'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', 'B' misappropriated the amount. If 'A' sues the Bank for damages, then the Bank is:

A. Liable to pay because it was the employer of 'B'

B. Liable to pay because the employee did it during the business hours and while working as an employee

C. Not liable because while committing the fraud, he was not acting as the agent or employee of the Bank

D. Not liable because he turned out to be the friend of plaintiff's husband

Answer: Option C