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Question
LEGAL PRINCIPLE A master will be liable for the wrongful acts of his servants in the course of employment.
FACTUAL SITUATION Maria was an old widow who opened an account with the Indian Overseas Bank, whereby she would deposit ₹5 every day in the bank. Stephen was her neighbour, who used to collect the amount and deposit them in the bank. Stephen would get a small commission from the bank for the money deposited. One day, it was discovered that Stephen who had not deposited the money for more than three months had vanished with the amount. Maria filed a suit against the Bank.
Options
Bank would not be liable because Stephen was not an employee of the bank
Bank would not be liable for the failure of Maria to check the balance in her account
Bank would be liable because Stephen was paid a commission by the bank for doing its work
None of the above
Solution
Bank would not be liable because Stephen was not an employee of the bank
