Legal Principles :1. Vicarious liability is when employers are held liable for the torts of their employees that are committed during the course of employment. 2. A servant is a person subject to the command of his master as to the manner in which he shall do his work. The question of whether a person is an employee depends upon the degree of control which the ’employer’ exercises over the worker.Facts : Raja is a travel agent and possessed certain houses, which had an internal communication throughout, and which were used for the purposes of his business. Ramesh looked after the houses, and lived in them for this purpose, but he was also a clerk in the Raja’s pay at a set annual salary. He lived in the houses with his wife, a child, and a servant. The case concerned the payment of inhabited house duty. There was a statutory exemption for premises which were occupied by a “servant” or person occupying the premises “for the protection thereof”. Raja was claiming the exemption from tax liability by claiming that Ramesh was the servant. Decide whether Ramesh was a servant or an independent contractor ?

Question

Legal Principles :1. Vicarious liability is when employers are held liable for the torts of  their employees that are committed during the course of employment. 2. A servant is a person subject to the command of his master as to  the manner in which he shall do his work. The question of whether a person is an  employee depends upon the degree of control which the ’employer’ exercises  over the worker.Facts : Raja is a travel agent and possessed certain houses, which had an internal communication throughout, and which were used for the purposes of  his business.  Ramesh looked after the houses, and lived in them for this purpose,   but he was also  a clerk in the Raja’s pay at a set annual salary. He lived in the houses  with his wife, a child, and a servant. The case concerned the payment of inhabited  house duty. There was a statutory exemption for premises which were occupied  by a “servant” or person occupying the premises “for the protection thereof”. Raja  was claiming the exemption from tax liability by claiming that Ramesh was the  servant. Decide whether Ramesh was a servant or an independent contractor ?

Examsnet · Accepted Answer

Correct Answer is :  Ramesh is not a servant as the premises was  held purely for trade purposes, and as Ramesh’s position was simply that of a caretaker.

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