Concept of liability

1. SNBP Law College
Topic: Concept of Liability
Presenter : Reshma Raichurkar
Roll No : 45
Student : LLB 2nd Year Semester 2

2. Points Cover:
● Concept of Strict Liability and Absolute
Liability
● Vicarious Liability
● Liability of Corporations

3. Strict Liability : Laid down by Justice Blackburn
- ‘No Fault ‘ Liability.
- Principle of strict Liability laid down in:
Case Law : Rayland v/s Fletcher
● Essentials :
○ Dangerous things
○ Escape
○ Non-natural use of Land
● Exceptions:
■ Act of God
■ Act of Stranger
■ Plaintiff’s own Fault
■ Statutory Authority
■ Consent of plaintiff

4. Absolute Liability = Strict Liability - Exception.
● ‘No Fault’ Liability.
● 1st time Enterprise was held liable.
● Results can be seen in Payment of Compensation.
● Two Landmark Case Laws:
○ “Shriram Food And fertilizers” v/s “Union Of India”.
○ Bhopal Gas Tragedy (1986). - “UCC” v/s “Union Of India”

5. ● Essentials :
○ Enterprise - Any profit making Organisation
○ Engaged in Hazardous activity.
○ Where Escape is not necessary.
○ Quantum of damages ∝ Size of Enterprise
∝ = Directly Proportional

6. Difference
Absolute Liability Strict Liability
Hazardous or Inherently Dangerous
Activities
Any Other Activities
Escape is not necessary-
Liability within and outside premise
Escape Necessary
No Exception to Rule Provides for exception
Applies to Non-Natural and natural uses
or land
Applies only to Non-Natural use of land

7. Vicarious Liability- Liability for wrongs, committed by others.
● Definition Vicar:
○ “A Vicar is one who performs the function of another. He is a
substitute.”
● Essentials:
○ There should be certain relationship between A and B.
○ The wrongful act should be, in certain way connected with that
relationship.
● It may arise in 3 ways:
○ Liability by ratification.
○ Liability arising out of special relationship.
○ Liability by abetment.

8. BY RELATIONSHIP
● Master and Servant
● Principal and Agent
● Firm and its Partner
● Company and its Directors
● Owner and Independent
● Contractor Guardian and his ward
● MASTER AND SERVANT
○ ESSENTIALS
■ The torts was committed by the servant.
■ The servant has committed the tort in the course his employment.

9. Liability of a Corporation
● This is treated as separate personality in law.
● Historically thought that it was only Civil In nature .
● Companies Act 2013 recognise the corporate criminal liability as criminal
activity.
● Governed by norms of vicarious liability.
Case law: Ranger v/s Great Western Railway 1859.
○ Liability of the Directors and Officers to the Shareholders
○ Liability of the Shareholders

10. Thank You