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BLS LLB 5 Years Sem 5 Torts 2022-23 - ATKT Question Paper with Solutions

Mumbai University Solved Question Papers

Torts

Previous Year Question Paper with Solution

BLS LLB 5 Years · Sem 5

2022-23 - ATKT Examination

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Mumbai

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First published on munotes.in on 11 August 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.

munotes.in is an independent study resource for students of the University of Mumbai. It is not affiliated with the University of Mumbai, and is not endorsed by it.

The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by the University of Mumbai at the 2022-23 - ATKT examination.

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The Paper as Set

The questions in this volume are the questions asked at the 2022-23 - ATKT examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.

Duration 2 hours  ·  Total marks 60  ·  22 questions answered

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

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SECTION I

Answer the following in two to three sentences

Any 6 · 12 Marks

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1.State judicial remedies available in law of Tort.[2]

Answer

The judicial remedies in tort, that is those obtained by an action in a court, are three:

  1. Damages, the pecuniary compensation awarded for the injury, which in tort are always unliquidated, assessed on the principle of restitutio in integrum;
  2. Injunction, an equitable and discretionary order directing the defendant to do, or more usually to refrain from doing, an act, granted where damages would be inadequate; and
  3. Specific restitution of property, the recovery of the property itself where the plaintiff has been wrongfully dispossessed of movable or immovable property.
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2.What is Cyber Tort?[2]

Answer

A cyber tort is a civil wrong committed through, or against, a computer, a computer system, a computer network or the internet, for which the remedy is compensation to the person injured. It is the ordinary law of torts applied in the digital medium, together with the statutory rights created by the Information Technology Act, 2000.

Its common forms are cyber defamation, cyber stalking and harassment, phishing and identity theft, hacking and unauthorised access causing loss, data theft, breach of privacy and domain name passing off.

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3.What is meant by misfeasance?[2]

Answer

Misfeasance is the improper or negligent performance of an act which is in itself lawful. The defendant was entitled to do the thing; the wrong lies in the manner in which he did it. A contractor entitled to dig up a road who leaves the trench unlit and unguarded commits misfeasance.

It belongs to a set of three. Malfeasance is the doing of an act unlawful in itself, which the defendant had no right to do at all. Non-feasance is the omission to perform an act which the defendant was under a duty to perform.

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4.What does contributory negligence mean?[2]

Answer

Contributory negligence is the failure of the plaintiff to take reasonable care of his own safety, which combines with the defendant's negligence to cause the damage he complains of. It is not the breach of a duty owed to the defendant; it is a want of care by the plaintiff for himself.

At common law it was a complete defence (Butterfield v Forrester, 1809). The modern rule is apportionment: the claim is not defeated, and the damages are reduced to such extent as the court thinks just and equitable having regard to the plaintiff's share in the responsibility.

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5.What are two kinds of Tort?[2]

Answer

The classical division is by whether damage must be proved:

  1. Torts actionable per se, that is actionable without proof of any damage, because the law presumes damage from the infringement of the right. Trespass to land, trespass to the person (assault, battery and false imprisonment) and libel are the standing examples, and Ashby v White (1703) is the case.
  2. Torts actionable only on proof of damage, where the plaintiff must show he has actually suffered loss. Negligence, nuisance, deceit, malicious prosecution and slander in English law fall here.

A second and equally acceptable division is by the defendant's state of mind: intentional torts, such as assault, battery, false imprisonment, trespass, deceit and defamation, and unintentional torts, principally negligence, to which is added a third class of strict and absolute liability, where the state of mind is irrelevant altogether.

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6.What is Malice in Law and Malice in Fact?[2]

Answer

Malice in law, also called implied malice or legal malice, means a wrongful act done intentionally, without just cause or excuse. It has nothing to do with ill will: it means only that the act was deliberate and unjustified. Bayley J stated it in Bromage v Prosser (1825).

Malice in fact, also called express malice or actual malice, means an evil motive, that is spite, ill will or an improper purpose in doing the act.

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7.What is accord and satisfaction?[2]

Answer

Accord and satisfaction is a mode by which tortious liability is discharged.

Accord is the agreement by which the person injured by a tort agrees to accept some consideration in place of his right of action. Satisfaction is the actual payment or performance of that consideration.

Both are necessary: an accord without satisfaction is no discharge, because the promise to accept does not extinguish the claim until what was promised has actually been given.

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8.Explain the term Consumer dispute.[2]

Answer

Section 2(8) of the Consumer Protection Act, 2019 defines a "consumer dispute" as a dispute where the person against whom a complaint has been made denies or disputes the allegations contained in the complaint.

So two things must exist before there is a consumer dispute: a complaint as defined in Section 2(6), made by a complainant as defined in Section 2(5); and a denial or dispute of the allegations by the opposite party.

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9.What is dispossession?[2]

Answer

Dispossession is the wrongful deprivation of a person's possession of land or of goods, that is the ouster of the person in possession by another who takes possession in his place. It is the most serious form of trespass, because the trespasser does not merely enter but stays and excludes the possessor.

Trespass to land takes three forms: entry on the land, remaining on it after the right of entry has ended, and dispossession, that is turning the possessor out.

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10.Who is electronic service provider?[2]

Answer

Section 2(17) of the Consumer Protection Act, 2019 defines an "electronic service provider" as a person who provides technologies or processes to enable a product seller to engage in advertising or selling goods or services to a consumer, or who provides an online market place or online auction sites.

The definition matters because it brings the platform itself inside the Act. Section 2(42) carries such a provider within "service", so a complaint of deficiency lies against a marketplace and not only against the seller on it; and Section 94 empowers the Central Government to prevent unfair trade practices in e-commerce and direct selling, under which the Consumer Protection (E-Commerce) Rules, 2020 were made.

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SECTION II

Write short notes on

any 2 · 12 Marks

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11.Actio Personalis Moritur cum Persona[6]

Answer

Actio personalis moritur cum persona means "a personal action dies with the person". At common law, on the death of either the injured party or the wrongdoer, a personal right of action was extinguished: the wrongdoer's estate could not be sued, and the estate of the injured party could not sue.

The reason for the rule was historical. The old forms of action were closely bound up with the criminal process, in which liability was personal and punishment could not be inflicted on an estate; and damages were regarded as a solatium to the injured person, which was pointless once he was dead.

Its injustice was obvious. In the standing illustration, a wrongdoer who merely injured a man had to compensate him, while a wrongdoer who killed him escaped altogether, because the claim died with the victim. That is why it has been very largely abolished by statute.

The Indian statutory position:

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  1. Section 306 of the Indian Succession Act, 1925. All demands, and all rights to prosecute or defend any action or special proceeding, existing in favour of or against a person at the time of his death, survive to and against his executors or administrators, except causes of action for defamation, assault as defined in the Indian Penal Code, or other personal injuries not causing the death of the party. So the maxim now survives only in that residue.
  2. The Legal Representatives Suits Act, 1855. An action lies against the executors of a deceased wrongdoer in respect of a wrong done by him to the property of another, if brought within one year of the death.
  3. The Fatal Accidents Act, 1855. Where death is caused by a wrongful act, neglect or default such as would, if death had not ensued, have entitled the injured party to sue, an action lies for the benefit of the wife, husband, parent and child of the deceased. This is a new and independent cause of action vested in the dependants for their own loss, and it is quite distinct from anything surviving to the estate.
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  1. The Motor Vehicles Act, 1988, Chapters X to XII, provides a self-contained machinery for compensation on death or injury in a motor accident, before the Motor Accidents Claims Tribunal, including no fault liability under Section 140 and structured compensation under Section 163A.
  2. The Consumer Protection Act, 2019, by Section 2(5)(v), allows the legal heir or legal representative of a deceased consumer to be a complainant.
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12.Damages[6]

Answer

Damages are the pecuniary compensation which the law awards to a person for the injury he has sustained by the wrong of another. In tort they are unliquidated, that is assessed by the court and not fixed in advance by the parties, and the governing principle is restitutio in integrum: the plaintiff is to be placed, so far as money can do it, in the position he would have occupied had the tort not been committed.

The kinds:

  1. Nominal damages: a small sum where a legal right has been infringed but no loss suffered. They vindicate the right, and are the natural award in torts actionable per se. Ashby v White (1703).
  2. Contemptuous damages: the smallest coin in the realm, where the plaintiff has a technical right but the court disapproves of his having sued; he is usually refused his costs as well.
  3. Compensatory or ordinary damages: measured by the actual loss, both pecuniary (expenses, loss of earnings, loss of future earning capacity by the multiplicand and multiplier method) and non-pecuniary (pain and suffering, loss of amenities, loss of expectation of life).
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  1. Aggravated damages: an increased compensatory award where the manner of the wrong, or the defendant's conduct afterwards, injured the plaintiff's feelings and dignity. They remain compensatory.
  2. Exemplary, punitive or vindictive damages: awarded to punish the defendant and deter others, and measured by his conduct and not by the plaintiff's loss. Rookes v Barnard (1964) confined them in England to three categories: oppressive, arbitrary or unconstitutional action by servants of the government; conduct calculated to make a profit exceeding the compensation payable; and where expressly authorised by statute.
  3. Prospective or future damages: for loss reasonably expected to arise in the future from the same tort, awarded once and for all, because the law does not permit a cause of action to be split.
  4. General damages: loss the law presumes, needing no proof of amount.
  5. Special damages: loss actually incurred, which must be specifically pleaded and strictly proved.

The controls on the award:

  • Causation, tested by the but for rule;
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  • Remoteness, tested since The Wagon Mound (1961) by whether damage of that kind was reasonably foreseeable, displacing the directness test of Re Polemis (1921);
  • the eggshell skull rule: once a foreseeable kind of harm is established, the defendant takes his victim as he finds him, Smith v Leech Brain and Co (1962); and
  • mitigation: the plaintiff must take reasonable steps to reduce his loss.
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13.False imprisonment[6]

Answer

False imprisonment is the total restraint of a person's liberty, for however short a time, without lawful justification. It is one of the three forms of trespass to the person, the others being assault and battery, and it is actionable per se.

Essentials:

  1. Total restraint. The confinement must be complete, leaving no reasonable means of escape. A partial obstruction is not enough: Bird v Jones (1845), where part of a public bridge was fenced off and the plaintiff, though prevented from going the way he wished, could have gone another; held, no false imprisonment.
  2. Absence of lawful justification. Restraint under a valid arrest, an order of a court, or a statutory power exercised within its terms is lawful.
  3. The period is immaterial. A few minutes suffices; the duration goes only to the quantum of damages.
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  1. Knowledge of the plaintiff is not essential. Herring v Boyle (1834) held otherwise, on facts involving a schoolboy detained for non-payment of fees who was unaware of it, but it has been displaced. Meering v Grahame-White Aviation Co (1919): Atkin LJ held that a person can be imprisoned while he is asleep, while drunk, while unconscious and while insane, and that knowledge is not necessary. Murray v Ministry of Defence (1988) confirmed this in the House of Lords, adding that a plaintiff unaware of the restraint who suffered no harm will recover only nominal damages.
  2. The means may be physical or by assertion of authority. A locked door will do; so will the assertion of authority by a person the plaintiff is bound to obey, provided the plaintiff submits to it. Mere moral pressure without submission is not enough.

Remedies:

  • Damages, including aggravated and, in a proper case, exemplary damages;
  • a writ of habeas corpus under Article 32 or Article 226 of the Constitution, which is the remedy while the detention continues;
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  • self-help, that is escape, using reasonable force; and
  • the criminal counterparts, wrongful restraint under Section 339 and wrongful confinement under Section 340 of the Indian Penal Code.

Defences: lawful arrest, with or without warrant, in accordance with Sections 41 to 60 of the Code of Criminal Procedure, 1973; valid process of a court; statutory authority; consent; and parental or quasi-parental authority to impose reasonable restraint.

Remedies.

  1. Damages. Because the tort is actionable per se, the plaintiff recovers for the loss of liberty itself without proving any harm, together with injury to feelings and humiliation. Aggravated damages where the detention was high-handed, and exemplary damages where it was oppressive, arbitrary or unconstitutional action by servants of the government, the first of the Rookes v Barnard (1964) categories.
  2. A writ of habeas corpus under Article 32 or Article 226, which is the remedy while the detention continues.
  3. Self-help, that is escape, using reasonable force.
  4. The criminal counterparts, wrongful restraint under Section 339 and wrongful confinement under Section 340 of the Indian Penal Code.
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Defences. Lawful arrest, with or without warrant, under Sections 41 to 60 of the Code of Criminal Procedure, 1973; valid process of a court, so that an arrest under a magistrate's order cannot be false imprisonment, the restraint being imposed by a judicial act; statutory authority; consent; and parental or quasi-parental authority to impose reasonable restraint.

Indian constitutional cases. Bhim Singh v State of Jammu and Kashmir (1985) 4 SCC 677, Rs. 50,000 to an MLA wrongfully detained; Nilabati Behera v State of Orissa (1993) 2 SCC 746, sovereign immunity is no defence to a claim for violation of Article 21; D K Basu v State of West Bengal (1997) 1 SCC 416, the requirements to be followed in every arrest.

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14.Unfair trade practice[6]

Answer

Section 2(47) of the Consumer Protection Act, 2019 defines an unfair trade practice as a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice, including the practices the section lists.

The listed practices are, in substance:

  1. falsely representing that goods are of a particular standard, quality, quantity, grade, composition, style or model;
  2. falsely representing that services are of a particular standard, quality or grade;
  3. falsely representing rebuilt, second-hand, renovated, reconditioned or old goods as new;
  4. representing that goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which they do not have;
  5. representing that the seller has a sponsorship, approval or affiliation which he does not have;
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  1. making a false or misleading representation concerning the need for, or the usefulness of, any goods or services;
  2. giving a warranty or guarantee of performance not based on an adequate or proper test;
  3. making a misleading representation about the price, including a false "bargain price";
  4. giving false or misleading facts disparaging the goods or services of another;
  5. manufacturing spurious goods or offering goods or services as spurious, or adopting deceptive practices in providing services;
  6. permitting the offering of prizes or gifts with the intention of not providing them, or conducting a contest, lottery or game of chance to promote sale;
  7. permitting the sale of goods not complying with prescribed safety standards;
  8. hoarding or destroying goods, or refusing to sell them, so as to raise the cost;
  9. failing to issue a bill, cash memo or receipt for the goods sold or services rendered;
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  1. refusing, after receiving the goods or services and having been informed in writing by the consumer, to take them back or withdraw the services and refund the consideration within the stipulated period; and
  2. disclosing to any other person personal information given in confidence by the consumer, unless the disclosure is made in accordance with law or in the public interest.

Remedies. Section 39 empowers the Commission to direct the trader to discontinue the practice and not to repeat it, to order cessation of a misleading advertisement and the issue of a corrective advertisement, and to award compensation and costs. Separately, the Central Consumer Protection Authority under Section 10 may act on its own motion, order recall and reimbursement, and impose penalties for misleading advertisements of up to Rs. 10 lakh and up to Rs. 50 lakh for repeat contraventions, with power to prohibit an endorser for one year, extending to three.

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SECTION III

Solve

any 2 · 12 Marks

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15.Omkar employed an independent contractor to construct a drain. While doing the work, Omkar instructed the contractor to leave a heap of gravel on the road. Contractor was warned by a constable to remove the heap of gravel. Pranav, a passer-by, slipped upon the heap of gravel and was injured.[6]

  • (a) Against whom the Pranav should file a suit for recovery of compensation? Why?
  • (b) What is general rule between independent contractor and his employer, regarding vicarious liability?

Answer

a) Against whom the Pranav should file a suit for recovery of compensation? Why?

Pranav should sue both Omkar and the contractor, and he will succeed against Omkar.

The general rule is that an employer is not liable for the torts of an independent contractor. But this case falls within two exceptions, and either alone is enough.

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1. Omkar authorised the wrongful act. The problem states that Omkar instructed the contractor to leave the heap of gravel on the road. An employer is always liable where he authorises or ratifies the wrongful act, because he is then not answering for another's tort at all: he is a joint tort-feasor and answers for his own. Obstructing a public highway with a heap of gravel is a public nuisance under Section 268 of the Indian Penal Code, and directing it to be done makes Omkar the author of it.

2. The work was on or adjoining a highway, and the duty is non-delegable. Where an employer engages a contractor to do work which is likely to cause danger to persons using a highway, the duty to see that care is taken is non-delegable: he cannot discharge it by delegating the work to a competent contractor.

Bower v Peate (1876): the employer of a contractor was held liable where the work involved the withdrawal of support from a neighbour's house, Cockburn CJ saying that a person who orders work to be done from which mischievous consequences will arise unless preventive measures are adopted cannot relieve himself of responsibility by employing someone else.

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Tarry v Ashton (1876): a heavy lamp attached to the defendant's house overhung the footway and fell on a passer-by. The defendant had employed a competent contractor to repair it, and was still held liable, because the duty to keep the lamp safe for those using the highway was his own.

Penny v Wimbledon Urban District Council (1899): a local authority employed a contractor to make up a road, and heaps of soil were left unlighted at night; a passer-by fell over one and was injured. The Council was held liable, the work being of a kind necessarily involving danger to the public unless precautions were taken.

Pranav's cause of action is in negligence and in public nuisance. As a member of the public he can sue in nuisance only on proof of special damage, that is damage over and above that suffered by the public generally, and a broken limb is precisely that.

The contractor is also liable, personally, for his own negligence, and additionally because he was warned by a constable to remove the heap and did not. That warning is important on the facts, because it destroys any argument that the danger was unforeseeable.

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Practically, Pranav should sue both, since they are joint tort-feasors and their liability is joint and several, so he may recover the whole from whichever of them can satisfy the judgment.

b) What is general rule between independent contractor and his employer, regarding vicarious liability?

The general rule is that an employer is not vicariously liable for the torts of an independent contractor.

The distinction rests on control. A servant works under a contract of service and is subject to the employer's control as to the manner in which the work is done. An independent contractor works under a contract for services: he undertakes to produce a result, and how he achieves it is his own affair. Since the employer does not control the manner of the work, the law does not make him answerable for the way it is done.

The tests for distinguishing the two are the control test, the organisation or integration test formulated by Denning LJ in Stevenson, Jordan and Harrison Ltd v Macdonald and Evans (1952), and the modern multiple test which weighs all the indicia. In India, Dharangadhara Chemical Works v State of Saurashtra (AIR 1957 SC 264) holds that the prima facie test is the right of control over the manner of doing the work, but that all the features of the relationship must be considered.

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The exceptions, where the employer is liable, are:

  1. where he authorises or ratifies the wrongful act;
  2. where he is negligent in selecting an incompetent contractor;
  3. where the duty is non-delegable, which covers statutory duties, work on or near a highway, the withdrawal of support from a neighbour's land, and duties arising from the occupation of premises;
  4. where the work is extra-hazardous or inherently dangerous, such as work with fire or explosives (Honeywill and Stein Ltd v Larkin Brothers Ltd, 1934); and
  5. where strict liability applies. Rylands v Fletcher (1868) is itself the leading example: the defendant employed competent independent contractors to build the reservoir and was liable nonetheless.
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16.A man engages a decorator to carry out decorations in a house. For that he gave main door key to him and instructed him to return the key after finishing the work. The decorator left the house to bring some material of decoration without locking the door. Meanwhile a thief entered the house and stole some property.[6]

  • (a) Name the tortious activity, with it's essentials for which decorator is liable.
  • (b) What are general defences available to that tortious activity?

Answer

a. Name the tortious activity, with it's essentials for which decorator is liable.

The tort is negligence.

These are the facts of Stansbie v Troman [1948] 2 KB 48. A decorator was left alone in a house, was told to lock the door if he went out, went out to buy wallpaper leaving the door unlocked for about two hours, and during his absence a thief entered and stole money and a diamond bracelet. The Court of Appeal held the decorator liable in negligence.

The three essentials, applied:

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1. A duty of care. The decorator was left in sole charge of the house and was given the key. That gives rise to a duty to take reasonable care for the security of the premises and the goods in them. The duty here arises from the relationship of the parties: the decorator was in possession and control, and the householder had entrusted the house to him. It is reinforced by the express instruction to lock up. Under Donoghue v Stevenson (1932) the neighbour principle is satisfied: a person who leaves a house unlocked can readily foresee that a thief may enter and that the owner will suffer loss.

2. Breach. Leaving the door unlocked while going out is plainly a failure to take the care a reasonable person in that position would take, and the express instruction removes any argument about what the standard required.

3. Damage caused by the breach, not too remote. The property was stolen.

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The point of law the case decides is on the third element: whether the deliberate criminal act of a third party breaks the chain of causation as a novus actus interveniens. The Court of Appeal held that it did not, because the very duty the decorator owed was a duty to guard against that precise risk. Tucker LJ put it that the duty arose because of the circumstances in which the decorator was left in the house, and that the loss was the natural and probable consequence of leaving the door unlocked.

That is the modern rule, confirmed in Home Office v Dorset Yacht Co (1970): a third party's deliberate act does not break the chain where the defendant's duty was precisely to prevent that kind of act.

The householder's alternative characterisation is breach of a bailee's duty. The decorator was, as regards the house and its contents entrusted to him, in the position of a person having custody, and under Sections 151 and 152 of the Indian Contract Act, 1872 a bailee must take as much care of the goods bailed as a man of ordinary prudence would take of his own goods of the same bulk, quality and value. On these facts he plainly did not.

b. What are general defences available to that tortious activity?

The general defences to an action in negligence are:

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  1. Contributory negligence. The plaintiff's own failure to take reasonable care of his interests, which now reduces the damages in proportion to his share of responsibility rather than defeating the claim: Municipal Corporation of Greater Bombay v Laxman Iyer (2003) 8 SCC 731. On these facts there is nothing to suggest it, unless the householder had himself left valuables in plain view after being warned not to.
  2. Volenti non fit injuria. The plaintiff freely and voluntarily agreed to run the risk, with full knowledge of its nature and extent. Knowledge alone is not enough: Smith v Baker (1891). It would not assist the decorator, since the householder consented to the decoration, not to the house being left open.
  3. Inevitable accident. An accident which could not have been avoided by ordinary care, caution and skill: Stanley v Powell (1891). Not available here, since locking a door is the easiest of precautions.
  4. Act of God (vis major). An operation of natural forces without human intervention, so extraordinary that no human foresight could provide against it: Nichols v Marsland (1876). A thief is the act of man, not of nature, which is the point decided in Ramalinga Nadar v Narayana Reddiar (AIR 1971 Ker 197) about a looting mob.
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  1. Act of a stranger, or novus actus interveniens. This is the defence the decorator would actually run, and on these facts it fails, for the reason given above: where the defendant's duty is precisely to guard against the act of the third party, that act does not break the chain of causation.
  2. Necessity, statutory authority and plaintiff the wrongdoer (ex turpi causa), none of which arises here.
  3. Limitation. A suit for compensation for negligence must be brought within the period prescribed by the Limitation Act, 1963.
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17.5th January 2023 was a date of expiry printed on the Dry Fruit Chikki packet by the manufacturer having factory in ABD District. On 1st January 2023, Aditya who lived at CDT District, distributed it to his friends as gift. After consuming it his friends who were living in CDT, VLM and AVT district suffer vomiting.[6]

  • (a) Who is consumer in above case? Give reason
  • (b) In which District Commission case should be filed? State the jurisdiction of District Commission.

Answer

a. Who is consumer in above case? Give reason

Both Aditya and his friends are consumers.

Aditya is a consumer as the buyer. Under Section 2(7)(i) of the Consumer Protection Act, 2019 a consumer is any person who buys any goods for a consideration. He purchased the chikki, so he falls within the first limb.

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The friends are consumers as users. The same clause includes any user of such goods other than the buyer, when such use is made with the approval of the buyer. Aditya bought the chikki and distributed it to his friends as a gift, which is approval of their use in the clearest possible form. The friends are therefore consumers although they paid nothing, and each of them may complain in his own right.

This is the statutory answer to the problem of privity of contract, which at common law required a decision of the House of Lords in Donoghue v Stevenson (1932) to overcome. The Act simply makes the approved user a consumer.

The complaint that lies. The goods suffer from a defect within Section 2(10), that is a fault, imperfection or shortcoming in the quality, quantity, potency, purity or standard which is required to be maintained by or under any law or under any contract. Note the date: the chikki was consumed on or about 1 January 2023, four days before the printed expiry date. It was therefore within its shelf life, and food which causes vomiting inside its own expiry date points to a manufacturing defect or to a failure of storage, not to consumption of a stale product. Had the friends eaten it after 5 January, the manufacturer would have had a complete answer, and the examiner has put the dates in deliberately.

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Who may be sued. The manufacturer, under Section 2(24); the seller from whom Aditya bought it; and, most usefully, a product liability action under Chapter VI (Sections 82 to 87) against the product manufacturer, who under Section 84 is liable where the product contains a manufacturing defect or deviates from manufacturing specifications, and who under Section 84(2) is liable on an express warranty even if he proves he was not negligent or fraudulent. There is also liability under the Food Safety and Standards Act, 2006, Section 3(1)(zz) of which defines unsafe food, with penalties under Sections 50 to 59.

b. In which District Commission case should be filed? State the jurisdiction of District Commission.

The complaint may be filed in the District Commission of ABD, CDT, VLM or AVT district, and the complainants should choose the most convenient, which will ordinarily be their own.

Territorial jurisdiction: Section 34(2) of the Consumer Protection Act, 2019. A complaint may be instituted in a District Commission within whose local limits:

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  1. the opposite party or each of them, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business, or has a branch office, or personally works for gain. The manufacturer's factory is in ABD District, so ABD qualifies;
  2. any of the opposite parties, where there are more than one, so resides or carries on business, provided the Commission gives permission or the other opposite parties acquiesce;
  3. the cause of action, wholly or in part, arises. The chikki was consumed and the vomiting occurred in CDT, VLM and AVT, so each of those districts qualifies for the friend who lives there; and
  4. the complainant resides or personally works for gain. This is the clause added by the 2019 Act, and it is decisive here: each friend may file in his own district, and Aditya in CDT.

Pecuniary jurisdiction: Section 34(1). Complaints where the value of the goods or services paid as consideration does not exceed the prescribed amount, which after the notification of December 2021 is Rs. 50 lakh. Note that the 2019 Act computes the limit on the consideration paid, and not on the compensation claimed, which was the 1986 position. A packet of chikki is well within the District Commission's limit.

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Limitation: Section 69. Within two years of the date on which the cause of action arose, extendable for sufficient cause with reasons recorded.

Reliefs: Section 39. Return of the price, removal of the defect, replacement, compensation for the loss or injury suffered including punitive damages, discontinuance of an unfair trade practice, withdrawal of hazardous goods from sale, and costs.

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18.Mangoo was owner of Bhalu the bear. He performed street shows to earn money. Everyday Bhalu was tied to a pole near to Mangoo's house. In the late evening once, suddenly Bhalu bites a passer-by. After enquiry it was known that Bhalu was teased.[6]

  • (a) Whether Mangoo is liable for the injury of passer-by? Why?
  • (b) What is scienter Rule?

Answer

a. Whether Mangoo is liable for the injury of passer-by? Why?

Mangoo is prima facie liable, but the answer turns on who did the teasing.

The starting position: strict liability. A bear is an animal ferae naturae, that is of a naturally dangerous species. Under the scienter rule the keeper of such an animal keeps it at his peril: knowledge of its vicious propensity is conclusively presumed, and he is strictly liable for the damage it does. It is no answer that this particular bear had always been docile, that it was well trained, or that Mangoo took every care. May v Burdett (1846), where a monkey bit the plaintiff, is the authority.

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That liability is reinforced here by ordinary negligence, and by public nuisance. Tying a bear to a pole near a public way, where passers-by can approach it and children can reach it, is a failure to take the care the keeping of a dangerous animal demands, and it creates a danger to the public.

The defence: plaintiff's own default. The defences to the scienter action are the plaintiff's own default, act of God, act of a stranger and volenti non fit injuria, and provocation of the animal by the person injured falls under the first.

So everything turns on who teased Bhalu:

  • If the passer-by himself teased the bear, Mangoo is not liable. The injury was brought on by the plaintiff's own wrongful act, and the defence of plaintiff's default succeeds.
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  • If a third party teased the bear and the passer-by was an innocent victim, Mangoo remains liable. The act of a stranger is a defence only where it was unforeseeable and could not have been guarded against, and the teasing of a bear tied up in the open near a public way, in a place where it is displayed daily to attract an audience, is exactly what a keeper should foresee. Mangoo created the opportunity by tethering a dangerous animal within reach of the public.
  • If the teasing is not proved at all, the strict liability stands and Mangoo is liable.

The additional point that decides the case in India. Keeping a bear for street performance is itself unlawful. Sloth bears are listed in Schedule I of the Wild Life (Protection) Act, 1972, and hunting, capture and keeping in captivity without authorisation are offences under Sections 9, 39 and 51. Under Section 22 of the Prevention of Cruelty to Animals Act, 1960 the Central Government notified in 1991 that bears, monkeys, tigers, panthers and lions shall not be exhibited or trained as performing animals. Mangoo's whole activity is therefore prohibited, and a defendant carrying on an unlawful activity is in a very weak position to plead any defence at all.

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b. What is scienter Rule?

The scienter rule governs the liability of the keeper of an animal for damage done by it, and turns on his knowledge of the animal's dangerous disposition. Scienter is Latin for "knowingly".

Animals are divided into two classes:

  1. Ferae naturae, animals of a naturally dangerous species: a lion, tiger, elephant, bear, monkey or wolf. Knowledge of the vicious propensity is conclusively presumed, and the keeper is strictly liable for the damage the animal does, without any proof of negligence. May v Burdett (1846).
  2. Mansuetae naturae, animals of a harmless domestic species: a dog, horse, cow, sheep or ox. The keeper is liable only if the plaintiff proves that he knew of the vicious propensity of that particular animal.

Two features of the classification.

It is by species, not by the individual animal. A docile circus elephant is still ferae naturae; a dog with a long record of savagery is still mansuetae naturae, so the plaintiff must still prove knowledge. The classification does not bend to the temperament of the particular beast.

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Knowledge, where it must be proved, may be that of the keeper or of a servant to whom the animal is entrusted, and one previous bite or attempt is enough. That is the origin of the popular saying that every dog is allowed one bite.

Defences: plaintiff's own default, including provocation or teasing; act of God; act of a stranger; and volenti non fit injuria.

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SECTION IV

Answer the following questions

any 2 · 24 Marks

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19.What is Central Consumer Protection Authority? State it's power and functions.[12]

Answer

A. What it is.

The Central Consumer Protection Authority (CCPA) is a regulator established by the Central Government under Section 10 of the Consumer Protection Act, 2019, to regulate matters relating to violation of rights of consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of the public and consumers, and to promote, protect and enforce the rights of consumers as a class.

It is the single biggest institutional change made by the 2019 Act. The 1986 Act had no regulator at all: it created advisory Councils and adjudicatory Commissions, and nothing happened unless an individual consumer came forward and complained.

B. Composition.

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Section 10(2) provides that the Authority shall consist of a Chief Commissioner and such number of other Commissioners as may be prescribed, appointed by the Central Government, to deal with matters relating to goods and services respectively. Section 15 provides for an Investigation Wing headed by a Director General, for the purpose of conducting inquiry or investigation, and the Director General and his officers may enter premises, search and seize documents and records, subject to the safeguards of the Code of Criminal Procedure relating to search and seizure.

C. Functions and duties: Section 18.

The CCPA shall:

  1. protect, promote and enforce the rights of consumers as a class, and prevent violation of consumer rights;
  2. prevent unfair trade practices and ensure that no person engages in them;
  3. prevent false or misleading advertisements and ensure that no person takes part in their publication;
  4. inquire or cause an inquiry or investigation into violations of consumer rights or unfair trade practices, either on its own motion, or on a complaint received, or on the direction of the Central Government;
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  1. file complaints before the District, State or National Commission as the case may be;
  2. intervene in any proceeding before a Commission in respect of allegations of violation of consumer rights or unfair trade practices;
  3. review the safety and quality of goods and services and recommend the adoption of standards;
  4. recommend to the Central Government the adoption of international covenants and best international practices;
  5. undertake and promote research in the field of consumer rights;
  6. spread and promote awareness of consumer rights;
  7. encourage non-governmental organisations and other institutions working in the field of consumer rights;
  8. advise the Ministries and Departments of the Central and State Governments on consumer welfare measures;
  9. issue safety notices to alert consumers against dangerous or hazardous or unsafe goods or services; and
  10. advise on the mandatory use of unique and universal goods identifiers.

D. Powers.

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1. Power of inquiry and investigation (Section 19). The CCPA may, either on its own motion or on a complaint or on the direction of the Central Government, inquire or cause an inquiry to be made into violations of consumer rights or unfair trade practices, and may thereafter either refer the matter to the appropriate regulator or proceed itself.

2. Power of search and seizure (Section 22). The Director General or an authorised officer may, for the purposes of an inquiry, enter any premises and search for and seize documents, records or articles, and the provisions of the Code of Criminal Procedure, 1973 relating to search and seizure apply.

3. Power to order recall, refund and discontinuance (Section 20). Where the CCPA is satisfied, after investigation, that there is sufficient evidence of violation of consumer rights or of an unfair trade practice, it may by order:

  • recall goods or withdraw services which are dangerous, hazardous or unsafe;
  • order reimbursement of the prices of goods or services so recalled to the purchasers; and
  • order discontinuation of practices which are unfair and prejudicial to consumers' interest.
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4. Powers against false or misleading advertisements (Section 21). Where the CCPA is satisfied that an advertisement is false or misleading and prejudicial to the interest of any consumer or is in contravention of consumer rights, it may:

  • issue directions to the trader, manufacturer, endorser, advertiser or publisher to discontinue the advertisement or to modify it, within the time stated;
  • impose a penalty up to Rs. 10 lakh on the manufacturer or endorser, and up to Rs. 50 lakh for every subsequent contravention;
  • prohibit the endorser of a false or misleading advertisement from making any endorsement of any product or service for up to one year, extending to three years for every subsequent contravention; and
  • proceed against the publisher who publishes such an advertisement.

Two safeguards are built in. An endorser is not liable if he has exercised due diligence to verify the veracity of the claims made in the advertisement. And no order may be passed under Section 21 without giving the person concerned an opportunity of being heard.

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5. Power to file complaints and to intervene (Section 18(2)(a) and (b)). The CCPA may itself file a complaint before any of the Commissions, and may intervene in proceedings brought by others. This is important because it converts an individual grievance into a class remedy.

6. Power to issue safety notices (Section 18(2)(j)).

E. Appeal. Section 24 provides that a person aggrieved by an order of the CCPA under Sections 20 and 21 may appeal to the National Commission within thirty days of receipt of the order.

F. Penalties. Section 88 punishes failure to comply with a direction of the CCPA with imprisonment up to six months or fine up to Rs. 20 lakh, or both. Section 89 punishes a manufacturer or service provider who causes a false or misleading advertisement to be made with imprisonment up to two years and fine up to Rs. 10 lakh, and for every subsequent offence up to five years and Rs. 50 lakh.

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20.Discuss the law relating to remoteness of damages with the help of leading case.[12]

Answer

A. The problem.

Every wrongful act sets off a chain of consequences which, in theory, never ends. If a defendant were liable for all the consequences of his act, liability would be indeterminate. The law therefore draws a line and holds the defendant liable only for those consequences which are proximate, and not for those which are too remote. As Lord Wright said in Liesbosch Dredger v Edison, the law cannot take account of everything that follows a wrongful act; it regards some subsequent matters as outside the scope of its selection.

The question of remoteness arises only after liability is established. It is not about whether the defendant was at fault, but about how far his responsibility extends.

B. The two tests.

1. The test of directness: Re Polemis (1921).

In re Polemis and Furness, Withy and Co [1921] 3 KB 560 laid down that once the defendant is shown to be negligent, he is liable for all the direct consequences of his act, however unforeseeable.

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Facts. A ship was chartered to carry a cargo including tins of petrol, which leaked so that the hold was filled with petrol vapour. While the cargo was being unloaded at Casablanca, the charterers' servants negligently allowed a heavy plank to fall into the hold. The plank struck something, caused a spark, ignited the vapour, and the ship was destroyed by fire.

Held. The charterers were liable for the whole loss, about 200,000 pounds. Some damage from the falling plank was foreseeable; damage by fire was not. But the fire was the direct consequence of the negligent act, and that was enough. Scrutton LJ: if the act would or might probably cause damage, the fact that the damage it in fact causes is not the exact kind of damage one would expect is immaterial, so long as the damage is directly traceable to the negligent act.

Criticism. The rule was condemned as unjust to defendants: it made liability turn on the accident of physical sequence rather than on anything the defendant could have contemplated, and it produced enormous liability for a small piece of carelessness.

2. The test of reasonable foreseeability: The Wagon Mound (1961).

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Overseas Tankship (UK) Ltd v Morts Dock and Engineering Co Ltd, The Wagon Mound (No. 1) [1961] AC 388 (PC) overruled Re Polemis and established that a defendant is liable only for damage of a kind which was reasonably foreseeable.

Facts. The appellants' ship, the Wagon Mound, was taking on furnace oil in Sydney Harbour. Through the carelessness of their servants a large quantity of oil was spilled and drifted to the respondents' wharf about 200 yards away, where welding was in progress. The respondents stopped work, were advised that the oil could not be ignited on water, and resumed. Two days later molten metal fell on cotton waste floating on the oil, which acted as a wick, ignited the oil, and the wharf was destroyed.

Held. The appellants were not liable for the fire damage. Damage by fouling of the wharf was foreseeable; damage by fire was not. Viscount Simonds held that it is the foresight of the reasonable man which alone can determine responsibility, and that it does not accord with current ideas of justice or morality that a man should be liable for all the consequences of a negligent act however unforeseeable. Re Polemis was expressly disapproved.

3. The qualification: The Wagon Mound (No. 2) (1967).

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Overseas Tankship (UK) Ltd v The Miller Steamship Co [1967] 1 AC 617 arose out of the same fire, brought by the owners of two ships damaged at the wharf. On the evidence in that case, a reasonable engineer would have realised there was a small but real risk of the oil catching fire. The Privy Council held the appellants liable, laying down that a risk which is foreseeable though very slight must be guarded against if there is no justification for running it, that is where it can be eliminated at small cost and with no advantage lost.

The two cases together give the working rule: damage of a foreseeable kind is recoverable, and a risk need only be real, not probable.

C. What must be foreseeable.

The kind of damage, not its extent, and not the precise manner of its occurrence.

Hughes v Lord Advocate [1963] AC 837. Post Office workmen left an open manhole covered by a tent and surrounded by paraffin lamps. A boy of eight knocked a lamp into the hole; the paraffin vaporised and there was an explosion, and he was badly burned. Held liable: injury by burning was foreseeable, and the fact that it came about by an unforeseeable explosion rather than an ordinary spill did not matter, because the kind of damage was foreseeable.

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Contrast Doughty v Turner Manufacturing Co [1964] 1 QB 518. An asbestos cement cover was knocked into a cauldron of molten liquid; a chemical reaction occurred and an eruption injured the plaintiff. Held not liable: injury by splashing was foreseeable, but injury by an unforeseeable chemical reaction was a different kind of damage.

D. The eggshell skull rule survives.

Once damage of a foreseeable kind is established, the defendant takes his victim as he finds him and is liable for the full extent of the harm, even where an unusual susceptibility made it far worse.

Smith v Leech Brain and Co [1962] 2 QB 405, decided after Wagon Mound: a galvaniser was burned on the lip by molten metal because of a negligent failure to protect him; the burn caused a pre-malignant condition to become cancerous and he died. The employers were liable for the death, because a burn was foreseeable and the extent of the consequences was governed by the old rule.

E. Intervening cause: novus actus interveniens.

The chain of causation may be broken by a new and independent act. The general rule is that a free, deliberate and informed act of a third party, or of the plaintiff himself, breaks the chain.

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But it does not break the chain where the defendant's duty was precisely to guard against that act: Stansbie v Troman (1948), the decorator who left the house unlocked and was liable for the theft that followed, and Home Office v Dorset Yacht Co (1970), where borstal officers negligently allowed boys in their charge to escape and were liable for the damage the boys did.

F. The Indian position.

Indian courts follow The Wagon Mound. The foreseeability test is applied in negligence generally, and the eggshell skull rule is applied in personal injury and motor accident claims. In fatal accident and personal injury claims the assessment principles are those of Sarla Verma v Delhi Transport Corporation (2009) 6 SCC 121 and National Insurance Co Ltd v Pranay Sethi (2017) 16 SCC 680.

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21.Explain the concept of tort with the help of maxims.[12]

Answer

A. The concept.

A tort is a civil wrong, other than a breach of contract or breach of trust, for which the remedy is a common law action for unliquidated damages. The word comes from the Latin tortum, twisted or crooked, through the French tort, a wrong.

Winfield's definition is fuller and carries a theory with it: "Tortious liability arises from the breach of a duty primarily fixed by law; this duty is towards persons generally and its breach is redressible by an action for unliquidated damages." Section 2(m) of the Limitation Act, 1963 adopts the shorter formulation.

The three essentials of a tort are a wrongful act or omission, that is the violation of a duty fixed by law; legal damage, that is injuria, which the law presumes in torts actionable per se; and a legal remedy in the form of an action for unliquidated damages.

B. The maxims which build the concept.

1. Ubi jus ibi remedium: where there is a right, there is a remedy.

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This is the foundation. Wherever the law confers a right it also confers the means of vindicating it, for a right without a remedy would be no right at all. Ashby v White (1703): a returning officer wrongfully refused a qualified elector's vote; the candidate he supported won anyway; Holt CJ held the action lay, because want of right and want of remedy are reciprocal.

Limits: the right must be a legal right, not a moral or social one; and the maxim gives no remedy where no right exists.

2. Injuria sine damno: legal injury without actual loss.

The infringement of a legal right without any damage, which is actionable because the law presumes damage. These are the torts actionable per se: trespass, libel, assault, false imprisonment. Ashby v White; Bhim Singh v State of Jammu and Kashmir (1985) 4 SCC 677, where Rs. 50,000 was awarded to an MLA wrongfully detained; Marzetti v Williams (1830), the banker who dishonoured a good cheque.

3. Damnum sine injuria: actual loss without legal injury.

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Real and even substantial damage unaccompanied by the violation of any legal right, which is not actionable at all. Gloucester Grammar School Case (1410): a rival school reduced the plaintiff's fees from 40 pence to 12 pence, and there was no remedy. Mogul Steamship Co v McGregor, Gow and Co (1892): lawful trade combination. Bradford Corporation v Pickles (1895): a landowner maliciously intercepted percolating water and was not liable, because an act lawful in itself does not become unlawful because the motive is bad.

The pair together is the whole concept in miniature: the law protects rights, not interests, and neither the size of the loss nor the badness of the motive decides whether an action lies.

4. Volenti non fit injuria: to a willing person no injury is done.

The general defence of consent. The plaintiff must have had knowledge of the risk and have consented to bear it; knowledge alone will not do, so scienti non fit injuria is not the law. Smith v Baker (1891); Hall v Brooklands Auto Racing Club (1933); Padmavati v Dugganaika (1975 ACJ 222). It fails against a rescuer (Haynes v Harwood, 1935) and against a breach of statutory duty.

5. Res ipsa loquitur: the thing speaks for itself.

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A rule of evidence: where the thing causing the damage was in the defendant's exclusive control, the accident is one which does not ordinarily happen if proper care is used, and the cause is unknown, the accident is itself evidence of negligence and the evidential burden shifts. Byrne v Boadle (1863); Scott v London and St Katherine Docks Co (1865); Municipal Corporation of Delhi v Subhagwanti (AIR 1966 SC 1750), the Clock Tower collapse.

6. Respondeat superior and qui facit per alium facit per se.

"Let the superior answer" and "he who acts through another acts himself". These are the maxims of vicarious liability: a master answers for the torts of his servant committed in the course of employment. Limpus v London General Omnibus Co (1862), disobedient manner, master liable; Beard v London General Omnibus Co (1900), conductor driving, master not liable; Lloyd v Grace, Smith and Co (1912), clerk's fraud in the very work he was employed to do, firm liable.

7. Actio personalis moritur cum persona: a personal action dies with the person.

The old rule that a right of action died with either party, now almost wholly abolished by Section 306 of the Indian Succession Act, 1925, the Legal Representatives Suits Act, 1855 and the Fatal Accidents Act, 1855.

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8. Novus actus interveniens: a new act intervening.

A free, deliberate and informed act of a third party or of the plaintiff may break the chain of causation, unless the defendant's very duty was to guard against it: Stansbie v Troman (1948).

9. Nullus commodum capere potest de injuria sua propria: no man can take advantage of his own wrong.

The foundation of ex turpi causa non oritur actio, that no action arises from a base cause, and of the old rule against contribution between joint tort-feasors in Merryweather v Nixan (1799).

10. Salus populi suprema lex: the welfare of the people is the supreme law.

The foundation of the defence of necessity and of much of the law of public nuisance.

11. De minimis non curat lex: the law does not concern itself with trifles.

12. Sic utere tuo ut alienum non laedas: so use your own as not to injure another's.

The idea underlying nuisance and the rule in Rylands v Fletcher (1868).

C. What the maxims show about the concept.

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Read together, the maxims say four things about what a tort is:

  1. A tort is the infringement of a right, and the presence or absence of loss is a separate question (ubi jus ibi remedium, injuria sine damno, damnum sine injuria).
  2. The duty is imposed by law and owed to persons generally, not chosen by the parties (sic utere tuo).
  3. Liability may be shifted where the law has a reason to shift it, to a master, a principal or an enterprise (respondeat superior, qui facit per alium facit per se).
  4. Liability is limited, by consent, by intervening acts, by the plaintiff's own wrongdoing and by triviality (volenti non fit injuria, novus actus interveniens, ex turpi causa, de minimis).
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22.What is deceit? Discuss in detail the essentials of the tort of deceit.[12]

Answer

A. What deceit is.

Deceit, also called fraud or fraudulent misrepresentation, is a false statement of fact made by the defendant knowingly, or without belief in its truth, or recklessly careless whether it be true or false, with the intention that the plaintiff should act on it, on which the plaintiff does act to his detriment.

It is an intentional tort protecting an economic interest, and unlike most torts it is concerned with words rather than with conduct. The action lies at common law, and in India it is reinforced by Section 17 of the Indian Contract Act, 1872, which defines "fraud", and Section 19, which makes a contract induced by fraud voidable at the option of the party defrauded, who may also sue for damages.

B. The essentials.

1. There must be a representation of fact.

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The statement may be made by words, spoken or written, or by conduct. A deliberate concealment of a defect, for example plugging a crack in a ship's hull so that a survey does not reveal it, is a representation by conduct.

What is not a representation of fact:

  • Mere silence is not, as a rule, a representation. The law imposes no general duty of disclosure, so a seller is not bound to volunteer the defects of his goods. But silence becomes actionable in three situations: where the silence itself distorts a positive representation, that is a half truth; where a statement true when made becomes false before the plaintiff acts on it, and the maker fails to correct it (With v O'Flanagan, 1936); and where the contract is one uberrimae fidei, of the utmost good faith, such as insurance, or the parties are in a fiduciary relationship.
  • Mere puffery, that is extravagant commendation of one's own goods, is not a representation of fact.
  • A statement of opinion is not a statement of fact, unless the maker does not hold the opinion, or knows facts inconsistent with it.
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  • A statement of intention is not, as a rule, a statement of fact, but a false statement of present intention is. Edgington v Fitzmaurice (1885): directors invited subscription for debentures, stating that the money would be used to improve buildings and extend the business, when they in fact intended to pay off existing debts. Bowen LJ: "the state of a man's mind is as much a fact as the state of his digestion."
  • A statement of law was traditionally excluded, though the distinction has been much eroded.

2. The representation must be false.

Its substantial falsity is what matters, and a statement literally true but materially misleading is treated as false.

3. The representation must be made knowingly, or without belief in its truth, or recklessly, careless whether it be true or false.

This is the requirement of fraudulent intent, and it is the heart of the tort. It comes from Derry v Peek (1889) 14 App Cas 337.

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Facts. The directors of a tramway company issued a prospectus stating that the company had the right to use steam power instead of horses. In fact the right depended on the consent of the Board of Trade, which the directors honestly believed would be a formality; consent was later refused and the company was wound up. A shareholder who had subscribed on the faith of the prospectus sued the directors for deceit.

Held. The House of Lords held the directors not liable, because they had honestly believed what they said. Lord Herschell laid down that fraud is proved when it is shown that a false representation has been made (i) knowingly, or (ii) without belief in its truth, or (iii) recklessly, careless whether it be true or false, and that a false statement made carelessly but honestly is not fraudulent.

Consequence. Because Derry v Peek insulated the merely negligent misstatement from liability, Parliament intervened with the Directors Liability Act, 1890, now reflected in company law provisions on prospectuses, and the courts eventually created a separate liability in negligence for careless statements in Hedley Byrne and Co Ltd v Heller and Partners Ltd [1964] AC 465, where a duty of care in making statements was recognised in a special relationship.

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4. The representation must be made with the intention that the plaintiff should act on it.

The defendant must have intended the plaintiff, or a class of which he is one, to act on the statement. Peek v Gurney (1873): a false prospectus was addressed to the original allottees of shares, and a person who bought in the open market afterwards could not sue on it, because the prospectus had spent its force once the shares were allotted.

5. The plaintiff must have acted on the representation.

He must show that he relied on it, and that it was an inducing cause, though it need not have been the only one. Edgington v Fitzmaurice: the plaintiff was partly influenced by his own mistaken belief that he was getting a charge on the property, and he still recovered, because the false statement was a material inducement.

A plaintiff who did not know of the representation, or who did not believe it, or who relied on his own independent inquiry, cannot sue. But it is no defence that the plaintiff could have discovered the truth by reasonable diligence: a fraudulent defendant is not permitted to complain that his victim was too trusting.

6. The plaintiff must have suffered damage.

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Deceit is not actionable per se. The damage must be actual loss, and the measure is all the loss directly flowing from the fraudulent inducement, whether foreseeable or not, since the Wagon Mound foreseeability limit does not apply to deceit. Doyle v Olby (Ironmongers) Ltd (1969) establishes that in deceit the defendant is liable for all the damage flowing directly from the transaction he induced.

C. Remedies.

  • Damages in tort, measured to put the plaintiff in the position he would have been in had the representation not been made, that is the out of pocket measure, and not the contractual measure of the position he would have been in had it been true;
  • Rescission of any contract induced by the fraud, under Section 19 of the Indian Contract Act, 1872, with restitution; and
  • Exemplary damages in an appropriate case.
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Notes on These Answers

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Colophon

This volume prints the 2022-23 - ATKT Torts paper set by the University of Mumbai for BLS LLB 5 Years Sem 5, with a model answer to each of its 22 questions.

Written and edited by the munotes.in editorial desk. Published by munotes.in, Mumbai.

11 August 2026.

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