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2002 INSC 21
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  • Section 5, Subsection 2 of the 1983 Income Tax Act
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Cites
Cited by
Citation Codes
Neutral Citations
2002 INSC 21
Equivalent Citations
citation codes
Case Number
Disposition
Advocates
Judges
Acts
  • Section 5, Subsection 2 of the 1983 Income Tax Act
Smart Summary

Factual and Procedural Background

On the night of 23 August 1997, Jogendra Singh, a 37-year-old factory worker, was riding his bicycle home during rainfall when he unknowingly rode over a live electric wire lying on a partially flooded public road. The wire twitched, causing instantaneous electrocution and death. His widow and minor son filed a suit for Rs 6.9 lakhs in damages against the Madhya Pradesh Electricity Board (“the Board”) and one Hari Gaikwad, whom the Board alleged had illegally tapped electricity.

The trial court assessed compensation at Rs 4.34 lakhs but dismissed the suit on the ground that the claimants had “failed to prove who was liable.” On appeal, a Division Bench of the Madhya Pradesh High Court reversed, holding the Board liable and directing payment of the assessed amount. The Board then appealed to the Supreme Court, which, after hearing counsel for the Board only, rendered the present decision.

Legal Issues Presented

  1. Whether the Madhya Pradesh Electricity Board could avoid liability for the electrocution death on the ground that the live wire resulted from an alleged illegal pilferage of electricity by a third party (“act of stranger”).
  2. Whether the doctrine of strict liability under Rylands v. Fletcher applies to suppliers of electricity in circumstances where a live wire escapes onto a public road.

Arguments of the Parties

Appellant — Madhya Pradesh Electricity Board

  • Contended that the fatal wire had been unlawfully connected to the main supply by Hari Gaikwad to siphon electricity, an activity unknown to and uncontrollable by the Board.
  • Argued that only the wrongdoer responsible for the clandestine pilferage should bear liability for damages.
  • Invoked the “act of stranger” exception to the rule of strict liability.

Third Respondent — Hari Gaikwad

  • Denied any pilferage or connection to the main supply line and disclaimed liability for the incident.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Rylands v. Fletcher (1868) 3 HL 330 Origin of the doctrine of strict liability for escape of dangerous substances. Invoked to impose strict liability on the Board for the escape of electricity, a dangerous agency.
Cambridge Water Co. Ltd. v. Eastern Counties Leather plc (1994) 1 All ER 53 (HL) Modern affirmation of strict liability. Cited as continuing recognition of the doctrine followed by Indian courts.
Charan Lal Sahu v. Union of India (1990) 1 SCC 613 Indian Supreme Court approval of Rylands v. Fletcher. Referenced to show domestic acceptance of strict liability.
Gujarat SRTC v. Ramanbhai Prabhatbhai (1987) 3 SCC 234 Further Indian application of strict liability. Used along with Charan Lal Sahu to reinforce the principle.
Kaushnuma Begum v. New India Assurance Co. Ltd. (2001) 2 SCC 9 Reiteration of the strict liability doctrine. Cited as recent endorsement of the rule.
M.C. Mehta v. Union of India (1987) 1 SCC 395 Introduced absolute liability for hazardous activities, beyond strict liability and without exceptions. Quoted to underscore that even the exceptions to Rylands are inapplicable where inherently dangerous activities are involved.
Northwestern Utilities Ltd. v. London Guarantee & Accident Co. Ltd. (1936) AC 108 Rejection of “act of stranger” defence where escape of dangerous substance was foreseeable. Relied upon to dismiss the Board’s attempt to invoke the “act of stranger” exception.
Quebec Rly., Light, Heat & Power Co. Ltd. v. Vandry (1920) AC 662 Supplier of electricity liable without proof of negligence. Cited to show that even natural forces (e.g., violent wind) do not absolve liability for escaped electricity.
W.B. SEB v. Sachin Banerjee (1999) 9 SCC 21 Case where Board argued illegal hooking; negligence not proved. Mentioned to note that strict liability was not examined there, distinguishing it from present case.

Court's Reasoning and Analysis

The Supreme Court emphasized that the statutory duty to supply electricity in the locality rested on the Board. Electricity, being inherently dangerous, obliges the supplier to adopt safety measures that prevent any live wire from remaining on public roads. The Court reasoned as follows:

  • The presence of a live wire on a public road constitutes an escape of a dangerous agency, triggering the doctrine of strict liability.
  • The “act of stranger” exception to Rylands v. Fletcher is inapplicable because the Board should reasonably have anticipated illegal tapping and installed devices to prevent or neutralize such occurrences. The Board’s managerial responsibility includes preventing pilferage and ensuring that any snapped wire becomes automatically de-energised.
  • Precedents such as M.C. Mehta enlarge strict liability into absolute liability for hazardous operations, eliminating traditional exceptions.
  • Comparative cases (Northwestern Utilities, Vandry) demonstrate that entities handling dangerous substances remain liable even when third-party acts contribute to the escape.
  • Given these principles, the High Court correctly imposed liability on the Board; the appeal had no reasonable prospect of success.

Holding and Implications

APPEAL DISMISSED. The Supreme Court affirmed the High Court’s direction that the Madhya Pradesh Electricity Board pay Rs 4.34 lakhs in compensation to the dependants of Jogendra Singh.

Implications: The decision reinforces the application of strict—if not absolute—liability to electricity suppliers for injuries caused by escaped live wires, underscoring that alleged illegal tapping by third parties will not exonerate the supplier. No new legal principle was created, but existing doctrines were reaffirmed and applied stringently.

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    M.P Electricity Board v. Shail Kumari And Others

    K.T Thomas, J.— Leave granted.

    2. The supplier of electricity in a locality is striving to squirm out of the liability to compensate the dependants of the sole victim of a snap electrocution. The supplier, Madhya Pradesh Electricity Board (for short “the Board”) pleads that the electrocution was due to the clandestine pilferage committed by a stranger unauthorisedly siphoning the electric energy from the supply line and hence the wrongdoer alone should be mulcted with the burden of damages. In a suit filed by the dependants of the victim the trial court agreed with the Board in regard to the aforesaid contention, but the High Court disagreed and directed the Board to pay the amount of damages assessed. The said judgment of the High Court of Madhya Pradesh is now under challenge in this appeal. After hearing learned counsel for the Board we do not find the necessity to seek the help of the respondents in deciding this appeal and hence service of notice on the respondents is dispensed with.

    3. One Jogendra Singh, a workman in a factory, aged 37, was riding a bicycle on the night of 23-8-1997 while returning from his factory, without any premonition of the impending disaster awaiting him en route. The disaster was lying on the road in the form of a live electric wire. There was rain and hence the road was partially inundated with water. The cyclist did not notice the live wire on the road and hence he rode the vehicle over the wire which twitched and snatched him and he was instantaneously electrocuted. He fell down and died within minutes.

    4. When the action was brought by his widow and minor son, nobody disputed the fact that Jogendra Singh died at the place and at the time mentioned by the claimants. Nor has it been disputed that he was electrocuted by the live wire lying on the road. The main contention advanced by the appellant Board is that one Hari Gaikwad (third respondent) had taken a wire from the main supply line in order to siphon the energy for his own use and the said act of pilferage was done clandestinely without even the notice of the Board; and that the line got unfastened from the hook and it fell on the road over which the cycle ridden by the deceased slided resulting in the instantaneous electrocution.

    5. The third respondent disclaimed any liability, repudiated the allegation of pilferage of electric energy and disowned having taken the line from the main supply wire which became the death trap of Jogendra Singh.

    6. The compensation claim was in a sum of Rs 6.9 lakhs. The trial court assessed the compensation amount to which the claimants are entitled as Rs 4.34 lakhs. But the claimants were non-suited by the trial court solely on the premise that the claimants “failed to prove who was liable for the above compensation”. A Division Bench of the High Court of Madhya Pradesh allowed the appeal filed by the claimants and directed the Board to pay the compensation amount of Rs 4.34 lakhs to the claimants. The Division Bench reached the said conclusion on the following reasoning:

    “MPEB has stated in paragraph 5 of the document Ext. P-6 that it has kept staff to see that no pilferage of electricity takes place and it had no knowledge about this pilferage of electricity line by Hari Gaikwad. Therefore, it becomes clear that the electricity supply line was moving in that part of the area out of which the wire was hanging, may be or may not be put by Hari Gaikwad, but it was live electricity wire and when the deceased came in contact with it he died of electrocution. Therefore, the defences put up by MPEB are absolutely without any basis and do not reflect the real position at the spot, rather attempt has been made to conceal the real position in order to avoid responsibility and liability for payment of compensation.”

    7. It is an admitted fact that the responsibility to supply electric energy in the particular locality was statutorily conferred on the Board. If the energy so transmitted causes injury or death of a human being, who gets unknowingly trapped into it the primary liability to compensate the sufferer is that of the supplier of the electric energy. So long as the voltage of electricity transmitted through the wires is potentially of dangerous dimension the managers of its supply have the added duty to take all safety measures to prevent escape of such energy or to see that the wire snapped would not remain live on the road as users of such road would be under peril. It is no defence on the part of the management of the Board that somebody committed mischief by siphoning such energy to his private property and that the electrocution was from such diverted line. It is the lookout of the managers of the supply system to prevent such pilferage by installing necessary devices. At any rate, if any live wire got snapped and fell on the public road the electric current thereon should automatically have been disrupted. Authorities manning such dangerous commodities have extra duty to chalk out measures to prevent such mishaps.

    8. Even assuming that all such measures have been adopted, a person undertaking an activity involving hazardous or risky exposure to human life, is liable under law of torts to compensate for the injury suffered by any other person, irrespective of any negligence or carelessness on the part of the managers of such undertakings. The basis of such liability is the foreseeable risk inherent in the very nature of such activity. The liability cast on such person is known, in law, as “strict liability”. It differs from the liability which arises on account of the negligence or fault in this way i.e the concept of negligence comprehends that the foreseeable harm could be avoided by taking reasonable precautions. If the defendant did all that which could be done for avoiding the harm he cannot be held liable when the action is based on any negligence attributed. But such consideration is not relevant in cases of strict liability where the defendant is held liable irrespective of whether he could have avoided the particular harm by taking precautions.

    9. The doctrine of strict liability has its origin in English common law when it was propounded in the celebrated case of Rylands v. Fletcher (1868) 3 HL 330, (1861-73) All ER Rep 1. Blackburn, J., the author of the said rule had observed thus in the said decision: (All ER p. 7E-F)

    “[T]he true rule of law is that the person who, for his own purposes, brings on his land, and collects and keeps there anything likely to do mischief if it escapes, must keep it at his peril, and, if he does not do so, he is prima facie answerable for all the damage which is the natural consequence of its escape.”

    10. There are seven exceptions formulated by means of case-law to the doctrine of strict liability. It is unnecessary to enumerate those exceptions barring one which is this: “Act of stranger i.e if the escape was caused by the unforeseeable act of a stranger, the rule does not apply.” (Vide p. 535, Winfield on Tort, 15th Edn.)

    11. The rule of strict liability has been approved and followed in many subsequent decisions in England. A recent decision in recognition of the said doctrine is rendered by the House of Lords in Cambridge Water Co. Ltd. v. Eastern Counties Leather plc. (1994) 1 All ER 53 (HL) The said principle gained approval in India, and decisions of the High Courts are a legion to that effect. A Constitution Bench of this Court in Charan Lal Sahu v. Union of India (1990) 1 SCC 613 and a Division Bench in Gujarat SRTC v. Ramanbhai Prabhatbhai (1987) 3 SCC 234 had followed with approval the principle in Rylands v. Fletcher (1868) 3 HL 330, (1861-73) All ER Rep 1. By referring to the above two decisions a two-Judge Bench of this Court has reiterated the same principle in Kaushnuma Begum v. New India Assurance Co. Ltd. (2001) 2 SCC 9

    12. In M.C Mehta v. Union of India (1987) 1 SCC 395 this Court has gone even beyond the rule of strict liability by holding that:

    Where an enterprise is engaged in a hazardous or inherently dangerous activity and harm is caused on anyone on account of the accident in the operation of such activity, the enterprise is strictly and absolutely liable to compensate those who are affected by the accident; such liability is not subject to any of the exceptions to the principle of strict liability under the rule in Rylands v. Fletcher (1868) 3 HL 330, (1861-73) All ER Rep 1.

    13. In the present case, the Board made an endeavour to rely on the exception to the rule of strict liability (Rylands v. Fletcher (1868) 3 HL 330, (1861-73) All ER Rep 1) being “an act of stranger”. The said exception is not available to the Board as the act attributed to the third respondent should reasonably have been anticipated or at any rate its consequences should have been prevented by the appellant-Board. In Northwestern Utilities Ltd. v. London Guarantee and Accident Co. Ltd. 1936 AC 108 the Privy Council repelled the contention of the defendant based on the aforecited exception. In that case a hotel belonging to the plaintiffs was destroyed in a fire caused by the escape and ignition of natural gas. The gas had percolated into the hotel basement from a fractured welded joint in an intermediate pressure main situated below the street level and belonging to the defendants which was a public utility company. The fracture was caused during the construction involving underground work by a third party. The Privy Council held that the risk involved in the operation undertaken by the defendant was so great that a high-degree care was expected of him since the defendant ought to have appreciated the possibility of such a leakage.

    14. The Privy Council has observed in Quebec Rly., Light, Heat and Power Co. Ltd. v. Vandry 1920 AC 662 that the company supplying electricity is liable for the damage without proof that they had been negligent. Even the defence that the cables were disrupted on account of a violent wind and high-tension current found its way through the low-tension cable into the premises of the respondents was held to be not a justifiable defence. Thus, merely because the illegal act could be attributed to a stranger is not enough to absolve the liability of the Board regarding the live wire lying on the road.

    15. In W.B SEB v. Sachin Banerjee (1999) 9 SCC 21 the Electricity Board adopted a defence that electric lines were illegally hooked for pilferage purposes. This Court said that the Board cannot be held to be negligent on the said fact situation but the question of strict liability was not taken up in that case.

    16. In the light of the above discussion we do not think that the Board has any reasonable prospect of succeeding in this appeal. Hence even without issuing notice to the respondents we dismiss this appeal.

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    Comments

    M.P Electricity Board v. Shail Kumari And Others
    (Jan 12, 2002)