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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Once fixed, the television set has to be returned to its owner.

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

Section specifically deals with constructive delivery of goods. If the Bailor refuses to receive back the goods, the entitled to receive compensation from bailmenr Bailor for the necessary expenses of custody.

Bailment – Section 148 – 181 of Indian Contracts Act

The man sued the State to hold it responsible as a contfact. Parcels Ltd 1 QB Obviously in this case the delivery of goods takes place for the 182 benefit of both the parties. Articles Indian Contract Act. Present Position in India: 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 single note of Rupees 48, only.


Similarly, it was held in Reaves vs. Partition under Hindu Joint Family Properties. The possession of the goods may remain with the bailor with the consent or authorization of the bailee. You are commenting using your Facebook account.

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

In this case, A alone is being benefited by the bailment. Bailment for the exclusive benefit of the bailee. Even though the actual and physical possession was with the person, the legal possession was with the bank, contrac bailee.

Such uncountable liability would also discourage banks to give such a facility which is currently utilized by countless number of people around the globe. These are dealt within Chap. Log into your account.

In this case, it was held that there was no exclusive possession to the bank hence no compensation was allowed to the plaintiff. By continuing to use this website, you agree to their use. A tailor is given a cloth for stitching a shirt, a watch repair shop is given a watch to mend it. A hired a locker in a bank and kept some of his valuables in it. For Further Details Contact: A contract of bailment may be terminated by act of parties or by operation of Law.

File Divorce in Delhi – Right Now! The delivery of possession may be actual or constructive. Narsimbulu [AIR AP ], inndian person pledged cinema projector with the bank but the bank allowed him to keep the projector so as to keep the cinema hall functional.

Constructive delivery is legal fiction — thus, a legal delivery is presumed even where the delivery of the actual goods has not taken place. The Law Commission of India in its 13 th report suggested that bailment baioment contract should also be included in the Indian Contract Act, but no concrete steps have been taken as yet. Constructive delivery is an action that the law treats as the equivalent of actual delivery.


It has basically laid down that the bailee must be made aware of the contents of anything he receives for safe custody so as to gauge the amount of any possible liability that may arise in the future.

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In Contacta bailment is the delivery of goods from one person to another for cotract 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.

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

For example, a man visits a repair shop for getting his television set fixed. Navigation menu Personal tools. The judge had held that it is not per incuriam hence the same will be binding on this court. Here, A becomes the bailee even though he was the owner originally. Capper [ 5 Bing NC ] that a servant in custody of certain goods by the nature of his job is not a bailee.

Holding the defendant liable, justice Lindley said: