Kasturilal Ralia Ram Jain v State of U.P. (1965)

Constitutional Law II · State Liability

Facts.

Gold and silver belonging to Kasturilal’s firm were seized by U.P. police on suspicion of being stolen and kept in the police malkhana, from where a head constable misappropriated the gold and fled to Pakistan. The firm sued the State for the loss.

Issue.

Is the State liable for the negligence of police officers in keeping seized property, when the seizure was made in the exercise of statutory (sovereign) powers?

Held.

No. The seizure and custody were done in the exercise of a sovereign power (police power delegated by statute), for which the State enjoyed immunity; the firm’s claim failed.

Why it matters.

It is the high-water mark of sovereign immunity — and the case every later decision (Nagendra Rao, Nilabati Behera) worked to narrow. Every custody-loss problem is answered against its backdrop.

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