Judicial Pronouncements

Section 12 – Specific Performance of Contract – can be granted when the ingredients of Sections 12 (2), (3) or (4) have been satisfied. When the contract between the parties to a suit is dependent on performance of a contract with a third party, then such contracts cannot be specifically enforced. Performance of the contract was contingent upon the seller entering into an agreement with a third party where by the seller was to buy this land from the third party in order to provide access to the suit property, which otherwise did not have access cannot be specifically enforced – as held by the Hon’ble Supreme Court in the case of Raman (D) by Lrs Vs. R. Natarajan.


Section 38 of Specific Relief Act R/w Order VII Rule 8 of the CPC – Suit for permanent injunction – The Plaintiff had claimed title on the property on the basis of a sale deed as well as on the ground of adverse possession. The relief sought by the Plaintiffs on basis of ownership and adverse possession were contrary to each other and cannot be permitted to advance contrary pleas at the same time – as held by the Hon’ble Supreme Court in the case of Kesar Bai Vs. Genda Lal and Another.


Under Articles 136, 141 & 142 of the Constitution of India – The law laid down by the Supreme Court comes into effect from the date of the judgment i.e. prospective in nature. The doctrine of prospective declaration is now applied to other areas of law as well.


Section 12-A of Commercial Courts Act – Pre Institution Mediation is mandatory, where there is no urgent interim relief sought, and any suit instituted in violation of the mandate of Section 12-A the plaint has to be rejected. This power to reject can be exercised suo-motu. Declaration of law under this act shall come into force from 20.08.2022.


Section 14 of the Arbitration and Conciliation Act – A party to an arbitration proceedings has to prefer an application for the termination of the mandate of the arbitrator under Section 14 (1) (a) of the Act to the Court as defined in Section 2 (1) (e) of the said Act. The Court here would refer to the District Court where the arbitration proceedings is being conducted.  The Court concerned has to adjudicate on whether or not the sole arbitrator has become dejure and defacto unable to perform his duties or for other reason has failed to act without undue delay. The decision passed by the Court in an application under Section 14 (1) (a) can be said to be a disqualification of the arbitrator and hence such controversy has to be decided by the court specified in Section 14 (2).


Section 11 (6) – Once the dispute is referred to arbitration and the sole arbitrator is appointed by the parties by mutual consent and the arbitrator/arbitrators is/are appointed, the arbitration agreement cannot be invoked for second time – Swadesh Kumar Agarwal Vs. Dinesh Kumar Agarwal.