A Glimpse Of The Indian Contract System, The Specific Relief Act And The Ammendments Made To It

A Glimpse Of The Indian Contract System, The Specific Relief Act And The Ammendments Made To It


The Indian Legal System is an amalgamation of dynamism, a futuristic perspective and utmost practicality. The definition of law, though might be subjective in nature, varying for all distinct individual beings, the purpose of it remains singular- catering to the needs of all, keeping the masses in check and serving to the core principles defined by the Indian Constitution. 

It is to be taken into consideration that the individualistic perception in lieu with the understanding of law has to be detrimental and analogically driven in terms of realism and cannot be neglected. A lot of individuals question the validity and the binding capacity of the legal system in general, but they often tend to forget the actuality that led to its creation and the main motive behind its implementation. Legal systems have been devising methodologies that act in the interest of the general public, while mutually benefitting the governmental agencies and the three pillars of the democracy in a holistic manner.

As per Sir William Salmond, “a contract is an agreement creating and defining the obligations between two or more parties”. Contract law is an assemblage of law that administers, implements, and deciphers arrangements identified with a trade of merchandise, administrations, properties, or money. As indicated by contract law, an understanding made between at least two individuals or business substances, where there is a guarantee to accomplish something as a trade-off for an increase or benefit, is lawfully restricting.
The binding nature of this law states a variation that we get to witness between two distinct entities- obligation in law and promissory obligation in morals. Unlike other obligations, contractual obligations don’t come into the picture on their own, rather they are self-chosen, hence differentiating it from Tort Law and Fiduciary Law.

A contract can be distinguished into five broad classes namely- valid contract, voidable contract, void contract, contingent contract, and quasi contract. These all have a legal obligation that comes along with it and a binding nature that envelopes the parties to the contract. However, there is another factor to weigh in and that is ‘breach of contract’. When an agreement or promise has been broken by the parties, there is said to be a breach of contract.

This is where the concept of Preventive Relief and the inclusion of the Specific Relief Act, 1963 comes into the picture. These have been stated as the prime remedies that can be executed in lieu with breach of a contract or its failed execution.


A couple of years back, India was tallied among the couple of most exceedingly awful performing nations in the manner it was performing business. The report distributed in 2016 by World Bank of working together, India got 130th Position in simplicity of doing business. The report has mulled over eleven zones while ascertaining the positioning of simplicity of working together; one of them was 'Agreement Enforcement'. It is significant for the financial advancement of the country that its agreement implementation component is powerful. 

In this view, the public authority established a specialist committee to propose the changes in the demonstration of 1963 to refine the agreement authorization commitments. The panel presented its report in 2016 by recommending a couple of the alterations in The Specific Relief Act 1963

The Specific Relief Amendment Bill was passed by both the houses on 23rd July 2018 and has gotten its consent from the president on first August 2018. The Ministry of Law and Justice vide a warning expressed first October 2018 as the date from which the arrangements of the Specific Relief (Amendment) Act will come into power. As a rule, the revision act features the issue of deferral in the requirement of agreements and expects to give some extra solutions for the distressed party to the agreement.

The contract law in India has been viewed as one of the old laws in India and its execution has now gotten troublesome because of inadequacy in the agreement implementation components, which is one reason of postponed equity and enormous expense of case. 


The Remedy of Specific Performance is not any more an optional standard: By the Amendment Act, 2018 it has become an obligatory principle of training to give explicit execution as a solution for the wronged party to the agreement. Prior this standard was performed restrictively; it was given in the situations when by the same token the real harm has caused because of non-execution of certain activities which couldn't be discovered, or at the point when the financial remuneration would not be a satisfactory help for the non-execution of the agreement. 

Further, a slight revision has likewise been done in segment 11, presently it has gotten mandatory for the Trusts additionally to play out the particular execution in the agreement. Before the alteration, this was not the obligatory principle. In any case, when the agreement has been made in overabundance of their forces then it can't be explicitly authorized. 

At the point when the agreement isn't implemented explicitly: None the less, the watchfulness of the court is shortened to give explicit execution of the agreement, except if inside the agreement where explicit execution is looked for, where any distressed gathering comes extremely close to the altered area 11(2) or Section 14 or Sec 16 of the demonstration. Accordingly, the altered demonstration further gives an arrangement to look for pay notwithstanding the particular execution of the agreement. 

Section 14: It expresses (a) When a gathering has gotten subbed execution under segment 20; (b) Which includes execution of a nonstop obligation that the court can't regulate; (c) when an agreement is reliant upon the individual capability of the gatherings. 

Section 14A: Confers the capacity to the court to select specialists whenever needed in the suit. 

Section 16: It states there can be no particular exhibition in the cases: 
where subbed execution is now acquired under section 20, or who has gotten unequipped for performing or abuses any fundamental term or on his part stayed unperformed or acts in extortion or unyieldingly acts in difference or in the disruption of, the connection expected to be performed by the agreement, or Who neglects to demonstrate that he has performed or willing to play out the fundamental terms of the agreement other than the terms which have been forestalled or deferred by the respondent.

Speedy Disposal of suits: Notwithstanding anything contained in the Civil Procedure Code, 1908. A suit recorded under this demonstration will be arranged inside a time of a year from the date of administration of request to the litigant. 

Foundation of Special Courts: The state government in counsel with the main equity of high court can make arrangements to make a couple of common courts as uncommon courts by distributing a warning in the authority newspaper, inside the nearby wards of the court and can attempt a suit under this demonstration of agreements identifying with Infrastructural Projects. 

No Injunction against Infrastructural Projects: Section 20A of the altered demonstration Provides that when the agreements are identified with infrastructural projects no directive can be conceded in such ventures, until such an order may create setback for the fulfilment of that project. Focal Government may, contingent on the necessity may revise the timetable I (Containing the Category of undertakings and Infrastructure Sub-Sectors). Each warning gave under this demonstration by Central Government will be laid, as when both the houses ought to have agreement over passing or rejecting that notice.


Though it might be true that we despise the justice system for its shortcomings, we need to keep in mind that it is because of the sole existence of it that we get to live a free will life. Some critical changes have been carried with the Amendment act, 2018 being the compulsory time-frame for expendable of the case and not giving directive in infrastructural projects. 

The Indian Contract Act has been carried with the intention to set a promise in a place as though the agreement is performed, and not to rebuff the gathering who has penetrated the agreement. 

Anyway, by conceding a help of explicit execution where the gathering is honestly not willing or ready to play out the agreement and the substitute is promptly accessible is equivalent to rebuffing the gathering at the break. Additionally, when a gathering at penetrate isn't willing to perform benefiting to some authentic difficulties it won't keep away from or decrease the contention rather may deteriorate the circumstance.


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on 03 April 2021
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