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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In this case the recipient of the book as a bailee, is the sole beneficiary of this transaction of bailment. The plaintiff hired from the defendant for a specific journey of a carriage, a pair of horses and a driver.

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

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 nidian of the bailment. He was given one key to open the locker. But the coins and notes that are no longer legal tender and are more or less just objects of curiosity, then they can be bailed.

The bailor can give other directions as to the disposal or return of the bailed goods. It is to be noted that if a person is already in possession of goods of another contracts to hold them as bailee, he thereby becomes the bailee and the owner of the goods as bailor, though the goods are not delivered by way of bailment. It is necessary that the goods are delivered to the bailee and returned to the bailor when the purpose is accomplished upon a contract.

Thus, it is clear that the nature of possession is very important to determine whether a delivery is for bailment or not. But the action failed as there can be no bailment without delivery of goods and a promise to the return the same. A bailment is usually created by an agreement between the bailor and bailee. Thus, the lockers could be opened even without the key of the customers.


The Indian Contract Act Bailment and Pledge – Business Law [Book]

Explanation to Section states that if a person already in possession of the goods of another person contracts to holds the goods as a bailee, he becomes the bailee even though the goods may not have been delivered to him by way of bailment in the first place. A has rare coins in a locked safe-deposit box.

Learned judge has further added that the appellants alone had the knowledge of the contents cohtract the locker.

If the case arises where a person while pledging a good has only the interest which is limited to a certain extent then the pledge is valid only till the extent of that interest and not further so here it is the pledge where the Pawnee has inxian a limited interest.

Publication policy Submit article. The judge held it insufficient to prove that the appellant had entrusted the jewellery to the respondent.

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.

Section specifically talks of bailment via a contract. In this case, it was held that there was no exclusive possession to the bank hence no compensation was allowed to the plaintiff.

In Gratuitous Bailment, however, the Bailor is responsible only for those faults which are known to him and which are not disclosed. Online Copyright Registration in India Call us at: Once fixed, the television set has to be returned to its owner. Thus, the bailee must have actual physical control of the property with the intent to possess it for a valid bailment. Contrary to gratuitous bailment, a non-gratuitous bailment or bailment for reward is one that involve some consideration passing between the bailor and the bailee.

The circumstance in which this happens are numerous. It was also said by the learned Judge that in order to constitute a contract of bailment, the bailee must be made aware of the contents of the locker so that it can gauge the nature and extent of the security and possible liability. 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.


Just complete this form…. The launch caught fire, and the plaintiffs were unable to extinguish it, the fire-fighting equipment being out of order. Private defense under IPC. A bank cannot be presumed to know what goods are stored in any given locker at all the times. If an animal gives birth during the period of bailment, the bailee must return the animal with the offspring at the conclusion of the bailment.

There are five important duties of bailor as we have discussed above. For Further Details Contact: The delivery may either put the bailee in the actual physical possession of the goods or put the bailee in a position of power over such goods that may be possessed later.

Bailment is a process where the owner of certain goods places them in the temporary possession of another person.

Bailment – Introduction

If the car is stolen from the garage or destroyed by indlan in the garage, both — the insurance company and the garage will be liable to the owner of the car, the bailor.

Bailment Contracts of Bailment are a special class of contract. In this kind of bailment neither the bailor, nor the bailee is entitled to any remuneration or reward. Sorry, your blog cannot share posts by email. Bailees have various duties like to take reasonably good care of the bailed good. The appeal was decided in favour of the Respondent. Presently, the Indian Courts have taken the position that bailment can exist without a contract. If a person is not bound to return the goods bailent another, then the relationship between them is not of bailment.

In this case, the bank had no knowledge of the quality, quantity or nature of goods kept inside the locker.