Name of the Case: Kasturi Lal Ralia Ram Jain v. The State Of Uttar Pradesh

Plaintiff: Kasturilal Ralia Ram Jain

Defendant: The State of Uttar Pradesh

Date of Judgment: 29th September 1964

Bench: Gajendragadkar, P.B., Wanchoo, K.N., Hidayatullah, M, Dayal, Raghubar; Mudholkar, J.R

INTRODUCTION

Vicarious responsibility, as defined by law, holds one person accountable for the actions of another. It implies that any wrongdoing committed by an employee while acting in the course and scope of their work could subject the employer to liability in the context of employment. Even though they did not personally participate in or approve of the behavior, an employer may nevertheless be held legally responsible for damages caused by a negligent, aggressive, or irresponsible employee. This legal doctrine is known as vicarious responsibility. This liability extends to the employee’s behavior while performing their job as well as, if applicable, their behavior outside of the workplace.

Kasturilal v. State of UP, a landmark decision in Indian contract law, dealt with the issue of “unconscionable transactions” and the extent to which the Court may get involved in such agreements. The plaintiff, Kasturilal, and the defendant, a moneylender, entered into a loan agreement for Rs. 1500, which included an annual interest rate of 75%. The plaintiff claimed that he was coerced into signing the contract since he was illiterate and ignorant of the terms of the loan. He argued that the agreement was illegal and against public policy, and the court should declare it void. The agreement was so blatantly unfair and onerous for the plaintiff that the court found it to be unconscionable. The Court further determined the arrangement was against public policy since it was immoral and exploitative and could not be legally implemented.

The Court made it plain that the courts would not uphold unethical agreements and that the weaker party should be shielded from the stronger party’s exploitation by the law. The Kasturi Lal v. State of UP ruling significantly impacted Indian contract law because it recognized the importance of justice and fairness in commercial interactions and created the notion that courts could intervene in unconscionable agreements.

FACTS OF THE CASE

Ralia Ram is a partner in a company that deals with bullion and other precious metals like gold and silver. In compliance with the Indian Partnership Act of 19323, the firm was founded in Amritsar and registered. On September 20, 1947, Ralia Ram traveled to Meerut via Frontier Mail in order to sell gold, silver, and other items in the city’s marketplaces.

Three police officers stopped Ralia Ram as he was walking past Chaupala Bazaar and took him to prison. He was located at the Kotwali police station following his test. A total of 103 tolas, six mashas, one ratti, two maunds of silver, and 612 seers were annexed by Ralia Ram Jain. His belongings were kept in custody while he was imprisoned at the police station. He was detained in the lockup on suspicion of carrying stolen goods.

Ram Ralia was given bail on September 21, 1947, and the silver that the policeman had seized from him was given back to him. After the silver was returned, Ralia Ram demanded the restoration of the gold, but he never received the confiscated goods back, despite his repeated claims to the contrary. He was compelled to launch the current case in response, demanding that the respondent pay him the gold’s worth or return it. He presented an alternate avow, which comprised the price of the gold at Rs. 11,075-10-0 and an interest of Rs. 355.

Ralia Ram’s gold was taken into custody by Mohammad Amir, the head of the Malkhana police station, where the confiscated things were being held. The appellant asserted that Mohd, On October 17, 1947, Amir went to Pakistan and was suspected of stealing the gold, which was lost. He was also charged with pilfering money and other stuff from the locker at the Malkahana police station prior to his departure from India. In reaction to the petitioner’s total loss, the current litigation was brought under Sections 409 of the Indian Penal Code (1860) and 29 of the Police Act (1860).

ISSUES OF THE CASE

In this instance, two significant questions were posed:

• Was the concerned police officer handling the ornaments taken from Kasturi Lal Ramia Ram Jain while she was negligently in custody?
• Whether or not the respondent was obligated to compensate the appellant for the damage done to it by the carelessness of the public servants it employed.

ARGUMENTS RAISED

Appellant Arguments:

The appellant claimed that the state was liable for the loss that was brought about by a servant’s actions. The appellant argued that the state servant (police officer) was careless while carrying out the responsibility that was placed on his shoulders by the state. In order to adhere to the precedent set by the same court in the case of State of Rajasthan v. Vidhyawati4, the appellant filed an appeal with the court.

Respondent Arguments:

The respondent argued that they were unable to locate Mohammad despite numerous efforts. The primary suspect is Amir. The respondent argued that the incident involved misappropriation of the property rather than negligence. The respondent went on to say that even if the police officer was negligent, the state would not be held responsible for the wrongdoing of the servant appointed by the state.

JUDGEMENT

The trial court announced the petitioner’s win. Respondent challenged the ruling and appealed to the Allahabad High Court, requesting that the trial court’s rulings be taken into account. Under the careful observation of the Allahabad High Court, the state argued that the preliminary court erred in pronouncing the appeal party’s ruling.

The Allahabad High Court took into consideration the respondent’s position. It decided that even in the event that carelessness was proven, the state could not be held accountable for the business and that the police officers had not been careless. Consequently, the appellant did not receive any favorable order and has not been able to reclaim the seized property or its value. Ram Ralia requested a certificate from the Allahabad High Court so he may appeal the court’s ruling to the Supreme Court. The appealing party’s attorney, Mr. M.K. Sastri, argued that the Allahabad High Court erred in awarding the respondent’s judgment. Now, the question of fact, the question of whether the police officer was negligent in handling the seized items, and the question of law must be decided by the Supreme Court: whether the court will compensate the servant of the state for his or her actions.

ANALYSIS

The Allahabad High Court’s decision states that the police officer did not behave carelessly. The Supreme Court upheld the police officers’ careless handling of the objects Ram Ralia Jain had gathered. The state did not take up the burden of paying the appellant when the police officer fled to Pakistan, notwithstanding the fact that his negligence and misuse of the property happened while he was carrying out his duties.

It was likewise considered an extraordinary act, and the applicant was not rewarded when a police officer was granted powers resembling sovereign powers. There is a claim that this represents a regression in the development of court rulings concerning government tort liability.

Since India no longer follows the European custom of the king being above the law, I believe the decision is not correctly drafted in line with the spirit of the Indian Constitution. As our state evolves and the role of the government grows, society is realizing how critical it is to adopt preventative measures against the unethical behavior of public servants.

Both the Supreme Court and the parliament acknowledged that the decision in the ongoing Kasturiala case was erroneous and called for legislation. Even with such ideas, the Government (Liability in Tort) Bill, which was meant to hold the state responsible and liable to the third party, was not included in the discussion and was never able to become legislation. As a result, the state’s attempt to establish a tort law system in India that recognizes vicarious liability was unsuccessful.

CONCLUSION

In several countries throughout the world, prescribed statutes have been put in place to hold the state responsible in the event that the servant is discovered to have committed any violation. Although India has many special legislation and rules, no mandatory laws have been made in this domain. India has a component of tort law that includes vicarious liability, but as far as we know, no laws have been put in place to make the nation’s tort laws enforceable. If laws are implemented to hold the government responsible for the conduct of its personnel, people will feel safer. They will feel more secure as a result, which will inspire them to trust the government. Additionally, this will help to preserve the hierarchies of power inside the relevant organizations and agencies.

Many proposals have been put out over time. In a 1956 Law Commission study, the Supreme Court recommended certain changes in this area; sadly, no attempt has been taken in that direction. Over time, state responsibility has also seen a name change. The welfare state that the state has become has increased its chances of becoming dominant. It is now imperative that India modernize its legal framework to hold its workers accountable. One other thing needs to be handled, though: the State should only provide this authority to people who won’t burden it excessively.