Liquidation of damages not a bar to specific performance
Section 23 of the Specific Relief Act, 1963 deals with liquidation of damages not a bar to specific performance. A contract, otherwise proper to be specifically enforced, may be so enforced, though a sum be named in itas the amount to be paid in case of its breach and the party in default is willing to pay the same, if the court, having regard to the terms of the contract and other attending circumstances, is The Act came into force on 01 Mar 1964.
(1) A contract, otherwise proper to be specifically enforced, may be so enforced, though a sum be named in itas the amount to be paid in case of its breach and the party in default is willing to pay the same, if the court, having regard to the terms of the contract and other attending circumstances, is satisfied that the sum was named only for the purpose of securing performance of the contract and not for the purpose of giving to the party in default an option of paying money in lieu of specific performance.
(2) When enforcing specific performance under this section, the court shall not also decree payment of the sum so named in the contract.
Section 23, The Specific Relief Act, 1963 (Act 47 of 1963).
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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P. S. Ranakrishna Reddy vs M. K. Bhagyalakshmi
Court's Decision & Legal Precedent
A document purporting to be an agreement for sale must be read in its entirety to ascertain the intention of the parties. The presence of default clauses and quantified damages does not negate the nature of an agreement for sale but merely defines the respective liabilities of the parties. When an agreement for sale is clear, unambiguous, and lawfully entered into by the parties with explicit terms and conditions, courts should exercise their discretionary jurisdiction under Section 20 of the Specific Relief Act, 1963 to grant specific performance. Mere appreciation in property value is not a valid ground for refusing to enforce a lawful agreement of sale. Concurrent findings of fact by the trial court and high court should not be interfered with by the appellate court unless there is a clear error or miscarriage of justice.
On this section: Referenced in the context of the Dadarao decision being rendered per incuriam for failing to notice and consider the provisions of Section 23 of the Specific Relief Act, 1963.
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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… The principles relating to specific performance as contained in Sections 16(c), 20, 21, 22 and 23 of the Specific Relief Act, 1963 read with Forms 47/48 of Appendix A to C of the Civil Procedure Code, 1908 were succinctly summarized by the Supreme Court in Kamal Kumar v. Premlata Joshi , 2019 SCC OnLine SC 12 as under: "10. It is a settled principle of law that the grant of relief of specific performance …
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… Ltd. (supra) holding that the relief under Section 9 of the Arbitration Act, 1996 should not be granted when damages are an adequate remedy for wrongful termination. 27. Moreover, it is asserted that Section 23 of the Specific Relief Act as relied upon by the petitioner, is not applicable as it applies only when contract is "otherwise proper to be specifically enforced". 28. It is submitted that there was no Agreement to supply Partial Cargo Lot in November, 2022 and no such right had accrued prior to termination of …
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… (ii) the plaintiff [must prove] performance of, or readiness and willingness to perform, the contract according to its true construction.‖ 153. The principles relating to specific performance as contained in Sections 16(c), 20, 21, 22 and 23 of the Specific Relief Act, 1963 read with Forms 47/48 of Appendix A to C of the Code of Civil Procedure, 1908 were succinctly summarized by the Supreme Court in Kamal Kumar vs Premlata Joshi, 2019 SCC OnLine SC 12 as under: ―10. It is a settled principle of law that the grant of relief of specific performance …
Questions about Section 23
What have the courts held on Section 23 of the Specific Relief Act?
P. S. Ranakrishna Reddy vs M. K. Bhagyalakshmi (20 Feb 2007) is the leading judgment on this section among those set out below: Referenced in the context of the Dadarao decision being rendered per incuriam for failing to notice and consider the provisions of Section 23 of the Specific Relief Act, 1963.
How do I find court cases under Section 23 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 23, section 23 Specific Relief Act, section 23 of the Specific Relief Act. People searching for it also type specific relief act 1877 section 23. 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 P. S. Ranakrishna Reddy vs M. K. Bhagyalakshmi (20 Feb 2007).
When did Section 23 of the Specific Relief Act come into force?
Section 23 of the Specific Relief Act, cited as Specific Relief Act 23, 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.