Directions: The following question contains some basic principle and fact situation in which these basic principles have to be applied. A list of probable decision and reasons are given. you have to choose a decision with reason. (1) An employer shall be liable for the wrong committed by his employees in the course of employment. (2) Third parties must exercise reasonable care to find out whether a person is actually acting in the course of employment.

Facts: Nandan was appointed by syndicate bank to collect small savings from its customers spread over in different places on daily basis. Nagamma, a housemaid, was one of such customers making use of Nadan's service. Syndicate bank after a couple of years terminated Nandan's service. Nagamma unaware of this fact was handing over her savings to Nandan who misappropriated them. Nagamma realized this nearly after three months, when she went to the bank to withdraw money. She filed a complaint against the bank. Possible decisions (a) Syndicate Bank shall be liable to compensate Nagamma (b) Syndicate Bank not be liable to compensate Nagamma (c) Nagamma ha to blame herself for her negligence Suggested reasons (i) Nandan was not acting in the course of employment after the termination of his service. (ii) A person cannot blame others for his own negligence. (iii) Nagamma was entitled to be informed by the back about Nandan. (iv) The bank is entitled to expect its customers to know actual position.