( 1 ) THE plaintiff is the appellant and the State of Madhya Pradesh (the defendant) is the respondent in this appeal. The suit out of which this appeal arises was filed by the plaintiff, the Bilaspur Central Co-operative Bank Ltd. , against the State of madhya Pradesh claiming Rs. 50,843-6-2 on the following facts :

( 2 ) AT Pendra Road, in the Bilaspur district, the Central Co-operative Bank Ltd. maintains a branch. There being no arrangement for keeping the cash of the branch, a request was made to the Inspector-General of Police for permission to keep the cash box at the end of each day in the police station house malkhana at pendra Road. The Inspector Generai of Police gave his assent and every evening the cash box properly locked and sealed used to be deposited in the police station house malkhana, and a receipt thereof used to be obtained on a Dak Book. This went on from 1949 till 11th April 1950, when the cash box duly locked and sealed was deposited in the evening but was found missing the next morning. Subsequently, the box with its hasp broken was found in a field, but the contents of the box, were missing. The police investigated the case of theft but without result, and in the end they returned the broken box and the lock to the Bank. The Bank, after serving a notice under Section 80 of the Code of Civil Procedure, brought the present suit for Rs. 46,946-7-0, which was the amount alleged to have been in the box when it was deposited, and Rs. 3,896-15-2, interest at 7 per cent per annum from 12-4-1950 till the date of suit by way of damages.

( 3 ) THE trial Court held that the subordinate police officers were dishonest and that the defendant was not responsible for the consequences arising from the acts of the subordinates not in the course of employment or otherwise. In the result, the trial Court dismissed the suit of the plaintiff, and hence this appeal.

( 4 ) BEFORE dealing with the points which have been urged in this appeal, it is necessary to refer fro the correspondence which ensued between the Bank and the inspector-General of Police, and also the conditions under which the box used to be received. Ex. P. 5 (or Ex. D-2) is a letter containing the request of the Bank for permission to deposit the box in the police station, Pendra Road. After, giving the reasons why this permission was being sought, the Bank wrote as follows :

"under the circumstances we request you to grant your permission to lodge our iron chest in the police station houses at Akaltara and Pendra road. The cash balance of the branch office will be kept in this chest at the close of the office hours at 5 P. M. and brought the next day at 11 a. M. We hope vou will be kind enough to grant the permission as requested for and thus help the cause of co-operation The government has already granted permission for lodging our cash boxes in the bilaspur Treasury and the Janjgir Sub-treasury. "

The Inspector-General's permission granted on the above request reads as follows :"the Bilaspur Central Co-operative Bank, Ltd. , is permitted to deposit its cash chests in the Police Stations Akaltara and Pendra Road in the bilaspur district provided the chests are properly locked and sealed, and on the clear understanding that the police can take no responsibility for the contents of the box as laid down in Police Regulations 697 and 698 in Part V, Chapter IV of the C. P. and Berar Police Regulations. Sd/-Illegible a. I. C. for I. G. of Police, c. P. and Berar. "( 5 ) ON the 11th April 1950 the cash box was locked and sealed, and a paper describing the contents was pasted on it, and the box was duly delivered to the head Constable of the thana, who-signed in token of receipt in a Dak Book (Ex. P3 ). The entry reads : "cash box containing Rs. 46,946-7-0 (Rs. Forty six thousand nine hundred forty six and annas-seven) and duly locked and sealed. " it is submitted that on the next morning some of the doors of the thana which used to be locked every night were found

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