This Flash apprises you of the recent amendments to the Specific
Relief Act, 1963 ("Act") pursuant to the
Specific Relief (Amendment) Act, 2018 and assesses its likely
impact on contractual arrangements.
1. Specific performance
Previously, Indian courts would exercise their discretion in
granting specific performance of contracts by non-performing
parties by applying principles enshrined in the un-amended Act.
However, with the recent amendments the old section 10 has been
substituted with a new section, which makes it unambiguous that
courts shall now have limited discretion in decreeing specific
performance of a contract, which "shall be granted"
subject to limitations prescribed in sections 11(2), 14 or 16 of
the Act. Accordingly, specific performance of a contract is now the
rule rather than exception. Further, section 11 of the Act
concerning private trusts has also been amended to replace the
words "contract may, in the discretion of the court"
