"We reiterate the need for a comprehensive legislation dealing with tortious liability of the state and its instrumentalities in such cases for certainty on the subject," a bench headed by Justice V Gopala Gowda said.
The bench also requested the Law Commission to look into the matter and take necessary steps.
Upholding the liability of Vadodara municipal corporation, the bench said not only constitutional courts have to uphold claims arising out of loss of life or liberty but in private law remedies, just and fair claims of citizens, against public bodies have to be upheld and compensation have to be awarded.
The lake was under the control of Vadodara Municipal Corporation while Ripple Aqua Sports was the contractor to ply boats in the lake.
On August 11, 1993, against the capacity of 20 people, 38 passengers were allowed to ride in the boat, which capsized resulting in death of 22 passengers.
The state commission allowed the claims and held that even a public authority exercising statutory power was not exempted from liability for negligent actions.
The state commission held Aqua Sports and the Corporation to be jointly and severely liable and determined the quantum of compensation ranging from Rs.50,000 to Rs.10,76,000 in respect of claims for death of 22 passengers.