Specific Performance -- Discretionary Nature of Relief -- Not mandatory to grant even where agreement is legally proved
(i) Specific Relief Act, 1963, Ss.16(c), 20 -- Specific Performance -- Discretionary Nature of Relief -- Relief of specific performance is equitable and discretionary in nature. Court is not bound to grant this relief merely because the agreement appears to be legally correct. (ii) Specific Relief Act, 1963, Ss.20, 28 -- Decree for Specific Performance -- Non-Compliance of Conditions by Decree Holder -- A suit for specific performance stands automatically dismissed when the decree holder fails to comply with the conditions of the decree. Such a decree ceases to exist in law and cannot be executed. (iii) Civil Procedure Code, 1908, S.47 -- Execution Petition -- Dismissal of First Petition for Want of Prosecution -- A second execution petition is maintainable where the first execution petition was dismissed for want of prosecution and was not decided on merits. (iv) Civil Procedure Code, 1908, O.21 R.35 -- Limitation Act, 1963, Art.136 -- Execution of Decree -- Limitation for Filing Execution Petition -- Article 136 of the Limitation Act, 1963 provides a period of twelve years from the decree, or from the date it becomes enforceable, for filing an execution petition. An execution petition moved within this period cannot be treated as barred by limitation. (v) Civil Procedure Code, 1908, O.21 R.35 -- Execution of Decree for Specific Performance -- Failure to Deposit Balance Consideration and to Seek Extension -- Failure of decree holder to deposit balance sale consideration within the time stipulated under the decree, coupled with failure to move an application for extension within the permitted time, disentitles him from executing the decree. Such a decree ceases to exist and becomes inexecutable. (vi) Specific Relief Act, 1963, Ss.20, 28 -- Decree for Specific Performance -- Nature of Decree and Continuing Jurisdiction of Court -- A decree for specific performance is in the nature of a preliminary decree. The Court does not become functus officio on passing it and retains control over the decree till the sale deed is executed or the decree is rendered inexecutable. Section 28(1) permits deposit of balance consideration or rescission of contract on default, even after grant of decree. Section 28(4) bars a separate suit for relief available under Section 28. This power is discretionary and equitable, and moving an application under Section 28 is not mandatory for the Court to treat the contract as rescinded. (vii) Specific Relief Act, 1963, Ss.20, 28 -- Rescission of Contract -- Non-Compliance of Stipulated Time to Deposit Balance Consideration -- Non-compliance of the condition to deposit balance sale consideration within three months as stipulated in the decree renders the decree for specific performance inexecutable and the contract stands rescinded under Section 28. The defendant is liable to refund the earnest money with simple interest to the plaintiff.
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