LEGAL PRINCIPLE: When a person unlawfully intervenes in the chattel of another person by which the latter is deprived of its use, the former commits the tort of conversion and nobody shall enrich himself at other's cost.
FACTUAL SITUATION: X, a patient suffering from fibroids in her uterus approached KLM Medical Institute. X was suggested to undergo surgery to remove the fibroids from her uterus. The operation was successfully performed and X was discharged after few days. One of the researchers of the KLM Institute discovered some rare and unique cells in the fibroids of X and using these cells, the laboratory of KLM developed some life-saving drugs and earned rupees twenty crore from a leading International Pharma Company. When X came to know about it, she claimed money from the Institute.
DECIDE.

KLM Institute need not share its income with X because X far from being deprived of the use of her fibroids was actually benefited by its removal.

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KLM Institute need not share its income with X because the medical institute instead of destroying the waste fibroids of X conducted research on its own and invented new life-saving drugs.

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KLM Institute must share its income with X because KLM could not have achieved its success without fibroids of X.

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KLM Institute must share its income with X on moral grounds.

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Solution

The correct option is D KLM Institute need not share its income with X because the medical institute instead of destroying the waste fibroids of X conducted research on its own and invented new life-saving drugs.
Conversion is an act of 'Willful interference'. This expression implies the element of intention, which refers to the intentional commission of the act, which is termed as conversion. An act of conversion may be committed, when the property is wrongfully taken, when it is wrongfully parted with, when it is wrongfully sold, when it is wrongfully retained, when it is wrongfully destroyed, when there's a denial of the wrongful owner's right.
Hence, KLM need not share its income with X.

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Similar questions

Q. 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 question among the four choices given.
LEGAL PRINCIPLE: When a person unlawfully intervenes in the chattel of another person by which the latter is deprived of its use, the former commits the tort of conversion. And nobody shall enrich himself at other's cost.
FACTUAL SITUATION: Z, a patient suffering from a disease in his digestive system approach ABC medical college. Z was diagnosed as suffering from appendicitis and hence his appendix was removed from his body by ABC medical college. The ABC hospital thereby found unique cell in Z's appendix and using such cell it developed drugs of enormous medical value of rupees five crore from Cipla Industries Limited when Z knew it, he charged rupees four crore.
ANALOGICAL DECISION:
(A) The ABC medical college need not share its income with the patient Z.
(B) The ABC medical college may share its income on
moral point of course.
(C) The ABC medical college must have shared its income with Z.
ANALOGICAL REASON:
(1) Z, far from being deprived of use of his appendix, actually benefitted by its removal.
(2) The ABC medical college instead of waste appendix of Z conducted research on its own and invention of new drug was its effect and result.
(3) The ABC medical college could not have achieved its success without the appendix belonging to Z.
(4) Everybody must care for and share with others.
Your Decision with Reasons.

Q. Principles
1. When a person unlawfully interferes in the chattel of another person by which the latter is deprived of its use, the former commits the tort of conversion.
2. Nobody shall enrich himself at other's expense,
Facts
A patient suffering from stomach ailment approached. a teaching hospital. He was diagnosed as suffering from appendicitis and his appendix was removed. He became alright. The hospital however found some unique cells in the appendix and using the cell lines thereof, it developed drugs of enormous commercial value. When the erstwhile patient came to know about it, he claimed a share in the profit made by the hospital.
Possible decisions
a) The hospital need not share its profits with the patient.
b) The hospital may share its profits on ex gratis basis.
c) The hospital shall share its profits with the patient.
Possible Reasons
i) The patient, far from being deprived of the use of his appendix, actually benefitted by its removal.
ii) The hospital instead of throwing away the appendix conducted further research on its own and the development of drug was the result of its own effort.
iii) The hospital could not have achieved its success without that appendix belonging to the patient.
iv) Everybody must care for and share with others.
Your decision with the reason

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