1999 (5) TMI 600 - SC - Indian Laws

Summary

Issues Involved:
1. Applicability of Section 478 of the Delhi Municipal Corporation Act, 1957
2. Negligence and Liability of the Municipal Corporation
3. Assessment of Compensation
4. Award of Interest

Summary:

1. Applicability of Section 478 of the Delhi Municipal Corporation Act, 1957:
The Municipal Corporation argued that the suit was barred by time as it was not filed within six months from the date of accrual of the cause of action, as required u/s 478 of the Act. The Court rejected this contention, stating that the cause of action was based on negligence under the law of torts, not on any act done in pursuance of the Act. Therefore, Section 478 did not apply, and the suit filed within two years was within limitation.

2. Negligence and Liability of the Municipal Corporation:
The Court upheld the finding of negligence on the part of the Municipal Corporation. The tree in question was found to be dead and dangerous, and the Corporation failed to inspect and remove it. The Court cited various legal precedents establishing the duty of care owed by property owners, including the Municipal Corporation, to ensure that trees do not pose a danger to passers-by. The Court concluded that the Corporation was liable for damages due to its negligence.

3. Assessment of Compensation:
The deceased was earning Rs. 650 per month, which was later assessed at Rs. 1,000 per month by the Division Bench, considering additional commission on sales. After deducting personal expenses, the dependency was assessed at Rs. 800 per month. Using a multiplier of 15, the compensation was calculated at Rs. 1,44,000. The Court found this figure reasonable and upheld the Division Bench's assessment.

4. Award of Interest:
The Division Bench directed the Municipal Corporation to deposit the decretal amount in the Court, which was done on 17.9.1970. Due to the claimants' failure to furnish security, they could not withdraw the amount. The Division Bench awarded additional interest of 3% per annum on Rs. 90,000 from the date of deposit until withdrawal and 6% per annum on Rs. 54,000 from 17.9.1970 until payment. The Court found no reason to interfere with this direction, considering the totality of circumstances.

Conclusion:
Both appeals were dismissed. The Municipal Corporation's appeal was dismissed with costs payable to the claimants, while the claimants' appeal was dismissed without any order as to costs.