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Question
PRINCIPLE The test as to whether the act done by an officer or agency of the state is a sovereign function or a function done ordinarily is dependent on the fact that an alternative person may also carry out the latter, but the former may only be carried out by the state.
FACTS In a boundary settlement dispute between India and Bangladesh, a certain territory was exchanged in pursuit of a treaty agreement. X's land which lay in the Indian enclave thus got transferred to Bangladesh, which did not recognise his proprietary rights. In a suit against the Indian Government, the likely outcome is
Options
the Indian Government must compensate by way of money giving the fair price of the land to X
the Indian Government need not compensate X
the Bangladeshi Government should compensate X
the Indian Government should give him property in the land received from Bangladesh
Solution
the Indian Government need not compensate X