Specific Relief Act, 1963
20. Discretion as to decreeing specific performance
(1) The jurisdiction to decree specific performance is
discretionary, and the court is not bound to grant such relief merely because
it is lawful to do so; but the discretion of the court is not arbitrary but
sound and reasonable, guided by judicial principles and capable of correction
by a court of appeal.
(2) The following are cases in which the court may properly
exercise discretion not to decree specific performance:
(a) where the terms of the contract or the
conduct of the parties at the time of entering into the contract or the other
circumstances under which the contract was entered into are such that the
contract, though not voidable, gives the plaintiff an unfair advantage over the
defendant; or
(b) where the performance of the contract
would involve some hardship on the defendant which he did not foresee, whereas
its non-performance would involve no such hardship on the plaintiff; or
(c) where the defendant entered into the contract
under circumstances which though not rendering the contract voidable, makes it
inequitable to enforce specific performance.
Explanation 1: Mere inadequacy of
consideration, or the mere fact that the contract is onerous to the defendant
or improvident in its nature, shall not be deemed to constitute an unfair
advantage within the meaning of clause (a) or hardship within the meaning of
clause (b).
Explanation 2: The question whether
the performance of a contract would involve hardship on the defendant within
the meaning of clause (b) shall, except in cases where the hardship has
resulted from any act of the plaintiff subsequent to the contract, be
determined with reference to the circumstances existing at the time of the
contract.
(3) The court may properly exercise discretion to decree
specific performance in any case where the plaintiff has done substantial acts
or suffered losses in consequence of a contract capable of specific
performance.
(4) The court shall not refuse to any party specific performance
of a contract merely on the ground that the contract is not enforceable at the
instance of the party.