- The Supreme Court ruled that the 2018 amendment to the Specific Relief Act is prospective and cannot apply to transactions that occurred before its effective date [1.10.2018].
- While hearing an appeal arising from a specific performance suit, the bench of CJI NV Ramana, Justices Krishna Murari and Hima Kohli made this observation.
- In this case, the trial Court dismissed the suit, ruling that the plaintiff was not entitled to specific performance relief. While allowing the appeal, the Telangana High Court stated that specific relief is essentially a part of procedural law, and thus the 2018 amendment is retroactive.
- The court noted that the 2018 amendment was enacted to further strengthen adherence to contract sanctity.
- The court noted that, following the 2018 amendment, specific performance, which had previously been a discretionary remedy, is now codified as an enforceable right that is not based on equitable principles expounded by judges, but rather on satisfaction of the requisite ingredients as provided by the Specific Relief Act.
- As a result, the court noted that the 2018 amendment was more than just a procedural enactment; it also incorporated substantive principles into its operation.
- The court also noted that the amendment act provides for the substituted provisions to take effect on the date specified by the Central Government.
- In light of the foregoing, the court stated, "we have no hesitation in holding that the 2018 amendment to the Specific Relief Act is prospective and cannot apply to transactions that occurred prior to its coming into force."
- While allowing the appeal, the bench also addressed other issues raised by the plaintiff. The contract was found to be breached due to the refusal to perform the contract after entering into a time-sensitive agreement.
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