The concept of vicarious liability mainly focus on the master- servant relationship and it says that the act done by servant on behalf of master or principal which harms the other person, shift the liability from servant to master. In this article the author has explained the vicarious liability of state when any wrong has been committed by its servant, but here the concept differ as State is not always vicariously liable for all wrongs done by its servant as there is difference between sovereign and non sovereign function, so in this article the author emphasis vicarious liability on the bases of sovereign and non sovereign functions of the state. Moreover, the author also dealt with the concept of states liability given under Constitution and how other legislation exempt state from its liability.