Facts: The plaintiff’s husband died after being knocked down by a government jeep car which was driven rashly and negligent by an employee of State of Rajasthan.
The car was being driven back from the workshop to the collectors bungalow for the collector’s use
Issue:
1. Whether state of Rajasthan  is vicariously liable. for the tortious act committed by its servant?
2. Whether driving of jeep car from workshop to collector’s bungalow can be regarded as being done in exercise of the sovereign function of the state?
Ratio Decendi:
The Hon’ble Supreme court observed:” under the Constitution we have established welfare state whose function are not confined only to maintaining law and order, but to extend to engaging activities including industry, public transport, state trading etc to name only few of them. Insofar as the state activities have wide ramifications involving not only the use of sovereign power but powers of employer in so many public sectors, it is too much to claim that state should be immune from the consequence of tortious acts of its employees committed in course of their employment as such”
The apex court emphasised that Article 300 of the Constitution of India itself saved the right of parliament or legislature of state to enact such law as it may think fit and proper in this behalf.
Decision:
The Sc  held the state liable by upholding the view and confirming the decision of Rajasthan High Court.