Power to award compensation in certain cases
Section 21 of the Specific Relief Act, 1963 deals with power to award compensation in certain cases. In a suit for specific performance of a contract, the plaintiff may also claim compensation for its breach [in addition to] such performance. The Act came into force on 01 Mar 1964.
(1) In a suit for specific performance of a contract, the plaintiff may also claim compensation for its breach 1[in addition to] such performance.
(2) If, in any such suit, the court decides that specific performance ought not to be granted, but that there is a contract between the parties which has been broken by the defendant, and that the plaintiff is entitled to compensation for that breach, it shall award him such compensation accordingly.
(3) If, in any such suit, the court decides that specific performance ought to be granted, but that it is not sufficient to satisfy the justice of the case, and that some compensation for breach of the contract should also be made to the plaintiff, it shall award him such compensation accordingly.
(4) In determining the amount of any compensation awarded under this section, the court shall be guided by the principles specified in section 73 of the Indian Contract Act, 1872 (9 of 1872).
(5) No compensation shall be awarded under this section unless the plaintiff has claimed such compensation in his plaint:
Provided that where the plaintiff has not claimed any such compensation in the plaint, the court shall, at any stage of the proceeding, allow him to amend the plaint on such terms as may be just, for including a claim for such compensation.
Explanation.The circumstances that the contract has become incapable of specific performance does not preclude the court from exercising the jurisdiction conferred by this section.
Section 21, The Specific Relief Act, 1963 (Act 47 of 1963).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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I. S. Sikandar (d) by Lrs. vs K. Subramani
Court's Decision & Legal Precedent
When parties to a contract for sale of immovable property expressly agree to a specific time for performance of the contract, time becomes the essence of the contract and must be strictly adhered to. Failure to perform within the stipulated time constitutes a material breach which entitles the non-defaulting party to rescind the contract. A suit for specific performance based on a contract that has been validly terminated by the non-defaulting party is not maintainable unless the plaintiff seeks declaratory relief to challenge the termination. Additionally, a plaintiff seeking specific performance must prove through credible documentary evidence and conduct that he was ready and willing to perform his part of the contract at all material times, including prior to filing the suit and continuing till the date of judgment. The burden of proof lies squarely on the plaintiff under Section 16(c) of the Specific Relief Act. When a plaintiff fails to meet this burden, the court cannot exercise its discretionary power under Section 20 of the Specific Relief Act to grant specific performance, notwithstanding the equitable considerations involved.
On this section: This section pertains to the circumstances under which specific performance can be refused. The Court held that the plaintiff was not entitled to specific performance relief considering his breach of the contractual terms and conditions.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Referring to the judgment of this Court in Jagdish Singh v. Natthu Singh (supra), this Court held that compensation can be awarded in lieu of specific performance under Section 21 of the Specific Relief Act when a contract has become impossible to be performed. In the facts of the said case the amount of compensation which already stood determined was distributed amongst the parties. 20. The contention of the Appellant in Sukhbir v. Ajit Singh (supra) that no compensation shall be …
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… Referring to the judgment of this Court in Jagdish Singh v. Natthu Singh (supra), this Court held that compensation can be awarded in lieu of specific performance under Section 21 of the Specific Relief Act when a contract has become impossible to be performed. In the facts of the said case the amount of compensation which already stood determined was distributed amongst the parties. 20. The contention of the Appellant in Sukhbir v. Ajit Singh (supra) that no compensation shall be …
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… Louis Chinnaya Agogiaswamy by stating that the decree for specific performance is in the discretion of the Court but the discretion should not be used arbitrarily, the discretion should be exercised on sound principles of law capable of correction by an appellate Court." "Section 21 of the Specific Relief Act provides for award of compensation either in addition to or in substitution of such performance. The explanation appended to the section expressly enacts that the Court is not precluded from exercising jurisdiction to award compensation even in a case where the contract has been rendered …
Questions about Section 21
What have the courts held on Section 21 of the Specific Relief Act?
I. S. Sikandar (d) by Lrs. vs K. Subramani (29 Aug 2013) is the leading judgment on this section among those set out below: This section pertains to the circumstances under which specific performance can be refused. The Court held that the plaintiff was not entitled to specific performance relief considering his breach of the contractual terms and conditions.
How do I find court cases under Section 21 of the Specific Relief Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Specific Relief Act 21, section 21 Specific Relief Act, section 21 of the Specific Relief Act. People searching for it also type specific relief act section 21a and specific relief act 1877 section 21. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with I. S. Sikandar (d) by Lrs. vs K. Subramani (29 Aug 2013).
What should I read with Section 21 of the Specific Relief Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 21 of the Specific Relief Act come into force?
Section 21 of the Specific Relief Act, cited as Specific Relief Act 21, came into force on 01 Mar 1964, having been enacted on 13 Dec 1963. It is in force as at the date shown on this page.
Other sections of this Act
- 12. Specific performance of part of contract391 words
- 28. Rescission in certain circumstances of contracts for the sale or lease of immovable property, the specific performance of which has been decreed382 words
- 15. Who may obtain specific performance330 words
- 13. Rights of purchaser or lessee against person with no title or imperfect title309 words
- 26. When instrument may be rectified292 words
- 20. Substituted performance of contract269 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.