1965 (3) TMI 98 - SC - Indian Laws

Supreme Court affirms storage charges, denies interest claim, and awards plaintiff in landmark ruling.

Union of India (UOI) Versus Watkins Mayor and Co.

The Supreme Court affirmed the High Court's decision on storage charges, ruling Rs. 300 per month as reasonable. The plaintiff's claim was not time-barred ... - Issues Involved:1. Justification of storage charges granted by the High Court.2. Applicability of the Limitation Act to the plaintiff's claim.3. Entitlement to a decree for interest claimed by the plaintiff.4. Calculation of storage charges for iron sheets.Detailed Analysis:1. Justification of Storage Charges Granted by the High Court:The appellant contended that the storage charges granted at Rs. 300 per month by the High Court were not justified based on the evidence. The High Court had based its calculation on the report of Mr. J.S. Mongia, who was deputed by the defendant to conduct an enquiry regarding the storage charges claimed by the plaintiff. Mr. Mongia's report suggested a fair rent of Rs. 200 per month, but the High Court increased this rate considering that some iron sheets had already been removed at the time of inspection. The High Court also took into account the additional services rendered by the plaintiff in maintaining the iron sheets. The Supreme Court found no reason to deviate from the High Court's conclusion that Rs. 300 per month was a reasonable charge for godown rent.2. Applicability of the Limitation Act to the Plaintiff's Claim:The appellant argued that the suit was governed by Article 61 of the Limitation Act and that the plaintiff's claim regarding items (c) to (f) was barred by time. The Supreme Court rejected this argument, stating that the transaction of bailment was a single and indivisible transaction, and the claim for compensation could not be split into different items for applying the bar of limitation. The Court agreed with the High Court that the suit was governed by Article 120 of the Limitation Act, and therefore, the plaintiff's claim was not barred by limitation.3. Entitlement to a Decree for Interest Claimed by the Plaintiff:The appellant contended that the plaintiff was not entitled to a decree for interest amounting to Rs. 2,974-2-0. The Supreme Court agreed with this contention, noting that interest could only be awarded if there was an agreement for payment of interest at a fixed rate, or if interest was payable by the usage of trade having the force of law, or under any substantive law. In this case, there was no such agreement or usage, nor any provision of law justifying the award of interest. The Court cited previous judgments, including Bengal Nagpur Rly. Co. Ltd. v. Ruttanji Ramji and Thawardas Pherumal v. Union of India, to support its decision. Consequently, the decree granted by the High Court was reduced by the amount of interest claimed.4. Calculation of Storage Charges for Iron Sheets:The plaintiff argued that there was an implied agreement for rent at Rs. 4 per ton per month, as there was no protest from the defendant upon receiving the notice. The Supreme Court found no basis for this claim, stating that mere silence from the defendant did not imply acquiescence or an undertaking to pay rent at that rate. The Court upheld the High Court's finding that Rs. 300 per month was a reasonable charge for storage.Conclusion:The Supreme Court modified the High Court's judgment and decree, affirming the plaintiff's entitlement to the following amounts:- Godown rent: Rs. 17,700- Chowkidar's salary: Rs. 2,360- Terminal Tax: Rs. 760- Cartage: Rs. 2,105- Unloading charges: Rs. 825- Cooliage: Rs. 800The total amount awarded was Rs. 24,551-3-0, excluding the interest claimed. Civil Appeal No. 43 of 1963 was allowed, and Civil Appeal No. 44 of 1963 was dismissed. There was no order as to costs for both appeals.