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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The plaintiff hired a motor launch from the defendant for a holiday on the river Thames. If the car is stolen from the garage or destroyed by fire in the garage, both — the insurance company and the garage will be liable to the owner of the car, the bailor.

This is the case where a bailor delivers the goods to the bailee for the exclusive benefits of the bailee and does not gain anything from the contract himself. All the compensation or the relief which will be a result of any such suit as aforementioned will be dealt with according to their own personal and respective interests between the Bailor and the Bailee. The judge had held that it is not per incuriam hence the same will be binding on this court.

Online Copyright Registration in India Call us at: Goods consigned without disclosing that they were combustible. Articles Indian Contract Act. The possession of the goods may remain with the bailor with the consent or authorization of the bailee. The contract giving rise to bailment can be express or implied.

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

If the loss exceeds the benefit, the bailor shall have to indemnify the bailee. Thus, the lockers could be opened even without bailmebt key of bailmeny customers. It was held that there was constructive delivery because action on part of the bailor had changed the legal character of the possession of the projector. You are commenting using your Twitter account. 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.

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

Bailment Contracts of Bailment are a special class of contract. The bailor can demand to have the property returned to him at any time.


Delivery of possession, as required for bailment, can be made in two ways — Actual or Constructive. The court has been right in giving this decision in favor of the respondents because holding the bank responsible for the loss of any goods kept in the locker by their customers would give rise to uncountable amount of liability as it may be found difficult to prove that there was no exclusive possession invian the contents of the locker.

Bailment is different from licence and sale. The judge held it insufficient to prove that the appellant had entrusted the jewellery to the respondent. The judgment acts as a good precedent as it mitigates the responsibility of the banks to some extent which is absolutely required in to allow them to provide service to the public.

In Secy of State vs. In Gratuitous Baiment, however, the Bailor is responsible only for those faults which are known to him and which are not disclosed. Presently, the Indian Courts have taken the position that bailment can exist without a contract. No sufficient indiwn had been produced by the plaintiffs for the same. 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 only a limited interest.

In Atul Mehra vs. If a person delivers his damaged car to a garage for repair under his insurance policy, the insurance company becomes a bailee and the garage a sub-bailee.

Not to use the good unauthorizedly, not mixing the bailed good with something else, to return the good to the Bailor, etc. To bailkent out more, including how to control cookies, see here: Such delivery or transfer does not constitute bailment. Narsimbulu [AIR AP ], a person pledged cinema projector with the bank but the bank allowed him to keep the projector so as to keep the cinema hall functional.

Contract of Bailment

These are dealt within Chap. Log into your account. If the Bailor refuses to receive back the goods, the entitled to receive compensation from the Bailor for the necessary expenses of custody. 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.


Retrieved from ” http: A bailment with no considerations is called a gratuitous bailment. File Your Copyright – Right Now! If he does not make such disclosure, he is responsible for any damage caused to the Bailee directly from such faults.

If during the bailment of a good the Pawnor is wrong then he or she is responsible for all the wrongs. The bank, in this case, was entrusted with the jewellery and the valuation of the jewellery had been proved with sufficient evidence produced to the police at the time of the robbery. When he leaves his watch at the showroom for repair, he has given actual delivery of possession of goods to the showroom.

Bailment cannot arise if the goods are not to be specially accounted for after completion of such task or purpose.

Bailment implies a sort of one person temporarily goes into the possession of another. Constructive delivery is an action that the law treats as the equivalent of actual delivery. You are commenting using your WordPress.

Present Position in India: Post was not sent – check your email addresses! Considering this, it had become necessary for the court in the case of Atul Mehra v Bank of Maharashtra [3] to determine whether the hiring of the lockers bwilment the plaintiffs constitutes actual delivery of possession to the defendants.

Here B is the bailor and receives the hire charges and A is the bailee and enjoys the use of the car. The bailee only has certain power over bailmrnt property of the bailor with his permission. Did you find this blog post helpful? This same point was also made in the case of Ichcha Dhanji vs.

If the Pawnee makes a default while paying the debt or while performing the promise at the given time contracr 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 indin have arisen from his default. Once fixed, the television set has to be returned to its owner.