R.L. Khurana, J.—The defendant No. 1 Messrs Asia Resorts Ltd., is a public limited company duly incorporated under the provisions of the Companies Act, 1956. It is running a tourist resort/Hotel at Parwanoo under the name of "Timber Trail". It has installed a rope way from its Hotel premises at Parwanoo to a place known as Banasar for the purpose of its business for carrying tourists. It is charging Rs. 35 per passenger

2. On 13.10.1992 an accident took place on such ropeway. The haulage rope of the cable car got snapped as a result one cable car got strucked midway hanging on the track rope. There were twelve persons in the cable car. Two of such persons in panic had jumped out of the cable car. Others remained hanging in the cable car. Rescue efforts made by the defendant No.1 failed. On coming to know about the accident the district authorities rushed to the spot. Rescue operations were discussed with the Managing Director of the defendant No. 1, when it was decided to take the services of the Air Force. Defendant No. 1 gave an undertaking in writing to bear all the charges of the rescue operation to be conducted by the Air Force or any other authority. On such undertaki