Lok Sabha passes bill on seeking damages for breach of contract

A bill proposing to grant a party the right to seek damages from the other side in case of a breach of a business contract and to reduce discretion of courts in such matters was passed by the Lok Sabha today amid din. The House passed The Specific Relief (Amendment) Bill, 2018 by a voice vote even as several parties were protesting in the Well over different issues, including the PNB scam.

Several amendments moved by N K Premchandran (RSP) were negated by voice vote. The bill aims to tweak a 54-year-old law that deals with specific fulfilment of a contract, as part of the government's ease of doing business policy. The Union Cabinet had in December last approved amendments to the Specific Relief Act, 1963.

The present law provides for a certain kind of specific relief. The Act is a remedy which aims at the exact fulfilment of an obligation or specific performance of the contract rather than grant of a general relief or damages or compensation.

The Specific Relief Act has not been amended since its inception.