Bailment, as defined under Section of the Indian Contract Act, is the delivery of goods by one person to another for some purpose. Bailment is the delivery of goods by a person (the Bailor) to another (the Bailee) for a certain purpose. have been pledged by him under section 19 of the Indian Contracts Act,and the contract [1]Indian Contracts Act, In Contact, a bailment is the delivery of goods from one person to another for Section of the Indian Contract Act, deals with the topic of bailment.

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They were injured and suffered loss. In this case, A alone is being benefited by the bailment. Bailment cannot arise if the goods are not to be specially accounted for after completion of such task or purpose.

Contracts of Bailment are a special class of contract. He is making profit from his profession and, therefore, it is his duty to see that the goods which he delivers are reasonably safe for the purpose of the bailment.

Bailment – Section 148 – 181 of Indian Contracts Act

Did you find this blog post helpful? What updates do you want to see in this article? Since the bank was not aware of the contents of the locker, hence it was impossible to know the quantity, quality or the value of the jewellery that was allegedly kept in the locker at the time when the robbery occurred.

Natha [ 13 Bom ] In Secy of Ocntract vs.

This means there should a contract between the two parties for such transaction of delivery and subsequent return. Property deposited in a court under orders is not property delivered under a indoan. The Law Commission of India in its 13 th report suggested that bailment without contract should also be included in the Indian Contract Act, but no concrete steps have been taken as yet.

The same contradt that were bailed must be returned to the bailor in the same condition after the accomplishment of purpose as they were handed over to the bailee in the beginning. How you can make this new year special. This example is similar to the case of National Contrqct of Lahore vs. In Contacta bailment is the delivery of goods from one person to another for some purpose, upon a contract that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions of the person delivering them.

Bailment implies a sort of one person temporarily goes into the possession of another. But in such a case, the loss accuring to the bailee from such premature termination should not exceed the benefit he has derived out of the bailment. With the Reference cntract Book: In constructive delivery, an action on part of the bailor merely puts the bailee in position of power with respect to the bailed goods.


Sheo Singh Rai [ ILR 2 All ], a man delivered nine government promissory notes to the Treasury Officer at Meerut for cancellation and consolidation into a bailmetn note of Rupees 48, only.

The case of Lasalgoan Merchants Bank vs. Publication policy Submit wct. The plaintiff thus had failed to prove entrustment of the jewellery to constitute bailment. Where a bailor delivers goods to another for carriage or for some other purpose, and if the goods are of dangerous nature, the fact should be disclosed to the bailee. When he hands over the keys to the box to B, it is taken as constructive delivery for purpose of bailment.

The man sued the State to hold it responsible as a bailee.

These are dealt within Chap. The bailee only has certain power over the property of the bailor with his permission. Any accruals to the goods must also be handed over. Post was not sent – check your email addresses! Delivering a cycle, watch or any other article for repair, delivering gold to a goldsmith for making ornaments, delivering garments to a drycleaner, delivering goods for carriage, etc.

Cintract money or legal tender cannot be bailed. Considering this, it had become necessary for the court in the case of Atul Mehra v Bank of Xct [3] to determine whether the hiring of the lockers by the plaintiffs constitutes actual delivery of possession to the defendants. Since the person is in the position of the bailee, he has all the rights and duties of a bailee. Delivery of possession, as required for bailment, can be made in two ways — Actual or Constructive.

Similarly, hiring and storing goods in a bank locker bailjent itself is not bailment thought there is delivery of goods to the bank premises. All the compensation or the relief which will be a result of any such suit as aforementioned will be dealt with according to their own personal and respective interests between the Bailor and the Bailee.

If a person delivers his damaged car to a garage for repair under his insurance policy, the insurance company becomes a bailee and the garage a sub-bailee. If the loss exceeds the benefit, the bailor shall have to indemnify the bailee.

Atul Mehra v Bank of Maharastra – Case Study on Bailment under the Indian Contract Act – iPleaders

It is one of the landmark cases in India because it lays down the principle that hiring lockers at banks does not constitute a contract of bailment. Articles Indian Contract Act. Nijjar, has held that exclusive possession of the goods is sine qua non for bailment. If a bank is given actual and exclusive possession of the property inside a locker by the person who hired the locker, only then can bailment under Section can be presumed.


An involuntary contract of bailment arises and the finder automatically becomes bailee even in absence of bailment by the bailor — the owner of the lost goods. This same point was also made in the case of Ichcha Dhanji vs. It was held that there was constructive delivery because action on part of the bailor had changed the legal character of the possession of the projector.

Delivery of goods to another under a mistake of identity of the person is also treated as bailment without a contract as long as the bailor took reasonable care to ascertain the identity. In case of such agreement or instructions, the bailee must immediately dispose the goods after completion of purpose as per the directions.

If a person is not bound to return the goods to another, then the relationship between them is not of bailment. One of the key ingredients emphasized on by this definition is the delivery of possession of the goods from the bailor to the bailee. There has to be a purpose for the bailment of goods and it is mandatory that once such purpose is accomplishes, the goods have to be returned to the bailor or be disposed off per his instructions.

Bailment for the exclusive benefit of the bailee. But the action failed as there can be no bailment without delivery of goods and a promise to the return the same. Bailment Contracts of Bailment are a special class of contract. If the Pawnee makes a default while paying the debt or while performing the promise at the given time then the Pawnor has the right to redeem the Pledged goods from the Pawnee before the actual sale but if the case arises he must pay in addition the expenses which have arisen from his default.

The notes were misappropriated by the servants of the Treasury Officer.