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The Courts are not empowered to alter the Terms of a Contract by extending the Time for the Payment of the Balance Sale Consideration unless explicitly provided in the Agreement --- Supreme Court of Pakistan

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Islamabad 06-09-2024: The Supreme Court of Pakistan, led by Mr. Chief Justice Qazi Faez Isa, dismissed a petition seeking the enforcement of a property sale agreement in the case of Abdul Ali vs. Additional District Judge, Gojra and Others (Civil Petition No. 2293-L of 2016). The Court upheld the concurrent decisions of the Lahore High Court and the Revisional Court, emphasizing that the petitioner failed to meet the obligations under the agreement.

The petitioner, Abdul Ali, had entered into an agreement to purchase a house for PKR 170,000 in 2006, having already paid PKR 80,000. The remaining PKR 90,000 was due by July 20, 2007, but the deadline was later extended through another agreement until February 20, 2008. Despite the extension, the petitioner failed to pay the balance within the stipulated time, leading to the dismissal of his suit for specific performance.

In October 2014, the Appellate Court provided conditional relief to the petitioner, allowing him an additional 15 days to deposit the outstanding amount. The Court made it clear that failure to do so would result in the dismissal of the suit. The petitioner, however, did not comply with this directive, which ultimately led to the dismissal of the suit.

Despite the dismissal, the petitioner initiated execution proceedings in an attempt to enforce the non-existing decree. The execution proceedings were challenged, and objections from the opposing party were accepted by both the Revisional Court and the Lahore High Court, which prompted the petitioner to approach the Supreme Court.

During the hearing on September 2, 2024, the petitioner’s counsel was unable to demonstrate any illegality in the concurrent decisions of the lower Courts. Mr. Chief Justice Qazi Faez Isa, remarked that Courts are not empowered to alter the terms of a contract by extending the time for the payment of the balance sale consideration unless explicitly provided in the agreement. The petitioner’s failure to meet the contractual obligation within the stipulated time led to the dismissal of his appeal.

The Court emphasized that a buyer seeking specific performance must be “ready, able, and willing” to fulfill their contractual obligations, particularly regarding timely payment. Failure to offer payment or demonstrate readiness, through actions such as preparing a pay order or depositing the amount in Court, justified the rejection of the petition. The petitioner's counsel was unable to provide sufficient justification to overturn the previous rulings.

The Supreme Court upheld the decisions of the lower Courts and dismissed the petition, reaffirming the principle that Courts cannot rewrite agreements between parties. This judgement highlights the importance of adhering to contractual deadlines, especially in cases of specific performance.

The case sets a precedent on the strict enforcement of contractual obligations and emphasizes that failure to meet stipulated deadlines will result in dismissal without room for judicial leniency in extending time for performance.