The question contains some basic principles and fact situations in which these basic principles have to be applied. A list of probable decisions and reasons are given. You have to choose a decision with reasons.
1. An employer shall be liable for the wrongs committed by his employees in the course of employment.
2. Third parties must exercise reasonable care to find out whether a person is actually acting in the course of employment.
Nandan was appointed by Syndicate Bank to collect small savings from its customers spread over in different places on a daily basis. Nagamma, a housemaid, was one of such 'customers making use of Nandan's service. Syndicate Bank after a couple of years terminated Nandan's service. Nagamma, unaware of this fact, was handing over her savings to Nandan who misappropriated them. Nagamma realized this nearly after three months when she went to the Bank to withdraw money. She filed a complaint against the Bank.
(a) Syndicate Bank shall be liable to compensate Nagamma.
(b) Syndicate Bank shall not be liable to compensate Nagamma.
(c) Nagamma has to blame herself for her negligence.
Probable reasons for the decision:
(i) Nandan was not acting in the course of employment after the termination of his service.
(ii) A person cannot blame others for his own negligence.
(iii) Nagamma was entitled to be informed by the Bank about Nandan.
(iv) The Bank is entitled to expect its customers to know the actual position.
(b) - (i)
(c) - (ii)
(a) - (iii)
(b) - (iv)
(a) - (iii)
Nagmma was making use of Nandan service earlier also and it was not possible to find out by reasonable care in due course about the termination of Nandan and Bank should inform in this regard to the customers.