Syed Basheer Ahmed vs M/S Tinni Laboratories Pvt. Ltd
- Neutral2025 INSC 1030
- SCR[2025] 8 SCR 1487
Ratio decidendi
The rule this decision rests on
A plaintiff seeking specific performance must establish readiness and willingness to perform his obligations under the contract at the time of suit, and where the account statement relied upon to prove such readiness does not accord with the total consideration stipulated in the agreement, the claim of readiness and willingness fails. Where a written agreement exhibits material alterations visible on the face of the document — such as text written in different inks or discrepancies between recitals and schedule as to the extent and consideration of property — a court may find the agreement tainted and decline to grant specific performance without necessarily referring the document to an expert under Section 73 of the Indian Evidence Act, 1872, provided the alteration is clearly discernible on mere perusal. A defendant's material alteration plea raised in a written statement, even if the defendant does not testify, constitutes a plea properly before the court and may be found established by examination of the document itself, notwithstanding the defendant's absence from the witness box. Where a sale agreement contains internal inconsistencies — such as different total extents stated in the recitals as opposed to the schedule — no reliance can be placed on such an agreement to grant specific performance.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
2025 INSC 1030 Reportable
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
Civil Appeal No.11080 of 2014
Syed Basheer Ahmed …Appellant Versus
M/s. Tinni Laboratories Private Limited & Anr.
…Respondents
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 Signature Not Verified Digitally signed by KAPIL TANDON Date: 2025.08.23 12:42:03 IST Reason:
agreed to purchase from its real owner. The 1st respondent
Page 1 of 7 Civil Appeal No.11080 of 2014 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.1, 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
1 (1977) 1 SCC 379
Page 2 of 7 Civil Appeal No.11080 of 2014 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
Page 3 of 7 Civil Appeal No.11080 of 2014 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 plaintiff should establish
his case before the defendant is called upon to offer his
Page 4 of 7 Civil Appeal No.11080 of 2014 defense by disproving the case of the plaintiff and rebutting
any presumption that could have been drawn from the
circumstances. The relief of specific performance was sought
for, based on the agreement produced by the plaintiff himself.
The High Court has looked at the agreement to find material
alteration which according to the High Court is clearly
discernible; especially when two inks were used in the
agreement. The details of Item No.2 as also the alleged
agreement to sell that plot, was found to be clearly
interpolated in the agreement. The agreement, hence, was
found to be tainted and in those circumstances, the suit had no
legs to stand.
7. True, the 1st defendant did not enter the box to give
evidence but filed a written statement pointing out the material
alteration. The 2nd defendant, who stepped into the shoes of the
1st defendant entered the box and gave evidence. Hence, it
cannot be said that there was no plea regarding material
alteration, which was found by the High Court on a mere
perusal of the document; on which document, the entire suit
was based on.
Page 5 of 7 Civil Appeal No.11080 of 2014
8. In this context we cannot but notice that the agreement,
a translated copy, produced at Annexure-1 speaks first of an
extent of 1.40 acres, presumably Item No.1 with total
consideration fixed at Rs.56,000/- @ Rs.40,000/- per acre.
Then the agreement speaks of Item No.2 with an extent of
1acre as having been included in the agreement to sell.
However, the Schedule shows a total extent of 2.40 acres from
which 50 cents is sold. No reliance can be placed on such an
agreement with different extents in the recitals and the
schedule, to grant specific performance. Further, the
readiness and willingness established is by account statement
of the plaintiff showing credit of Rs. 70,500/-. If both items of
property are included in the sale agreement, then the total
consideration would be Rs. 96,000/- @ Rs.40,000/- per acre.
Deducting the advance the balance sale consideration will be
Rs.95,000/-. The claim of readiness and willingness of the
plaintiff hence falls flat.
9. Pertinent is also the fact that the plaintiff before the trial
court gave up his claim for conveyance of the 2nd item and
pressed only the first part of the agreement clearly putting to
Page 6 of 7 Civil Appeal No.11080 of 2014 peril his prayer for specific performance based on the tainted
agreement. We are not convinced that Section 73 has any
application and in finding material alteration the courts are not
obliged to always refer it to an expert; especially when it is
clearly discernible on a mere perusal of the document, that too
written in a different ink. Even otherwise, as found by us, the
plaint fails.
10. We find absolutely no reason to interfere with the
judgment of the High Court and reject the appeal. No costs.
11. Pending application(s), if any, shall stand disposed of.
……..……….……………………. J.
(PRASHANT KUMAR MISHRA)
………………………………………J. (K. VINOD CHANDRAN)
New Delhi;
August 21, 2025.
Page 7 of 7 Civil Appeal No.11080 of 2014
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