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liability of principal

(Querist) 02 April 2011 This query is : Resolved 
Esteemed experts,
I am working in a state govt. company. I was supervising a civil work done by a contract labourer. He did a damage while bull dozing. I am proceeded against departmentally. They are trying to recover damage worth Rs.40 lakhs. They are not taking any action against contractor or labourer.
Pl. guide me whether the parincipal/ contractor is liable for the acts of his agent or not.
adv. rajeev ( rajoo ) (Expert) 02 April 2011
yes Principal/contractor is liabe for the acts of the his agent. It is known as vicarious liability.
Devajyoti Barman (Expert) 02 April 2011
It is surprising to know that the department is initiating action against you than chasing the right culprit. Here the Contractor engaged to do the job is liable for action, if any and in no circumstances you are liable.
You could only be held liable if it is proved that the said contractor guilty of misfeasance was wrongfully engaged by you and that too without adhering to the established procedure.
niranjan (Expert) 02 April 2011

damage caused by the contractor cannot be cause for departmental enquiry,you can only be held responsible for negligence in supervising the work.
Advocate. Arunagiri (Expert) 03 April 2011
The departmental action against you is illegal under the circumstances you have briefed. Might be various other reasons.

If the contractor damages any thing, only the principal (in this case government)is liable to pay. The govt is having all such rights to recover it from the contractor.
Vijayan Balakrishnan (Expert) 04 April 2011
I agree with the esteemed experts.
The authorities should have sought explanation from the supervisor before proceeding against you departmentally. They should have ascertained whether there was any prima faice dereliction of duty on his side before charge-sheeting him. After ascertaining the reasons from him, the authorities should have claimed the damages from the contracor at the first instance as per the terms and conditions of the Labour contract / works contract as the contracor has a vicariuos liability for the damage caused by the contract labourer supplied by him.
In this case, the info-seeker does not appear to have furnished sufficient information to render pragmatic advice.
In any case, the departmental proceedings against the supervisor does not appear in order except in case the supervisor apparently did not supervise the job assigned to him with reasonable care.
The action shows colourable exercise of power or non-application of mind by his superiors.
Kirti Kar Tripathi (Expert) 04 April 2011
This not a case, where provisions of CLRA will apply. This is purely an civil case under the law on the basis of rights and liabilities of the parties. since the loss is caused due to act of laboueres employed by the contractor, the liability is of contractor not of you. you can not be held responsible for that. However, in any event, is it found, that the loss is occurred due to negligence on your part, the employer is justified to take action against you.


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