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[urgent help needed]

(Querist) 11 May 2018 This query is : Resolved 
Respected Seniors
I am working on deal for a hotel aggregator company.
The management has put forward a query stating that :
"In case of there is a fire for any reason whatsoever in a hotel that is not OWNED but managed by the Company ONLY then in such a case is there a direct liability on the Directors of the Hotel Aggregator company".

The obvious answer is YES: there is a liability as stated in multiple judgement, but they are not accepting my viewpoint citing that the liability will be only of the Owner only and not of the company as it is just managing the property. They also state that if this is the case their business is at high risk.

As experts I seek your opinion on this if I am missing out on any aspect of law here.


Ajay Kapoor

P.S: The liability if any is independent of any statutory compliance which are any way being followed.

Isaac Gabriel (Expert) 12 May 2018
The query seems to be hypothetical without mentioning the Insurance agency either by owner or tenant.
Ms.Usha Kapoor (Expert) 12 May 2018
Yes!There is no mention of Insurance agency anywhere or even a whisper.
Ajay Kapur (Querist) 12 May 2018
Respected Seniors
The company already has a public liability insurance. But even after having such a comprehensive insurance the client company seeks clarification that in case of any fire who will be bear liability of the injured persons.
The insurance company shall only pay the damages but the liability in terms of any ensuing litigation shall be with whom "The OWNER " or " The Company managing the said property".
This is my humble query as to who shall bear the "Criminal Liability" which so arises.



Guest (Expert) 12 May 2018
Of course, the observation of the experts seems to be correct about the query to be hypothetical one. However, if a real case, you could well have asked this question from the insurance agent through whom you obtained the policy, or could have sent your inquiry to the insurance company, itself.
Guest (Expert) 12 May 2018
I am also of the opinion that your query seems to be merely a hypothetical one, as if you are seeking solution to some of your academic query.

However, for your information, public liability insurance covers you for the cost of a claim made by a member of the public that has suffered injury or property damage as a result of your business or a product it has supplied. That does not cover your employees, unless their lives are covered by a separate life insurance policy.

R.Ramachandran (Expert) 12 May 2018
Dear Mr. Ajay Kapur,
Pl. appreciate that yours is a business query. No off the shelf answer is available to the query posed by you. A good amount of legal research is called for before any answer to your query. Therefore, you would be well advised to look for professional legal advice in the matter.
Ajay Kapur (Querist) 12 May 2018
Respected Seniors
The query is hypothetical as it has not occurred till date but there is and god forbid a possibility of occurrence in the future.

Having mentioned so I just seek your kind consideration to just a single fact:

" WHAT IS THE CRIMINAL LIABILITY OF THE DIRECTORS OF THE COMPANY IN CASE OF A FIRE".This is considering they have followed and obtained the necessary statutory compliance's applicable under law.

Please guide on this aspect I will be greatly obliged.



Ms.Usha Kapoor (Expert) 12 May 2018
Insurance comp[any will have to pay the amount/compensation to the injured and then once paid the liability even if there are only two premia paid by the owner at the time of accident.
ramesh (Expert) 12 May 2018
There are tailor made policies in insurance industry. If you have insurable interest , your apprehensions can also be covered at a premium.
ramesh (Expert) 12 May 2018
There are tailor made policies in insurance industry. If you have insurable interest , your apprehensions can also be covered at a premium.
Dr J C Vashista (Expert) 13 May 2018
Seek guidance of your tutor for hypothetical questions, this platform is not meant for such querist.

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