AMENDMENTS TO SRA, 1963

BEFORE AMENDMENT AFTER AMENDMENT IMPACT

1. In section 11 of the 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
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 for courts to grant specific
performance with reference specific performance in performance against trusts.
to trusts relation to trusts is also taken Now trusts will not be able
away by the amendment, by to get rid of non-completion
making it compulsory even of contracts which they have
for trusts. undertaken.
3.Section 21, which had The words “, 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 in addition to
also claim compensation for specific performance.
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 deals with the the concept of ‘substituted amendment will get to the
guidelines for exercising performance’. As per this, a plaintiff. The plaintiff
discretion for granting party who is affected by the whose contract has not been
specific performance is breach of contract can choose completed will now have a
substituted wholly with to get the contract performed alternate option to get it
another provision which by a third party, or by its own completed by a third party
deals with ‘substituted agency, at the cost of the on the cost of defendants.
performance’. contracting party at.
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 show evidence to prove his
prove that he has performed by the amendment. The willingness to contract.
or has always been ready and words “who fails to aver and
willing to perform the prove” in Section 16(c) is
essential terms of 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 This amendment will help
there. the amendment restrains infrastructure projects to get
Courts from granting completed and will not
injunction in a suit involving cause any undue delay as
contract relating to an these projects involve huge
infrastructure project. investments.
9. No such provision was Special Courts will be set up This will enhance the
there. for determination of suits process of disposal of cases
relating to infrastructure related to infrastructure
projects. project.
10. No such provision was The amendment fixes a time This will enhance the
there. limit of twelve months for process of disposal of cases
disposal of cases under the related to infrastructure
project
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” shall be
substituted