ambiguous sentence?

The sentence is not ambiguous--. . . the street known as Gali Ram Nath clearly shows that that was the name of the street.

I think additional punctuation is needed to transform the sentence into one wherein Gali Ram Nath is the name of the tree, but I see from where your confusion stems . As precisely written, the street is named Gali Ram Nah.

I find the use of "in" rather than "on" in placing the tree to be a bit jarring.

Trees grow on or along a street not in it.

Tell that to Cormack McCarthy. He has cigarette butts lying 'in' the floor.

He wrote Blood Meridian. He gets to use whatever words he want.

As an aside, it is interesting that Noam Chomsky made "ambiguous sentences" like "Visiting relatives can be a bore", central to his theory of "Transformational Grammar". But this theory was criticised by others as being wrongly focussed on the dis-embodied single sentence since so-called "ambiguity" is always resolvable by context/normal usage/expectancies shared between speaker and listener. (Note for example in this case that "Gali" is Hindi for "narrow lane").

He sure did. Also No Country for Old Men. I'll give him space.

.....stylistics, being partially concerned with authors establishing their own "grammars" (idiosyncratic usage rules).