Skip to content
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 23 Specific Relief Act: Liquidation of damages not a bar to specific performance

Bare Act text

23. Liquidation of damages not a bar to specific performance.—(1) A contract, otherwise proper to be specifically enforced, may be so enforced, though a sum be named in it as 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.

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 contract otherwise fit for specific performance can still be enforced. This holds even if it names a sum payable on breach and the party in default is willing to pay. The court must be satisfied, from the terms and circumstances, that the sum was named only to secure performance. It must not have been meant to give the party in default an option to pay money instead. Under sub-section (2), when the court enforces specific performance under this section, it cannot also decree payment of the named sum.

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
ShareWhatsAppTelegramLinkedInX