Fact:
Mr. K.D Shukla’s neighbor was a bank
employee. K.D. Shukla misappropriated some amount instead of depositing
respondent’s account. And that employee made false entries in the pass book.
Issue:
Who would be liable Bank or Mr. K.D.
Shukla?
Judgment:
The bank was held not liable.
Reasoning:
The court held that,
the respondent suffered loss due to act of Mr. K.D. Shukla while acting as an
agent of the respondent and not within the course of his employment with the bank.
Sa
ReplyDeleteRULE:
ReplyDeleteThe employer is not liable for the act of the servant if the cause of the loss or damage arose without his actual fault or privity or without the fault or neglect of his agents or servants in the course. of their employment;
the damage complained of must be shown to have been caused by any wrongful act of his servant or agent done within the scope or course of the servant or agent's employment even if the wrongful Act amounted to a crime
a master is liable for his servants fraud perpetrated in the course of master's business whether the fraud was for the master's benefit or not, if it was committed by the servant in the course of his employment. There is no difference in the liability of the master for wrongs whether for fraud or any other wrong committed by a servant in the course of his employment and it is a question of fact in each case whether it was committed in the course of the employment