Legal Principles: (AILET 2019) 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 possesses certain house, 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 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?

Each question consists of legal principle(s) (hereinafter referred to as 'principle') and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. You have to apply the principles to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. Remember: you must not rely on any principle except the principles that are given for every question.