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M.S Ramachandram Pillai And Another v. K.R.M.K.M Kumarappa Chettiar

Madras High Court
Nov 22, 1963
Smart Summary (Beta)

Summary of the Opinion — Civil Revision Petition by 3rd Defendant

Factual and Procedural Background

The 1st respondent (plaintiff) sued for damages to his Plymouth car (MDC 7783) caused by a lorry (No. MDY 2477). The suit was filed in S.C.S. No. 668 of 1960 on the file of the District Munsif's Court, Pudukottai. The lorry was owned (registered) in the name of the 3rd defendant; defendants 1 and 2 are described as brothers. On 10 February 1959 the plaintiff's car was parked off the road; the 2nd defendant, while driving the lorry in the course of his employment, allegedly drove rashly and negligently and struck the plaintiff's car, causing damage to the headlight, bonnet and radiator. The 2nd defendant allegedly admitted responsibility at the time and agreed to pay for repairs, even executing a letter to that effect. After repairs were made, the plaintiff presented the bill to the owners (defendants 1 and 3), but they disowned liability and refused payment. The plaintiff therefore sued the owners (1 and 3) and the driver (2) for damages. The driver (2nd defendant) remained ex parte in the trial.

The District Munsif found the 3rd defendant to be the owner of the lorry, that the 2nd defendant's negligence caused the damage, and that the owner is responsible for the tortious acts of his driver. A decree was entered against defendants 2 and 3 for Rs. 220-40 np. The 3rd defendant (owner) filed the present Civil Revision Petition challenging that decree.

Legal Issues Presented

  1. Whether the 3rd defendant (registered owner of the lorry) is liable for the damage caused to the plaintiff's car by the 2nd defendant (driver) when the lorry and driver were lent/hired out to a hirer (Subramaniam Chettiar) for marriage purposes.
  2. If the lorry and driver were lent, whether the driver remained the servant of the 3rd defendant (owner) or became, for the occasion, the servant of the hirer (Subramaniam Chettiar), thereby shifting liability.

Arguments of the Parties

1st Respondent (Plaintiff)

  • The plaintiff alleged that the 2nd defendant drove the lorry rashly and negligently and caused damage to the plaintiff's parked car.
  • Shortly after the accident, the 2nd defendant admitted responsibility, requested repairs at a specified firm and agreed to pay; he executed a letter dated 10 February 1959 to that effect.
  • After repairs were done, the plaintiff presented the bill to the owners (defendants 1 and 3); when they refused to pay, the plaintiff sued the driver and the owners for damages.

1st Defendant

  • Contended that he was not the owner of the lorry (the 3rd defendant was), and that, because the lorry had been taken on hire by Subramaniam Chettiar at the time of the accident, the hirer (Subramaniam Chettiar) — not the owner — would be liable for any damages.

3rd Defendant (Petitioner / Registered Owner)

  • Admitted ownership of the lorry but argued he could not be held liable because he had lent the lorry and the driver temporarily to Subramaniam Chettiar for marriage purposes.
  • Asserted that during the hire the driver was under the control of the hirer and must be deemed the servant of the hirer (quo ad hoc), such that any tortious acts committed in that course would render the hirer, not the owner, liable.
  • Also raised pleas of contributory negligence and other defences (not elaborated in detail in the opinion).

2nd Defendant (Driver)

  • The 2nd defendant-driver remained ex parte in the trial; the opinion records no defended argument from him.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Salmond on Torts (11th ed.) When a servant is lent, the question whether he becomes the servant of the borrower depends on the nature of the arrangement and the degree of control exercised; responsibility lies on the master for whom the servant was working. The court relied on this exposition to frame the factual inquiry — who retained the right of control — when deciding whether the driver had been transferred or only his services had been hired.
Performing Right Society Ltd. v. Mitchell and Booker L.R. (1924) 1 K.B. 762 Factors relevant to whether a person is a servant include: nature of the task, freedom of action, contract magnitude, manner of payment, powers of dismissal, and circumstances under which payment may be withheld; the deciding test is the nature and degree of detailed control over the person. The court adopted this test (focus on control) in assessing whether the driver became, for the occasion, the servant of the hirer or remained the servant of the owner.
Quarman v. Burnett (1840) 6 M. & W. 499 Illustrates that where a servant supplied by a job-mistress is under the control of that job-mistress, the hirer is not liable for the servant's negligence. Used to show that where control rests with the supplier, the owner (or supplier) may remain liable rather than the hirer.
Jones v. Scullard L.R. (1898) 2 Q.B. 565 Distinguishes cases where hirer supplied only a request for driving versus cases where the hirer supplies the vehicle/harness and the driver has been effectively acting under the hirer; points to evidence showing who had control. Referred to illustrate factual distinctions relevant to control and to emphasize that control and practical familiarity with the vehicle may indicate servitude to the hirer; applied to show that factual circumstances matter.
Century Insurance Co. v. N.I. Road Transport Board (1942) 1 All E.R. 491 Affirms the test that the person who has the right at the moment to control the doing of the act is the employer for the purpose of vicarious liability (as formulated in Donava v. Laing). The court cited this authority to reinforce the control-based test for determining in whose employment the driver was at the time of the tort.
Donava v. Laing etc. Syndicate L.R. (1893) 1 Q.B. 629 Establishes that the employer for the purposes of liability is the person who has the right to control the doing of the act at the relevant time. Used as part of the control-centric framework the court applied to the facts before it.
Moore v. Palmer (1886) 2 T.L.R. 781 Important test: whether the servant was transferred, or only the use and benefit of his work was transferred. The opinion expressly applies this test and states that in the instant case the driver was not transferred but only the use of his services.
Chowdhary v. Gillot (1947) 2 All E.R. 541 Principles on lending a servant: (1) general servant remains servant of master who pays him; (2) heavy burden of proof to show transfer; (3) must prove transfer of right/authority to control; (4) it is a question of fact considering who pays, who can dismiss, duration, and machinery of control. The court reproduced these principles and applied them as a checklist to the facts, concluding the presumption against transfer was not rebutted here.
Bull & Co. v. West African Shipping Co. A.I.R. 1927 P.C. 173 Authority relied on by petitioner's counsel to argue that the driver became the servant of the hirer. The court noted counsel's reliance but held the facts of Bull & Co. to be entirely different from the present case and therefore not determinative here.
National Shipping Co. v. Haripada (Calcutta High Court) Case where a motor launch with crew was lent on hire; the Calcutta High Court found that the owner retained requisite control over the crew and therefore remained liable for their torts. The court cited this case as analogous: on its facts the owner retained control and was held liable; the opinion used it to support the conclusion that, similarly, the 3rd defendant remained liable here.

Court's Reasoning and Analysis

The court framed the sole issue in the Revision Petition as whether the 3rd defendant (registered owner) was liable for damage caused by his driver while the lorry and driver had been lent/hired to Subramaniam Chettiar. The court explained that resolving this question requires applying the well-established control-centric tests of vicarious liability: who had the right to control the doing of the act at the time; whether the servant was transferred or only the use of his services; and the evidential presumption against transfer of a servant.

The court reviewed authorities (Salmond on Torts; Performing Right Society Ltd. v. Mitchell; Quarman v. Burnett; Jones v. Scullard; Century Insurance; Donava v. Laing; Moore v. Palmer; Chowdhary v. Gillot; and the Calcutta High Court decision in National Shipping Co. v. Haripada) to extract the controlling legal principles:

  • The decisive inquiry is factual and focuses on the degree and nature of control exercised over the servant at the relevant time.
  • There is a presumption against transfer of a general servant from the master who pays him; the party alleging transfer bears a heavy burden to prove that authority to control was passed.
  • Factors to consider include who pays the servant, who can dismiss him, the duration of the alternative service, and what mechanisms of control exist.
  • Whether merely the use and benefit of the servant's work was transferred, rather than the servant himself, is a critical distinction.

Applying these principles to the present facts, the court found that only the use of the driver's services had been lent and there was no transfer of the driver himself. The court expressly concluded that the 2nd defendant continued to be the servant of the 3rd defendant and that the hirer (Subramaniam Chettiar) had no control over the 2nd defendant at the time of the accident.

The court also considered counsel's reliance on Bull & Co. v. West African Shipping Co. but found that the facts of that case were entirely different and therefore not persuasive here. The court further cited National Shipping Co. v. Haripada as supporting the conclusion that where control was retained by the owner, the owner is liable for the torts of the crew/driver.

On the basis of this analysis, the court held that the tests and factual considerations established by the cited authorities pointed to the 3rd defendant's liability.

Holding and Implications

Holding: The Civil Revision Petition filed by the 3rd defendant fails and is DISMISSED.

Implications:

  • Direct effect: The decree of the District Munsif (which had decreed Rs. 220-40 np in favour of the plaintiff against defendants 2 and 3) stands insofar as it concerns the 3rd defendant — the 3rd defendant remains liable for the damage caused by his driver.
  • No costs were awarded (the opinion expressly records "No costs").
  • The court did not purport to lay down a novel legal principle; it applied established tests concerning the lending of servants and the question of control to the facts and reached the result that the owner retained liability. The opinion does not claim to create new precedent beyond applying existing authorities to the circumstances before it.

This summary is strictly limited to the facts, arguments, authorities and conclusions as they appear in the provided opinion and does not infer or add information not present in the text.

Show all summary ...

1. This is a Revision preferred by the 3rd defendant against the decree passed against him in S.C.S. No. 668 of 1960 on the file of the District Munsif's Court, Pudukottai, filed by the 1st respondent for damages caused to the 1st respondent's Plymouth Car by a lorry belonging the to 1st and 3rd defendants.

2. The short facts in this case are the following: Defendants 1 and 2 are brothers. They own a motor lorry bearing No. MDY 2477. The lorry is registered in the name of the 3rd defendant. On 10th February, 1959, the 1st respondent had parked his Plymouth Car MDC 7783 at Kulipirai to the south of P.R.R.M.S.P. Chettiar's house on the left side margin of the Kulipirai-Ponnamarvathy Road. The car was parked in such a way as not to be a hindrance to the traffic and there was plenty of space on the right side of the car for the lorry to pass. The 2nd defendant who was driving the lorry in the course of his employment under defendants 1 and 3 drove the lorry in a rash and negligent manner and dashed the lorry against the 1st respondent's (plaintiff's) car which was stationed as aforesaid and caused damage to the head light on the right side, bonnet and radiator grail of the car. Soon after the accident the 2nd defendant admitted to the plaintiff that he was responsible for this negligent act and also requested the plaintiff to have the car repaired in Messrs. T.V.S. and Co., Ltd., and agreed to pay the cost of the repairs: He also executed a letter on 10th February, 1959, to that effect. After effecting the repairs the plaintiff presented the bill to defendants 1 and 3 the owners of the lorry but the latter disowned liability and refused to pay the money. Therefore the plain-tiff had to file the present suit not only against the owners of the lorry, defendants 1 and 3, but also against the driver defendant 2 for damages.

3. The 1st defendant contended that he was not the owner of the lorry but only the 3rd defendant and that the lorry having been taken on hire at the time of the accident by one Subramaniam Chettiar for transporting articles in connection with a marriage in his house the hirer will be liable for any damages and not the owner of the lorry.

4. The 3rd defendant while admitting that he is owner of the lorry contended that he could not be made liable because he had lent the lorry and the driver temporarily to one Subramaniam Chettiar and the driver was for the time being under the control of Subramaniam Chettiar and the driver must be deemed to be the servant of the man to whom he was lent, although he remained the general servant of the 3rd defendant, and that for any acts done by the 2nd defendant during the course of the particular employment under Subramaniam Chettiar, the 3rd defendant would not be liable. The 3rd defendant also raised the plea of contributory negligence and other defences.

5. The and defendant driver remained ex parte.

6. The learned District Munsif found that the 3rd defendant is the owner of the lorry, that the damage was caused due to the negligence of the 2nd defendant, the driver of the lorry, and that the owner of the lorry is responsible for the tortious acts of his driver. He accordingly passed a decree against the defendants 2 and 3 for a sum of Rs. 220-40 nP.

7. It is against this decree that the 3rd defendant the owner of the lorry, has preferred this Revision Petition.

8. The only point that has to be considered in this Revision Petition is whether the 3rd defendant is liable for the damage caused by his driver to the plaintiff's car. It is the admitted case that the lorry belongs to the 3rd defendant and the 2nd defend-ant was in his employment at the time of hiring the lorry to one Subramaniam Chettiar for marriage purposes. Since the lorry was lent to some person for marriage purposes, can we say that the driver 2nd defendant continued to be the servant of the owner of the lorry ; or did he become the servant of the person to whom the lorry was lent on hire. It is true that a person can in fact and in law be a servant of more masters than one. In Salmond on Torts, 11th edition, while discussing the effect of learning a servant, the learned author says at page 102:

When a servant is lent by his employer to do work for another, it is a question of fact, depending on the nature of the arrangement and the degree of control exercised over the servant, whether he becomes quo ad hoc the servant of the person for whom he is working or remains in all respects the servant of his ordinary employer. When a servant has thus two masters, the responsibility for a tort committed by him lies exclusively upon the master for whom he was working when he did the act complained of.

9. One of the most frequently quoted judgments in this connection is that of Mc Cardie, J., in Performing Right Society Ltd. v. Mitchell and Booker L.R. (1924) 1 K.B. 762, where it was observed at page 767:

The nature of the task undertaken, the freedom of action given, the magnitude of the contract amount, the manner in which it is to be paid, the powers of dismissal and the circumstances under which payment of the reward may be withheld, all these bear on the solution of the question.... It seems, however, reasonably clear that the final test, if there be a final test, and certainly the test to be generally applied, lies in the nature and degree of detailed control over the person alleged to be a servant.

10. Therefore the principle seems to be that whenever it is necessary to discover whether or not one man is the servant of another the chief enquiry must be directed towards finding who has the power to control and it is also essential to know how and by whom a person is paid, by whom and in what circumstances he may be dismissed. It is in this connection that a distinction is drawn between a contract of service and contract for service. This distinction had been recognised in two-cases, namely, in Quarman v. Burnett (1840) 6 M. & W. 499, and Jones v. Scullard L.R. (1898) 2 Q.B. 565. In the former case, the defendants, two ladies, who kept a carriage, had for a period of about three years, been in the habit of hiring for the day or for the drive horses and coachman from a particular job mistress. Owing to the negligence of the coachman in leaving the horses unattended while the carriage was standing at the door of the defendants house the horses started off and came into collision with the plaintiff's chaise. The question arose whether the defendants were liable to pay compensation. It was held that the defendants were not liable as the coachman was entirely under the control of the job-mistress. But in Jones v. Scullard L.R. (1898) 2 Q.B. 565, the defendant owned horses, harness and a brougham which he kept at a livery stable. Whenever the defendant wished to use the carriage, the owner of the stables supplied one of his men to-drive. During such drives there was an accident causing damages to a jeweller who-was carrying on business. The question arose as to who was responsible for the damage and incidentally the question whether the driver of the brougham was the servant of the defendant or the servant of the person who supplied the cabman to drive the carriage. Lord Russel of Killowen, C.J., observed at pages 574-575:

The principle.... is that if the hirer simply applied to the livery-stable keeper to drive him between certain points or for a certain period of time, and the latter supplies all necessary for that purpose, the hirer is in no sense responsible for any negligence on the part of the driver. But it seems, to me to be altogether a different case where the brougham, the horse, the harness, and the livery are-the property of the person hiring the services of the driver. And in such a case, especially if, as here, the driver has driven the hirer for a considerable period of time and been approved by him, and the horse is one the characteristics or peculiarities of which neither the livery-stable keeper nor his driver have had any practical opportunity of becoming acquainted with, there is, it seems to me, evidence upon which a Jury would be justified in coming to the conclusion that the driver was upon the occasion in question acting as the servant, not of the livery-stable keeper, but of the person who hired him.

11. The Court of Appeal in Century Insurance Co. v. N.I. Road Transport Board (1942) 1 All E.R. 491, agreed that the test to be applied in deciding whether a man is the servant of another is. the one formulated by Bowen, L.J., in Donava v. Laing, etc Syndicate L.R. (1893) 1 Q.B. 629 at pp. 633-634, ...in whose employment the man was at the time when the acts complained of were done, in this sense, that by the employer is meant the person who has the right at the moment to control the doing of the act.

In another case Moore v. Palmer (1886) 2 T.L.R. 781, Bowen, L.J., laid down the important test at page 782 that:

The great test was this--whether the servant was transferred, or only the use and benefit of his work.

In the present case the driver was not transferred but only the use of this services.

12. The principles which should guide the Court in deciding the question whether there was a transfer of a servant from his general employer to another were also laid down in Chowdhary v. Gillot (1947) 2 All E.R. 541. The plaintiff in that case took his motor car to the manufacturers for repairs and after handing it over to the company with instructions regarding the repairs required, he asked for a lift to the nearest railway station. An employee of the company was instructed to drive him to the station in his (the plaintiff's) own car. On the way owing to the negligence of the person who was deputed to drive the car, the car collided with a lorry and the plaintiff was injured. The plaintiff filed the suit for damages against the manufacturing company and the person who was deputed to drive the car. The company contended that they were not liable for the negligence of the person who drove the car because the relation-ship of master and servant did not exist between the company and their general servant at the time of the accident, as the plaintiff was in control of his own car and the servant himself, and not merely the benefit of his services had been transferred to the plaintiff. It was held that the company had lent the plaintiff the services of their servant and had not transferred the servant himself to the plaintiff and the driver did not become the servant of the plaintiff. In that case Streatfeild, J., laid down certain principles which I think would apply to the facts of the present case. They are:

(1) A general servant remains the servant of the master who pays him and there is a presumption against the transfer of that servant as distinct from his services, and the presumption is all against there being such a transfer.

(2) The burden of proof of such a transfer is a heavy one.

(3) It must be proved that there was such a transference of the servant as to pass the right or authority to control him in the manner of the execution of the act in question.

(4) It is a question of fact involving the whole circumstances of the case whether there has been such a transference of the right or authority to control. In deciding the question the following things have to be kept in mind : who is paymaster, who can dismiss, how long the alternative service lasts, what machinery is employed.

13. In the instant case, the 3rd defendant who is the owner of the lorry lent the lorry and the driver 2nd defendant to one Subramaniam Chettiar for marriage purposes and at the time of the accident the 2nd defendant continued to be the servant of the 3rd defendant and the person who hired the lorry and the driver had no control over the 2nd defendant. If the tests laid down in the above said cases are applied to the facts of the case the 3rd defendant the owner of the lorry, will also be certainly liable for the damages caused to the plaintiff's car.

14. The learned Counsel for the petitioner further contended that though the 2nd defendant is the servant of the 3rd defendant, since he has taken the work of the hirer he is in the eye of the law the servant of the latter and the latter is in the eye of the law the employer. In support of this contention he relied on the decision in Bull & Co. v. West African Shipping Co. A.I.R. 1927 P.C. 173. But the facts in that case are entirely different from those of the present case.

15. It will be useful to refer to the decision of a Bench of the Calcutta High Court in National Shipping Co. v. Haripada . In that case the owner of a motor launch Uma (defendant 2) lent the launch to defendant 1 with all its crew on hire on certain conditions, the important among them being that the hirer would meet the running expenses of the launch and would effect the repairs in the event of any breakdown, that the hirer would operate the vessel in navigable waters and that he would repair at his cost if any damage was caused to vessel while it was with him. The hirer also reserved the right to dismiss, penalise or change any crew when deemed necessary but agreed to inform the owner of the launch about the same for approval. The plaintiff in that case sent several bags of some perishable goods in four country boats. In the course of the journey the motor launch dashed against one of the country boats with the result that the said country boat with the entire merchandise went down and was lost in deep waters. The plaintiff filed a suit for damages against the owner of the motor launch and the hirer. The Subordinate Judge held that defendant 2, the owner of the motor launch, was liable for the plaintiff's loss. On appeal by the owner of the motor launch, the matter came up before the Calcutta High Court. Mookerjee, J., while dealing with the appeal, reviewed the entire case-law on the subject and concluded thus;

...There can be little doubt that, in the present case, the general master, the appellant (the owner of the motor launch), would be liable. There is nothing here to indicate that the control of the manner in which the motor launch Uma was to be driven was with the temporary employer, respondent No. 2 (hirer), and this was plainly a case where the services of the serang-and not the serang as or qua servant--were transferred.... On the facts, therefore, it is well established that the requisite control over the serang was with the appellant company so as to-make it his master for purpose of the maxim ' respondent superior' and the liability for his tort must, accordingly, rest with it.

In this case also the driver 2nd defendant continued to be under the control of the 3rd defendant for all purposes and as such the 3rd defendant will be liable for the damages.

16. The Civil Revision Petition therefore fails and it is dismissed. No costs.