Supreme Court Clarified That Party Must Seek Declaratory Relief Before Claiming Specific Performance

The Supreme Court, through its judgment dated 29.10.2025 in Annamalai v. Vasanthi & Ors.¹, clarified the circumstances under which a plaintiff must first seek a declaration that the termination of the contract is invalid before pursuing specific performance of the contract.

The Supreme Court held that where a contract grants a lawful right of termination and such right is duly exercised, the plaintiff must first obtain a declaration that the termination is invalid before seeking specific performance. Conversely, where the termination is without contractual basis or the right to terminate has been waived through subsequent conduct, such termination amounts only to wrongful repudiation. In such cases, the plaintiff may treat the contract as subsisting and directly seek specific performance without any prior declaratory relief.