LLM Notes: Tortious Liability of Public Corporations in India

 Definition and Scope

Tortious liability refers to the legal responsibility of an entity to compensate for harm or injury caused by its wrongful acts or negligence. In India, public corporations—such as LIC or Food Corporation of India—are statutory bodies created by special acts of Parliament and possess a separate legal identity from the government.

Liability in Torts

• Public corporations are liable for torts (civil wrongs) committed by their employees or agents during the course of their employment, provided the act falls within the powers and purposes of the corporation.

• This liability is similar to that of private employers: if an employee, acting within the scope of their job, commits a tort, the corporation can be held vicariously liable.

• However, if the act is ultra vires (beyond the authority granted by the statute), the corporation is generally not liable for such actions.

• Public corporations cannot claim the immunity conferred upon the government under Article 300 of the Indian Constitution. They can be sued for torts like libel, deceit, or malicious prosecution, but not for personal torts such as assault or personal defamation.

Key Principles

• Vicarious Liability: Public corporations are vicariously liable for torts committed by their employees in the course of employment, mirroring the principle applied to private employers.

• Defenses: Public corporations can use the same defenses available to private individuals in tort actions. If the statute under which the corporation is established provides immunity for acts done in good faith, the corporation may be protected in those instances (e.g., Section 28 of the Oil and Natural Gas Commission Act).

• Exclusions: As artificial legal persons, public corporations cannot be held liable for torts or crimes that require a natural person, such as murder or bigamy.

• Comparison with State Liability

• While both the State and public corporations can be sued for torts, the constitutional immunity available to the State under Article 300 does not extend to public corporations. Thus, their tortious liability is more akin to that of private entities

Summary Table

Aspect	Public Corporation Liability in Tort
Vicarious Liability	Yes, for acts of employees within authority
Ultra Vires Acts	No liability
Immunity (like State)	Not available
Types of Torts	Libel, deceit, malicious prosecution, etc.
Defenses Available	Same as private individuals
Liability for Personal Torts	Generally not liable

Conclusion

Public corporations in India are liable for tortious acts committed by their employees within the scope of their employment and statutory powers, similar to private companies. They do not enjoy the constitutional immunities of the State and are subject to civil suits for torts unless protected by specific statutory provisions.

Tortious Liability of Public Corporations in India: Ten Key Points

1. Separate Legal Entity

Public corporations are statutory bodies with a distinct legal identity, separate from the government and their members.

2. Liability in Tort

They can be held liable for torts (civil wrongs) committed by their employees during the course of employment, provided the act falls within the powers and purposes of the corporation.

3. Vicarious Liability

Public corporations are vicariously liable for torts committed by their servants, similar to private employers, if the act is within the scope of employment and statutory authority.

4. Ultra Vires Acts

If an employee’s act is ultra vires (beyond the corporation’s statutory powers), the public corporation is not liable for that act.

5. Immunity Not Available

Public corporations cannot claim the constitutional immunity available to the government under Article 300 of the Indian Constitution.

6. Types of Torts

They can be sued for torts like libel, deceit, or malicious prosecution, but generally not for personal torts such as assault or personal defamation.

7. Defenses Available

Public corporations can use the same legal defenses in tort actions as private individuals. If the statute provides immunity for acts done in good faith, that immunity applies.

8. Servants Not Civil Servants

Employees of public corporations are not considered civil servants and are governed by the corporation’s own rules and regulations.

9. Power to Sue and Be Sued

Public corporations can sue others and be sued in their own corporate name, just like private companies.

10. Limited Criminal Liability

While public corporations can be vicariously liable for certain criminal acts by employees (like fraud or contempt of court), they cannot be liable for crimes requiring a natural person (like murder or bigamy).

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Mind Map Preparation Text

• Central Node: Tortious Liability of Public Corporations in India

  • Separate Legal Entity: Statutory bodies, distinct from government

  • Liability in Tort: Liable for torts by employees within powers

  • Vicarious Liability: Liable for acts within employment scope

  • Ultra Vires Acts: No liability for acts beyond statutory powers

  • Immunity Not Available: No Article 300 immunity

  • Types of Torts: Liable for libel, deceit, malicious prosecution

  • Defenses Available: Same as private individuals; statutory immunity possible

  • Servants Not Civil Servants: Governed by corporate rules

  • Power to Sue and Be Sued: Corporate name, like private companies

  • Limited Criminal Liability: Only for certain crimes, not those requiring natural person

Use these nodes and sub-nodes to visually organize the key aspects of tortious liability for public corporations in India.

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