I thought OP’s issue was that the observations page was “mutilated” not that OP was running out of pages in the passport.

I don’t think it will be a problem. More so if it was “mutilated” by Indian immigration themselves.

To get OP's & others feedback on this subject, there are many European countries now that are not accepting Indian passports with handwritten "observations page". Obviously while it must be far far easier to travel through Europe with a UK passport - have you ever faced (or heard of) this before?