Site navigation

'A' gave some cash and cheques to his friend 'B', who was an employee of the State Bank of India, to…

Since A handed the money to B personally as a friend rather than to the bank in its ordinary course of business, the misappropriation falls outside the course of employment…

Choose your answer

'A' gave some cash and cheques to his friend 'B', who was an employee of the State Bank of India, to deposit the same in the Bank in the account of 'A'. 'B' misappropriated the amount. If 'A' sues the Bank for damages, then the Bank is:

Select one answer
Answer and explanation

Correct answer C

Since A handed the money to B personally as a friend rather than to the bank in its ordinary course of business, the misappropriation falls outside the course of employment and the Bank is "not liable because while committing the fraud, he was not acting as the agent or employee of the Bank".

Practice for these exams

Related exam syllabi

Related questions in this topic