Specific performance is an equitable remedy that compels a defaulting party to perform their contractual obligations rather than merely paying damages for breach. In India, the Specific Relief Act, 1963 (SRA) was fundamentally amended in 2018. The most significant change: specific performance of contracts — especially for immovable property — is now the general rule rather than a discretionary remedy. Pre-2018, courts could refuse specific performance and award damages instead; post-2018, courts must decree specific performance unless the contract falls within the specific exceptions in Section 14 SRA.
Contracts specifically enforceable (Section 10 SRA, as amended 2018): Specific performance may be enforced where: (i) there exists no standard for determining the actual damage caused by the non-performance; or (ii) the act agreed to be done is such that monetary compensation for non-performance would not afford adequate relief. For immovable property contracts, the 2018 amendment effectively makes this the default rule — courts will ordinarily decree specific performance of a contract to sell land or a house unless the grounds for refusal under Section 14 apply.
Non-enforceable contracts (Section 14 SRA): Specific performance cannot be decreed for: (i) contracts where compensation in money is an adequate relief; (ii) contracts running into minute detail; (iii) contracts involving personal service or special skill; (iv) contracts where the terms are uncertain or inequitable; (v) contracts where performance requires continuous supervision by the court.
Readiness and willingness — a critical ingredient: The plaintiff seeking specific performance must plead and prove continuous readiness and willingness to perform their part of the contract from the date of execution to the date of hearing. In P.V. Joseph v. Anilkumar (2021 SC), the Supreme Court held that readiness relates to financial capacity and willingness relates to conduct — both must be established throughout the period.
Limitation and substituted performance: A suit for specific performance must be filed within 3 years from the date fixed for performance or, where no date is fixed, when the plaintiff first had notice of the refusal (Article 54, Schedule I, Limitation Act 1963). The 2018 amendment to SRA also introduced Section 20A — "substituted performance" — where a party can arrange for performance by a third party and recover the costs from the defaulting party. However, once substituted performance is opted for, a specific performance suit cannot be maintained simultaneously.