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SNBP Law College
Topic: Concept of Liability
Presenter : Reshma Raichurkar
Roll No : 45
Student : LLB 2nd Year Semester 2
Points Cover:
● Concept of Strict Liability and Absolute
Liability
● Vicarious Liability
● Liability of Corporations
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
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”
● Essentials :
○ Enterprise - Any profit making Organisation
○ Engaged in Hazardous activity.
○ Where Escape is not necessary.
○ Quantum of damages ∝ Size of Enterprise
∝ = Directly Proportional
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
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.
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.
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
Thank You

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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