Legal Principle: the state is liable for the act of its employees. When the act is of private nature, in the same manner and under the same conditions as any other employer. The state is not liable when the act is in the exercise of sovereign power or in performance of an act of state. Factual Situation: An army truck driven by a military driver A was proceeding on duty to check the army men of duty at different military posts. The truck hit a civilian B and caused material injury. The fact showed that the injury was caused due to rash and negligent driving by the military driver A. The injured civilian B brought a suit in tort against the union of India. The suit: