SRA 2018 Made Specific Performance Of Contract General Rule Rather Than Exception, Legislative Shift Towards Stronger Enforcement Of Contracts: Delhi HC
1 year, 6 months ago

SRA 2018 Made Specific Performance Of Contract General Rule Rather Than Exception, Legislative Shift Towards Stronger Enforcement Of Contracts: Delhi HC

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The Delhi High Court has observed that the Specific Relief Act, 2018, has changed the nature of specific relief from an equitable, discretionary remedy to a statutory remedy and has made specific performance of a contract a general rule rather than an exception.A division bench of Justice Manmohan and Justice Saurabh Banerjee said that the 2018 Amendment Act has brought the. A division bench of Justice Manmohan and Justice Saurabh Banerjee said that the 2018 Amendment Act has brought the Indian Specific Performance Act in line with the UNIDROIT Principles of International Commercial Contracts, as it aspires to achieve “harmonization in international law governing commercial contracts.” The court said that the primary intent behind the 2018 Amendment Act is to introduce a “greater certainty” in the enforcement of contracts and consequently improve India’s ranking in “Enforcement of Contracts’ and ‘Ease of Doing Business.” “This Court is of the view that the Amendment Act, 2018 introduces a paradigm shift in law regarding contractual enforcement in India. A glaring instance of the legislative shift is the amendment of Section 14 of Act, 1963 which deletes the earlier sub-clause which prescribed that the contracts for the non-performance of which compensation in money was an adequate relief would not be specifically enforced, meaning thereby that the plea that a party could be compensated in monetary terms as damages for breach of the contract and resultant refusal of interim injunction on the said ground, is no longer a ground to refuse specific performance of the contract,” the court said. It added, “The Amendment Act, 2018 intends to discourage errant parties who may deem it more viable to breach a contract than perform it, as the cost of damages may still be less than the cost of the performance.” The court made the observations while dealing with an appeal filed by a music company, Global Music Junction Private Limited, challenging a single judge order vacating an interim order in its favour in its suit alleging infringement of its copyright in literary and musical works, cinematographic films and sound recordings by a Bhojpuri singer Shatrughan Kumar also known aa Khesari Lal Yadav.

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