PRINCIPLE: A master shall be responsible for the wrongful acts of his servants in the course of his employment.
FACTS: The Syndicate Bank was running a small savings scheme under which its authorised agents would go round and collect small savings from several people on daily basis. These agents would get commission, on the deposits so collected. Ananth was one such agent, collected deposits from factory worker engaged on daily wages. Though he regularly carried on his business for sometime, slowly he started appropriating deposits for his personal use and one day he just disappeared. Fatima, who had been handing over her savings to him found that nearly for a month before his disappearance, he was not depositing her savings at all. The Bank, when approached, took the stand that Ananth was not its regular and paid employee and, therefore, it was not responsible for his misconduct. She flies a suit against the bank.
PRINCIPLE: A master shall be responsible for the wrongful acts of his servants in the course of his employment.
FACTS: The Syndicate Bank was running a small savings scheme under which its authorised agents would go round and collect small savings from several people on daily basis. These agents would get commission, on the deposits so collected. Ananth was one such agent, collected deposits from factory worker engaged on daily wages. Though he regularly carried on his business for sometime, slowly he started appropriating deposits for his personal use and one day he just disappeared. Fatima, who had been handing over her savings to him found that nearly for a month before his disappearance, he was not depositing her savings at all. The Bank, when approached, took the stand that Ananth was not its regular and paid employee and, therefore, it was not responsible for his misconduct. She flies a suit against the bank.
The correct option is B The bank is liable, since Ananth was projected as its employee
Vicarious liability can be defined as a legal doctrine that assigns liability for an injury to a person who did not cause the injury who has a particular relationship to the person who did act negligently. It can also be called as imputed negligence. This doctrine arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. Hence, bank will be held liable as Ananth was projected as its employee.
Vicarious liability can be defined as a legal doctrine that assigns liability for an injury to a person who did not cause the injury who has a particular relationship to the person who did act negligently. It can also be called as imputed negligence. This doctrine arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. Hence, bank will be held liable as Ananth was projected as its employee.
