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Friday, 13 November 2026 Judgments, law jobs and study notes, written by a practising advocate
Specific Relief Act, 1963 · Chapter II: Specific Performance Of Contracts

Section 21 Specific Relief Act: Power to award compensation in certain cases

Bare Act text

21. Power to award compensation in certain cases.—(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.

Amendment notes

  1. Subs. by Act 18 of 2018, s. 11, for “, either in addition to, or in substitution of, ” (w.e.f. 1-10-2018).

Text of the Specific Relief Act, 1963 (Act No. 47 of 1963), as amended up to the Specific Relief (Amendment) Act, 2018. Source: India Code, Government of India.

In simple words

Under sub-section (1), a plaintiff suing for specific performance can also claim compensation for breach in addition to performance. Under sub-section (2), if the court refuses specific performance but finds a broken contract, it must award compensation. Under sub-section (3), if it grants specific performance but that does not satisfy the justice of the case, it must also award compensation. Under sub-section (4), the court follows the principles in section 73 of the Indian Contract Act, 1872. Under sub-section (5), compensation requires a claim in the plaint, but the court must allow amendment at any stage on just terms. The Explanation says a contract becoming incapable of specific performance does not stop the court using this power. The 2018 amendment replaced "either in addition to, or in substitution of" with "in addition to" in sub-section (1).

Chapter II: Specific Performance Of Contracts

  1. 9 Defences respecting suits for relief based on contract
  2. 10 Specific performance in respect of contracts
  3. 11 Cases in which specific performance of contracts connected with trusts enforceable
  4. 12 Specific performance of part of contract
  5. 13 Rights of purchaser or lessee against person with no title or imperfect title
  6. 14 Contracts not specifically enforceable
  7. 14A Power of court to engage experts
  8. 15 Who may obtain specific performance
  9. 16 Personal bars to relief
  10. 17 Contract to sell or let property by one who has no title, not specifically enforceable
  11. 18 Non-enforcement except with variation
  12. 19 Relief against parties and persons claiming under them by subsequent title
  13. 20 Substituted performance of contract
  14. 20A Special provisions for contract relating to infrastructure project
  15. 20B Special Courts
  16. 20C Expeditious disposal of suits
  17. 21 Power to award compensation in certain cases
  18. 22 Power to grant relief for possession, partition, refund of earnest money, etc
  19. 23 Liquidation of damages not a bar to specific performance
  20. 24 Bar of suit for compensation for breach after dismissal of suit for specific performance
  21. 25 Application of preceding sections to certain awards and testamentary directions to execute settlements