question_answer

Principle Master will be liable for the wrongful acts of his servants in course of employment.

Facts Shikha was an old widow, who opened an account with the Canara Bank, whereby she would deposit Rs 100 everyday in the bank. Mukesh was a neighbour, who used to collect the amount and deposit them in bank. Mukesh used to get a small commission from the bank for money deposited. One day it was discovered that Mukesh, who had not deposited the money for more than 3 months had vanished with the amount. Shikha filed a suit against the Canara Bank.

Decision

A)  Canara Bank, would be liable because Mukesh was paid commission by the bank for doing its work, so he was working as an agent of bank

B)  Bank would not be liable because Mukesh was not an employee of the bank

C)  Bank would not be liable, for the failure of Shikha to check the balance in her account

D)  None of the above