table of amendments in SRA 1963.docx

AMENDMENTS TO SRA, 1963

BEFORE AMENDMENT

AFTER AMENDMENT

IMPACT

1. 

In section 11 of the principal

One of the major features of

 principal Act, in sub-section Act, in sub-section (1), for the

the amendment is that it

(1), the words “contract may,

words “contract may, in the

makes the grant of specific

in the discretion of the court

discretion of the court”, the  performance of contracts

was used.

words “contract shall” shall compulsory, by taking away

In section 11 of the

 be substituted.

the discretionary power of courts.

2.Discretionary

power

of

Discretionary power of courts  Now it will be mandatory

courts in granting specific as per Section 11 in granting  performance with reference specific to trusts

performance

for courts to grant specific

in  performance against trusts.

relation to trusts is also taken  Now trusts will not be able

3.Section 21, which had

away by the amendment, by

to get rid of non-completion

making it compulsory even

of contracts which they have

for trusts.

undertaken.

The

words

“,

either either

in Therefore,

compensation

earlier stated that “in a suit addition to, or in substitution

need not be sought for as an

for specific performance of a of,” the words “in addition to”

alternate relief and can be

contract, the plaintiff may is been substituted.

claimed

also claim compensation for

specific performance.

in

addition

to

its breach, either in addition to, or in substitution of, such  performance”. 4. Section 20 of the Act

The amendment introduces

The main benefit of this

which

the concept of ‘substituted

amendment will get to the

deals

guidelines

for

discretion

granting  party who is affected by the

performance

substituted

deals

the

exercising  performance’. As per this, a  plaintiff.

for

specific

another

with

wholly

provision with

 performance’.

The

plaintiff

whose contract has not been

is  breach of contract can choose completed will now have a with

to get the contract performed

alternate option to get it

which  by a third party, or by its own

completed by a third party

‘substituted agency, at the cost of the contracting party at.

on the cost of defendants.

AMENDMENTS TO SRA, 1963

5. As per Section 16(c) of the

The specific requirement to  Now the plaintiff need not

Act, a party has to aver and

‘aver’ is sought to be removed

 prove that he has performed  by or has always been ready and willing essential

to

perform

terms

of

the

amendment.

show evidence to prove his

The willingness to contract.

words “who fails to aver and

the  prove” in Section 16(c) is the substituted by the words “who

contract which are to be

fails to prove”.

 performed by him. 7. No such provision was

The amendment introduces a

there.

special

categorization

of

‘infrastructure projects’.  The new Schedule introduced by the amendment contains the list of activities which will be treated

as ‘infrastructure

 projects’. 8.No such provision was

Section 20A introduced by

there.

the

amendment

Courts

from

restrains infrastructure projects to get granting

injunction in a suit involving contract

This amendment will help

relating

to

completed

and

will

not

cause any undue delay as

an these projects involve huge

infrastructure project.

investments.

9. No such provision was

Special Courts will be set up

This

there.

for determination of suits  process of disposal of cases relating

to

will

infrastructure related

to

enhance

the

infrastructure

 projects.

 project.

10. No such provision was

The amendment fixes a time

This

there.

limit of twelve months for  process of disposal of cases disposal of cases under the related  project

will

to

enhance

the

infrastructure

AMENDMENTS TO SRA, 1963

Act,

through

the

newly

 proposed Section 20C.

11. No such provision was

The newly introduced Section

This amendment will help

there.

14A confers power on the  judges to get a clear idea in courts to engage experts to

those areas which they are

seek opinion on any issues in

unaware.

the suit. 12. The Arbitration Act,

In section 25 of the principal

1940.

Act, for the words and figures “the Arbitration Act, 1940”, the words and figures “the Arbitration and Conciliation Act,

1996”

substituted

shall

be