LAW OF TORTS & MOTOR

ACCIDENT CLAIMS &

CONSUMER PROTECTION
Summary Notes

Author
TANUJ R. MHATRE
[F.Y.LL.B]

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

Definition of Tort:
1. General Definition: Tort is a civil wrong independent of contract for which the appropriate remedy is an action for
unliquidated damages.
2. Winfield and Jolowicz: Tortious liability arises from the breach of a duty primarily fixed by law; this duty is towards
persons generally and its breach is redressable by an action for unliquidated damages.
3. Salmond and Hueston: A tort is a civil wrong for which the remedy is a common action for unliquidated damages, and
which is not exclusively the breach of a contract or trust or other mere equitable obligation.
4. Sir Frederick Pollock: Every tort is an act or omission which is related in certain ways to harm suffered by a
determinate person, and it includes acts intended to cause harm, those contrary to law, or violations of absolute rights.
Scope of Tort Law:
1. Aims to ensure individuals respect each other's rights and duties.
2. Focuses on recognized patterns of behavior that are legally protected.
3. Involves three key elements:
o A wrongful act violating a legal right.
o Legal remedy through unliquidated damages.
o Damages caused by the wrongful act.
Objectives of Tort Law:
1. Compensation for the victim.
2. Safeguarding personal and property rights.
3. Deterrence of unlawful behavior.
4. Vindication of rights and reputation.
5. Scattering of losses between parties (defendants and insurers).
6. Moral enforcement of justice.

Differentiation: Law of Torts vs. Law of Crimes vs. Law of Contract

Criteria Law of Torts Law of Crimes Law of Contract

Nature of Civil wrong affecting individual Public wrong affecting society Breach of agreement or obligations
Wrong rights. as a whole. voluntarily undertaken.
Parties Plaintiff (victim) vs. Defendant State (prosecution) vs. Promisee (injured party) vs.
Involved (wrongdoer). Accused. Promisor (defaulting party).
Duty Breached Duty fixed by law, owed to persons Duty fixed by law, owed to Duty arising from a specific
generally. the public at large. agreement between parties.
Purpose of Law Compensation or restitution to the Punishment and deterrence of Enforcement of promises and
injured party. wrongdoer. compensation for breach.
Remedy Unliquidated damages (amount Imprisonment, fines, or both Liquidated damages (pre-
determined by court), injunction, or (paid to the state, not the determined) or unliquidated
restitution. victim). damages for actual loss.
Intention Not always necessary; liability can Generally required; crimes Intention is irrelevant; focus is on
(Mens Rea) arise from negligence or strict often involve intent (mens the performance of contractual
liability. rea). obligations.
Codification Mostly based on judicial Codified laws like the Indian Codified under statutes like the
precedents; uncodified in India. Penal Code (IPC). Indian Contract Act, 1872.
Enforcement Plaintiff files a civil suit for State initiates prosecution in Injured party initiates legal action
remedy. criminal courts. in civil courts.
Examples Negligence, trespass, defamation, Murder, theft, assault, fraud. Non-performance of a sales
nuisance. agreement or lease contract.

Who May Sue

Category Details Example/Case Law

Any Rational Individuals, organizations, governments, and businesses, if A person suing for trespass or defamation.
Person of sound mind and not disqualified by law.
Minors (Infants) Can sue for torts committed against them through a Walker v. Great Northern Railways: Injury
guardian or next friend. in the womb not actionable.
Corporations Can sue for torts affecting property, reputation, or business Manchester v. Williams: Corporation sued
interests. for defamation.
Government Can sue for torts affecting public property or rights. Government suing for environmental
violations.
Foreign States Can sue in Indian courts if recognized by the Central A foreign government suing for property
Government. disputes within India.

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

Who May Not Be Sued

Category Details Example/Case Law

Alien Enemies Cannot sue unless permitted by the Central A resident of an enemy country cannot sue
Government under Section 83 of the Civil without permission.
Procedure Code.
Convicts Cannot sue during imprisonment for forfeiture of Before 1921, convicts couldn’t sue for property
property; exceptions for personal injury or property. damage.
Bankrupt Persons Cannot sue for property-related torts; Trespass on bankrupt’s property actionable only
trustees/assignees hold the right. by the trustee.
Spouses Earlier, husbands and wives couldn’t sue each other; Indian law permits both spouses to sue each
(Historical) now both can sue for torts in most jurisdictions. other.
Lunatics Cannot sue unless represented by a legal guardian. A lunatic can sue for torts committed during
lucid intervals.
Infants in Womb Cannot sue for injuries sustained before birth. Walker v. Great Northern Railways: A fetus
injured in the womb could not sue.
Corporations Cannot be sued for personal injury but can be sued Poulton v. London and S.W. Railway Co.:
for property or reputation-related torts. Corporation not liable for acts beyond the
agent’s authority.
Government Immune for sovereign functions (e.g., during war or Kasturi Lal v. State of U.P.: Government not
riots); liable for non-sovereign acts. liable for negligence in sovereign functions.
Foreign Sovereigns Cannot be sued unless permitted by the Central Harbhajan Singh Dhalla v. Union of India:
Government under Sections 86 and 87 of CPC. Permission denied to sue a foreign embassy.
Diplomats and Immune from legal action unless they waive Ambassadors’ actions during their term cannot
Ambassadors immunity or permission is granted by the Central be sued without government permission.
Government.
Trade Unions Protected under the Indian Trade Union Act (1926); A registered trade union committing tortious
can now be sued in their registered name post-1939. acts can be sued.

Volenti Non-Fit Injuria Ubi Jus Ibi Remedium

Aspect Volenti Non-Fit Injuria Ubi Jus Ibi Remedium

Meaning No injury is done to one who consents to the harm. Where there is a right, there is a remedy.
Definition A defense used by the defendant to show that the A principle ensuring that every violation of a
plaintiff voluntarily accepted the risk. legal right has a remedy.
Focus Focuses on absolving the defendant from liability. Focuses on providing a remedy to the injured
party.
Essentials 1. Free and informed consent.2. Knowledge of 1. Existence of a legal right.2. Violation of
risk.3. Act within consent. that right.3. Legal remedy available.
Examples - A boxer consenting to injury during a match.- A - A person suing for trespass.- Denial of
patient consenting to surgery knowing the risks. voting rights leading to compensation.
Exceptions 1. Fraud or compulsion negates consent.2. 1. No remedy for moral or political
Negligence or breach of duty.3. Act exceeds wrongs.2. No remedy if no legal injury
consent. occurs (Damnum Sine Injuria).
Case Laws - Hall v. Brooklands Auto Racing Club: Spectator - Ashby v. White: Denial of voting rights led
injured at a car race could not claim damages.- to compensation.- Bhim Singh v. State of
Padmavati v. Dugganaika: Strangers injured in an J&K: Wrongful detention of an MLA led to
accident after voluntarily taking a lift could not sue. damages for rights violation.
Outcome Defendant is not held liable if the plaintiff willingly Plaintiff receives compensation or remedy
accepted the risk. for the infringement of a legal right.
Application Used as a defense in tort cases by the defendant. Used by the plaintiff to claim a remedy for a
legal wrong.
Key Consent must be valid, informed, and not Not applicable to moral wrongs or cases
Limitation compelled. where no legal right exists.
Purpose Shields individuals from liability when others Ensures that justice is served by addressing
voluntarily assume known risks. all legal wrongs.

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Extinguishment of Liability in Tort

Basis for Details Example/Case Law

Extinguishment
1. Death of Parties - Liability extinguishes for personal torts (e.g., Personal torts like battery or false imprisonment
assault, defamation). cannot continue after the wrongdoer’s death.
- Liability continues for proprietary torts (e.g., In cases of trespass, legal heirs can pursue action
trespass, negligence involving property). for damages.
2. Accord and - Agreement (accord) and actual payment A plaintiff accepts compensation out of court,
Satisfaction (satisfaction) by the wrongdoer ends liability. settling the dispute without legal proceedings.
3. Release - Victim voluntarily relinquishes the right to sue. Written or oral release extinguishes liability
unless coerced or obtained through fraud.
4. Judgment (Res - Once a matter is conclusively decided by a Section 11 of CPC: Prevents repeated litigation on
Judicata) court, no further action can be taken for the same the same issue.
cause.
5. Statute of - Claims are barred if not filed within a specified Negligence cases must be filed within three years
Limitations time frame under the Limitation Act, 1963. from the date of occurrence or discovery of harm.

General Defenses and Discharge of Torts

Defense Explanation Example/Case Law
Volenti Non-Fit No liability if the plaintiff voluntarily consented Hall v. Brooklands Auto Racing Club: Spectator
Injuria to the harm. injured during a race could not sue.
Plaintiff the A person involved in an illegal act cannot claim Pitts v. Hunt: No remedy for injuries during illegal
Wrongdoer damages for resulting harm. motorcycle racing.
Inevitable Harm occurred despite reasonable care; Stanley v. Powell: Accidental shooting while hunting.
Accident unforeseen and unavoidable.
Act of God Harm caused by natural forces beyond human Nichols v. Marsland: Extraordinary rainfall caused
control. flooding.
Private Defense Use of reasonable force to protect self, others, Self-defense actions justified.
or property.
Necessity Harm caused to prevent greater harm; a lawful Destroying property to stop fire from spreading.
excuse.
Statutory Acts done under statutory power are not Noise from government-sanctioned construction.
Authority actionable in tort.
Mistake Honest and reasonable mistake may exempt Entering another’s property unintentionally.
liability.

Trespass to Person: Assault, Battery, Mayhem, False Imprisonment

Aspect Assault Battery Mayhem False Imprisonment
Definition Threat or attempt to cause Intentional and Intentional injury causing Intentional and unlawful
harm creating reasonable harmful/offensive physical permanent disfigurement restraint of a person’s
fear of harm. contact. or disablement. movement.
Key - Intent- Apprehension of - Intent- Physical contact- - Intent- Permanent - Total restraint- Intent-
Elements harm- No physical Harmful or offensive injury- Disabling or No lawful justification.
contact required. touch. disfiguring harm.
Examples Threatening with a raised Slapping someone without Cutting off someone’s Locking someone in a
fist. consent. finger. room, blocking exits.
Case Laws Stephens v. Myers: Threat Collins v. Wilcock: Historic focus, often Bird v. Jones: Partial
of harm stopped before Unlawful touching included under battery in obstruction is not false
physical contact. constitutes battery. modern law. imprisonment.
Physical Not required. Required. Involves physical harm. Not required;
Contact psychological barriers
can suffice.
Defenses - Consent- Self-defense- - Consent- Self-defense- - Consent- Self-defense. - Consent- Legal
Legal authority. Necessity. authority- Reasonable
justification.

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Torts Affecting Property (Movable & Immovable)

Aspect Trespass to Land Trespass to Chattels Trespass Ab Initio Nuisance (Immovable

(Immovable Property) (Movable Property) Property)
Definition Unauthorized Intentional interference Lawful entry becomes Unreasonable interference
interference with with movable property. unlawful due to misuse. with the use or enjoyment
another’s land. of land.
Intent/Action Intentional or negligent Intentional or negligent Wrongful act following Unreasonable or indirect
entry. interference. lawful entry. interference.
Examples - Building on someone’s - Stealing someone’s - A guest overstaying - Excessive noise.-
land.- Trespassing on a car.- Damaging and causing damage. Discharge of pollutants.
farm. borrowed goods.
Key Case Entick v. Carrington: Kirk v. Gregory: Six Carpenters’ Case: St. Helen’s Smelting Co. v.
Laws Unauthorized entry as Unauthorized handling Abuse of lawful entry. Tipping: Pollution as
trespass. of property. nuisance.
Defenses - Consent.- Legal - Consent.- Legal - Entry for lawful - Statutory authority.-
authority.- Necessity. authority. purpose.- No wrongful Prescriptive rights.
act committed.
Remedy Damages or injunction Damages for Damages for acts Damages or injunction to
to prevent trespass. interference or loss of violating the lawful abate nuisance.
use. purpose.

Defamation:

Aspect Details Defamation as Tort Defamation as Crime

Definition False and defamatory statement causing harm to a Protects private Protects public order,
person's reputation in the eyes of others. reputation, civil criminal punishment
remedy available. possible.
Types of 1. Libel: Permanent form (e.g., writing, images, Both libel and slander No distinction; both treated
Defamation broadcasts). actionable in civil as defamation.
2. Slander: Transient form (e.g., spoken words, courts.
gestures).
Essentials 1. False Statement: Statement must be untrue. Harm caused to an Focus on statements
2. Defamatory Nature: Lowers reputation. individual’s disrupting public peace or
3. Reference to Plaintiff: Must refer to the reputation. order.
plaintiff.
4. Publication: Communicated to a third party.
5. Harm to Reputation: Damages must result
from the statement.
Defenses 1. Truth: Absolute defense if the statement is true. Same defenses apply Truth is a defense, but
2. Fair Comment: Honest opinion on public in civil suits for exceptions apply (e.g.,
interest. damages. hurting religious
3. Privilege: - Absolute Privilege: Immunity in sentiments).
parliamentary/judicial settings. - Qualified
Privilege: Protection if made without malice on a
proper occasion.
4. Consent: If the plaintiff consented to
publication.
Case Laws 1. D.P. Choudhary v. Manjulata: False marriage Applicable in civil Governed under Section
announcement harmed reputation. cases for harm to 499 and Section 500 of
2. New York Times v. Sullivan: Public figures reputation. IPC.
must prove "actual malice."
3. Rajagopal v. State of Tamil Nadu: Publication
of private details must involve public interest.
Remedies 1. Damages:- Compensatory: For harm to Compensation Punishment (imprisonment
reputation.- Punitive: To punish malicious acts. (unliquidated up to 2 years, fine, or
2. Injunction: Prevents further publication of damages) and both).
defamatory material. injunctions.
Key Difference: Libel: Permanent form, actionable per se (no need Both actionable under Treated equally under
Libel vs. to prove damages). civil law for reputation criminal law in India.
Slander Slander: Transient form, requires proof of actual harm.
damages (with exceptions).

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Torts Affecting Person & Property: Nuisance, Negligence, Fraud

Aspect Nuisance Negligence Fraud

Definition Unreasonable interference with Breach of a duty of care resulting in Intentional misrepresentation or
another's use or enjoyment of land harm to another person or their concealment of material facts causing
or property. property. harm to another party.
Types - Public Nuisance: Affects a - Contributory Negligence: - Actual Fraud: Intentional deceit.-
community or large group of Plaintiff also negligent.- Constructive Fraud: Breach of duty
people.- Private Nuisance: Comparative Negligence: without intent.
Affects an individual’s rights. Damages are shared based on fault.
Essentials 1. Unlawful Act: Act must 1. Duty of Care: Defendant owed a 1. Misrepresentation: False
interfere with property or comfort. duty to the plaintiff. statement or omission.
2. Damage: Must result in 2. Breach of Duty: Defendant 2. Intention to Deceive: Defendant
substantial harm. failed to meet this standard.3. acted knowingly.
Causation: Direct connection 3. Reliance: Plaintiff relied on the
between breach and harm. misrepresentation.
4. Damage: Resulted in harm.
Examples - Loud noises disturbing - A driver causing an accident by - Selling counterfeit goods as
neighbors.- Discharge of ignoring traffic rules.- A doctor authentic.- Hiding material facts in a
pollutants affecting nearby failing to diagnose correctly. contract.
properties.
Defenses - Statutory Authority.- - Voluntary Assumption of Risk.- - Plaintiff knew about the falsehood
Prescriptive Right.- Consent. Contributory Negligence.- Act of but proceeded anyway.- No actual
God. harm suffered.
Remedies - Damages for harm.- Injunction - Compensatory Damages.- - Rescission of contract.- Damages
to stop the nuisance. Punitive Damages for gross for harm caused.
negligence.
Case - St. Helen's Smelting Co. v. - Donoghue v. Stevenson: - Derry v. Peek: Defined fraud as
Laws Tipping: Fumes affecting land Introduced the "neighborhood intentional deceit.- Pasley v.
held as nuisance.- Rose v. Miles: principle." - Blyth v. Birmingham Freeman: Misrepresentation
Blocking canal caused harm. Waterworks: Defined negligence. actionable as fraud.
Focus Protects use and enjoyment of Ensures reasonable care to prevent Addresses deceitful practices
property. harm to others. harming trust and fairness.

Torts: Joint Tort-Feasors, Nervous Shock, and Malicious Abuse of Legal Process

Aspect Joint Tort-Feasors Nervous Shock Malicious Abuse of Legal

Process
Definition Two or more individuals Sudden emotional or psychological harm Improper or malicious use of legal
jointly liable for the same caused by another’s act. proceedings to harm another.
wrongful act.
Essentials 1. Common action causing 1. Duty of care breached. 1. Malicious intent.
harm. 2. Direct psychological impact. 2. Absence of reasonable or
2. Cooperation, direction, or 3. Harm must be more than normal probable cause.
authorization. emotional distress. 3. Use of legal process for ulterior
3. Harm must result from their motives.
joint act. 4. Harm to the plaintiff.
Examples - Co-conspirators in fraud.- - Witnessing a violent accident causing - Filing baseless lawsuits to
Employers and employees severe trauma.- Psychological harm after harass.- Obtaining a wrongful
acting together negligently. receiving false news of a loved one’s arrest warrant for revenge.
death.
Types 1. Independent Action: Each - Resulting from intentional acts (e.g., N/A. This tort specifically targets
tort-feasor acts separately but assault).- Resulting from negligence (e.g., legal proceedings.
causes the same harm. car accidents).
2. Concerted Action:
Individuals act together for a
common purpose.
Defenses - Proving individual - No duty of care owed.- Harm too - Proving absence of malice.-
responsibility.- Lack of remote.- Pre-existing psychological Reasonable grounds for initiating
causation.- No common condition. legal action.- Plaintiff suffered no
purpose or direction. harm.

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Remedies - Joint and several liability: - Damages for psychological harm.- - Damages for harm to reputation,
Plaintiff can recover from any Injunctions (if applicable). finances, or emotional distress.
one tort-feasor in full.
Case - Derry v. Peek: Fraud - Dulieu v. White: Nervous shock - Grainger v. Hill: Malicious use
Laws committed jointly. - Koursk actionable when a coach crashed into a of arrest to seize a ship.- Savile v.
Case: Joint responsibility for shop.- McLoughlin v. O’Brian: Roberts: Malicious prosecution
collision damage. Compensation for shock after seeing caused reputational harm.
injured family.
Focus Addresses shared liability and Protects mental health and well-being Prevents misuse of the legal
the plaintiff's right to recover from sudden shocks caused by negligence system for harassment or improper
damages. or intent. purposes.

Vicarious Liability

Aspect Details
Definition A legal principle where one person is held liable for the wrongful acts of another, typically due to their
relationship.
Basis 1. Control: The superior controls the actions of the subordinate.
2. Benefit: The superior benefits from the subordinate’s actions.
3. Risk Creation: The superior is responsible for risks inherent in delegating duties.
Scope Applies to specific relationships like:
1. Employer-Employee: Liability for acts committed in the course of employment.
2. Principal-Agent: Liability for authorized actions or actions within the agent’s authority.
3. Partnerships: Partners are liable for each other’s wrongful acts done in the ordinary course of
business.
4. Master-Servant: Liability for torts committed by the servant while performing duties.
Justification 1. Economic Benefit: Since the superior benefits, they bear the loss.
2. Deep Pockets Theory: The person with more resources is better equipped to compensate the victim.
3. Prevention of Future Wrongs: Encourages employers to ensure responsible conduct by
subordinates.
4. Fairness: Distributes the burden of compensation equitably.
Types of Vicarious 1. Employer-Employee: - Wrongful acts committed during employment. - Case: State Bank of India v.
Liability Shyama Devi: Bank held liable for the wrongful act of its employee.
2. Principal-Agent: - Principal is liable for authorized actions of the agent. - Case: Lloyd v. Grace
Smith: Principal held liable for the fraudulent act of an agent.
3. Partnerships: - Each partner is liable for acts of the other partners. - Case: Hamlyn v. Houston:
Partner held liable for the wrongful act done in ordinary business.
4. Master-Servant: - Liability arises for acts done under instructions or authority. - Case: Century
Insurance v. Northern Ireland Road Transport Board: Employer held liable for negligent handling of
petrol by an employee.
Exceptions 1. Acts outside the course of employment (e.g., frolics of one’s own).2. Independent contractors (unless
the act is inherently dangerous).3. Acts beyond the scope of authority.
Defenses 1. Proving the act was outside employment.2. Showing the subordinate acted independently or against
instructions.3. Independent contractor’s liability where control was limited.
Remedies Damages (compensatory or punitive) awarded to the victim, which may be recovered from the
subordinate by the superior.

Principle of Strict Liability

Aspect Details
Definition The principle of strict liability holds a person liable for harm caused by dangerous substances or activities on
their property, regardless of intent or negligence.
Origin Established in the landmark case of Rylands v. Fletcher (1868) in English law.
Key Principle “A person who, for his own purposes, brings and keeps on his land anything likely to do mischief if it escapes,
must keep it at his peril, and is strictly liable for any damage caused by its escape.”
Essentials 1. Dangerous Substance: A substance likely to cause harm if it escapes.
2. Escape: Substance must escape from the defendant’s property.
3. Non-natural Use: Land is used in a manner that increases risks to others.
4. Damage: Harm must result from the escape.
Scope Applies to inherently hazardous activities, e.g., storing chemicals, reservoirs, or explosives.
Case: Rylands v. Fletcher (1868)
 Facts:
o The defendant built a reservoir on his land, and water from the reservoir leaked into an old disused mine
underneath, flooding the plaintiff’s active mine.

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

o The defendant claimed no negligence as the builders were responsible for the defect.
 Judgment:
o The House of Lords held the defendant strictly liable, stating that if a person uses their land in a way that poses
unusual risks to others, they are responsible for the damage caused.
 Significance:
o Introduced the doctrine of strict liability in common law.

Exceptions to Strict Liability

Exception Explanation Example/Case Law

1. Plaintiff’s If the harm is caused by the plaintiff’s actions or Ponting v. Noakes: Plaintiff’s horse entered
Fault interference, the defendant is not liable. defendant’s land and consumed poisonous leaves.
No liability.
2. Act of God Natural events that are unforeseeable and Nichols v. Marsland: Flood caused by extraordinary
uncontrollable absolve the defendant from liability. rainfall destroyed neighboring property. No liability.
3. Consent of No liability arises if the plaintiff explicitly or A neighbor agrees to the construction of a reservoir
Plaintiff impliedly consented to the presence of the hazardous and suffers damage later. No liability arises.
activity.
4. Act of a If the damage is caused by the unforeseeable actions Box v. Jubb: Overflow caused by a third-party’s
Third Party of a third party, the defendant is not liable. action. Defendant not liable.
5. Statutory Acts done under statutory authority are not subject Construction of a reservoir under government
Authority to strict liability. sanction that later causes harm.

Principle of Absolute Liability

Aspect Details
Definition The Principle of Absolute Liability holds an entity engaged in inherently dangerous or hazardous activities
strictly liable for any harm caused, without exceptions like acts of God or third-party actions.
Origin Evolved from the principle of strict liability in Rylands v. Fletcher, with significant expansion in M.C.
Mehta v. Union of India (1987), also known as the Oleum Gas Leak Case.
Key Principle "An enterprise engaged in hazardous activities owes an absolute duty to ensure the safety of people, and it
must compensate for any harm caused, regardless of precautions taken."
1. Bhopal Gas Disaster Case (1984)
Facts:
A gas leak from the Union Carbide pesticide plant in Bhopal released methyl isocyanate, killing over 3,000 people and injuring
thousands more.
Legal Developments:
This disaster highlighted the inadequacies of the strict liability principle and paved the way for adopting the absolute liability
principle.
The Supreme Court of India directed Union Carbide to pay $470 million in compensation through a settlement.
Significance:
The case underscored the need for stringent legal mechanisms to address industrial hazards and emphasized corporate
accountability.
2. Shree Ram Food and Fertilizer Industries (Oleum Gas Leak Case, 1985)
Facts:
Leakage of oleum gas from a fertilizer plant in Delhi caused harm to nearby residents and workers.
Judgment:
The Supreme Court, in M.C. Mehta v. Union of India, introduced the principle of absolute liability, stating that enterprises
involved in hazardous activities have a non-delegable duty to compensate for any harm caused, regardless of precautions taken.
Significance:
Expanded liability by removing exceptions available under strict liability.
Established that no defenses like acts of God, third-party interference, or contributory negligence could be claimed.

Public Liability Insurance Act, 1991

Aspect Details
Objective To provide immediate relief to victims of accidents involving hazardous substances and to ensure
adequate compensation.
Scope Covers harm caused by the handling, storage, or use of hazardous materials by enterprises.
Key Provisions 1. Mandatory Insurance: Owners of hazardous industries must obtain insurance policies to cover
potential liabilities.2. Relief Fund: Establishes an Environment Relief Fund to compensate victims.3.
No-Fault Liability: Victims receive compensation regardless of negligence or fault.
Compensation Compensation is awarded for death, injury, or property damage without the need for prolonged litigation.
Mechanism
Significance Prevents prolonged legal battles and ensures victims receive timely relief while holding enterprises
accountable.

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

Judicial Remedies:
Judicial remedies are those provided by courts to address violations of legal rights. These include
compensatory actions, preventive measures, or restoration of rights.
Type Details Examples
1. Damages Monetary compensation awarded to Types of Damages:- Compensatory: Covers actual loss (e.g.,
the plaintiff for the harm suffered due medical expenses).- Punitive: To punish and deter wrongful
to the defendant's actions. conduct.- Nominal: Small amount awarded when no substantial
loss occurs.
2. Injunction A court order restraining the Types of Injunctions:- Temporary: Issued during trial.-
defendant from committing a Permanent: Final order to stop the wrongful act. Example:
wrongful act or mandating an action. Stopping polluting activities.
3. Specific Restoring the plaintiff to the position Example: Returning wrongfully taken property.
Restitution they were in before the wrongful act.
4. Declaratory Declaration by the court about the Example: Declaring ownership of property or resolving disputes
Judgment legal rights and obligations of parties. over legal status.

Extra-Judicial Remedies
Extra-judicial remedies are actions taken by individuals without court intervention, provided they do not
violate the law.
Type Details Examples
1. Self-Help Individuals take reasonable actions to prevent or - Retaking possession of property wrongfully
rectify a wrong. taken.- Removing a trespasser from private land.
2. Re-entry on Lawful re-entry onto one's land to remove a Example: Property owner entering their land to
Land trespasser. evict an unlawful occupant.
3. Abatement of Lawful removal or mitigation of a nuisance causing Example: Cutting overhanging tree branches
Nuisance harm to property or personal enjoyment. encroaching onto private property.
4. Distress Seizing or detaining property causing harm to Example: Detaining livestock that strayed and
Damage Feasant another person’s property until compensation is caused damage to crops.
paid.

“A consumer is a person who buys goods or avails services for personal use and not
Consumer: for resale or commercial purposes.” Defined under Section 2(7) of the Consumer
Definition Protection Act, 2019 (India).

Defect in Goods
Aspect Details
Definition A defect in goods is defined as any fault, imperfection, or shortcoming in the quality, quantity,
potency, purity, or standard of goods that makes them unfit for use. Mentioned under Section 2(10) of
the Consumer Protection Act, 2019.
Examples - A smartphone that stops functioning due to manufacturing defects.
- Contaminated food products causing health issues.
- Faulty appliances that pose safety hazards.
Key Characteristics - Goods fail to meet expressed or implied warranties.
- Goods deviate from standards set by authorities (e.g., BIS standards).
- Goods are not fit for the purpose for which they were intended.
Remedies for Defect - Replacement of defective goods
in Goods .- Refund of the purchase price.
- Compensation for damages caused by the defect.- Repair of the goods.
Relevant Case Laws
1. Bangalore Development Authority v. Syndicate Bank (2007)
o A delay in handing over a flat with promised quality was considered a defect under consumer law.
2. Consumer Education and Research Centre v. Union of India (1995)
o Highlighted the importance of safety and quality standards in goods to prevent defects.

Services

 A service is any activity offered to consumers to meet their needs in exchange for consideration.
 Defined under Section 2(42) of the Consumer Protection Act, 2019 as including facilities related to banking, insurance,
transport, processing, supply of electricity or water, housing construction, education, and medical services, among others.

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

2. Types of Services
Type Examples
Banking Services Account operations, loans, and credit facilities.
Insurance Services Life insurance, health insurance, and general insurance claims.
Transport Services Railways, airlines, road transport, and shipping.
Utility Services Electricity supply, water distribution, and telecommunication services.
Educational Services Schools, colleges, coaching centers.
Medical Services Treatment by hospitals, clinics, and medical professionals.
Housing Services Construction, maintenance, and sale of residential properties.
Entertainment Services Theatres, amusement parks, and digital streaming platforms.

3. Deficiency in Services
Aspect Details
Definition A deficiency in service refers to any fault, imperfection, shortcoming, or inadequacy in the quality, nature, or
manner of performance of a service, as per Section 2(11) of the Consumer Protection Act, 2019.
Examples - Delay in delivering goods by a courier service.- Negligence in treatment by a hospital.- Frequent power outages
without explanation.
Remedies - Refund of service fees
-Compensation for loss or injury
- Rectification of the deficient service.

4. Denial of Services
Aspect Details
Definition Denial of service occurs when a service provider unjustifiably refuses to provide a service that they are
obligated to deliver.
Examples - Denying a loan without valid reasons despite eligibility.- Refusal to admit a patient in a hospital during
an emergency.
Legal Consumers can file a complaint for unjust denial of services, claiming compensation or a directive for
Implications service delivery.

5. Commercial and Professional Services

Aspect Details
Commercial Services Services provided for profit-making purposes, such as retail, logistics, or hospitality.
Professional Services Services requiring specialized knowledge or expertise, like those provided by lawyers, architects, or
chartered accountants.
Consumer Protection Covers professional services, provided there is a deficiency in service and the consumer is directly
Act affected.
Examples - Faulty legal advice from a lawyer.- Negligence by an architect leading to structural issues.

6. Medical Services
Aspect Details
Definition Medical services include treatment, diagnosis, surgeries, and associated healthcare services.
Applicability Medical practitioners and hospitals are accountable under the Consumer Protection Act unless
services are offered for free.
Deficiency in Medical - Misdiagnosis or delayed diagnosis.- Negligence during surgery.- Lack of proper facilities or
Services equipment in hospitals.
Case Law Indian Medical Association v. V.P. Shantha (1995): Supreme Court held that medical services are
covered under the Consumer Protection Act when provided for consideration.
Remedies - Compensation for physical and mental suffering.- Refund of treatment costs.- Punitive damages for
gross negligence.
Consumer Protection Councils
The Consumer Protection Councils are advisory bodies established under the Consumer Protection Act, 2019, to promote and
protect the rights of consumers. These councils operate at the Central, State, and District levels.

Structure and Composition

Level Composition Chairperson
Central Consumer Members representing consumer organizations, industries, Union Minister in charge of
Protection Council commerce, and government. Consumer Affairs.
(CCPC)
State Consumer Members representing consumer organizations, government Minister in charge of
Protection Council officials, and others as prescribed. Consumer Affairs in the State.
(SCPC)

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

District Consumer Members nominated by the State Government, including District Collector or Deputy
Protection Council representatives from local bodies and consumer Commissioner.
(DCPC) organizations.

Key Objectives Level Functions

1. Protecting consumers from hazardous goods and CCPC - Reviews national consumer policies.- Advises the
services. central government on issues affecting consumers.-
2. Preventing unfair trade practices and ensuring fair Promotes consumer welfare initiatives nationwide.
business practices. SCPC - Reviews consumer rights policies within the state.-
3. Assisting consumers in exercising their rights to Addresses region-specific consumer concerns.- Advises
information, choice, and grievance redressal. the state government on consumer-related issues.
4. Promoting consumer awareness and education. DCPC - Promotes and protects consumer rights at the district
5. Encouraging consumer participation in decision- level.- Handles local consumer grievances and
making processes related to goods and services. awareness programs.
Consumer Disputes Redressal Agencies
The Consumer Disputes Redressal Agencies, established under the Consumer Protection Act, 2019, provide a three-tier
system for resolving consumer disputes. These agencies operate at the district, state, and national levels.
Structure and Jurisdiction
Agency Composition Jurisdiction
1. District - President: A District Judge or Monetary Jurisdiction: Up to ₹50 lakhs.Territorial
Commission equivalent.- 2 other members (at least Jurisdiction: Complaints where the cause of action arises within
1 woman). the district.
2. State - President: A High Court Judge or Monetary Jurisdiction: ₹50 lakhs to ₹2 crores.Appellate
Commission equivalent.- 4 other members (at least Jurisdiction: Appeals against District Commission orders.
1 woman).
3. National - President: A Supreme Court Judge Monetary Jurisdiction: Above ₹2 crores.Appellate Jurisdiction:
Commission or equivalent.- 4 other members (at Appeals against State Commission orders.Supervisory
least 1 woman). Jurisdiction: Over State Commissions.
Functions and Powers
Agency Functions Powers
District - Entertain complaints within monetary and territorial - Issue orders for refunds, replacements, or
Commission jurisdiction.- Resolve disputes related to defective goods compensation.- Summon witnesses and
or services. documents.- Conduct hearings.
State - Hear complaints and appeals within jurisdiction.- - Same powers as a civil court.- Call for records
Commission Oversee District Commissions.- Recommend policy from District Commissions.- Issue injunctions.
changes to the state government.
National - Hear complaints and appeals beyond State Commission - Same powers as a civil court.- Conduct
Commission jurisdiction.- Oversee State Commissions.- Suggest hearings.- Supervise State Commissions.-
national-level consumer policies. Summon records.

Judicial Review
Aspect Details Level of From/To Time Limit
Definition Judicial review is the authority of a Appeal
higher court to review the decisions of District to Appeal against a District Within 45 days of
Consumer Disputes Redressal Agencies. State Commission order to the the order, with
Purpose - Ensure adherence to principles of Commission State Commission. condonation of
natural justice.- Prevent abuse of power delay at the
by redressal agencies.- Correct errors of discretion of the
law or jurisdiction. appellate body.
Scope Limited to matters involving substantial State to Appeal against a State Within 30 days of
questions of law or miscarriage of National Commission order to the the order.
justice. Commission National Commission.
Courts High Courts and the Supreme Court can National to Appeal against a Within 30 days of
Involved exercise judicial review over decisions of Supreme National Commission the order.
consumer redressal agencies. Court order to the Supreme
Court.

Feature Details
User-Friendly Process Simplified procedures allow consumers to file complaints without the need for lawyers.
Low Cost Minimal filing fees ensure accessibility for consumers of all economic backgrounds.
Time-Bound Resolution Complaints are resolved within a specified timeframe to prevent delays.
Expert Panels Commissions consist of judicial and non-judicial members to ensure expertise in dispute resolution.

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

Motor Vehicles Act, 1988: Motor Accident Claims and Claims Tribunals

Section Details
Section 165 Establishes Motor Accident Claims Tribunals (MACT) for adjudicating claims related to motor accidents
involving death, injury, or property damage.
Section 166 Allows victims, legal representatives, or agents to file a claim for compensation.
Section 140 Introduces the concept of no-fault liability, where compensation is paid without requiring proof of negligence.
Section Provides for structured formula-based compensation for accidents resulting in death or permanent disability,
163A without proving fault.
Section 147 Mandates third-party insurance for all motor vehicles, ensuring victims receive compensation.
Section 169 Details the procedure to be followed by Claims Tribunals, including the power to summon witnesses and
examine evidence.

Motor Accident Claims Tribunals (MACT)

Aspect Details
Establishment Constituted under Section 165 of the Motor Vehicles Act, 1988.
Purpose - To adjudicate claims for compensation arising out of motor vehicle accidents.- Replace civil courts for
motor accident claims to provide faster resolutions.
Jurisdiction - Territorial: Where the accident occurred or where the claimant resides.- Subject-matter: Claims related to
death, injury, or property damage caused by motor vehicles.
Composition - Presided over by a judicial officer, typically a District Judge or Additional District Judge.
Procedure - Follows summary procedures to expedite claims.- Tribunals are not bound by strict procedural rules of the
Civil Procedure Code.

Types of Claims
Claim Type Details Key Features
1. No-Fault Liability Compensation awarded without proving - Fixed compensation for death or permanent
the fault or negligence of the driver. disability:₹50,000 for death and ₹25,000 for
disability (Section 140).
2. Fault-Based Claims Claimant must prove negligence or fault of - Compensation depends on the extent of negligence
the vehicle owner or driver to claim and damages suffered.- Section 166 applies.
compensation.
3. Structured Compensation determined using a - Introduced for faster resolution.- Compensation
Compensation (Section structured formula, irrespective of fault or based on factors like age, income, and dependency.
163A) negligence.
4. Property Damage Compensation for damage caused to - Limited to the actual loss incurred.
Claims vehicles, goods, or other properties in an
accident.

Key Features of MACT Proceedings

Aspect Details
Filing of Claims - Claims can be filed by victims, their legal representatives, or insurers.- Time limit: 6 months from
the date of the accident (extendable at the discretion of the tribunal).
Assessment of - Based on factors like age, income, dependents, and the extent of injury or disability.- Structured
Compensation formula in Section 163A for predetermined compensation.
Role of Insurance - Insurers are often impleaded as respondents to provide compensation under third-party insurance
policies.
Appeal - Decisions by MACT can be appealed to the High Court under Section 173 of the Act within 90
days of the order.

Notable Case Laws

1. Sarla Verma v. Delhi Transport Corporation (2009)

o Provided guidelines for calculating compensation, including multiplier-based methods for loss of income and
dependency.
2. National Insurance Co. Ltd. v. Pranay Sethi (2017)
o Clarified the addition of future prospects in determining compensation.
3. Raj Kumar v. Ajay Kumar (2010)
o Addressed methods for assessing disability and its impact on earning capacity.

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Law of Torts & Motor Accident Claims & Consumer Protection Summary Notes By Tanuj R. Mhatre

Liability Without Fault and Third-Party Risks under the Motor Vehicles Act, 1988

1. Liability Without Fault (No-Fault Liability)

The concept of liability without fault under the Motor Vehicles Act, 1988, ensures that compensation is
paid to victims of motor vehicle accidents regardless of whether the fault or negligence of the driver/owner
is proven. This mechanism simplifies and accelerates the compensation process.
Aspect Details
Relevant Provisions - Section 140: Compensation on a no-fault basis for death or permanent disability.- Section
163A: Structured compensation without proving negligence.
Purpose - Provides immediate relief to victims.- Reduces the burden of proving fault or negligence.
Compensation under Section - ₹50,000 for death.- ₹25,000 for permanent disability.- Payable regardless of who was at
140 fault in the accident.
Structured Compensation - Compensation is calculated using a structured formula based on the victim’s age and
under Section 163A income.- No requirement to prove negligence or fault.
Case Law Kaushnuma Begum v. New India Assurance Co. Ltd. (2001): Affirmed that liability
under no-fault provisions is statutory and does not require proof of negligence.

2. Third-Party Risks
Third-party liability refers to the responsibility of the vehicle owner or insurer to compensate for injury,
death, or property damage caused to a third party by the use of the motor vehicle.
Aspect Details
Definition Liability arising from injury, death, or damage to the property of a third party due to the operation
of a motor vehicle.
Mandatory Insurance - The Act mandates third-party insurance coverage for all motor vehicles.- Insurer compensates
(Section 147) victims of accidents involving insured vehicles.
Extent of Coverage - Death or bodily injury to a third party.- Damage to third-party property.- Liability for passengers
(excluding employees unless specifically covered).
Exclusions - Liability for injuries to the driver or owner.- Accidents occurring outside the policy's scope.-
Uninsured vehicles.
Case Law National Insurance Co. Ltd. v. Baljit Kaur (2004): Held insurers liable for compensating third
parties even if the owner violated policy terms, as the third party is protected.

Key Features of No-Fault and Third-Party Liability

Feature No-Fault Liability Third-Party Risks
Basis of Compensation is awarded without proving fault or Based on liability arising from injury, death, or
Liability negligence. property damage caused to a third party.
Relevant Section 140 (No-Fault Compensation).Section Section 147 (Compulsory Insurance).Section 149
Sections 163A (Structured Compensation). (Duties of Insurers).
Compensation Fixed or structured compensation. Compensation for actual loss suffered by the third
party.
Objective Provide immediate relief to victims. Protect the rights of third parties affected by motor
accidents.

Comparative Table: Liability Without Fault vs. Fault-Based Liability

Aspect Liability Without Fault Fault-Based Liability
Requirement of No need to prove negligence or fault. Claimant must prove fault or negligence of the
Proof defendant.
Compensation Fixed or formula-based (under Sections 140 Determined by the extent of fault and damages
and 163A). suffered.
Examples Compensation under no-fault clauses for death Compensation for reckless driving causing injury or
or disability. property damage.
Legal Basis Statutory provisions of the Motor Vehicles Common law principles and fault-based legal
Act. doctrines.

Case Law References

1. Kaushnuma Begum v. New India Assurance Co. Ltd. (2001):
Established that liability under no-fault provisions is statutory and compensatory in nature.
2. United India Insurance Co. Ltd. v. Sunil Kumar (2017):
Held that fault or negligence is irrelevant under Section 163A claims.
3. National Insurance Co. Ltd. v. Swaran Singh (2004):
Clarified insurer obligations for third-party claims, even if policy terms are breached by the insured.
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