Duties and Rights of Bailor and Bailee-32

Duties and Rights of Duties and Rights of Bailor and BaileeBailor and Bailee

Duties of BailorDuties of Bailor

To disclose known faultsTo disclose known faults

According to section 150, it is the first and foremost duty According to section 150, it is the first and foremost duty

of the bailor to disclose the known faults about the goods of the bailor to disclose the known faults about the goods

bailed to the baileebailed to the bailee

If the goods are bailed for hire the duty of the bailor is If the goods are bailed for hire the duty of the bailor is

greatergreater


To bear extraordinary expenses of the bailmentTo bear extraordinary expenses of the bailment

The bailee is bound to bear ordinary and reasonable The bailee is bound to bear ordinary and reasonable

expenses of the bailment but for any extraordinary expenses of the bailment but for any extraordinary

expenses the bailor is responsibleexpenses the bailor is responsible

In case of gratuitous bailment the bailor must repay all the In case of gratuitous bailment the bailor must repay all the

necessary expenses incurred by him for the purpose of necessary expenses incurred by him for the purpose of

bailment (Sec. 158)bailment (Sec. 158)


To indemnify bailee for loss in case of premature To indemnify bailee for loss in case of premature

termination of gratuitous bailmenttermination of gratuitous bailment

According to section 159, if the contract of bailment is According to section 159, if the contract of bailment is

terminated before the time specified and because of which terminated before the time specified and because of which

the bailee suffering losses more than the benefit he has the bailee suffering losses more than the benefit he has

derived from that, the bailor shall have to indemnify the derived from that, the bailor shall have to indemnify the

baileebailee


To receive back the goodsTo receive back the goods

If the bailor refuses to receive back the goods after If the bailor refuses to receive back the goods after

the termination of time specified he is liable to the termination of time specified he is liable to

pay the compensation to the baileepay the compensation to the bailee


To indemnify the baileeTo indemnify the bailee

According to section 164, if the bailee is suffering losses According to section 164, if the bailee is suffering losses

because of the title of the goods i.e. where the title of the because of the title of the goods i.e. where the title of the

bailor to the goods is defective, the bailor has to pay the bailor to the goods is defective, the bailor has to pay the

compensation for the losses incurred by the baileecompensation for the losses incurred by the bailee

Rights of BailorRights of Bailor

Enforcement of rightsEnforcement of rights

The bailor can enforce by suit all the liabilities or duties of The bailor can enforce by suit all the liabilities or duties of

the bailee as his rightsthe bailee as his rights

Avoidance of contractAvoidance of contract

the bailor can terminate the bailment if the bailee does any the bailor can terminate the bailment if the bailee does any

act which is inconsistent with the terms of the bailment act which is inconsistent with the terms of the bailment

(Section 153)(Section 153)


Return of goods lent gratuitouslyReturn of goods lent gratuitously

The bailor can demand the return of goods The bailor can demand the return of goods

whenever he pleases even though he lent them for whenever he pleases even though he lent them for

a specified time or purpose (Sec. 159)a specified time or purpose (Sec. 159)


Compensation from a wrong-doerCompensation from a wrong-doer

If a third person wrongfully deprives the bailee of If a third person wrongfully deprives the bailee of

the use or possession of the goods bailed, the the use or possession of the goods bailed, the

bailor or the bailee may bring a suit against the bailor or the bailee may bring a suit against the

third person for such deprivation (Sec. 180)third person for such deprivation (Sec. 180)

Duties of BaileeDuties of Bailee

To take reasonable care of the goods bailedTo take reasonable care of the goods bailed

According to section 151, in all cases of bailment the bailee According to section 151, in all cases of bailment the bailee

is bound to take care of the goods as much as it is his own is bound to take care of the goods as much as it is his own

goods of the same bulk, quality and valuegoods of the same bulk, quality and value

If inspite of taking reasonable care the goods are damaged If inspite of taking reasonable care the goods are damaged

or destroyed in any way, the bailee is not liable for the loss, or destroyed in any way, the bailee is not liable for the loss,

destruction or deterioation (Sec. 152)destruction or deterioation (Sec. 152)


Not to make any unauthorised use of goodsNot to make any unauthorised use of goods

If the bailee uses the goods bailed in a manner If the bailee uses the goods bailed in a manner

which is inconsistent with the terms of the which is inconsistent with the terms of the

contract, he shall be liable for any loss even though contract, he shall be liable for any loss even though

he is not guilty of negligence, and even if the he is not guilty of negligence, and even if the

damage is the result of an accident (Sec. 154)damage is the result of an accident (Sec. 154)


Not to mix goods bailed with his own goodsNot to mix goods bailed with his own goods

The bailee must not mix the goods of the bailor The bailee must not mix the goods of the bailor

with his own goodswith his own goods

If bailee mixes the with the bailor’s consent both shall If bailee mixes the with the bailor’s consent both shall

have a proportionate interest in the mixture (Sec. 155)have a proportionate interest in the mixture (Sec. 155)


Without the bailor’s consent and if the goods can be Without the bailor’s consent and if the goods can be

separated or divided, the bailee is bound to bear the separated or divided, the bailee is bound to bear the

expenses or separation or division as well as damage expenses or separation or division as well as damage

arising from the mixture (Sec. 156)arising from the mixture (Sec. 156)

Without the bailor’s consent, if the mixture is beyond Without the bailor’s consent, if the mixture is beyond

separation, the bailor is entitled to be compensated by separation, the bailor is entitled to be compensated by

the bailee for the loss of the goods (Sec. 157)the bailee for the loss of the goods (Sec. 157)

Duties of BaileeDuties of Bailee Not to set up an adverse titleNot to set up an adverse title

The bailee must hold the goods on behalf of and for the bailorThe bailee must hold the goods on behalf of and for the bailor

He can not deny the right of bailor to bail the goods and He can not deny the right of bailor to bail the goods and

receive them backreceive them back

To return any accretion to the goodsTo return any accretion to the goods

the bailee is bound to deliver to the bailor, or according to his the bailee is bound to deliver to the bailor, or according to his

directions, any increase or profit which may have accrued directions, any increase or profit which may have accrued

from the goods bailed (Sec. 163)from the goods bailed (Sec. 163)


To return the goodsTo return the goods

It is the duty of the bailee to return or deliver, according to It is the duty of the bailee to return or deliver, according to

the bailor’s directions, the goods bailed, without demand as the bailor’s directions, the goods bailed, without demand as

soon as the time has expired or the purpose of the bailment is soon as the time has expired or the purpose of the bailment is

accomplished (Sec. 160)accomplished (Sec. 160)

If bailee fails to deliver the goods, he is responsible to the If bailee fails to deliver the goods, he is responsible to the

bailor for any loss (Sec. 161)bailor for any loss (Sec. 161)

Rights of BaileeRights of Bailee Delivery of goods to one of several joint bailors of Delivery of goods to one of several joint bailors of

goodsgoods

If several joint owners of the goods bailed, the bailee may If several joint owners of the goods bailed, the bailee may

deliver the goods back to one joint owner without the consent deliver the goods back to one joint owner without the consent

of all, unless there is no contrary agreement (Sec. 165)of all, unless there is no contrary agreement (Sec. 165)

Delivery of goods to bailor without titleDelivery of goods to bailor without title

If bailor does not hold the title of the goods, bailee is not If bailor does not hold the title of the goods, bailee is not

responsible to the owner of the goods (Sec. 166)responsible to the owner of the goods (Sec. 166)

Rights of BaileeRights of Bailee

Right to apply to court to stop deliveryRight to apply to court to stop delivery

If a person other than the bailor claims the goods bailed, the If a person other than the bailor claims the goods bailed, the

bailee may apply it to court to stop the delivery of the goods bailee may apply it to court to stop the delivery of the goods

to bailor and to decide the title to the goods (Sec. 167)to bailor and to decide the title to the goods (Sec. 167)

Right of action against trespassersRight of action against trespassers

If a third person wrongfully deprives the bailee of the use or If a third person wrongfully deprives the bailee of the use or

possession of the goods bailed to him he has the right to bring possession of the goods bailed to him he has the right to bring

an action against that party (Sec. 180)an action against that party (Sec. 180)

Rights of BaileeRights of Bailee

Bailee’s lienBailee’s lien

Where the lawful charges of the bailee in respect of Where the lawful charges of the bailee in respect of

the goods bailed are not paid, he may retain the the goods bailed are not paid, he may retain the

goodsgoods

This right of the bailee is known as “particular lien”This right of the bailee is known as “particular lien”

LienLien

Lien means the right of a person to retain possession Lien means the right of a person to retain possession

of some goods belonging to another until some debt of some goods belonging to another until some debt

or claim of the person in possession is satisfiedor claim of the person in possession is satisfied

Possession is essential for exercising the right of lienPossession is essential for exercising the right of lien

LienLien

In order to create a lien the possession must be In order to create a lien the possession must be

RightfulRightful

Not for a particular purposeNot for a particular purpose

ContinuousContinuous

Types of LienTypes of Lien

A particular lienA particular lien

Lien which is available to the bailee against only those Lien which is available to the bailee against only those

goods in respect of which he has rendered some service goods in respect of which he has rendered some service

involving the exercise of labour or skillinvolving the exercise of labour or skill

A general lienA general lien

It is a right to retain all the goods or any property of It is a right to retain all the goods or any property of

another until all the claims of the holder are satisfiedanother until all the claims of the holder are satisfied


A particular lienA particular lien

According to Section 170, where the bailee has in According to Section 170, where the bailee has in

accordance with the purpose of the bailment, rendered accordance with the purpose of the bailment, rendered

any service involving the exercise of labour or skill in any service involving the exercise of labour or skill in

respect of the goods bailed, he has in the absence of a respect of the goods bailed, he has in the absence of a

contract to the contrary, a right to retain such goods contract to the contrary, a right to retain such goods

until he recieves due remuneration for the service he has until he recieves due remuneration for the service he has

rendered in respect of themrendered in respect of them


Particular lienParticular lien

If the bailee does not complete the work within the If the bailee does not complete the work within the

agreed time, or a reasonable time, he cannot exercise his agreed time, or a reasonable time, he cannot exercise his

right of lienright of lien

If the bailee voluntarily permits the bailor or regain If the bailee voluntarily permits the bailor or regain

possession of the goods without payment of the charges, possession of the goods without payment of the charges,

he cannot exercise the right of lienhe cannot exercise the right of lien


Particular lienParticular lien

If without any fault of the bailee, the goods are If without any fault of the bailee, the goods are

destroyed or stolen, the bailee is entitled to be paid for destroyed or stolen, the bailee is entitled to be paid for

services performed upon the goods before they were services performed upon the goods before they were

destroyed or stolendestroyed or stolen


General LienGeneral Lien

According to section 171, general lien is availables to According to section 171, general lien is availables to

bankers, factors, wharfingers, attorneys of High Court bankers, factors, wharfingers, attorneys of High Court

and policy brokersand policy brokers

These persons are entitled to retain possession of the These persons are entitled to retain possession of the

goods bailed to them as security until their claims are goods bailed to them as security until their claims are

fully satisfiedfully satisfied

Particular Lien Vs. General LienParticular Lien Vs. General Lien

Right available to a bailee Right available to a bailee

against only those goods in against only those goods in

respect of which skill and respect of which skill and

labour have been expended by labour have been expended by

himhim

Right to retain the goods only Right to retain the goods only

for a charge for labour for a charge for labour

employed or expenses incurred employed or expenses incurred

upon the goodsupon the goods

Right available to a bailee against Right available to a bailee against

any property belonging to the any property belonging to the

other party in respect of any other party in respect of any

payment lawfully due (property payment lawfully due (property

should be in possession of bailee)should be in possession of bailee)

Right to retain any property Right to retain any property

belonging to the other party for a belonging to the other party for a

general balance of accountgeneral balance of account

Extinguishment of LienExtinguishment of Lien

A lien is extinguished or lost by A lien is extinguished or lost by

AbandonmentAbandonment

Payment or tender of the amount duePayment or tender of the amount due

Loss or surrender of possession of the goodsLoss or surrender of possession of the goods

Finder of goodsFinder of goods

According to section 71, a person, who finds According to section 71, a person, who finds

goods belonging to another and takes them goods belonging to another and takes them

into his custody is subject to the same into his custody is subject to the same

responsibility as a baileeresponsibility as a bailee

Rights of finder of goodsRights of finder of goods

Right of lienRight of lien

According to section 168, the finder of lost goods has a According to section 168, the finder of lost goods has a

right of lien over the goods for his expensesright of lien over the goods for his expenses

Right to sue for rewardRight to sue for reward

According to section 168, the finder can sue for any According to section 168, the finder can sue for any

specific reward which the owner has offered for the return specific reward which the owner has offered for the return

of goodsof goods

Rights of finder of goodsRights of finder of goods Right of saleRight of sale

According to section 169,finder may sell the goods According to section 169,finder may sell the goods

foundfound

If the owner cannot with reasonable diligence foundIf the owner cannot with reasonable diligence found

If found, he refuses to pay the lawful chargesIf found, he refuses to pay the lawful charges

If the goods are in the danger of perishing or of losting the If the goods are in the danger of perishing or of losting the

greater part of their valuegreater part of their value

If the lawful charges of the finder, amount to two-third of their If the lawful charges of the finder, amount to two-third of their

valuevalue

Obligations of finder of goodsObligations of finder of goods

He must take reasonable care of the goodsHe must take reasonable care of the goods

He must not use the goods for his own purposeHe must not use the goods for his own purpose

He must not mix the goods with his own goodsHe must not mix the goods with his own goods

He must try to find out the owner of the goodsHe must try to find out the owner of the goods

Termination of BailmentTermination of Bailment

On the expiry of the periodOn the expiry of the period

On the achievement of the objectOn the achievement of the object

Inconsistent use of goods (Sec. 154)Inconsistent use of goods (Sec. 154)

Destruction of the subject-matterDestruction of the subject-matter

Gratuitous bailmentGratuitous bailment

Death of the bailor or baileeDeath of the bailor or bailee

Documents

Duties and Rights of Bailor and Bailee-32