Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for the question among the four choices given.
LEGAL PRINCIPLE: A person, who lawfully brings on his land something which through harmless, but will do mischief if it escapes, must keep it at his peril, and if he does not, he is answerable for all the damage.
FACTUAL SITUATION: 'A' was the owner of a mill. In order to supply it with water, he constructed a reservoir upon nearby land by employing, engineers and contractors. 'B' was the owner of coal mines, under the land, close to but not adjoining the premises on which the reservoir was constructed. The contractors, while excavating for the bed of the reservoir, came upon abandoned mine shafts. The reservoir was completed and partly filled. Within days the bed of the reservoir gave way and burst, leading to flow of water through the channels connected with 'B''s mine. Is 'A' liable to pay damage for loss caused to 'B'?