SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(SC) 1255

SUPREME COURT OF INDIA
PRASHANT KUMAR MISHRA, K. VINOD CHANDRAN, JJ.
Syed Basheer Ahmed – Appellant
Versus
M/s. Tinni Laboratories Private Limited & Anr. – Respondents
Civil Appeal No. 11080 of 2014
Decided On : 21-08-2025

Advocates appeared:
For the Appellant(s) : Mr. G. Sivabalamurugan, Adv. Mr. V. Sridhar Reddy, Adv. Mr. V. N. Raghupathy, AOR
For the Respondent(s): Mr. D Ramakrishna Reddy, Adv. Mrs. D. Bharathi Reddy, AOR Mr. Nishant Sharma, Adv. Mrs. D Tejaswi Reddy, Adv. Ms. Adviteeya, Adv. Mr. T Velmurugan, Adv. Mr. P Raja, Adv.

Headnote:(A) Indian Evidence Act, 1872 - Section 73 - Specific Performance - Agreement for sale - The trial court's decree was reversed by the High Court due to material alteration in the agreement, where the recitals for two properties were in different ink - Key issue was the plaintiff's readiness and willingness to perform the contract and the validity of the agreement despite alleged alterations - Irregularities in the agreement rendered it unenforceable, and the plaintiff's claims were not substantiated. (Paras 1, 2, 4, 6, 9)

Facts of the case:
The plaintiff filed suit for specific performance based on an agreement to purchase two properties; however, the second property belonged to a third party, and significant alterations were found in the sale agreement.

Findings of Court:
The High Court found material alteration in the agreement, making it unenforceable, thus supporting its decision to dismiss the suit for specific performance.

Issues: The main issues included whether the plaintiff established readiness and willingness and whether the alteration in the agreement negated its enforceability.

Ratio Decidendi: The court highlighted that material alterations invalidated the agreement, and evidence of readiness and willingness was found insufficient, rejecting the plaintiff's appeal as unmeritorious.

Result: Appeal dismissed.

ORDER :

1. A suit for specific performance was decreed by the trial court, which was dismissed by the High Court in appeal, reversing the judgment and decree. The suit was filed by the plaintiff, the appellant herein, alleging that an agreement was entered into with the 1st defendant, the 2nd respondent herein, for purchase of two properties which are more fully described as Item No.1 and Item No.2. Admittedly, Item No.2 belonged to a third party and Item No.1 was owned by the 2nd respondent. The 2nd respondent made the plaintiff believe that he was in possession of Item No.2 property which he had agreed to purchase from its real owner. The 1st respondent who was the 2nd defendant in the suit later purchased both Item No.1 and 2 and made valuable constructions thereon. The trial court based on the evidence, found that the plaintiff was always ready and willing to pay the balance consideration and time was never the essence of contract since it stood extended from time to time till 12.02.1985. The trial court rejected the contention raised regarding material alteration in the agreement and decreed the suit.

2. The High Court, however, on a reading of the basic document produced, the sale agreement, found that there is clear alteration in so far as the recitals with respect to Item No.2, which was also written in a different ink. Relying on Seth Loonkaran Sethiya v. Mr. Ivan E. John and Ors. , (1977) 1 SCC 379, the High Court found material alteration and reversed the decree of the trial court.

3. Mr. G. Sivabalamurugan, learned counsel appearing for the appellant argued that on 15.07.1984, an agreement was entered into for sale of 2.40 acres, for a total sale consideration of Rs.56,000/- and an advance of Rs.1,000/- was paid. The agreement referred to both Item Nos.1 and 2, the former belonging to the 1st defendant and the later belonging to the second. The period within which the sale deed was to be executed was three months. The plaintiff was always ready and willing to pay the balance sale consideration and on 11.10.1984, within the three month period, a notice was issued to the 1st defendant, expressing the readiness and willingness to pay the balance consideration and requiring the execution of the sale deed. The 1st defendant replied by a letter dated 22.01.1985, demanding the balance amount with 18% interest. On 11.02.1985, the 1st defendant sold Item No.2 to 2nd defendant and later on, a demand draft of Rs.1,000/- was sent, purportedly in refund of the advance which was returned by the plaintiff. Subsequently, on 09.03.1985 again, 1st defendant sold Item No.1 to 2nd defendant, before which the suit for specific performance was fled on 01.03.1985.

4. The learned counsel read over to us the judgment of the trial court and argued that the High Court erred in reversing the findings and the judgment and decree passed by the trial court. It is pointed out that there was clear evidence regarding the agreement and having established the readiness and willingness, the trial court had rightly passed the decree, especially when there was no evidence led on behalf of the 1st defendant. The alteration was never urged before the trial court by the 1st defendant nor was there any deposition to that extent. An alteration could not have been found by the High Court merely on looking at the documents and it should have been properly analyzed with an expert as provided under Section 73 of the Indian EVIDENCE ACT , 1872.

5. Mr. D. Ramakrishna Reddy learned counsel for the respondents, on the other hand points out that the 2nd defendant was always in possession of the property. The interpolation found by the High Court was on a mere reading of the documents, which is permissible, and Section 73 has no application. The High Court observed that the interpolation is so blatant, the agreement having been written in two different inks, there is no cause for interference to the judgment of the High Court.

6. Trite is the principle that the plainti

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top