SPECIFIC PERFORMANCE -
CASE LAWS
c) Personal qualifications of the parties that the
Court cannot enforce specific performance of its
material terms:
Case law: Svf Entertainment Pvt. Ltd vs Mr. Anupriyo Sengupta on 30
April, 2018, Kolkata High Court
• In this case, the petitioner was a producer, and the respondent was
an actor who had entered into an exclusive agreement with the
petitioner (containing a cogent restrain clause to work with other
producers), to impart his services for a series of films. However, the
respondent had approached other production house. Considering this
breach, the petitioner invoked legal remedies for enforcement of the
exclusivity and to recover its investment on the respondent,
exceeding Rs. 1 crore.
• The petitioner claimed that the respondent's acting skill and brand
were developed by him, as the film and role were unique, and loss of
this cannot be compensated in monetary terms. The interim relief
was denied, and the Court stated that:
• "it is prima facie apparent that the contract involves the performance
of the service by the respondent which are purely personal and the
specific performance of such contact by the respondent would be
prima facie barred by clauses (a), (b) and (d) of sub-Section (1) of
Section 14 of the Specific Reliefs Act, 1963. The contract between
parties is purely a contract for personal services of which specific
performance cannot prima facie be granted. Accordingly, the
argument advanced by the petitioner claiming specific performance of
the said agreement has no merit in this case."
A contract which is in its nature
determinable:
• Determinable contract means revocable contract, or a contract which
is at will of the Parties. For example, A, B and C have a partnership. B
wants to retire from the partnership. Thus, this contract cannot be
specifically enforced if the partnership deed is at will. Although the
determinable contracts are not enforceable by Court, the aggrieved
party can always claim damages for the loss incurred due to the
non-adherence of the terms and conditions of the contract by the
other party to the contract.
•
Case law: Dlf Home Developers Limited vs Shipra
Estates Limited & Ors. on 8 November, 2021
• The said case was a heavily litigated matter, having multiple parties to
the litigation. The Court had analyzed the section 14 (d) of the
Specific Relief Act, and the word "determinable" in the context of the
agreement and stated that the question whether a contract is in its
nature determinable, must be answered by ascertaining whether the
party against whom it is sought to be enforced would otherwise have
the right to terminate or determine the contract even though the
other party is ready and willing to perform the contract and is not in
default.
• In the said case, the Agreement specifically provided for termination
only for breach, and thus, this clause was not held determinable by
the Court, and specific enforcement of contracts was granted in this
case. Further, the Court also emphasized the importance of
ascertainment of the nature of the contract and the intention of the
parties and specifically determined whether the parties intended the
contract to be determinable and thereby, not specifically enforceable
and held that:
• "Plainly, if in terms of the express language of the contract, the parties
have agreed that their contract will be specifically enforceable; the
courts would have to assume to the said effect. This is not to say that
the courts are bound to issue an injunction or specifically enforce the
contract; but it would certainly require to give due consideration to
the intention of the parties. Clause 10 of the agreement expressly
stated that DLF would be entitled to specific performance of the
agreement as the Sale Property is a special one and a similar property
is otherwise not easily available. Thus, considering this clause and the
express agreement of the Parties, Court granted the injunction and
stated that the contract is required to be specifically enforceable and
it is clearly not open for any party to contend to the contrary."
