Definition, Necessities and Duties of Bailor and Bailee underneath the Indian Contract Act, 1872
13, Oct 2022
Definition, Necessities and Duties of Bailor and Bailee underneath the Indian Contract Act, 1872

Bailment in easy phrases means delivering items to a selected individual with out switch of possession. It’s a technical phrase or time period in frequent regulation although etymologically it means dealing with over of products. Anybody who will get custody with out possession is just not a bailee. If any individual already in possession of the products of different contracts to carry them as a bailee she or he will therefore develop into bailee and the proprietor will develop into the bailor in such circumstances.

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

1. Supply of possession

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

To know this additional we are able to confer with a Madras Excessive Court docket resolution in Kaliaperumal Pillai v Visalakshmi (AIR 1938 Mad 32). A girl 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 during which the half made jewels have been stored one evening the jewels have been stolen.

Woman took motion towards the goldsmith however it failed because the courtroom held that supply is important to represent a bailment and any bailment could possibly be gathered from info have to be taken to have to return 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 is not going to quantity to supply inside the that means and provision of part 149.

2. Supply must be executed upon a contract

There must be a sure goal hooked up to this supply of products and when the aim is fulfilled the products shall be returned to the bailor. Beneath the ambition 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 towards the state for damages was dismissed as there was no contract between them. However the English regulation however acknowledges bailment with out a contract.

3. Supply ought to have a goal

As talked about earlier there must be some goal hooked up to the supply and the situation is when the aim right here is achieved the products will likely be returned to the bailer or disposed of in accordance with 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 sort 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 will likely be held chargeable for the damages attributable to the non-disclosure of the fault in items.

If the products are bailed for rent the bailor will likely be held answerable for such damages no matter if he was or wasn’t conscious of a fault within the items.

The responsibility of bailor for consideration is way better than that of the primary sort. As that is his occupation it turns into a binding responsibility on him to verify whether or not the products he delivers is protected for the aim of bailment. The protection of him not being conscious is just not utilized.

We will perceive this by the assistance of case Reed v Dean during 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 courtroom that it was implied that launch was match for the aim it was employed and due to this fact the defendant was held liable. The place a bailor delivers items that are harmful in nature to any individual the very fact must be disclosed to the bailee.

1. Responsibility of cheap care

In all circumstances of bailment, the bailee must take cheap and commonplace care of the bailment, as a person of extraordinary prudence would do. The care taken must be such which an individual will take of his personal items underneath 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 must be used strictly for the aim the products have been bailed. Any unauthorized use of goodwill make him completely answerable 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 mustn’t combine it along with his or some other items with out the consent of the bailor. If combined each may 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 might 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 underneath 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 will not be returned.

5. Responsibility to return enhance

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

By going by way of 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 Legislation Faculty, NOIDA and spends most of her time researching, studying and debating. Her Curiosity areas are regulation and coverage. For any clarifications, suggestions, and recommendation, you possibly can attain us at [email protected]