Section 30: Court may require party rescinding to do equity

Specific Relief Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1963

Legal Commentary & Landmark Judgments: Section 30

Section 30 of the Specific Relief Act, 1963 empowers the Court, on adjudging the rescission of a contract, to require the party to whom such relief is granted to do equity by restoring benefits and making compensation.

  • He Who Seeks Equity Must Do Equity: On adjudging the rescission of a contract, the Court may require the party to whom such relief is granted to restore, so far as may be, any benefit which they have received from the other party.
  • Award of Compensation: The Court may require them to make any compensation to the other party which justice may require.
  • Restoring Status Quo Ante: Ensures that rescission does not result in unjust enrichment of the party obtaining cancellation.
Key Landmark Precedents:
  • State of M.P. v. Kaluram, AIR 1967 SC 1105: The Supreme Court held that the principle of Section 30 is grounded in the foundational maxim that he who seeks equity must do equity; a party rescinding a contract cannot retain financial advances received under it.
  • Mohori Bibee v. Dharmodas Ghose, (1903) 30 IA 114: The Privy Council established the classic restitutionary principles governing cancellation of void or voidable instruments.
Courtroom Practice & Strategic Litigation Guidance:

If representing a defendant in a suit where the plaintiff claims rescission, invoke Section 30 to demand that the court condition any rescission decree upon the plaintiff refunding all advance moneys, development costs, or earnest deposits.