of the
SR Act. 1877
s. 35 of the SR Act, 1877. Any person interested in a
contract in writing may sue to have it rescinded, and such
rescission may be adjudged by the Court in any of the
following cases, namely:-
(a) where the contract is viodable or terminable by the
plaintiff;
To be continued…
(b) where the contract is unlawful for causes not apparent on
its face, and the defendant is more to blame than the
plaintiff;
(c) where a decree for specific performance of a contract of
sale, or of a contract to take a lease, has been made, and
the purchaser or lessee makes default in payment of the
purchase-money or other sums which the Court has ordered
him to pay.
To be continued…
When the purchaser or lessee is in possession of the subject-
matter, and the Court finds that such possession is wrongful,
the Court may also order him to pay to the vendor or lessor
the rents and profits, if any, received by him as such
possessor.
To be continued…
4) Injunction: (Preventive relief how granted), u/s. 52 -57
of the SR Act. 1877

s. 52 of the SR Act, 1877. Preventive relief is granted at the


discretion of the Court by injunction, temporary or
perpetual.
To be continued…
Temporary injunctions Perpetual injunctions, u/s. 53
s. 53 of the SR Act, 1872. Temporary injunctions are such as are to
continue until a specified time, or until the further order of the
Court. They may be granted at any period of a suit, and are
regulated by the Code of Civil Procedure.
To be continued…

Perpetual injunctions when granted, u/s. 54 of the SR Act, 1872


s. 54. Subject to the other provisions contained in, or referred to by,
this Chapter, a perpetual injunction may be granted to prevent the
breach of an obligation existing in favour of the applicant, whether
expressly or by implication.

When such obligation arises from contract, the Court shall be guided
by the rules and provisions contained in Chapter II of this Act.
To be continued…

When the defendant invades or threatens to invade the plaintiff's right


to, or enjoyment of, property, the Court may grant a perpetual
injunction in the following cases (namely):-
(a) where the defendant is trustee of the property for the plaintiff;
(b) where there exists no standard for ascertaining the actual damage
caused, or likely to be caused, by the invasion;
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(c) where the invasion is such that pecuniary


compensation would not afford adequate relief;
(d) where it is probable that pecuniary
compensation cannot be got for the invasion;
(e) where the injunction is necessary to prevent a
multiplicity of judicial proceedings.
To be continued…

s. 55 of the SR Act, 1872. When, to prevent the breach


of an obligation, it is necessary to compel the
performance of certain acts which the Court is capable
of enforcing, the Court may in its discretion grant an
injunction to prevent the breach complained of, and
also to compel performance of the requisite acts.
For example:
A builds a house with eaves projecting over B's land. B
may sue for an injunction to pull down so much of the
eaves as so project.

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