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CLAT 2008 Question Paper with answer key for online practice

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Question : 181

Total: 190

Principles:
1. An employer shall be liable for the wrongs 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 Nandan'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 realised this nearly after three months, when she went to the Bank to withdraw money. She filed a complaint against the Bank.

Possible Decision :
(a) Syndicate Bank shall be liable to compensate Nagamma
(b) Syndicate Bank shall not be liable to compensate Nagamma(c) Nagamma has to blame herself for her negligence

Possible 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 Bank about Nandan.
iv) The Bank is entitled to expect its customers to know actual position.

(b) (i)
(c) (ii)
(a) (iii)
(b) (iv)

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