Case: Kishangarh Electric Supply Company v United States of Rajasthan. High Court of Rajasthan (India)

Date05 May 1959
CourtHigh Court of Rajasthan (India)
India, High Court of Rajasthan

(Bapna, Jagat Narayan, JJ.)

Kishangarh Electric Supply Co. Ltd.
United State of Rajasthan

States as international persons State succession With regard to obligations for delinquencies Merger of states Whether successor liable for torts of the former state The law of India

Summary: The facts.The plaintiff, the transferee of a licence for supplying electricity granted by Kishangarh, a former Indian native state, sued the defendants, a state of India, after the merger of Kishangarh with the latter, for damages for unlawful action by the state of Kishangarh.

Held: The successor state was not liable for the tortious act of the former state. The following is the text of the relevant part of the judgment:

This is a first appeal by the plaintiff in a suit for recovery of damages.

(2) The plaintiff is the Kishangarh Electric Supply Co. Ltd., and the suit was instituted for recovery of damages to the tune of Rs. 1,99,600/- against the United State of Rajasthan in the Court of District Judge, Kishangarh, on 25 November 1949, on the allegations that on 22 December 1942, the then Kishangarh State granted a licence to Lohawala and Co. of Ajmer for the supply of electricity to Kishangarh and Madan Ganj on certain conditions mentioned in the licence. It was alleged that the Kishangarh State handed over the charge of the building of the Power House, its lands, plants and machines etc. which were of the value of Rs. 50,000/- to Lohawala and Co.

It was alleged that the said Lohawala and Co. transferred all its rights in favour of the plaintiff on 7 April 1946, according to the terms and conditions of the licence, and handed over possession of all the lands, buildings and material to the plaintiff. It was alleged that the plaintiff company carried on work as a licence [sic.], and supplied electricity to all the area. It was then alleged that on 25 September 1946, the then Kishangarh State forcibly and unlawfully took posession of the building of the Power House, plants and machinery, and other materials along with the account books and registers etc. of the plaintiff company.

It was alleged that the plaintiff made several representations in this respect to the then Kishangarh State, and after the formation of Rajasthan, to the Rajasthan Government, and claimed back all the properties, account books and documents, and to compensate for the loss which had occurred to the plaintinff company due to the highhanded and unlawful action of the then Kishangarh State, but no...

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