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1955 Supreme(Cal) 191

HIGH COURT OF CALCUTTA
GUHA RAY, GUHA RAY RAY
RANENDRA NATH PAL - Appellant
Versus
COMMISSIONERS OF DHULIYAN MUNICIPAL OFFICE - Respondent
A. F. A. D.  928  Of  1952
Decided On : NOVEMBER 25, 1955

Advocates Appeared:
Jitendra Kumar Sen Gupta, NIRMAL CHANDRA CHOUDHURI, SATINDRA NATH ROY CHAUDHARY, Sovendra Madhab Basu

The requirement of notice under Section 535, Bengal Municipal Act, 1932, applies to suits against a municipality for both acts and omissions.

Headnote:

MUNICIPAL LAW - CONTRACT - VALIDITY - REQUIREMENT OF WRITTEN CONTRACT - NOTICE OF SUIT - WHETHER NECESSARY IN CASE OF OMISSION - INTERPRETATION OF SECTION 535, BENGAL MUNICIPAL ACT, 1932.

Fact of the Case:

The plaintiff, a contractor, sued the Commissioners of the Dhulian Municipality to recover money and damages for work done. The defendants contended that the suit was not maintainable as there was no written contract duly signed and sealed, and that no notice of the suit was served upon them as required by Section 535, Bengal Municipal Act, 1932.

Finding of the Court:

The court held that the absence of a written contract did not bar the plaintiff's claim, as the work was done and accepted by the defendants. However, the court differed on the issue of notice under Section 535. The trial court held that notice was not required as the suit arose out of an implied contract, while the lower appellate court held that notice was necessary.

Issues: 1. Whether a written contract is required for the validity of a contract between a contractor and a municipality. 2. Whether notice of suit is required under Section 535, Bengal Municipal Act, 1932, in a suit against a municipality for omission to perform a duty.

Ratio Decidendi: 1. The court held that the requirement of a written contract under Section 103, Bengal Municipal Act, 1932, is mandatory, but that the absence of such a contract does not necessarily bar the plaintiff's claim. The court relied on the principle of restitution under Section 70, Contract Act, which allows for recovery of benefits conferred under a void contract. 2. The court held that the requirement of notice under Section 535, Bengal Municipal Act, 1932, applies to suits against a municipality for both acts and omissions. The court distinguished the case of Jogendra Nath Banerjee v. Tolly-gun'go Municipality, where it was held that notice is required for suits in respect of omissions, on the ground that the facts of that case were different.

Final Decision: The court set aside the judgment and decree of the lower appellate court and restored those of the trial court, subject to the modification that the defendants were directed to pay up the decretal amount within two months of the record reaching the trial court.

GUHA, J.

( 1 ) THIS appeal by the plaintiff appellant who is a contractor arises out of a suit for recovery of money and damages instituted against the Commissioners of the Dhulian Municipality. The facts are briefly as follows: According to the plaintiff he "constructed certain work according to the plan, estimate and rates sanctioned by the defendants in a meeting and he was entitled to get a sum of Rs. 2895-10-0 from the defendants for the work done by him. The latter, however, declined to make any payment in spite of demand. He has, therefore, instituted the present suit for recovery of Rs. 2895-10-0 as the costs of the work done by him and Rs. 290/- as damages. The defence inter alia was that the suit was not maintainable as there was no contract in writing between the plaintiff and the defendants duly signed and sealed with the common seal of the defendants in connection with the alleged work. It was also the case of the defendants that the suit was liable to be dismissed as no notice of the suit as provided by Section 533, Bengal Municipal Act, 1932, was served upon the defendants by the plaintiff before the institution of the suit.

( 2 ) SO far as the facts are concerned there is not much controversy. It has been found by the Courts below that the plaintiff did execute the work in question and that the work was not unauthorised as had been alleged by the defendants. It has also been found that there was no contract in writing duly signed and Sealed as between the plaintiff and the defendants in terms of Section 103, Bengal Municipal Act, so far as the question of notice is concerned it was held by the trial Court that the suit would not fail because of the absence of the service of notice under Section 535, Bengal Municipal Act. On that point, however, the lower appellate Court has differed from the view of the trial Court - and it has been held that the suit must fail for want of notice.

( 3 ) AGAINST this decision the plaintiff has preferred this appeal. Before taking up the point urged before us on behalf of the appellant regarding the effect of the absence of notice under Section 535. Bengal Municipal Act, it is necessary to reier to the argument of Mr. Roy Chowdhury on behalf of the defendants regarding another aspect of the case. It has been argued on behalf of the respondents that the suit was not maintainable in the absence of any contract in writing duly signed and sealed. So far as this point is concerned, both the Courts below have' decided against the defendants. However, as Mr. Roy Chowdhury appearing for the respondents questions the decision of the Courts below on the point, it is necessary to dispose of this point first. Under Section 103 (2), Bengal Municipal Act, 1932,"every contract made on behalf of the Commissioners. . . . . . . . . . shall be in writing and signed. . . . . . . . . . . and shall be sealed with the common seal of the Commissioners and under Sub-section (3) unless so executed, such contract" shall not be binding on the Commissioners. "this statutory requirement as laid down in Section 103 was not complied with in the present case and the question, therefore, is whether in these circumstances the plaintiff is entitled to claim any compensation for damages from the defendants Commissioners. Mr. Roy Chowdhury has invited us 'to hold that the answer to this question should be in the negative and in support of his contention: he has referred inter alia to certain passages in the Commentary on the Indian Contract Act by Pollock and Mulla, pages 350 to 355, Edn. 7. The opinion of the learned authors is clearly in favour of Mr. Roy Chowdhirry's contention. Mr, Roy Chowdhury has also referred to the case of 'h. Young and Co. v Royal Leamington Spa. Corporation', (1883) 8 AC 517 (A ). So far as this specific point is concerned, there is a divergence of judicial opinion and the matter has been discussed elaborately in many cases amongst which reference may be made to the case of - "akshay Ki






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