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2025 Supreme(Online)(Tel) 40966

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
Renuka Yara, J
A RAMA RAO – Appellant
Versus
M Sridhar – Respondent
APPEAL SUIT No.212 of 2019



Advocates:
For the Appellants/Petitioners: Vedula Chitralekha
For the Respondents: J.Rajeswar

Under Section 92 of the Indian Evidence Act, 1872, oral evidence is inadmissible to contradict or modify the express terms of a written contract. Furthermore, a defense not pleaded in the written statement cannot be entertained or supported by evidence during the proceedings.

Headnote:(A) Indian Evidence Act, 1872 - Section 92 - Construction agreement - Admissibility of oral evidence contrary to written contract - Where the agreement stipulates that material and labour costs are to be borne by the contractor, the client cannot take a contradictory position via oral evidence to claim they procured materials. (Para 20)

(B) Civil Procedure - Pleadings and Evidence - A party cannot introduce new arguments or evidence (e.g., abandoning work, engaging a secondary contractor) that were not pleaded in the written statement. (Paras 19, 23)

Facts of the case:
The plaintiff entered into a construction agreement with defendants at a rate of Rs.650 per sq. ft. Disputes arose regarding delays, additional work performed, and outstanding payments. The plaintiff claimed a balance of Rs.9,98,150/-. Defendants contended that they made excess payments and that the contractor abandoned the work. The trial court decreed the suit, leading to the current appeal.

Findings of Court:
The court found that the defendants failed to provide evidence for advance payments they alleged. Documentary evidence (Exhibits) and admissions by the defendant in cross-examination corroborated the plaintiff's claim. The argument regarding the abandonment of work was not raised in the original pleadings and was unsupported by evidence.

Issues: 1) Whether the trial court’s decree for recovery of Rs.9,98,150/- was legally sustainable. 2) Whether the oral evidence contradicting the written construction agreement was admissible.

Ratio Decidendi: Contractual terms in writing, specifically regarding the scope of responsibility for material and labour, cannot be varied or contradicted by oral testimony under Section 92 of the Evidence Act. Further, defenses not contained in the written statement cannot be introduced at the argument stage.

Result: Appeal dismissed; trial court judgment confirmed.

Table of Content
1. overview of the construction contract dispute and parties. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. arguments regarding payment defaults and construction delays. (Para 9 , 10 , 11 , 12)
3. analysis of evidence and admission of unpaid balance. (Para 13 , 14 , 15 , 16 , 17 , 18)
4. application of section 92 evidence act regarding written terms. (Para 19 , 20 , 21 , 22 , 23 , 24)
5. dismissal of appeal and confirming trial court decree. (Para 25)

JUDGMENT:

Heard Smt. Vedula Chitralekha, learned counsel for the appellants and Sri. J.Rajeswar, learned counsel for the respondents. Perused the entire record.

2. This is an appeal preferred by appellants/defendant Nos.1 and 2 aggrieved by the judgment and decree dated 06.12.2018 passed in O.S. No. 1907 of 2010 by the learned VIII Additional Senior Civil Judge, Ranga Reddy District at L.B.Nagar (for short, ‘the trial Court’), wherein the suit filed for recovery of an amount of Rs.9,98,150/-, was decreed directing the appellants herein/defendant Nos.1 and 2 to pay a sum of Rs.9,98,150/- with interest at 6% per annum jointly and severally to respondent No.1/plaintiff.

3. The appellants herein are defendant Nos. 1 and 2, respondent No. 1 is the plaintiff and respondent No.2 is defendant No. 3 before the trial Court. The parties are referred to as per their array before the trial Court.

The facts of the case in nutshell are as follows:

4. The plaintiff filed the suit for recovery of an amount of Rs.9,98,150/- with 12% interest per annum from defendant Nos.1 to 3 jointly and severally. Defendant No.2 is the absolute owner and possessor of the house bearing No.4-7-90/4/3 situated at Padmavathi Colony, Hayathnagar, Ranga Reddy District. Defendant No.1 is the husband of defendant No.2. Defendant Nos.1 and 2, with an intention to construct a residence, approached the plaintiff and executed agreement on 14.08.2008. The construction area included ground floor (part), first floor and second floor consisting total area of 2150 sft., and ground floor 121 sft. The construction rate was Rs.650/- per sft., from slab to slab. The plaintiff is entitled to payment of additional amount for extra work done at the prevailing rate in the construction agreement and said terms and conditions were accepted. There was delay in payment of the amounts and handing over the site leading to escalation due to increase in labour charges and materials. For the first and ground floor, the construction cost at Rs.650/- per sft., from slab to slab, comes to Rs.14,76,150/-. Due to delay on the part of defendant Nos.1 and 2, the construction work was completed and handed over on 08.08.2009. Inspite of completing the construction, deliberately there is disobedience of the terms and conditions of the agreement and payment is delayed. On various dates, defendant Nos.1 and 2 paid an amount of Rs.7,78,000/-. Whereas, the total construction cost of first and second floor comes to Rs.14,76,150/-, for additional work Rs.3,00,000/-. The total amount payable to the plaintiff is Rs.17,76,150/-, out of the said amount, defendant Nos.1 and 2 have already paid Rs.7,78,000/- and the due amount is Rs.9,98,150/-. When there was no response from defendant Nos.1 and 2, the plaintiff got issued a legal notice dated 19.05.2010 demanding payment. The reply notice was issued by defendant Nos.1 and 2 seeking amicable settlement. Defendant No.3 acted as mediator and defendant Nos.1 and 2 agreed to pay the amount. Even after a number of sittings, defendant Nos.1 and 2 failed to settle the matter. Therefore, the suit was filed when defendant Nos.1 and 2 threatened the plaintiff without paying the due amount of Rs.9,98,150/-.

5. It is the case that defendant Nos.1 and 2 that they and the plaintiff were in a construction agreement to construct total area of 2150 sft., of civil work at the rate of Rs.650/- per sft., from slab to slab. There was delay in delivery of the work and that both the parties are making allegations against each other. A

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