Bombay High Court Dismisses Appeal in Municipal Corporation Dispute — Suit Barred by Limitation. Notice under Section 351 of Mumbai Municipal Corporation Act, 1888 issued in 1994; suit filed in 2001 held time-barred as cause of action arose on notice date.

High Court: Bombay High Court In Favour of Prosecution
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Case Note & Summary

The appellant, Satish Dalichand Shah, claimed to be a monthly tenant of a shop premises in Mumbai. On 23rd May, 1994, the Municipal Corporation of Greater Bombay issued a notice under Section 351 of the Mumbai Municipal Corporation Act, 1888, alleging that the appellant had carried out an unauthorized extension of 1.30m x 4.30m in front of the shop and requiring him to show cause why it should not be removed. The appellant replied on 31st May, 1994 requesting a hearing. However, no further action was taken by the Corporation until 2001. On 5th February, 2001, the appellant filed a suit in the Bombay City Civil Court seeking a declaration that the notice was illegal and an injunction restraining the Corporation from demolishing the extension. The trial court framed a preliminary issue on limitation and held that the suit was barred by limitation, dismissing it. The appellant appealed to the High Court in First Appeal No.1192 of 2001, which was dismissed by the learned Single Judge on 2nd November, 2001. The appellant then filed a Letters Patent Appeal before the Division Bench. The Division Bench considered the issue of limitation. The appellant argued that the cause of action arose only when the Corporation threatened to take action in 2001, but the court found that the notice itself gave rise to the cause of action for seeking a declaration that it was illegal. Since the suit was filed more than three years after the notice, it was barred by Article 58 of the Limitation Act, 1963. The court also noted that the appellant's reply did not change the accrual of cause of action. The Division Bench dismissed the appeal, confirming the orders of the courts below.

Headnote

A) Limitation - Suit for Declaration and Injunction - Article 58 of Limitation Act, 1963 - Cause of Action - Notice under Section 351 of Mumbai Municipal Corporation Act, 1888 - The appellant received a notice on 23rd May, 1994 alleging unauthorized extension and requiring show cause. The suit was filed on 5th February, 2001 seeking declaration that the notice was illegal and injunction against demolition. The court held that the cause of action arose on the date of the notice, and the suit filed beyond three years was barred by limitation. The appeal against the dismissal of the suit was dismissed. (Paras 2-5)

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Issue of Consideration

Whether the suit filed by the appellant challenging the notice under Section 351 of the Mumbai Municipal Corporation Act, 1888 was barred by limitation.

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Final Decision

Appeal dismissed. The order of the learned Single Judge confirming the trial court's dismissal of the suit as barred by limitation is upheld.

Law Points

  • Limitation Act
  • 1963
  • Article 58
  • Section 351 Mumbai Municipal Corporation Act
  • 1888
  • cause of action accrues on date of notice
  • suit for declaration and injunction barred after three years
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Case Details

2005 LawText (BOM) (05) 164

LETTERS PATENT APPEAL NO.27 OF 2002 IN FIRST APPEAL NO.1192 OF 2001 IN B.C.C.C.SUIT NO.639 OF 2001

2005-06-16

R.M.S.Khandeparkar, Anoop V. Mohta

Shri S.V.Shetty, Ms Geeta Joglekar

Shri Satish Dalichand Shah

The Municipal Corporation of Greater Bombay

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Nature of Litigation

Civil appeal against dismissal of suit on preliminary issue of limitation

Remedy Sought

Appellant sought declaration that notice under Section 351 was illegal and injunction against demolition

Filing Reason

Notice issued by Municipal Corporation alleging unauthorized extension and requiring removal

Previous Decisions

Trial court dismissed suit as barred by limitation; Single Judge dismissed first appeal

Issues

Whether the suit filed in 2001 challenging a notice dated 23rd May, 1994 was barred by limitation under Article 58 of the Limitation Act, 1963

Submissions/Arguments

Appellant argued that cause of action arose only when Corporation threatened action in 2001, not on notice date Respondent contended that cause of action arose on notice date and suit was time-barred

Ratio Decidendi

The cause of action for a suit seeking declaration that a notice under Section 351 of the Mumbai Municipal Corporation Act, 1888 is illegal arises on the date of the notice itself, and the suit must be filed within three years under Article 58 of the Limitation Act, 1963.

Judgment Excerpts

The suit filed by the appellant was barred by the law of limitation. The cause of action arose on the date of the notice itself.

Procedural History

Notice under Section 351 issued on 23rd May, 1994. Appellant replied on 31st May, 1994. Suit filed on 5th February, 2001. Trial court dismissed suit on preliminary issue of limitation on 8th June, 2001. First Appeal No.1192 of 2001 dismissed by Single Judge on 2nd November, 2001. Letters Patent Appeal No.27 of 2002 filed before Division Bench, dismissed on 16th June, 2005.

Acts & Sections

  • Mumbai Municipal Corporation Act, 1888: Section 351
  • Limitation Act, 1963: Article 58
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