Specific Relief Act | Relinquishment Of Claims Under S.12(3) For Part Performance Can Be Made At Any Stage Of Litigation : Supreme Court

The Supreme Court observed that while seeking a part performance of the contract under Section 12(3) of the Specific Relief Act, 1963, the plea regarding the relinquishment of claims regarding the remaining part of the contract and all rights to compensation can be made at any stage of litigation,including the Appellate Stage. “we may only say that the relinquishment of claim to further performance of the remaining part of the contract and all rights to compensation can be made at any stage of litigation. This was held in Kalyanpur Lime Works v. State of Bihar reported in AIR 1954 SC 165. This Court referred with approval to a Division Bench decision of the Lahore High Court in Waryam Singh v. Gopi Chand, (AIR 1930 Lah 34).”, the Court said. As per Section 12(3) of the SRA, to claim part performance of the contract, the plaintiff either needs to relinquish the claims associated with the unperformed part of the contract or express readiness and willingness to perform the contract by making full payment of the agreed consideration for the contract. The bench comprising Justice JB Pardiwala and Justice R Mahadevan was hearing the appeal filed against the Madras High Court's decision where the Appellant for the first time raised the plea regarding the relinquishment of claims for the remaining part of the contract at the Appellate stage before the High Court. Though the High Court considered their claim but expressed doubt whether the plea regarding the claim relinquishment could be made at the Appellate stage without averring the same at the trial stage. The Supreme Court clarified that relinquishing the claim to further performance can be made at any stage of the litigation. “Thus, the position of law is that relinquishment could be made at any stage of the litigation including the appellate stage. The claim of the plaintiff appellant for grant of benefit under Section 12(3) of the Act was, therefore, rightly not rejected by the High Court on the simple ground that it was not made at the trial stage and had been made for the first time at the appellate stage. In our view the claim can also not be rejected on the short ground that it was not incorporated in the plaint or was not set forth in writing before the Trial Court.”, the Court observed. “We are of the view that no error not to speak of any error of law could be said to have been committed by the High Court in passing the impugned order.”, the court held. Also From Judgment: Know The Law | When Can Part Performance Of Contract Be Allowed As Per Section 12(3) Specific Relief Act?Case Title: VIJAY PRABHU VERSUS S.T. LAJAPATHIE & ORS.Citation : 2025 LiveLaw (SC) 59Click here to read/download the order

Specific Relief Act | Relinquishment Of Claims Under S.12(3) For Part Performance Can Be Made At Any Stage Of Litigation : Supreme Court

Yash Mittal

Tags