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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These are dealt within Chap. Bailment, as defined under Section of the Indian Contract Act, is the delivery of goods by 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 bailor [1].

Here the original possession of 11872 was with the seller as the owner of the said goods and after the sale, his possession is converted into a contract of bailment. Mere custody of goods is not the same as delivery of possession. During the journey a bolt in the under-part of the carriage broke, the splinter bar became displaced, the carriage was upset and the plaintiff injured.

Thus, it is clear that the nature of possession is very important to determine whether a delivery is for bailment or not.

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

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. In this case the recipient of the book as a bailee, is the sole beneficiary of this transaction of bailment.

Publication policy Submit article. An agent who collects money on behalf of his principal is not a bailee because he is not liable to return the same money and coins. It is necessary that the goods are delivered to the bailee and returned to the bailor when the purpose is accomplished upon a contract. If the Pawnee has obtained the goods that have been pledged by him under section 19 of the Indian Contracts Act,and the contract at the time of the pledge has not been refunded by the Pawnee; he has the right to acquire a good title to the good, given that his actions are in good faith and without a notice of the bonus defect of ownership title.


Contract of Bailment –

On the argument of Mr Jaggal that the relationship between the two parties is of landlord and hirer, it was said that it cannot be said that such a relationship existed because the supposed hirer the 18722 did not have direct access to the land that he has hired and the assistance of the bank employees is required in doing so. In constructive delivery, an action on part of the bailor merely puts the bailee in position of power with respect to the bailed goods.

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.

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

Contract of Bailment

But a valid bailment can also arise in absence of express contracts or from invalid or voidable contracts. The tailor is supposed to return the finished garment to the 8172, the bailor, once the garment has been stitched. Only the temporary possession of the bailed goods is transferred and the ownership of such goods remains with the bailor.

Hence, in one peculiar case, where the lady had handed over some of her jewels to a goldsmith to be utilized for making new jewels, and the lady used to take back the 172 jewels every evening for the purpose of safekeeping in her own box, the contract of bailment got over every evening as soon as the lady took the half-made jewels in her possession.

Nijjar, has held that exclusive possession of the goods is sine qua non for bailment. 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.


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If a person delivers his damaged car to a contracf 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.

The dry cleaner is the bailee — he is the temporary custodian of the clothes and is responsible for keeping them safe and to return them to the bailor once they have been cleaned. acr

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

It was also said by the learned Judge that in order to contrzct a contract of bailment, the bailee must be made aware of the contents of the locker so that it actt gauge the nature and extent of the security and possible liability. One of the key ingredients emphasized on by this definition is the delivery of possession of the goods from the bailor to the bailee.

Partition under Hindu Joint Family Properties. The government was in no way bound to return the same notes or dispose the surrendered notes in accordance with the instructions of the man. For example, you lend your book to a friend of yours for a week without any charge or favour.

Delivery of possession, as required for bailment, can be made in two ways — Actual or Constructive. Such uncountable liability would also discourage banks to give such a facility which is currently utilized by countless number of people around the globe.

File Divorce in Delhi – Right Now! Constructive delivery is legal fiction — thus, a legal delivery is presumed even where the delivery of the actual goods has not taken place. There are five important duties of bailor as we have discussed above. Fill in your details below or click an icon to log in: His duty is naturally much less than that of a Bailor for hire or consideration.