Duties of a bailee

Impana S Narayan
BBA,LLB , LLM
Assistant Professor
Faculty of Law
1) Duty to take reasonable care of the goods
bailed-Section 151 & Section 152
Section 151 of the said act states that- to be taken by Bailee- in all cases of the bailment
the Bailey is bound to take as much air of the goods bailed to him as a man of
ordinary prudence would, under similar circumstances take off his own goods of the
same bulk quality and value as the goods bailed

The standard of care is same whether the bailment is gratuitous or for reward. So, a
bailee is liable when the goods suffer loss due to the negligence on the part of
bailee.
- the section lays down a uniform standard of care for all cases of bailment
Originally in English law liability in the bailment was absolute, it was no
excuse for the Bailey to say that the damage or failure to return was due to
no fault of his own he was liable any case
Thus where goods were delivered to a Bailey for safe custody and if he
was robbed of them the court held him liable saying it is a delivery which
chargeth ( to accuse someone of something, esp. to officially accuse
someone of a crime ) him to keep at his peril ( immediate danger ) -
Southcot Vs Bennet
But in the Case R vs Viscount Hertford
The first confession was given to a gratuitous Bailee if a money be given to
one to keep generally without consideration and if the person be robbed he
is discharged
Martin versus London country council
• Facts
The plaintiff was brought to a paid hospital as a patient. On her entry the hospital officials took
charge of two pieces of jewelry and a gold cigarette case. They were subsequently stolen by a thief
who broke into the room in which they were kept
Held; it was held at the defendants were Baileys for reward and were liable for the loss as they had
failed to exercise care which the nature and the quality of the articles required.

In India however section 151 prescribes a uniform standard of care in all cases of bailment, that is a
degree of a care which a man of ordinary prudence would take off his own goods of the same type
and under similar circumstances. if the care devoted by the Bailey falls below the standard he will be
liable for loss or damage caused to the goods
Section 152 : Bailee when not liable for
the loss of thing bailed
The Bailey in the absence of any special contract is not responsible for the loss destruction or
deterioration of a thing bailed, if he has taken the amount of care of it described in section 151.

However, under Section 152 of the Act, the standard of care of ordinary prudent man can be
increased by entering into a contract, between the bailor and the bailee. In that situation the bailee, in
order to save himself from any liability, would be bound to take as much care, as provided by the
terms of contract. In the absence of any such contract, if the bailee has taken care as an ordinary Duty
to take reasonable care of the goods bailed Not to make unauthorized sed use of goods Duties of
Bailee Duty not to mix goods Duty to return the goods Duty not to setup adverse title Duty to return
accretions Duty to return the goods prudent man of the goods bailed, he is not responsible for the
loss, destruction or deterioration of the goods bailed.
• Example ; if a cow is delivered for safe custody it is sufficient if it is kept in the backyard properly
enclosed and even if it is for reward, no one would expect it to be kept in the drawing room. If the goods
get stolen, lost or otherwise destroyed, even after the bailee has taken reasonably good care, the bailee
would not be liable for this loss. The bailor, would have to bear this loss.

• Duty to take reasonable care:

It is the duty of the Bailee to take care of goods as his own goods. He shall ensure all safety measures that
are necessary to protect the goods. The standard of care should be such as taken care by a prudent man. The
goods shall be taken care of equally whether they are gratuitous or non-gratuitous. The Bailee shall be held
liable for payment of compensation if he fails to take due care. But if the Bailee has taken due care and
instead of that the goods are damaged then in such a situation Bailee will not be liable to pay compensation.
The Bailee is not liable for the loss of goods due to destruction by fire. (Section 151-152)

Burden of Proof
The burden of proof is on the Bailee to show that he was exercising a reasonable care and if he can prove
this he will not be held liable
 2.Duty to not make an unauthorized use of the goods –Section 153 and
section 154
• The bailee is under a duty to use the bailed goods in accordance with the terms of
bailment. If bailee does any act with regard to the goods bailed, which is not in
accordance with the terms of bailment, the contract is voidable at the option of the
bailor. Besides it, the bailee is liable to compensate the bailor for any damage caused to
the goods. By an inconsistent use of the goods bailed. If he makes unauthorized use of
goods, bailee would not be saved from his liability even if he has taken reasonable care
of the ordinary prudent man
• Section 153 termination of bailment by Bailees act inconsistent with conditions : a
contract of bailment is avoidable at the option of the bailor if the Bailey does any act
with regard to the goods bailed, inconsistent with the conditions of the bailment
• Example:
A lets to B for hire a horse for his own riding be drives the horse in his carriage and this is
at the option of a termination of the bailment.
 Section 154 : Liability of bailee making unauthorized use of goods bailed

If the bailee makes any use of the goods bailed which is not according to the
conditions of the basement he is liable to make compensation to the bailer for any
damage arising to the goods from or during such use of them

Bailee is duty bound to use the goods for a specific purpose only and not otherwise. If
he uses the goods for any other purpose than what is agreed for then the bailor has the
right to terminate such bailment or is entitled with compensation for damage caused
due to unauthorized use. (Section 153-154
 3) Duty not to mix bailor's goods with his own goods:

Next duty of the bailee is to keep the goods of the bailor separate from his own. Sections-
155 to 157 of the Act lays down this duty in the following ways
• 155. Effect of mixture, with bailor’s consent, of his goods with bailee’s.—If the bailee,
with the consent of the bailor, mixes the goods of the bailor with his own goods, the
bailor and the bailee shall have an interest, in proportion to their respective shares, in the
mixture thus produced.
• 156. Effect of mixture, without bailor’s consent, when the goods can be separated.—If
the bailee, without the consent of the bailor, mixes the goods of the bailor with his own
goods, and the goods can be separated or divided, the property in the goods remains in
the parties respectively; but the bailee is bound to bear the expense of separation or
division, and any damage arising from the mixture.
• 157. Effect of mixture, without bailor’s consent, when the goods cannot be separated.—
If the bailee, without the consent of the bailor, mixes the goods of the bailor with his
own goods, in such a manner that it is impossible to separate the goods bailed from the
other goods, and deliver them back, the bailor is entitled to be compensated by the
bailee for the loss of the goods.
Duty to return the goods: Section 160
&sec161
• It is the duty of the bailee to return or to deliver the goods according to the
directions of bailor, without demand, on the expiry of the time fixed or when the
purpose is accomplished. If he does not return or deliver as directed by the bailor,
or tender the goods at the proper time, he becomes liable to the bailor for any
loss, destruction or deterioration of the goods from that time. He is liable even
without his negligence.

160. Return of goods bailed, on expiration of time or accomplishment of purpose.—

It is the duty of the bailee to return, or deliver according to the bailor‟s directions,
the goods bailed, without demand, as soon as the time for which they were bailed
has expired, or the purpose for which they were bailed has been accomplished.
161. Bailee’s responsibility when goods are not duly returned.—If, by the default of
the bailee, the goods are not returned, delivered or tendered at the proper time, he
is responsible to the bailor for any loss, destruction or deterioration of the goods
from that time.2
Duty not to set up adverse title or a jus tertii
• : The bailee is duty bound not to do any act which is inconsistent
which the title of the bailor. He should not set up his own title or the
title of a third party on the goods bailed to him
Duty to return the goods on the fulfilment of
purpose:(Section 160-161)
• Bailee is duty bound to return the goods once the purpose is achieved or on the
expiry of the time period for which the goods were bailed. But if the Bailee makes
default in returning the goods on proper time then he will be responsible with the
loss, destruction or deterioration of the goods if any.
• In the case of Bank of India v. Grains & Gunny Agencies the court held that if
the goods are lost or destroyed due to the negligence of servant of Bailee, then in
such case as well Bailee shall be liable
6) Duty to return accretions to the goods –
section 163
• : In the absence of any contract to the contrary, the bailee must
deliver to the bailor, or according to his directions, any increase or
profit which have accrued from the goods bailed. For example, A
leaves a cow in the custody of B to be taken care of. The cow has a
calf. B is bound to deliver the calf as well as the cow to A.