S.20 Specific Relief Act | Defendant Can Raise Plea Of Hardship Only If It Was Unforeseeable At Contract Formation: Supreme Court
Live LawThe Supreme Court today observed that a defendant could raise the ground of 'hardship' in performing the contract only if it is established by cogent evidence that she was unable to foresee the hardship at the time of entering into the contract. The Court further stated that Section 20 of the Specific Relief Act, 1963 would not apply if the defendant/seller failed to provide evidence showing that the hardship was unforeseeable when entering into the contract. Referring to Section 20 of SRA, the Respondents refused to perform the contract citing hardship caused to them after the seller's death as the suit property was their sole residence. Setting aside the High Court's decision, the judgment authored by Pardiwala J. emphasized that for taking refuge under Section 20 of SRA, it must be proved that the seller or the defendants were unaware of the consequences of the agreement at the time of its execution i.e., hardship to the defendants must be unforeseen and directly connected to the circumstances at the time of the contract. The Court noted that various factors necessitated the courts to not grant specific relief which depends on the facts and circumstances of each case but highlighted particular instances where the defendant could deny performance of the contract citing hardship.