Sections 24-25 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 24 says that dismissal of a suit for specific performance of a contract, or of part of it, bars the plaintiff's right to sue later for compensation for the breach, but not his right to sue for any other relief arising from the breach. Section 25 applies the Chapter's rules on contracts to certain awards and to directions in a will or codicil to execute a particular settlement.
This article follows the consolidated text of the Act consulted (amendments shown up to Act 18 of 2018). Later amendments should be checked before you rely on any provision.
Section 24: once a suit for specific performance (or of part of a contract) is dismissed, the plaintiff cannot sue later for compensation for that breach, but he can still sue for any other relief to which the breach entitles him. Section 25: the Chapter's provisions on contracts apply to awards to which the Arbitration and Conciliation Act, 1996 does not apply and to directions in a will or codicil to execute a particular settlement; the 2018 Act substituted the reference to the 1996 Act.
Section 24: dismissal bars a later suit for compensation
The full text reads: "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, as the case may be, but shall not bar his right to sue for any other relief to which he may be entitled, by reason of such breach."
Three pieces matter.
- The trigger: dismissal of a suit for specific performance of a contract "or part thereof". The reference to a part matches the part performance rules in section 12.
- What is barred: the plaintiff's right to sue for "compensation for the breach of such contract or part, as the case may be".
- What is not barred: his right to sue "for any other relief to which he may be entitled, by reason of such breach".
An invented example: Nikhil sues Ravi for specific performance of an agreement to sell a shop. The suit is dismissed. Section 24 says Nikhil cannot start a fresh suit for compensation for that breach. If, for the same breach, there is another relief he is entitled to, that separate relief is not barred. The text does not list such other reliefs.
If you are not sure whether your claim is for performance, compensation or both, a short legal consultation before filing can help avoid a bar under this section.
The lesson: claim compensation in the same suit
Section 21 allows the plaintiff to claim compensation in a suit for specific performance and requires that the claim be in the plaint, with amendment allowed at any stage; see section 21. Section 22 does the same for possession and refund of earnest money; see section 22. Read with section 24, the safe course is to claim compensation in the suit for performance rather than to plan a second suit after dismissal. The Act does not say whether a claim made in the first suit and refused is within the bar; the text consulted is silent on that.
For the general remedies for breach, see our post on remedies for breach of contract and damages. For the time within which a suit must be filed, the Act prints no period in section 24; see the Limitation Act article on specific performance and compensation for breach of contract.
| Question | Section 24 answer |
|---|---|
| Suit for specific performance dismissed: can I sue later for compensation for the same breach? | No, the right to sue for compensation is barred |
| Does that bar apply to part of a contract? | Yes, "of such contract or part, as the case may be" |
| Can I sue for another relief arising from the breach? | Yes, the right to sue for any other relief is not barred |
Section 25: awards and testamentary directions
The sub-heading before section 25 reads "Enforcement of awards and directions to execute settlements". The section itself, headed "Application of preceding sections to certain awards and testamentary directions to execute settlements", reads: "The provisions of this Chapter as to contracts shall apply to awards to which the Arbitration and Conciliation Act, 1996 (26 of 1996), does not apply and to directions in a will or codicil to execute a particular settlement."
Two groups are brought in:
- Awards to which the Arbitration and Conciliation Act, 1996 does not apply. An award is the decision of an arbitrator. If the 1996 Act does not apply to the award, Chapter II's rules on contracts (including its remedies, bars and defences) apply to it as though it were a contract. For awards to which that Act does apply, the Act has its own route; see our post on the Arbitration and Conciliation Act, 1996, enforcement of an arbitral award and stay, which is about that Act, not this one. For how arbitration compares with court and mediation, see our comparison of arbitration, litigation and mediation.
- Directions in a will or codicil to execute a particular settlement. "Settlement" is defined in section 2(b) as an instrument disposing of successive interests in property, other than a will or codicil; see sections 1-2. Here a will or codicil directs that a particular settlement be executed, and Chapter II's contract rules apply to that direction.
The 2018 change
The footnote to section 25 says: "Subs. by Act 18 of 2018, s. 12, for 'the Arbitration Act, 1940 (10 of 1940)' (w.e.f. 1-10-2018)." So the earlier words were "the Arbitration Act, 1940 (10 of 1940)", and since 1 October 2018 the section refers to the Arbitration and Conciliation Act, 1996 (26 of 1996). The text consulted gives no other detail on how the change works.
| Group | What Chapter II's contract rules apply to |
|---|---|
| Awards | Awards to which the Arbitration and Conciliation Act, 1996 does not apply |
| Wills and codicils | Directions in a will or codicil to execute a particular settlement |
Practical points
If you have lost a suit for specific performance and think compensation is due, do not assume you can start again: section 24 bars the compensation suit for that breach. If you are planning a suit now, put compensation and the other reliefs you need in the plaint. If you hold an award, check which Act applies to it before choosing a route, because section 25 deals only with awards to which the 1996 Act does not apply. If a will directs a settlement, check what the will says and how section 2(b) defines a settlement.
The next sections of the Act, from section 26, deal with rectification of instruments; see section 26.
Need help deciding what to claim, or whether a bar applies?
The choice of remedies in a first suit can decide what remains open later. You can ask for a legal consultation on your contract, award or will before you file.
Key takeaways
- Section 24: dismissal of a suit for specific performance (or part) bars a later suit for compensation for that breach.
- Section 24 does not bar a suit for any other relief to which the breach entitles the plaintiff.
- Section 25 applies Chapter II's rules on contracts to awards to which the Arbitration and Conciliation Act, 1996 does not apply, and to directions in a will or codicil to execute a particular settlement.
- The 2018 Act substituted the 1996 Act for the Arbitration Act, 1940 in section 25.
Read next
- Section 26 of the Specific Relief Act, 1963: rectification of instruments
- Section 21 of the Specific Relief Act, 1963: compensation in a suit for specific performance
- Section 22 of the Specific Relief Act, 1963: possession, partition and refund of earnest money
Disclaimer: Based on a consolidated text of the Specific Relief Act, 1963 showing amendments up to the Specific Relief (Amendment) Act, 2018 (in force from 1 October 2018), as consulted on 2 October 2026. Later amendments, notifications under the Act and the law of limitation should be checked. This article is general information, not legal advice; check the official text before acting.