High Court of Bombay at Nagpur Allows Second Appeal in Municipal Tort Case — Limitation Bar Under Section 304 of Maharashtra Municipal Council Act Applies to Suit for Damages for Removal of Fencing. Suit filed beyond six months from date of cause of action is barred by limitation under Section 304 of the Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The respondent, Laxminarayan Jaiswal, claimed to have purchased plot nos. 71 and 72 within the limits of Gram Panchayat Drugwada on 16-12-1985. Subsequently, the territorial limits of the appellant Municipal Council were extended, bringing these plots under its jurisdiction. On 26-5-1995, the Municipal Council issued a notice to the plaintiff stating that the plots were reserved for a primary school and that the plaintiff had put barbed wire fencing without permission, calling for its removal. Prior to this notice, the Municipal Council had allegedly removed the fencing. The plaintiff issued a notice under Section 304 of the Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965, and filed a suit for recovery of Rs.70,000/- as damages for the illegal removal. The defendant Municipal Council pleaded that the plots vested with it and were reserved for public use, and that the suit was barred by limitation under the Act. The trial court framed issues and held that the defendant wrongfully removed the fencing, decreeing the suit. The first appellate court partly modified the decree, directing payment of Rs.70,000/- with 6% interest. The defendant filed a second appeal under Section 100 of the Code of Civil Procedure, 1908. The High Court framed a substantial question of law regarding limitation. The court found that the cause of action arose on 26-5-1995 when the fencing was removed, and the suit was filed on 25-3-1996, beyond the six-month period prescribed under Section 304 of the Act. The court held that the suit was barred by limitation and dismissed it, allowing the appeal. The court did not decide on the merits of the illegality of the removal.

Headnote

A) Limitation - Suit against Municipal Council - Section 304 of Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965 - The suit for damages for removal of fencing was filed beyond six months from the date of cause of action, i.e., the date of removal of fencing on 26-5-1995, and was thus barred by limitation under Section 304 of the Act. The court held that the suit was not maintainable as it was filed after the prescribed period of limitation. (Paras 1-12)

B) Tort - Illegal removal of fencing - Municipal Council - The plaintiff claimed that the Municipal Council illegally removed barbed wire fencing from plots reserved for a primary school. The trial court and first appellate court held the removal to be wrongful, but the High Court did not decide on the merits of the illegality as the suit was dismissed on limitation. (Paras 2-12)

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Issue of Consideration

Whether the suit for damages filed by the plaintiff was barred by limitation under Section 304 of the Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965, and whether the removal of fencing by the Municipal Council was illegal.

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Final Decision

The High Court allowed the appeal, set aside the judgments of the lower courts, and dismissed the suit as barred by limitation under Section 304 of the Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965.

Law Points

  • Limitation
  • Tortious liability of municipal council
  • Section 304 of Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act
  • 1965
  • Cause of action
  • Notice under Section 304
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Case Details

2017 LawText (BOM) (06) 132

Second Appeal No.327 of 2003

2017-06-30

A.S. Chandurkar, J

Shri A. B. Patil for the appellant, Shri A. J. Gilda for the respondent

The Chief Officer, Nagar Parishad, Morshi, Tq. Morshi, Dist. Amravati.

Laxminarayan S/o Jainarayan Jaiswal

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Nature of Litigation

Second appeal against decree in suit for damages for removal of fencing by Municipal Council.

Remedy Sought

Appellant sought dismissal of suit as barred by limitation.

Filing Reason

Appellant challenged the judgment of the first appellate court which partly modified the trial court decree and directed payment of Rs.70,000/- with interest.

Previous Decisions

Trial Court decreed suit; First Appellate Court partly modified decree directing payment of Rs.70,000/- with 6% interest.

Issues

Whether the suit was barred by limitation under Section 304 of the Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965? Whether the removal of fencing by the Municipal Council was illegal?

Submissions/Arguments

Appellant argued that the suit was barred by limitation as the cause of action arose on 26-5-1995 and the suit was filed on 25-3-1996, beyond six months. Respondent argued that the removal was illegal and the suit was within limitation.

Ratio Decidendi

A suit against a municipal council for damages for removal of fencing is governed by Section 304 of the Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965, which prescribes a limitation period of six months from the date of cause of action. The suit filed beyond that period is barred by limitation.

Judgment Excerpts

This appeal filed under Section 100 of the Code of Civil Procedure, 1908 takes exception to the judgment dated 20-3-2003 in Regular Civil Appeal No.215/1999 thereby partly modifying the decree passed by the trial Court in Regular Civil Suit No.122/1996 and directing the appellants herein to pay to the respondent a sum of Rs.70,000/- with 6% interest thereon. The suit as filed was not within limitation as prescribed by the said Act. The trial Court framed various issues after which the parties led evidence. It was held that the defendant in a wrongful manner removed the bar...

Procedural History

The respondent filed Regular Civil Suit No.122/1996 for damages. The trial court decreed the suit. The appellant filed Regular Civil Appeal No.215/1999, which was partly allowed on 20-3-2003, modifying the decree to Rs.70,000/- with 6% interest. The appellant then filed Second Appeal No.327/2003 under Section 100 CPC, which was allowed on 30-6-2017.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 100
  • Maharashtra Municipal Council Nagar Panchayats and Industrial Township Act, 1965: Section 304
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