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Issues:
1. Appeal against the judgment of the High Court of Bombay for recovery of damages due to negligence by the Municipality causing a flood. 2. Allegations of negligence by the Municipality leading to obstruction of rainwater passage and subsequent flooding. 3. Interpretation of "done in good faith" under Section 167 of the Bombay District Municipal Act. Analysis: 1. The respondent filed a suit against the appellant Municipality seeking damages of Rs. 1,00,012 for flood-related property damage due to the appellant's gross negligence. The High Court awarded the respondent Rs. 54,560 with 6% interest per annum. 2. The appellant was accused of preparing a plan that narrowed the water passage in front of the respondent's shop without accounting for additional rainwater flow, obstructing the nallah with centring work and a cement slab, and failing to maintain a clear passage for rainwater during the monsoon season. 3. The High Court found that the appellant was aware of the Varala Dam demolition and still proceeded with obstructive construction work, leading to flooding. The appellant's actions were deemed reckless and mala fide, as they neglected to address potential harm, making them ineligible for protection under Section 167 of the Act. 4. The judgment highlighted the distinction between honest blunders and reckless actions, emphasizing that awareness of potential harm without action constitutes recklessness, akin to mala fides. Negligence alone does not equate to mala fides, requiring an additional element beyond mere carelessness for legal implications. 5. Ultimately, the appeal was dismissed, and the appellant was directed to bear the costs, as their actions were deemed reckless and mala fide, falling outside the scope of protection under Section 167 of the Bombay District Municipal Act.
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