Legal Principle: Even if the sovereign functions of the state are discharged negligently the state is not vicariously liable in tort. Factual Situation: A was a trader in gold. He was arrested by the police and was detained in police custody after search. The gold along with sundry items that were with him was seized. Later he was released. His possessions seized by the police were returned. He moved against the state in tort. In the words of the Supreme Court: ‘There can be no escape from the conclusion that the police officers were negligent in dealing with stolen property after it was seized.’ One of the constables was a Muslim. He fled with the gold to Pakistan.