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Section 24: Bar of suit for compensation for breach after dismissal of suit for specific performance

Specific Relief Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1963
Section 23 All 44 Sections of Specific Relief Act Section 25

Legal Commentary & Landmark Judgments: Section 24

Section 24 of the Specific Relief Act, 1963 establishes that the dismissal of a suit for specific performance of a contract or part thereof bars the plaintiff's right to sue for compensation for the breach of such contract or part.

  • Statutory Bar on Subsequent Suit for Damages: The dismissal of a suit for specific performance of a contract or part thereof shall bar the plaintiff's right to sue for compensation for the breach of such contract or part.
  • Mandatory Alternative Claim in Primary Suit: Forces the plaintiff to claim alternative relief of compensation or refund of earnest money within the specific performance suit itself under Section 21 and Section 22.
  • Saving of Independent Other Reliefs: Does not bar any right to sue for any other relief to which the plaintiff may be entitled by reason of such breach (e.g., recovery of possession under independent title).
Key Landmark Precedents:
  • State of M.P. v. Mangilal Sharma, (1998) 2 SCC 510: The Supreme Court noted that Section 24 prevents multiple litigations by barring a second suit for damages after the primary specific performance suit has been dismissed on merits.
  • Ardeshir H. Mama v. Flora Sassoon, AIR 1928 PC 208: The Privy Council established the classic rule: if a plaintiff fails in a specific performance suit, a separate action for breach is barred unless damages were alternatively claimed in the first action.
Courtroom Practice & Strategic Litigation Guidance:

Always include an alternative prayer for refund of earnest money with commercial interest and damages under Section 21 and 22 in every specific performance plaint; failure to include it means Section 24 will forever bar a subsequent suit for compensation.

Section 23 All 44 Sections of Specific Relief Act Section 25