On 15 February 2022, Ramesh entered into a registered agreement with Suresh for the sale of 12 acre of agricultural land situated at Arsikere village for a total sale consideration of ₹ 72 lakh. An advance of ₹ 12 lakh w

CS Professional · Drafting, Pleadings and Appearances · PYQS · December 2025
On 15 February 2022, Ramesh entered into a registered agreement with Suresh for the sale of 12 acre of agricultural land situated at Arsikere village for a total sale consideration of ₹ 72 lakh. An advance of ₹ 12 lakh was paid by registration of the sale deed. Subsequently, it was discovered that out of the 12 acre, 3 acre had already been acquired by the State Government for a public irrigation project prior to the date of agreement, though this fact was unknown to both parties when the contract was executed. When the time came for performance, Ramesh refused to execute the sale deed, contending that the contract had become impossible to perform in its entirety and therefore, no decree for specific performance could be granted. Suresh, however, filed a suit for specific performance before the Civil Court, claiming that at least 9 acre of the land can still be conveyed to him, and he is willing to pay the proportionate consideration for the same while relinquishing his rights in respect of the 3 acre which cannot be conveyed. In light of the above explain the following: (ii) What are the principles, statutory limitations, and judicial considerations the court should examine while deciding whether to grant or refuse specific performance in this case ?

Answer & Explanation:

The general principle which court can consider in this case is "Specific Performance Must Be of the Whole Contract" Section 12(1) of the Specific Relief Act, 1963 lays down the general rule that except as otherwise provided in this section, the court shall not direct the specific performance of a part of a contract. This means that ordinarily, courts do not enforce fragmented or partial performance of a contract. Specific performance is an equitable remedy and is granted only when the entire contract can be performed as agreed. The present case falls within the exception/limitation carved out under Section 12, which reads: (3) Where a party to a contract is unable to perform the whole of his part of it, and the part which must be left unperformed either- (a) forms a considerable part of the whole, though admitting of compensation in money; or (b) does not admit of compensation in money; he is not entitled to obtain a decree for specific performance; but the court may, at the suit of the other party, direct the party in default to perform specifically so much of his part of the contract as he can perform, if the other party- (i) in a case falling under clause (a), pays or has paid the agreed consideration for the whole of the contract reduced by the consideration for the part which must be left unperformed and in a case falling under clause (b) pays or has paid the consideration for the whole of the contract without any abatement; and (ii) in either case, relinquishes all claims to the performance of the remaining part of the contract and all right to compensation, either for the deficiency or for the loss or damage sustained by him through the default of the defendant. Section 12(4) also substantiates the right in this matter. Further, while deciding whether to grant specific performance, the court can consider the following judicial considerations: (i) Readiness and willingness of the plaintiff under Section 16(c) of the Specific Relief Act, 1963 Suresh has shown continuous readiness by offering proportionate consideration. (ii) Absence of unfair advantage or hardship Granting partial performance does not impose any inequitable burden on Ramesh. (iii) Conduct of parties The defect in title was not caused by Suresh; it existed prior to the agreement. (iv) Equitable nature of the remedy Equity favours enforcing lawful contracts rather than allowing a party to escape obligations due to technical or partial impossibility. Alternate Answer Specific performance is an equitable, though now generally available, remedy and is not granted where damages in money would afford an adequate relief, particularly considering the unique nature of immovable property and the parties' conduct. While applying Section 12 in cases of partial impossibility, the court should ensure: The plaintiff is not in default and has been continuously ready and willing to perform his part of the contract, including paying the stipulated or proportionate price. The part that cannot be conveyed (here, 3 acres already acquired by the State) is clearly severable and capable of valuation in money so that fair compensation or abatement of price can be given, without causing undue hardship or injustice to the defendant beyond what was contemplated at the time of contract. The plaintiff expressly relinquishes all claims to further performance regarding the portion that cannot be conveyed and to any compensation for loss of that part, as required under Section 12(3). Conclusion The Court should decree specific performance of the contract to the extent of 9 acres of land in favour of Suresh, subject to payment of proportionate consideration. Suresh's claim over the 3 acres already acquired by the Government should stand relinquished, and no compensation should be awarded for the deficiency. Thus, applying the above discussed provisions, the decree for partial specific performance is justified.

Topics: Specific Relief Act, 1963

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