SYED BASHEER AHMEDversusM/S TINNI LABORATORIES PRIVATE LIMITED & ANR.
- Citation
- 2025 INSC 1030
- Decided
- 21 August 2025
- Disposal
- Rejected
Holding
The sale agreement was materially altered and therefore unenforceable for specific performance, so the High Court's reversal of the trial court's decree was correct.
Summary
Syed Basheer Ahmed filed a suit for specific performance of a sale agreement concerning two parcels of land. The trial court found the plaintiff ready to pay the balance consideration and decreed specific performance. The High Court reversed this decision, holding that the agreement showed a material alteration—different ink and inconsistent extents—rendering it unenforceable. On appeal, the Supreme Court affirmed the High Court, noting that the alteration was evident without expert testimony, that Section 73 of the Evidence Act was inapplicable, and that the plaintiff's claim of readiness to pay was unsupported. Consequently, the appeal was dismissed and the High Court's judgment stands.
Issues considered
- Whether the alleged material alteration in the sale agreement makes it unenforceable for specific performance
- Whether Section 73 of the Indian Evidence Act applies to the determination of material alteration
- Whether the plaintiff established readiness and willingness to pay the balance consideration
- Whether the High Court was correct in reversing the trial court's decree
Legislation cited
Headnote
Issue for Consideration 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. Whether the High Court erred in reversing the findings and the judgment and decree passed by the Suit for specific performance – A 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 – The trial
Subjects
Judgment
[2025] 8 S.C.R. 1487 : 2025 INSC 1030
Syed Basheer Ahmed
v.
M/s Tinni Laboratories Private Limited & Anr.
(Civil Appeal No. 11080 of 2014)
21 August 2025
[Prashant Kumar Mishra and K. Vinod Chandran, JJ.]
Issue for Consideration
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. Whether the High Court erred in reversing
the findings and the judgment and decree passed by the trial court.
Headnotes†
Suit – Suit for specific performance – A 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 – The trial court based
on the evidence, found that the plaintiff was always ready and
willing to pay the balance consideration – Trial Court decreed
the suit – 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 – High Court
found material alteration and reversed the decree of the trial
court – Correctness:
Held: The 1st defendant did not enter the box to give evidence
but filed a written statement pointing out the material alteration –
Hence, it cannot be said that there was no plea regarding material
alteration – The agreement 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 1 acre 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
1488 [2025] 8 S.C.R.
Supreme Court Reports
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 – Besides, section 73 of the Evidence Act,
1872 has any no 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 – No reason to interfere with the
judgment of the High Court. [Paras 7, 8, 9, 10]
Case Law Cited
Seth Loonkaran Sethiya v. Mr. Ivan E. John and Ors. [1977] 1
SCR 853 : [1977] 1 SCC 379 – referred to.
List of Acts
Specific Relief Act, 1963; Evidence Act, 1872.
List of Keywords
Suit; Specific performance of contract; Readiness and willingness
to pay balance; Material alteration in agreement; Agreement to
purchase properties; Sale agreement; Section 73 of Evidence Act,
1872; Tainted agreement.
Case Arising From
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 11080 of 2014
From the Judgment and Order dated 13.09.2012 of the High Court
of Andhra Pradesh at Hyderabad in AS No. 866 of 1993.
Appearances for Parties
Advs. for the Appellant:
G. Sivabalamurugan, V. Sridhar Reddy, V. N. Raghupathy.
Advs. for the Respondents:
D Ramakrishna Reddy, Mrs. D. Bharathi Reddy, Nishant Sharma,
Mrs. D Tejaswi Reddy, Ms. Adviteeya, T Velmurugan, P Raja.
[2025] 8 S.C.R. 1489
Syed Basheer Ahmed v.
M/s Tinni Laboratories Private Limited & Anr.
Judgment / Order of the Supreme Court
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.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 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
1 (1977) 1 SCC 379
1490 [2025] 8 S.C.R.
Supreme Court Reports
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 plaintiff should establish his case before
the defendant is called upon to offer his 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
[2025] 8 S.C.R. 1491
Syed Basheer Ahmed v.
M/s Tinni Laboratories Private Limited & Anr.
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.
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 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.
1492 [2025] 8 S.C.R.
Supreme Court Reports
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.
Result of the case: Appeal rejected.
†
Headnotes prepared by: Ankit Gyan
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