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        Case ID :

        2005 (5) TMI 679 - SC - Indian Laws

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        Specific performance of part contract upheld where purchasers relinquish the unperformable claim, even at the appellate stage. Specific performance under Section 12(3) of the Specific Relief Act, 1963 may be granted to the extent a contract is capable of performance where the ...
                        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.

                              Specific performance of part contract upheld where purchasers relinquish the unperformable claim, even at the appellate stage.

                              Specific performance under Section 12(3) of the Specific Relief Act, 1963 may be granted to the extent a contract is capable of performance where the contracting party could bind only his own share in the property. The purchasers can obtain that limited decree only if they relinquish the unperformed part of the bargain and any claim to compensation, and that relinquishment may be made at any stage, including on appeal, by statement at the Bar or by amendment of the plaint. The earlier precedent cited was distinguished on its facts, and the equitable relief was upheld for the appellant's share alone.




                              Issues: Whether a decree for specific performance could be granted against the contracting party for his share in the property, notwithstanding the co-owner's authorisation, and whether the purchasers could relinquish the remaining claim and seek amendment of the plaint at the appellate stage under Section 12(3) of the Specific Relief Act, 1963.

                              Analysis: The agreement was treated as one for the entire property, but the contracting party had authority only to the extent of his own share, so the case attracted the rule governing specific performance of part of a contract. The purchasers were entitled to proceed only if they paid the reduced consideration and relinquished all claims to the unperformed part and to compensation. The Court held that such relinquishment need not be pleaded in any particular form and may be made at any stage, including in appeal, by statement at the Bar or by amendment of the plaint. The earlier precedent relied upon by the appellant was distinguished on its facts, and the equitable discretion under the Act was exercised in favour of enforcing the bargain to the extent legally capable of performance.

                              Conclusion: The decree for specific performance in respect of the appellant's share was sustainable, and the amendment and relinquishment were validly accepted at the appellate stage.

                              Final Conclusion: The appeal failed, and the respondents retained the decree for specific performance limited to the appellant's share of the property.

                              Ratio Decidendi: Under Section 12(3) of the Specific Relief Act, 1963, specific performance may be enforced to the extent the contract is capable of performance if the plaintiff relinquishes the unperformable part and any claim to compensation, and such relinquishment may be made even at the appellate stage.


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                              ActsIncome Tax
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