MA 000935 - / 2024

A bank bears vicarious liability for fraudulent acts committed by its employees in the issuance of Fixed Deposit Receipts, and cannot escape liability to depositors on the ground that such acts were unauthorized or irregular. As analyzed on casestatus.in, findings of an appellate forum that are contrary to record — including evidence from the bank's own ledger — cannot be sustained. A consumer who entrusts funds to bank officials is entitled to claim encashment of FDRs renewed over time, regardless of internal procedural lapses.