The judgment of the Supreme Court of India in the case of Venkataraman Krishnamurthy and another v/s Lodha Crown Buildmart Pvt. Ltd.; Civil Appeal No. 971 of 2023, highlighted a fundamental principle in contract law – courts cannot rewrite contracts but must rely on the terms and conditions agreed upon by the parties when adjudicating disputes.
In this case, the appellants sought to terminate an Agreement to Sell for an apartment in Mumbai and claim a refund of the amount paid with interest. The National Consumer Disputes Redressal Commission (NCDRC) had previously decided on the matter, prompting the appellants to appeal the decision.
The Supreme Court’s judgment emphasized the importance of upholding the terms of a written contract between parties. It highlighted that once parties commit to a written agreement, the terms and conditions therein become binding. Any consequences outlined in the contract in the event of a breach must be enforced unless proven otherwise.
Furthermore, the judgment also reiterated that courts should interpret contracts based on the actual words used by the parties. It is not within the court’s purview to create a new contract or alter the terms agreed upon by the parties, even if the court deems it reasonable to do so. The intention of the parties, as expressed in the contract, should be the guiding principle in resolving disputes.
The Apex Court while relying on various precedents held that contractual agreements are sacrosanct, and parties must abide by the terms they have willingly accepted. By upholding the sanctity of contracts and respecting the autonomy of parties in forming agreements, the judiciary ensures fairness and predictability in commercial dealings.
In conclusion, the judgment in this case reaffirms the principle that courts cannot rewrite contracts but must rely on the terms and conditions agreed upon by the parties. This approach ensures that contractual disputes are resolved in accordance with the intentions of the parties as expressed in their agreement, promoting legal certainty and upholding the sanctity of contracts.

Author of this article:
Adv. Ravish Bhatt,
Partner, R&D Law Chambers,
Dual Qualified Lawyer Solicitor | International Tax Affiliate

Connect with Mr. Bhatt on Linkedin: https://www.linkedin.com/in/adit-ravishbhatt/

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