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Unit 10: Contract of Bailment

4. To return the goods bailed without demand (S.160): It is the duty of the bailee to return, or Notes
deliver according to the bailer’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.
If bailee fails to return the goods at the proper time, he is responsible to the bailer for any
loss, destruction or deterioration of the goods from that time (S.161).
5. To return any accretion to the goods bailed (S.163): In the absence of any contract to the
contrary, the bailee is bound to deliver to the bailer, or according to his directions, any
increase or profit which may have accrued from the goods bailed.

Example: A leaves a cow in the custody of B to be taken care of. The cow gives
birth to a calf. B is bound to deliver the cow as well as the calf to A.

6. Not to question the title of bailer (S.167): In cases of conflicting claims as to title to the
goods are to be decided by the court and unless the court grants an injunction against the
delivery of goods to the bailer, the bailee is under duty to return it to bailer at proper time
or within the reasonable time.

Task A customer entrusts certain important documents for safe custody to his bank.
The bank keeps the documents in a wooden box. Later it is found that the documents were
destroyed by white ants. What is the bank’s liability to the customer? [Hint: Ss. 151-152.]

10.2.3 Rights of a Bailee

Following are the rights of a Bailee:
1. The duties of the bailer are, in fact, if looked from the point of view of bailee, the bailee’s
rights. Thus, a bailee can sue bailer for (a) claiming compensation for damages resulting
from non-disclosure of faults in the goods; (b) for breach of warranty as to the title and
the damage resulting therefrom; and (c) for extraordinary expenses. Thus in the case of
wrongful deprivation the bailee has a right to use the same remedies which the owner
might have used in the like case.

2. Another right of bailee is the right of lien (Ss. 170-171): Lien is a right in one person to retain
that which is in his possession, belonging to another, until some debt or claim is paid, Lien,
thus presupposes two things; (i) The person vested with the right of lien is in possession
of the goods or securities in the ordinary course of business. (ii) The owner (bailer in this
case) has a lawful debt due or obligation to discharge to the person in possession of the
said goods or securities (bailee in this case). Since, lien is available only until the debt or

claim is satisfied, once the debt is satisfied or obligation discharged, the right of lien is
extinguished. The property so retained has, then, to be returned to or kept at the disposal of
the owner (i.e., bailer). Lien may be of two types: (i) General Lien and (ii) Particular Lien.
General Lien means the right to retain goods not only for demands arising out of the goods
retained but for a general balance of account in favour of certain persons. Particular Lien,
on the other hand, means the right to retain the particular goods in respect of which the
claim is due. Bailee’s right of lien is particular in certain cases whereas general in other
cases. Particular Lien is conferred upon a bailee by virtue of the provisions of S. 170. It
reads: “Where the bailee has, in accordance with the purpose of the bailment, rendered
any service involving the exercise of labour or skill in respect of the goods bailed, he has, in
the absence of a contract to the contrary, a right to retain such goods until he receives due
remuneration for the service he has rendered in respect of them”.

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