Definition, Necessities and Duties of Bailor and Bailee beneath the Indian Contract Act, 1872

Bailment in easy phrases means delivering items to a specific particular person with out switch of possession. It’s a technical phrase or time period in frequent legislation although etymologically it means dealing with over of products. Anybody who will get custody with out possession just isn’t a bailee. If any particular person already in possession of the products of different contracts to carry them as a bailee she or he will therefore grow to be bailee and the proprietor will grow to be the bailor in such instances.

Within the contract of bailment, the bailee’s responsibility is to take care of the products in response to directions given by the bailor.

1. Supply of possession

There ought to be the supply of possession from one particular person to a different. That is distinct from mere custody, one who has custody with out is possession just isn’t a bailee instance of this is usually a servant or a visitor in somebody’s home utilizing their items just isn’t a bailee.

To grasp this additional we will confer with a Madras Excessive Court docket determination in Kaliaperumal Pillai v Visalakshmi (AIR 1938 Mad 32). A woman handed over to goldsmith sure jewelery for the aim of melting it and making new out of it. Each night when the goldsmith accomplished the work the girl would obtain the important thing of the field through which the half made jewels have been saved one evening the jewels have been stolen.

Woman took motion in opposition to the goldsmith nevertheless it failed because the court docket held that supply is critical to represent a bailment and any bailment might be gathered from info have to be taken to have to come back to an finish as quickly because the plaintiff was put in possession of the melted gold. The mere leaving of the field in a room and preserve the important thing in her possession won’t quantity to supply inside the which means and provision of part 149.

2. Supply ought to be finished upon a contract

There ought to be a sure objective connected to this supply of products and when the aim is fulfilled the products shall be returned to the bailor. Underneath the ambient of the part when one good goes into the possession of one other with none contract isn’t any bailment.

Within the case of Ram Gualm v Govt of UP the plaintiff’s ornaments have been stolen and recovered by police and whereas in police custody, it was stolen once more, the plaintiff’s motion in opposition to the state for damages was dismissed as there was no contract between them. However the English legislation then again acknowledges bailment and not using a contract.

3. Supply ought to have a objective

As talked about earlier there ought to be some objective connected to the supply and the situation is when the aim right here is achieved the products shall be returned to the bailer or disposed of in response to his mandate.

Part 150 of the Indian Contract Act offers with the responsibility of the bailor, there are two sorts of bailors

  1. Free bailor
  2. Bailor for rewards

Responsibility of the primary variety or the gratuitous bailor is to reveal faults within the items bailed if any if the bailor is conscious. If these damages expose the bailee to some dangers the bailor shall be held answerable for the damages brought on by the non-disclosure of the fault in items.

If the products are bailed for rent the bailor shall be held accountable for such damages regardless of if he was or wasn’t conscious of a fault within the items.

The responsibility of bailor for consideration is far better than that of the primary kind. As that is his occupation it turns into a binding responsibility on him to examine whether or not the products he delivers is secure for the aim of bailment. The protection of him not being conscious just isn’t utilized.

We will perceive this by the assistance of case Reed v Dean through which the plaintiffs employed a launch for vacation on the River Thames. The launch caught fireplace and so they have been unable to extinguish it as the hearth preventing gear was out of order they have been injured and suffered losses.

It was held by the court docket that it was implied that launch was match for the aim it was employed and subsequently the defendant was held liable. The place a bailor delivers items that are harmful in nature to any particular person the actual fact ought to be disclosed to the bailee.

1. Responsibility of cheap care

In all instances of bailment, the bailee must take cheap and customary care of the bailment, as a person of peculiar prudence would do. The care taken ought to be such which an individual will take of his personal items beneath such circumstances

2. Responsibility to not make unauthorized use

There’s a responsibility of bailee to not make unauthorized of the products bailed to him the products ought to be used strictly for the aim the products have been bailed. Any unauthorized use of goodwill make him completely accountable for injury to items and there’s no protection to this even of Act of God or Inevitable Accident.

3. Responsibility to to not combine

The bailee ought to keep the separate identification of the products of the bailor. He shouldn’t combine it together with his or every other items with out the consent of the bailor. If combined each can have a proportionate curiosity within the combination produced.

In any case, if the products are combined with out consent of the bailor and the products may be separated by any means the bailee will bear the price of separation, however whether it is past separation the bailee will compensate the bailor for any loss.

4. Responsibility to return

There’s a responsibility laid beneath part 160 to return the products bailed on the expiration of time or accomplishment of the aim and in a while it turns into the bailee duty if the products aren’t returned.

5. Responsibility to return improve

Within the absence of any settlement to the Opposite, the bailee is sure to return the bailor pure will increase or income accruing to the products throughout the interval of bailment, which is laid down beneath part 163 of the Indian Contract Act.

By going via this we got here to learn about numerous duties of bailor in addition to bailee and on whom the liabilities are fastened upon if any damages suffered.

Sunidhi Singh


Sunidhi hails from Symbiosis Regulation Faculty, NOIDA and spends most of her time researching, studying and debating. Her Curiosity areas are legislation and coverage. For any clarifications, suggestions, and recommendation, you possibly can attain us at [email protected]

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