Penninsular Oreintal Steam Navigation company v. Secretary of state of India: Case summary

Case Summary

Facts:

Plaintiff’s servant travelling in a horse driven carriage,was passing by a dock yard which was government property. Due to negligence of defendant’s servant, a heavy piece of iron—carrying for repair,fell and its clang frightened the horse.The horse rushed forward against the iron and was injured.

Ratio Decendi:

  1.  Distinction was drawn between sovereign and Non-sovereign function.It was held that, the Act done in the exercise of sovereign functions,the East India company would not have been liable.
  2. But if non-sovereign that is not delegation of power by the government and can be performed by private individual the company would have been liable.
    Maintenance of dockyard was considered to be a non-sovereign function and government was held liable.
  3. It was also observed that if tortious act committed by public servant in discharge of statutory duty which are referable to delegation of sovereign powers of the state to such public servant and if answer is affirmative then action for damage of loss for tortious act would not lie and if answer is negative then action would lie.

Decision:

 Maintenace of dockyard cannot be considered as a delegation of sovereign function and government was held liable.

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