In: Economics
In india the state immunity is based on the sovereign and non sovereign functions. It was decided that the immunity of the state action can only be claimed if the act was done in the course of exercise of sovereign functions.
In this judgment of P and O steam navigation case- it was held that if the act is not under the exercise of course of sovereign functions, courts could entertain them.
In state of Rajasthan v. Vidhyavati where the driver of jeep used by collectors which was owned by Rajasthan govt drove it reckless and negligently which end up injuring a pedestrian badly . The state was held sued for the act. The Court held the state vivaciously liable for the damages caused by the driver.
The whole concept of public administration liability on tort is totally based of the fact the act done was either under the course of exercise of sovereign functions or not.
If it is under then he is immune, if not then state will be held vicariously liabe for the damages.