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LOTUS LINE (P) LTD. versus THE STATE OF MAHARASHTRA

Citation: [1965] 2 S.C.R. 699 · Decided: 07-01-1965 · Supreme Court of India · Bench: P.B. GAJENDRAGADKAR · Disposal: Case Partly allowed

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Judgment (excerpt)

A 
LOTUS LINE (P) LTD. 
v. 
THE STATE OF MAHARASHTRA 
January 7, 1965 
699' 
B [P. B. GAJENDRAGADKAR, C.J., K. N. WANCHOO, s. M. SIKRI, JJ.] 
Damages-Measure of-whether party complaining of wrong to pro-
perty entitled to restitution-<Jr to restoration of property damaged to 
original condition. 
A vessel owned by the appellant, caused damage to a jetty. The res-
pondent state prepared an estimate of Rs. 16,400 as the cost of special 
C 
repain for the damage done. 
Sometime thereafter, 
emergent 
repairr 
costing Rs. 2783/ - were undertaken by the respondent state to make the 
jetty workable and later some minor repairs costing about Rs. 1223/-
were further carried out. 
The appellant having refused to pay for tho 
damage done, the respondent state filed a suit claiming all the three above 
mentioned amounts and interest thereon. 
The trial court found that the damage done was attributable to tho 
D 
negligence of the appellant, but as regards the quantum of damages. it 
came to !be conclusion that the claim for Rs. 16,400/- was really for 
reconstruction of the whole damaged area, so that the respondent state 
was in fact seeking restitution and not compensation for !be damage d~ne. 
The trial court refused to give such restitution and held that the expendi-
ture in respect of emergent and minor repairs had put the jetty in working 
order and therefore gave a decree of Rs. 
3671/ 12/ 6 which was 
th<> 
E 
r 
G 
H 
amount actually spent by the state in making these repairs. 
In appeal, the High Court was of the view that the Wednesbury Cor-
poration's Case, [1907] 1 K.B. 78, laid down the general rule in such cases, 
which was, to require the party in the wrong to make compensation and 
not restitution; but that this rule was subject to the exception that wher<> 
the party complaining of a wrong to property was a corporation or a 
trust<>e charged with the maintenance of a highway or other public work, 
the wrong-doer was bound to make restitution. The High Court therefore 
allowed the appeal modified the decree of tho trial court by awardLg a 
aum of Rs. 19,038/ 8/ - plus interest. 
HELD : The Wednesbury Corporation's case did not lay down the 
proposition in the form β€’lated by the High Court. The true measur< of 
compensation was held in that case to be the cost of restoration. 
Th<> 
p<>rsan to whom a wrong was done was entitled to full compensation for 
restoring the thing damaged to its original condition, but this did not 
mean complete reconstruction irrespective of the damage done. (702 l:l-D, 
B-F, G] 
The evidence in this case showed that the amount of Rs. 16,400/-
was needed to carry out necessary repairs to restore the jetty to i!' original 
condition and not that the amount was for complete reconstruction of the 
jetty i~pective of the damage done to it. 
As this amount would ha e 
restored the jetty to its original condition, there was no reason to al'ow 
anything to the respondent state on accunt of emergent repairs or for 
any other expenditure. (703 B-D, G] 
CML APPELLATE JURISDICTION: Civil Appeal No. 810 of 
1962. 
700 
SUPREME 
COURT 
REPORTS 
(1965] 2 S.C.R. 
Appeal from the judgment and decree dated October 1, 1959, 
A 
of the Bombay High Court in First Appeal No. 697 of 1955. 
Purushottam Tricumdas, I. B. Dadachan;i, 0. C. Mathur and 
Ravinder Narain, for the appellant. 
T. V. R. Tatachari, and R. N. Sachthey, for the respondent. 
The Judgment of the Court was delivered by 
B 
Wanchoo, J. 
This appeal on a certificate granted by the 
Bombay High Court arises out of a suit brought by the State of 
Bombay (respondent) against the appellant for recovery of 
Rs. 24,979 /2/ 4. The facts which led to the filing of the suit 
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are not now in dispute as they have been concurrently found 
by the two courts below and may be briefly narrated. On April 
27, 1948, at about midday, the vessel Padam belonging to the 
appellant arrived in the Dharamtar creek carrying a cargo of 3500 
bags of manure )Veighing about 250 tons and laid anchor along-
D 
side Dharamtar jetty lying on the Pen side of the creek on the 
Pen-Khopoli road. 
The Dharamtar jetty is meant for small 
vessels bringillg passengers and luggage crossing the creek and 
so the peon on duty there requested the master of the ship to 
remove the vessel into the creek and to unload the cargo with the 
help of small boats. 
The master of the ship agreed to do so. But 
E 
when he tried to move the vessel away from the jetty, she actually 
came on top 

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