Principles:
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.
Facts: Nandan was appointed by Syndicate Bank to collect small savings from its customers daily. Nagamma, a housemaid, was one of such customers. After a couple of years, Syndicate Bank terminated Nandan’s service. Unaware of this, Nagamma continued to hand over her savings to Nandan, who misappropriated them. She realized this after three months and filed a complaint against the bank.
Possible decisions:
(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
Possible reasons:
(i) Nandan was not acting in the course of employment after termination.
(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 customers to know the actual position.