Know The Law | When Can Part Performance Of Contract Be Allowed As Per Section 12(3) Specific Relief Act?

The Supreme Court ruled that part performance of the contract under Section 12 of the Specific Relief Act, 1963 cannot be claimed when the unperformed portion is substantial and non-segregable, and the plaintiff neither relinquishes claims for the unperformed part or damages nor shows readiness to perform the contract. As per Section 12 of the SRA, for claiming a part performance of the contract, the plaintiff either needs to relinquish the claims associated with the unperformed part of the contract or express readiness and willingness to perform the contract by making full payment of the agreed consideration for the contract The bench comprising Justice JB Pardiwala and Justice R Mahadevan was hearing the case arising out of Madras High Court where the Petitioner/Plaintiff, sought specific performance of an agreement of sale. The High Court dismissed the appeal, affirming the trial court's decision, which rejected the prayer for specific performance, citing that the plaintiff was not ready and willing to perform his part of the contract. Rejecting the petitioner's argument, the Court affirmed the High Court's decision and observed that the petitioner cannot claim part performance of the contract by invoking Section 12 of the SRA because he had neither relinquished all claims or rights to compensation for the unperformed part of the contract nor make full payment of the contract, which is a mandatory condition for invoking Section 12.