Section 24 of SRA : Section 24: Bar Of Suit For Compensation For Breach After Dismissal Of Suit For Specific Performance

Explanation using Example

Imagine that Rita enters into a contract with Tom to buy his house. After some time, Tom changes his mind and refuses to sell the house to Rita. Rita then sues Tom for specific performance, which means she asks the court to force Tom to complete the sale as per the contract. However, the court dismisses Rita's suit, perhaps because the contract was not sufficiently certain or because performance is no longer possible due to the house being destroyed by a natural disaster.

According to Section 24 of the Specific Relief Act, 1963, because Rita's suit for specific performance was dismissed, she cannot sue Tom for compensation (monetary damages) for the breach of that particular contract. However, she is still entitled to sue Tom for any other type of legal relief, such as a refund of her earnest money deposit, if Tom had unjustly kept it.