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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If the Bailor refuses to receive back the goods, the entitled to receive compensation from the Bailor for the necessary expenses of custody. Delivering a cycle, watch or any other article for repair, delivering gold to a goldsmith for making ornaments, delivering garments to a drycleaner, delivering goods for carriage, etc.

If he does not make such disclosure, he is responsible for any damage caused to the Bailee directly from such faults. The appeal was decided in favour of the Respondent. Similarly, hiring and storing goods in a bank locker by itself is not bailment thought there is delivery of goods to the bank premises.

Contract of Bailment –

Login with your social accounts: For example, you lend your book to a friend of yours for a week without any charge or favour. In Atul Mehra vs.

contrat 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. Here the original possession of goods was with the seller as the owner of the said goods and after the sale, his possession is converted into a contract of bailment.


Prabhudas Hathibhai is one the first where the Courts started imposing the obligations of a bailee even without a contract. A finder of goods is treated as a bailee even if there is no contract of Bailment or delivery of goods under a contract.

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

Previous Post Joginder Kumar v. But a valid bailment can also inian in absence of express contracts or from invalid or voidable contracts. Delivery of goods in bailment is not permanent. Post was not sent – check your email addresses! The Chapter is not exhaustive on the topic of bailment — there are various other Acts which deal with other types of bailment like the Carriers Act,the Railways Act,the Carriage of Goods by Sea Act, If a bank is given actual and exclusive possession of the property inside contrac locker by the person who hired the locker, only then can bailment under Section can be presumed.

In constructive delivery, the physical possession of the goods may not be handed conyract. Similarly, it was held in Reaves vs. The bailee only has certain power over the property of the bailor with his permission.

The Bailor has the right to bring a Suit against contdact wrong doing third party for any such action or injury which they have done. In this case, it was held that there was no exclusive possession to the bank hence no compensation was allowed to the plaintiff. The Law Commission of India in its 13 th report suggested that bailment without contract should also be indan in the Indian Contract Act, but no concrete steps have been taken as yet.


The plaintiff thus had failed to prove contrat of the jewellery to constitute bailment. It states that anything done which has the effect of putting the goods in the possession of the intended bailee or any other person authorized to hold them on his behalf is to be treated as constructive delivery of the goods.

File Your Copyright – Right Now! The delivery of possession may be actual or constructive. Since the bank was not aware of the contents of the locker, hence it was impossible to know the quantity, quality or the value of contrat jewellery that was allegedly kept in the locker at the time when the robbery occurred.

AIR SC Thus, the delivery of possession can be actual or constructive.

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

This means there should a contract between the two parties for such transaction of delivery and subsequent return. If there is no contract, there is no bailment. The bank was held liable for negligence because the robbery was committed by the manager within the bank itself.

The television set is left at the shop where the repair man examines it and fixes the problem. In this case, A alone is being benefited by the bailment.

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.