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Bailment

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27 views4 pages

Bailment

Uploaded by

Deepika Singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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For Examination purposes Only – Ujwala, Faculty of Law

SYNOPSIS: BAILMENT
Essentials – sec 148:
i) delivery of possession
actual/constructive - sec 149
Ultzen v. Nicolls (1894) 1 QB 92
Kaliaperumal Pillai v Visalakshmi AIR 1938 Mad 32
Srinivasa Iyer v New India Assurance Co. Ltd. AIR 1983 SC 899
ii) by bailor to bailee
iii) delivery for specific purpose
• Implied promise to return the same goods (same or different form) after purpose
accomplished
Sheo Singh Rai v Secretary of State v (1880) ILR 2 All 756
iv) contract between parties
Trustees of Port of Bombay v Premier Automobiles Ltd AIR 1981 SC 1982

Types of Bailment:
i) Gratuitous bailment
Coggs v Bernard (1703) 92 ER 107
ii) Bailment for consideration
iii) Sub-bailment
Srinivasa Iyer v New India Assurance Co. Ltd. AIR 1983 SC 899
iv) Bailment of seized goods
State of Gujarat v. Memon Mahomed AIR 1967 SC 1885
v) Bailment under mistake
Appa Rao v Salem Motors AIR 1955 Mad 505

Rights and Duties of Bailee


Duties of Bailee:
i) duty of reasonable care – sec 151, 152
Coggs v Bernard (1703) 92 ER 107
ii) duty against unauthorised use of goods – sec 154
iii) duty not to mix – sec 155-157
Mercer v. Craven Grain Storage Ltd (1949) CLC 328
iv) duty to return goods – sec 160, 161, 165, 166
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For Examination purposes Only – Ujwala, Faculty of Law

• return as per directions of one of joint owners – sec 165


• protection from liability against owner, if returned as per directions of bailor with no title,
in good faith – sec 166
• no jus tertii – bailee not to question the authority of bailor over goods
v) duty to return profit/increase on bailed goods – sec 163
Standard Chartered Bank v. Custodian AIR 2000 SC 1488
Rights of Bailee:
i) right of lien – sec 170
• particular lien and not general lien under sec 171
E.C. Eduljee v. Cafe John Bros AIR 1943 Nag. 249
ii) right against third party claims – sec 167
• third party restrain return of goods by bailee only by order of court
• interpleader suit under CPC by bailee against both parties to deliver goods to court &
discharged from suit
iii) right to sue against wrongful deprivation – sec 180, 181
iv) right to indemnity – sec 164
v) right to necessary expenses – sec 158

Rights and Duties of Bailor


Duties of Bailor:
i. Duty to disclose faults in goods – sec 150
• Apparent fault only and not latent fault
Farrant v Barnes (1862) 142 ER 912
• Bailment for hire – reasonably safe and suitable for specific known purpose, irrespective
of whether fault is latent or apparent
Hymen & Wife v Lye & Sons (1881) 6 QBD 685; Reed v Dean (1949) 1 KB 188
ii. Duty to indemnify – sec 164, 159
• Sec 164 – loss from lack of authority of bailor
• Sec 159 – loss from premature demand of return of goods by gratuitous bailor
iii. Duty to pay necessary expenses – sec 158
iv. Duty to pay remuneration, except in gratuitous bailment

Rights of Bailor:

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For Examination purposes Only – Ujwala, Faculty of Law

i) right of care of goods – sec 151


ii) right to compensation for damage due to unauthorised use – sec 154
iii) right to status quo of his goods – sec 155
iv) right to delivery/return of goods – sec 160
v) right to profit/increase on bailed goods – sec 163
vi) right against wrongful deprivation by third party – sec 180
vii) right to terminate contract of bailment – sec 153

Finder of Goods: sec 168, 169


Rights of finder of goods:
i) right sue for reward – sec 168
ii) right of lien – sec 168
• early English law – no right of lien to finder of goods
Binstead v Buck (1776) 96 ER 660
iii) right of sale – sec 169
Tan Soon Li v Burma Oil Co 1941 IC 887
Duties of finder of goods: same as bailee's duties.

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For Examination purposes Only – Ujwala, Faculty of Law

SYNOPSIS: LIEN

Meaning: right to lawfully retain another’s goods till lawful charges are satisfied
Kinds of lien: General lien and Particular lien
General Lien: sec 171
• Bankers, Factors, Wharfingers, Attorneys, Policy-brokers
• Retain goods for repayment of any prior debts also
Syndicate Bank v. Vijaykumar AIR 1992 SC 1066
Exception: no lien by advocates over court documents of clients
R.D.Saxena v. Balaram Prasad Sharma AIR 2000 SC 2912
Particular Lien: sec 170, 221
• Bailee, Agent
• Retain goods for repayment of charges from same transaction for which goods
delivered
E.C. Eduljee v. Cafe John Bros AIR 1943 Nag. 249

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