Specific Relief Section 12 (3) Case Laws

In Rachakonda Narayana v. Ponthala Parvathamma and Anr. : AIR2001SC3353 , Khare, J.
, the
learned Chief Justice as he then was, observed :
'...Thus, the ingredients which would attract specific performance of the part of the contract, are: (i)
if a party to an agreement is unable to perform a part of the contract, he is to be treated as
defaulting party to that extent, and (ii) the other party to an agreement must, in a suit for
such specific performance, either pay or has paid the whole of the agreed amount, for that part of
the contract which is capable of being performed by the defaulting party and also relinquish his
claim in respect of the other part of the contract which the defaulting party is not capable to
perform and relinquishes the claim of compensation in respect of loss sustained by him. If such
ingredients are satisfied, the discretionary relief of specific performance is ordinarily granted unless
there is delay or laches or any other disability on the part of the other party.'
A perusal of sub-section (3) of Section 12 shows that the first part of the said provisions mandates
refusal of specificperformance of a contract on certain conditions. However, latter part of the
provisions permits a Court to direct the party in default to perform specifically so much of his part of
the contract as he can perform if the other party pays or has paid the agreed consideration for the
whole of the contract and relinquishes all claims to the performance of the remaining part of
the contract and all the rights to compensation for the loss sustained by him. If a suit is laid by the
other party, the court may direct the defaulting party to perform that part of the contract which is
performable on satisfying two preconditions, i.e., (i) the plaintiff pays or has already paid the whole
of the consideration amount under the agreement and that (ii) plaintiff relinquishes all claims to
the performance of other part of the contract which defaulting party in incapable to perform and all
rights to compensation for loss sustained by him. Thus, the ingredients which would
attract specific performance of the part of the contract, are : (i) if a party to an agreement is unable
to perform a part of the contract, he is to be treated as defaulting party to that extent and; (ii) the
other party to an agreement must, in a suit for such specific performance, either pays or has paid
the whole of the agreed amount, for that part of the contract which is capable of being performed
by the defaulting party and also relinquish his claim in respect of other apart of contract which
defaulting party is not capable to perform and relinquishes the claim of compensation in respect of
loss sustained by him. If such ingredients are satisfied, the
discretionary relief of specific performance is ordinarily granted unless there is delay or latches or
any other disability on the part of other party.
8. Now, the question is whether relief under Section 12(3) of the Act is required to be pleaded in the
plaint when the suit is laid or it can also be taken at the appellate stage. The view taken by the High
Court is the readiness and willingness to perform the terms of the contract by the plaintiff based on
latter part of sub-section (3) of Section 12 must be pleaded in the plaint itself when the suit is laid
and in its absence the relief being discretionary cannot be granted by amendment of the plant at the
appellate stage. In Kalyanpur Lime Works Ltd. v. State of Bihar and another : [1954]1SCR958 ,
identical question came up for consideration before the Supreme Court. In the said case, the Apex
Court held that relief based on Sections 13 14 15 and 17 of the Specific Relief Act, 1877 can be
granted at any stage of the litigation. IN A.L. Parthasarathi Mudaliar v. Venkata Kondiah Chettiar :
AIR1965Mad188 , it is held that it is open to plaintiff to relinquish the part of the performance of
the contract after paying the entire consideration of the contract amount at the appellate stage of
the proceedings if the defaulting party is not capable to perform the whole of the contract.

Specific Relief Section 12 (3) Case Laws

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In Rachakonda Narayana v. Ponthala Parvathamma and Anr. : AIR2001SC3353 , Khare, J.

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