The Specific Relief Amendment Bill, 2018 was passed in the parliament on July 24th, 2018. This bill amends the Specific Relief Act, 1963 (‘Act’) and has introduced the following changes to an old but important piece of legislation:

1. The Amendment Act makes “specific performance” of a contract as a mandate as against the earlier provision where specific performance could be compelled by courts only

1. When monetary compensation is inadequate (or)
2. When monetary compensation cannot be easily ascertained.

2. The Amendment Act introduces the concept of “substituted performance” of a contract as a remedy, as against damages.

“Substituted performance” is described to mean:

1. The party who suffers breach of performance of contract, will now have the option of a substituted performance through a third party or performance by himself, and recover the expenses and other costs actually incurred, spent or suffered by him, from the party committing such breach.
2. This remedy of a “substituted performance” can be availed by the non-breaching party provided that a minimum thirty day notice period is given to the party in breach calling upon it to perform the contract within such time as specified in the notice, and only on the breaching party’s refusal or failure to do so can the party who suffers breach of performance of contract get the same performed by a third party or by the non-breaching party itself.
3. Where the party suffering breach of contract has got the contract performed through a third party or by itself after giving notice as mentioned above, the non-breaching party is precluded from claiming relief of specific performance against the party in breach.

3. This substituted performance remedy does not in any way restrict the party who has suffered breach of contract from claiming compensation from the party in breach.

4. Apart from the above, the other amendments include:

1. Designation of special courts to try suits in respect of contracts relating to infrastructure
2. Courts will now onwards be prevented from granting injunctions in matters related to infrastructure contracts where such an injunction would cause delay in the progress or completion of such project. The category of projects and infrastructure sub-sectors are specified in a schedule to the Amendment Act
3. The Act inserts a new provision for engaging technical experts in suits where expert opinion may be required and the Courts will have the power to determine the terms of payment of such expert.  The payment will be borne by both the parties.