AREA: Statutory Authority (An act is not wrongful, if it is authorized by the legislature)
FACTS:
The plaintiff was a company registered under the Companies Act, called Ramachandram Nagaram Rice and Oil Mills Ltd, manufacturing oil and rice for the some years and have been selling these articles at various places in the provinces of Bengal, Bihar, Orissa and Assam.
Mustard oil manufactured by plaintiff company was sold in canisters and sent to Purulia railway station for delivery to the customers as per agreement.
Municipal Commissioners of Purulia (Defendant), under S. 287, Municipal Act, for the issue of a search warrant on the ground that the said oil had been brought in a crude oil or kerosene oil tank, and the oil was bad, contaminated with kerosene oil and emitted bad odour.
The sanitary inspector and defendant ordered some tins of mustard oil, which were lying at the railway yard, to be carried in the municipal motor truck which is used for carrying rubbish, road-sweeping and other filthy matters and some of the tins of mustard oil, which were really meant for human consumption were loaded in the motor truck by sweepers.
Plaintiff alleged not only loss in value of their goods but also loss of reputation. It challenged the arbitrary and malicious order of the defendant.
ISSUE:
Can the defendants said to be acting under the statutory authority and thus protected from liability?
JUDGMENT:
Act done in pursuance of the statutory powers must be done with due care and caution. Statutory powers are not Charters of immunity for any injurious act done in the exercise of them.
The fact remains that the defendants in their alleged zeal to prevent beri-beri within the municipality acted very hastily in the matter, and in their haste they took steps which led to the seizure of the oil and the despatch of the oil from the station in a scavengers’ truck.
The action of the municipality, if not actuated by malice or as a result of a conspiracy, was certainly very unreasonable and negligent. There were other methods available, by which the same object could have been attained. But the one which the municipality adopted does make them liable for the loss which the plaintiff suffered. The municipality is liable for the negligent acts of its agents.
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