Legal Principle: A master shall be responsible for the wrongful acts of his servants in the course of his employment. Factual Situation: A syndicate bank was running a small savings scheme under which its authorized agents would go round and collect small savings from several people on daily basis. These agents would get a commission on the deposits so collected. Ananth was one such agent, collecting deposits from factory workers engaged on daily wages. Though he regularly carried on his business for some time, slowly he started misappropriating deposits for his personal use, and one day he just disappeared. One 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 files a suit against the bank.

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Legal Principle: A master shall be responsible for the wrongful acts of his servants in the course of his employment. Factual Situation: A syndicate bank was running a small savings scheme under which its authorized agents would go round and collect small savings from several people on daily basis. These agents would get a commission on the deposits so collected. Ananth was one such agent, collecting deposits from factory workers engaged on daily wages. Though he regularly carried on his business for some time, slowly he started misappropriating deposits for his personal use, and one day he just disappeared. One 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 files a suit against the bank.






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