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        Case ID :

        2004 (8) TMI 694 - SC - Indian Laws

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        Compensation in specific performance suits requires a pleaded claim or amendment; costs cannot be treated as compensation. In a suit for specific performance, compensation for breach of contract under Section 21 of the Specific Relief Act, 1963 cannot be awarded unless it is ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Compensation in specific performance suits requires a pleaded claim or amendment; costs cannot be treated as compensation.

                            In a suit for specific performance, compensation for breach of contract under Section 21 of the Specific Relief Act, 1963 cannot be awarded unless it is specifically claimed in the plaint or introduced by amendment during the proceedings. The statutory bar in Section 21(5) prevails, and equitable considerations cannot override that requirement. Relief sought under Section 28(3) does not substitute for a pleaded claim to compensation under Section 21. Costs decreed in the suit remain recoverable in accordance with law but cannot be merged into compensation under Section 21.




                            Issues: Whether compensation for breach of contract could be awarded in a suit for specific performance without a claim for compensation in the plaint or an amendment of the plaint, and whether costs decreed in the suit could be treated as part of such compensation.

                            Analysis: Section 21 of the Specific Relief Act, 1963 permits compensation in a suit for specific performance, but sub-section (5) expressly bars such compensation unless it is claimed in the plaint or introduced by amendment at any stage of the proceedings. The relief sought by the respondents was under Section 28(3) of the Act and not by amending the plaint to claim compensation under Section 21. The Court held that equitable considerations cannot override the statutory prohibition. It also held that costs awarded in the main suit are recoverable in accordance with law but cannot be merged into compensation under Section 21.

                            Conclusion: Compensation could not be awarded under Section 21 in the absence of a pleading or amendment claiming it, and the costs decreed in the suit could not be included as compensation. The relief granted by the Trial Court and the High Court was unsustainable.

                            Ratio Decidendi: Under Section 21 of the Specific Relief Act, 1963, compensation in a suit for specific performance cannot be awarded unless specifically claimed in the plaint or introduced by amendment, and statutory requirements cannot be defeated by equitable considerations.


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