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On what legal basis the Government was held liable in Peninsular and Oriental Steam Navigation Company…

In P&O Steam Navigation Co. v. Secretary of State the negligent act occurred in a non-sovereign (commercial) function, so "the Government liable as it was not performing…

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On what legal basis the Government was held liable in Peninsular and Oriental Steam Navigation Company v. Secretary of State for India, 1861 Bom HCR App A-3 (3), for the acts of its servants?

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In P&O Steam Navigation Co. v. Secretary of State the negligent act occurred in a non-sovereign (commercial) function, so "the Government liable as it was not performing sovereign functions at the relevant time", drawing the sovereign and non-sovereign distinction.

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