1. Introduction – Law of Torts
Tort: A civil wrong, other than breach of contract or breach of trust, whereby a person’s legal right is violated and he suffers harm.
The purpose of tort law is to provide compensation for wrongful loss.
Public Utility Corporations, though government-owned or controlled, can also be subject to tortious liability like private individuals or companies.
2. Meaning of Public Utility Corporations
Public Utility Corporations are statutory corporations or government undertakings created for providing essential public services.
Examples:
Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL)
BEST Undertaking (Mumbai)
MTNL / BSNL
MSRTC (State Transport)
They are legal persons in the eye of law, hence capable of suing and being sued.
3. Tortious Liability of Public Utility Corporations
Public utility bodies are liable under tort law in the following ways:
(i) Status as Legal Person
Since these corporations are statutory bodies, they enjoy a legal personality separate from the government.
They can be held liable for wrongful acts, negligence, or omissions.
(ii) Vicarious Liability for Employees’ Acts
If employees commit negligence during the course of employment, the corporation is vicariously liable.
Example: If an electricity worker negligently starts supply without proper checks and a citizen is electrocuted, the Electricity Board will be liable.
(iii) Negligence in Providing Services
They must maintain reasonable care in delivery of services like transport, water, electricity, etc.
Negligence results in actionable claims:
Bus accidents by MSRTC drivers,
Electricity pole collapse by MSEB,
Water contamination by civic authorities.
(iv) Strict Liability (Inherently Dangerous Activities)
Public utility corporations often deal with dangerous operations (electricity, gas, chemical storage).
Even without negligence, liability may arise under the principle of strict liability [origin: Rylands v. Fletcher (1868)].
Example: Gas explosion, chemical leakage, electrocution, etc.
4. Important Case Laws
Municipal Corporation of Delhi v. Subhagwanti (1966)
Clock tower collapse killed 23 persons.
Corporation held liable for failure to maintain structure.
Rajkot Municipal Corporation v. Manjulben Jayantilal (1997)
Water contamination due to negligent repair.
Corporation held liable for supply of hazardous water.
Kasturi Lal v. State of UP (1965)
Gold seized by police lost due to negligence.
State not liable as police function was held a sovereign function.
But later courts distinguished sovereign functions from commercial/public utility services.
5. Sovereign vs. Non-Sovereign Functions
Sovereign Functions (no liability):
Maintenance of law & order,
Administration of justice,
Defence/security.
Non-sovereign / Commercial Functions (liability applies):
Supply of water, electricity, transport, telecommunication.
Thus, public utility services = commercial services → liable under tort law.
6. Conclusion
Public Utility Corporations, though government-created, are treated as legal persons.
They are liable for negligence, vicarious acts of employees, and inherently dangerous activities.
Sovereign immunity is restricted to core state functions only; not applicable to public utility services.
Therefore, victims of negligence or hazardous acts can claim damages and justice from such corporations.
Here’s a crisp bullet-point revision sheet for
last-minute exam prep on Tortious
Liability of Public Utility Corporations:
Tortious Liability of Public Utility Corporations – Quick
Revision Notes
1. Law of Torts – Basics
·
Tort =
Civil wrong (other than breach of contract/trust).
·
Purpose:
Compensation for violation of legal rights.
2. Public Utility Corporations
·
Statutory/government
bodies providing essential services.
·
E.g.:
MSEDCL, BEST, MTNL, BSNL, MSRTC.
·
Have legal personality → can sue & be
sued.
3. Liability Principles
(i) Legal
Personality
·
Corporations
liable like private entities.
(ii)
Vicarious Liability
·
Acts/omissions
of employees during duty → corporation liable.
o Example:
Negligent electricity supply, bus driver accidents.
(iii)
Negligence
·
Duty to
provide services with care.
·
Tap water
contamination, faulty electricity poles, road accidents = liability.
(iv)
Strict Liability (Rylands
v. Fletcher)
·
Inherently
dangerous activities (electricity, gas, chemicals).
·
Liability
even without proving negligence.
4. Key Case Laws
·
MCD v. Subhagwanti (1966): Clock tower collapse, liability for
poor maintenance.
·
Rajkot Municipal Corp. v. Manjulben
(1997): Water contamination, corporation
liable.
·
Kasturi Lal v. State of UP (1965): Gold seized lost by police → no
liability (sovereign function).
5. Sovereign vs. Non-Sovereign
·
Sovereign Functions → No liability (law & order, defence, justice).
·
Non-sovereign/Commercial Functions →
Liability applies
(electricity, water, transport).
6. Conclusion
·
Public
utility corporations = liable in tort
for negligence, vicarious offences, strict liability cases.
·
Only core sovereign functions enjoy
immunity.
·
Aim:
Ensure public safety & provide compensation to victims.
✅ Exam
Tip:
·
Define
tort in 1 line → List liability principles → Add 2–3 case laws → Conclude with
sovereign v. commercial function distinction.
Here’s a one‑page Flowchart / Memory Map for
quick recall of Tortious Liability of
Public Utility Corporations. You can literally “see” the structure at a
glance before the exam:
Flowchart – Tortious Liability of
Public Utility Corporations
Law of Torts
(Civil Wrong → Compensation)
│
▼
Public Utility Corporations (Statutory
bodies → Legal Person)
│
┌──────────┼───────────┐
▼ ▼ ▼
Legal Vicarious Negligence
Person Liability in Services
(liability (acts of (transport,
like employees) electricity,
private co.) water etc.)
│ │ │
▼ ▼ ▼
Example:
Elec. worker Bus accidents,
Company
negligence water contam.,
falling poles
│
▼
Strict Liability (Rylands v.
Fletcher)
- Inherently dangerous activities
- (Gas, electricity, chemicals →
explosions, leaks)
│
▼
Case Laws
• MCD v. Subhagwanti (1966) – clock
tower collapse
• Rajkot Corp v. Manjulben (1997) –
contaminated water
• Kasturi Lal v. State of UP (1965) –
sovereign function immunity
│
▼
Sovereign vs. Non-Sovereign Functions
• Sovereign (law & order, justice,
defence) → No liability
• Non-sovereign (water, electricity,
transport) → Liable
│
▼
Conclusion
Public Utility Corporations = Liable in
tort for
negligence, vicarious acts, &
strict liability cases
(except in core sovereign functions).
✅ How
to use this in exam prep:
·
Keep flow top to bottom in mind → Definition → Entities → Types of Liability →
Case Laws → Sovereign vs Non-sovereign → Conclusion.
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