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NANDKISHORE LALBHAI MEHTA versus NEW ERA FABRICS PVT. LTD. & ORS.

Citation: [2015] 7 S.C.R. 631 · Decided: 08-07-2015 · Supreme Court of India · Bench: RANJAN GOGOI · Disposal: Dismissed

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Judgment (excerpt)

[2015] 7 S.C.R. 631 
NANDKISHORE LALBHAI MEHTA 
v. 
NEW ERA FABRICS PVT. LTD. & ORS. 
(Civil Appeal No.1148 of 2010) 
JULY08, 2015 
[RANJAN GOGOi AND R.K. AGRAWAL. JJ.) 
A 
B 
Specific performance: Sale of suit property by 
respondent subject to consent of Labour Union -Appellant- c 
buyers paid earnest money as per the agreement to the 
respondents-buyers - Labour Union refused to give the 
consent for sale of the suit property- Respondent informed 
this fact to the appellant that the agreement stood cancelled 
and that they would return the amount - Appellant waived D 
the condition of obtaining the consent of labour but still 
agreement did not materialize- Suit for specific performance 
by appellant- Single judge of High Court decreed the suit-
Division Bench set aside the decree - On appeal, held: In 
the plaint filed by appellant, specific case was pleaded by E 
appellant that the Labour Union colluded with the respondents 
- However, at the time of leading the evidence, case was 
made out that Labour Union agreed to the proposed sale on 
certain conditions offered by respondent - Such evidence 
could not be allowed to be led in the absence of pleadings in F 
the plaint - Since there was new plea or a/legation of fact 
inconsistent with the previous pleadings of the parties, steps 
ought to have been taken by appellant to amend the plaint 
which was not done - As the Labour Union did not give its G 
consent to the proposed sale, agreement for sate could not 
have been performed and had ceased - Appellant is only 
entitled to refund of the amount along with interest @ 18% 
per annum stipulated therein. 
H 
631 
632 
SUPREME COURT REPORTS 
[2015] 7 S.C.R. 
A 
Dismissing the appeals, the Court 
HELD: 1. In the plaint filed by the appellant, the 
plea set up was that at the instigation of the defendants 
and in collusion with them, the Mill Mazdoor Sabha has 
B refused to give its permission to the sale of the mill 
premises of Defendant No. ยท1 to the plaintiff. It was not a 
case set up by the appellant that the Mill Mazdoor Sabha 
had agreed to the proposed sale on certain conditions 
offered by the respondents. In view of the settled 
C position of law, fresh pleadings and evidence which is 
in variation to the original pleadings cannot be taken 
unless the pleadings are incorporated by way of 
amendment of the pleadings. The Division Bench of the 
High Court was perfectly justified in holding that unless 
D the plaint is amended and a specific plea is taken that 
the Mill Mazdoor Sabha had agreed for the proposed sale 
on certain terms and conditions offered by the 
respondents, the two letters viz., Exh Nos. P-27 and P-
28 could not have been taken into consideration at all. 
E Further, it was the case of the appellant that the said two 
letters were given by the former Director of Respondent 
No. 1. He was not produced as a witness so as to 
establish that these tw<;> letters were in fact given by the 
F Mill Mazdoor Sabha. Further, in the statement of PW-2, 
he has only stated that the letter must have ben sent by 
the Mill Mazdoor Sabha and the post-script might have 
been written by Mr. Pathak as it bears his signature. He 
had not stated that it was written in his presence. Mere 
G identifying the signature of Mr. Pathak would not prove 
the contents of the said letter which was being relied 
upon by the appellant. Even if the two letters viz., Exh. 
Nos. P-27 and P-28 are taken into consideration, from a 
reading of the said letters, it appears that the contents 
H are contradictory of one another. In the letter dated 
NANDKISHORE LALBHAI MEHTA v. NEW ERA FABRICS 633 
PVT. LTD. & ORS. 
05.12.1977 (Exh. P-27), the Mill Mazdoor Sabha had A 
demanded an option to provide alternate empk>yment 
and to pay full compensation to those workers who do 
not want alternate employment as per the law. In the 
note below the said letter, a mention was made that a 
proposal was given to pay 60 per cent compensation B 
which was not acceptable. In the earlier part of the letter 
dated 10.01.1978 (Exh. P-28), it was specifically 
mentioned that they do not agree to the proposed sale 
and the matter be treated as closed. However, in the note, 
it was mentioned that they are agreeable to the proposal C 
given in the discussion and to the proposed sale. Letter 
dated 10.01.1978 is contradictory to the earlier part of 
the letter, and therefore, the Division Bench rightly 
disbelieved these two letters. [Paras 27 to 29] (686-

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