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

The Supreme Court clarified that the measure of damages for property damage is the cost of restoration to its original condition, not complete reconstruction. The Court held that the respondent state was entitled to the amount necessary to restore the jetty, which was Rs. 16,400, and not the additional claims for emergent and minor repairs. The appeal modified the High Court's decree, affirming the trial court's decision to award Rs. 16,400 as the correct compensation amount under the principles established in the Wednesbury Corporation’s case.