Legal Principle: A master shall be liable for the fraudulent acts committed by his servants in the course of employment. Factual Situation: Shaila Devi opened a Savings Bank account with Oriental Bank, and a cousin of her by name Mohan, who was a clerk in that bank, helped her to complete the formalities; subsequently she used to entrust whatever money she was getting to Mohan along with her passbook and Mohan used to return the passbook with relevant entries. One day Shaila Devi discovered that Mohan, instead of crediting the money to her account, was misappropriating the money but making entries in the passbook without authorization. Shaila Devi seeks compensation from Oriental Bank.

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Legal Principle: A master shall be liable for the fraudulent acts committed by his servants in the course of employment. Factual Situation: Shaila Devi opened a Savings Bank account with Oriental Bank, and a cousin of her by name Mohan, who was a clerk in that bank, helped her to complete the formalities; subsequently she used to entrust whatever money she was getting to Mohan along with her passbook and Mohan used to return the passbook with relevant entries. One day Shaila Devi discovered that Mohan, instead of crediting the money to her account, was misappropriating the money but making entries in the passbook without authorization. Shaila Devi seeks compensation from Oriental Bank.






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