Are there any special provisions in Specific Relief Act, 1963 for contract to Infrastructure Project? If yes, Discuss.

Question: Are there any special provisions in Specific Relief Act, 1963 for contract to Infrastructure Project? If yes, Discuss.

Find the answer to the mains question of the Law of Contract only on Legal Bites. [Are there any special provisions in Specific Relief Act, 1963 for contract to Infrastructure Project? If yes, Discuss.]

Answer

Infrastructure plays a crucial role towards the growth and development of a country whether it be economic, social, or cultural, and any obstruction in the development of infrastructure would eventually yield negative consequences leading to stagnancy in the economy. Such Infrastructure projects also involve numerous contractual obligations and there was a demand to amend the Specific Relief Act, for adding the aspects pertaining to such infrastructure projects.

Pursuant to the same, an amendment to the Act was brought in the year 2018 bought significant changes in various sections including section 20, wherein a whole new schedules under section 20 was added, which talks about special provisions for the performance of infrastructure projects.

As per Section 20A of the Act, the court shall not grant injunction in any suit, wherein it finds that granting such injunction would eventually lead to hindrance or delay in the continuance or completion of the infrastructure project. It would be the duty of the Department of Economic Affairs, to act as a nodal agency for earmarking various categories of projects and infrastructure sub-sectors, which shall be provided as Schedule to the Act and will be amended from time to time.

Further, Section 20B prescribes establishment of Special Courts for trying the contracts relating to infrastructure projects and dispose such suits within the prescribed period of twelve months from the date of service of summons to the defendant. However, such period may be extended for another six months in aggregate if required, only after duly recordings the reasons thereof, as prescribed under Section 20C of the Act.

Therefore, it is evident that the amendments bought in Section 20 have provided special immunity to the infrastructure projects and are specifically intended to prevent any delay which might be caused in the development of such infrastructural projects.