🔹 SUBSTITUTED PERFORMANCE OF CONTRACT

Section 20(1)    Substituted performance of contract
[**As amended by the Amendment Act 2018, which came into force on 1.10.2018]

• Without prejudice
– to the generality of provisions in the Indian Contract Act 1872 and
• except
– as otherwise agreed upon by the parties
• Where
– the contract is broken due to non-performance of promise by any party
• the party who suffers by such breach
– shall have the option of substituted performance
• through a third party or by his own agency and
– recover the expenses and other costs actually incurred or suffered by him
• from the party committing such breach

Section 20(2)
• No such substituted performance of contract
– shall be undertaken
• unless the party who suffers such breach
– has given a notice in writing of not less than thirty days
– to the party in breach
• calling upon him
– to perform the contract within the time specified in the notice and
• on his refusal or failure to do so
– he may get the same performed by a third party or by his own agency

Proviso
• The party who suffers such breach
– shall not be entitled to recover the abovesaid expenses and costs
• unless
– he has got the contract performed through a third party or by his own agency

Section 20(3)
• Where
– the party suffering breach of contract has got the contract performed
– through a third party or by his own agency after giving notice
• he shall not be entitled
– to claim relief of specific performance against the party in breach

Section 20(4)
• This section shall not prevent
– the party who has suffered breach of contract
– from claiming compensation from the party in breach

🏗️ INFRASTRUCTURE PROJECT CONTRACTS

Section 20A(1)    Special provisions for infrastructure project contracts
[**Inserted by the Amendment Act 2018]

• No injunction shall be granted by a court
– in a suit under this Act
– involving a contract relating to an infrastructure project specified in the Schedule
• where
– granting injunction would cause impediment or delay
– in the progress or completion of such infrastructure project

Explanation
• For purposes of
– this section and sections 20B and 41(ha):
• “infrastructure project” means
– the category of projects and infrastructure sub-sectors specified in the Schedule

Section 20A(2)
• Central Govt may by notification
– amend the Schedule relating to any Category of projects or Infrastructure Sub-Sectors
• if
– it considers necessary or expedient to do so
– depending upon the requirement for development of infrastructure projects

Section 20A(3)
• Every notification so issued by Central Govt
– shall be laid before each House of Parliament while it is in session
– for a total period of thirty days
– which may be comprised in one session or in two or more successive sessions

• If
– before expiry of the session immediately following the session or the successive sessions aforesaid
• both Houses agree
– in making any modification in the notification or
– agree that the notification should not be made
• the notification shall thereafter
– have effect only in such modified form or be of no effect

⚖️ SPECIAL COURTS

Section 20B    Special Courts
[**Inserted by the Amendment Act 2018]

• State Govt shall designate by notification
– in consultation with Chief Justice of High Court
• one or more Civil Courts as Special Courts
– to exercise jurisdiction and to try a suit under this Act
– in respect of contracts relating to infrastructure projects

⏱️ TIME-BOUND DISPOSAL OF SUITS

Section 20C    Expeditious disposal of suits
[**Inserted by the Amendment Act 2018]

• Notwithstanding anything in CPC:
• a suit filed under this Act
– shall be disposed of by the court
– within twelve months from the date of service of summons to the defendant

Proviso
• The said period may be extended
– for a further period not exceeding six months in aggregate
– after recording reasons in writing for such extension by the court
– in addition to such performance

📜 The old section 20 as it stood before 1.10.2018

Section 20(1)    Discretion as to decreeing specific performance

• The jurisdiction to decree specific performance is discretionary and
• the court is not bound to grant such relief
o merely because it is lawful to do so
• but
o the discretion of the court is not arbitrary but sound and reasonable
o guided by judicial principles and capable of correction by a court of appeal