The Common Law maxim “Rex Non Potest Peccare” which means that The King can do no wrong provided absolute power to the state in that neither the state, nor could its employees or on the other hand workers ever be held at risk for any wrong dedicated by them.   This was, however, never followed in India. The East India Company initially came as a trading company in India. In any case, later on it began to administer a huge part of the nation and the extent of its forces and authority was defined by legislations passed by the British Parliament. After the 1857uprising the company was dissolved and the rule passed over directly to the British Crown .During this period the liability of the state depended upon the powers and authority of the Head of the state. In pre- Constitution period the liability of the State was a major question which confounded all the courts. As of now a qualification was made among sovereign and non-sovereign power with complete immunity being given to the former. However, the scope of sovereign or non-sovereign power was never clearly defined, and hence depended on judicial interpretation.

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