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2023 Supreme(Ker) 475

IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH, J.
Poongottil Prasad, S/o. Chami Cheerattamanna - Petitioner
Versus
Melattur Grama Panchayat, Represented by its Secretary & Ors. - Respondents
WP(C) No. 24302 of 2022
Decided On : 07-07-2023

Advocates Appeared:
For the Petitioner: Albin A. Joseph.
For the Respondent: K.J. Manu Raj, K. Vinaya.

Point of Law : It is rule that an employer though guilty of no fault himself, is liable for the damage done by the fault or negligence of his servant acting in the course of his employment.

Headnote:

Principles of Vicarious Liability - Seeking refund - Petitioner, who is a small scale Businessman and who obtained licence to possess a shop, is before Court seeking to direct respondents 1 and 2 to forthwith refund to petitioner, a sum collected from petitioner as Security Deposit - Whether principles of Vicarious Liability would apply to State is also well settled by law - Employer shall be liable for such act, because employee was acting within the scope of his employment and, in so acting, did something negligent or wrongful. (Para 13)

Finding of the Court :

In view of the law on Vicarious Liability as discussed above, if any UDC employed by respondent-Panchayat accepts money and issue the receipts in the course of his employment, respondents are liable to refund that amount, if amount accepted is refundable - The fact that a vigilance case is pending and action has been taken against the fraudulent activities of the UDC cannot be an excuse to deny the amounts duly deposited by the petitioner on the basis of the receipts issued on behalf of the Panchayat - Panchayat is vicariously liable.

Result : Writ petition is allowed.

JUDGMENT :

The petitioner, who is a small scale Businessman and who obtained licence to possess a shop room of the Melattur Grama Panchayat, is before this Court seeking to direct respondents 1 and 2 to forthwith refund to the petitioner, a sum of Rs.1,10,800/- collected from the petitioner as Security Deposit. The petitioner states that he continued to occupy the shop room premises of the Panchayat up to the year 2018. The petitioner had remitted an amount of Rs.1,10,800/- as Security Deposit. The Security Deposit has to be repaid on vacating the premises.

2. Though the petitioner vacated the premises and sought refund of the amount, the respondents have not given refund stating that some vigilance proceedings are pending in the matter. The petitioner seeks a writ of mandamus directing respondents 1 and 2 to refund the amount.

3. Standing Counsel entered appearance on behalf of respondents 1 and 2 and contested the writ petition filing counter affidavit. On behalf of the respondents, it is submitted that the respondents verified the documents and records of the relevant period and found that Exts.P1 to P3 receipts are forged one. It is submitted that the aforementioned amounts were not credited to the account of the Panchayat. One Mr.Muhammed Kasim, who was the then UD Clerk of the Panchayat, has committed several financial irregularities in the respondent-Grama Panchayat and he collected the said amount from the petitioner which was never credited to the account of the Panchayat.

4. Respondents submitted that a vigilance case was filed against the said Mr. Muhammed Kasim which was numbered as C.C. No.60/2016 of the Enquiry Commissioner and Special Judge, Kozhikode. The said Muhammed Kasim was found guilty and he was convicted and sentenced to undergo imprisonment for two years and to deposit an amount of Rs.50,000/-. Criminal Appeal No.414/2019 filed against the conviction and sentence is pending consideration before this Court.

5. Respondents submitted that since the alleged amounts are not credited to the account of the Panchayat, the Panchayat is not liable to repay any amount. Ext.P9 representation submitted by the petitioner was considered by the Committee and a decision was taken rejecting Ext.P9 representation.

6. I have heard the learned Counsel for the petitioner and the learned Standing Counsel representing the respondents.

7. The fact that the petitioner was given licence to occupy a shop room owned by the Panchayat is not in dispute. Ordinarily, a shop room will be rented out only on receipt of advance cash deposits. The petitioner has produced Exts.P1 to P3 cash receipts in Form No.XXXIII. Exts.P1 to P4 would show that the petitioner had remitted an amount of Rs.1,10,800/-. The reason advanced by the respondents in refusing refund is that Exts.P1 to P3 documents appear to have been forged by the erstwhile UDC of the Panchayat.

8. In the counter affidavit filed by the respondents, it has been specifically stated as follows :

    “It is further submitted that the aforesaid amounts are not credited to the account of the Panchayat. In fact, one Mr. Muhammed Kashim who was the then UD Clerk of Panchayat has conducted several financial irregularities in the respondent-Grama Panchayat and he collected the said amount from the petitioner which was never credited to the account of the Panchayat”.

9. Ordinarily, a person is liable for his own wrongful acts and one does not incur any liability for the acts done by others. The principles of Vicarious Liability make certain persons liable for the act of others. The principle would apply when the law presumes that “he who does an act through another is deemed in law to do it himself”. Commonly accepted examples of Vicarious Liability are Liability of Principal and Agent, Liability of Master and Servant and Liability of Partners in each other's tort. The fundamental requirements to apply the principles of Vicarious Liability are that there should be a certain relation between the two partie

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