The Hon’ble Supreme Court of India in the judgment passed on January 05, 2022 in the matter – State of UP Vs Mcdowell and Company Limited observed that a fire accident cannot be said to an ‘act of God’ if it did not happen due to the operation of any forces of nature.

In the instant case , in 2003, a fire incident took place in a godown of the distillery of the Mcdowell & Co. As many as 35,642 cases of Indian Made Foreign Liquor of different brands got destroyed in this fire. After receiving the initial reports that the fire possibly took place due to short circuit of electricity, the Revenue department proposed to recover the amount of excise duty lost, due to such destruction of liquor, from the company. Allowing the writ petition filed by the company, the Allahabad High Court quashed the demand notice issued by the Department.

The High Court had accepted the contention raised by the company that if the fire had taken place despite the company having taken all care, it was nothing but an act of God of which, no human agency had any control.

In appeal filed by the State before the Supreme Court, the Apex Court disagreed with the observation of the Allahabad High Court and allowed the appeal. The Supreme Court observed that the fire incident in question cannot be said to be that of an event beyond human control and the High Court has been in error in holding that no negligence could be imputed on the respondent company.

The Supreme Court observed as follows:

“When nothing of any external natural force had been in operation in violent or sudden manner, the event of the fire in question could be referable to anything but to an act of God in legal parlance”.