Introduction

Bailment the world ‘bailment’ is derived from the French world the French world ‘baillier’ which means “to
deliver”, it means any kind of handling over’. In legal sense, it involves change of possession of goods from
one person to another for some specific purpose.

Definition of Bailment: Sec. 148 defines Bailment as the delivery of goods by one person to another for
some purpose, upon a contract, that they shall, when the purpose is accomplished, be returned or otherwise
disposed of according to the directions of the person delivering them. The person delivering the goods is
called the ‘bailor’ and the person the person to whom they are delivered is called the ‘bailee’. Example: A
delivers a piece of cloth to B, a bailor, to be stitched into a suit. There is a contract or bailment between A
and B.

Justice Blackstone defines Bailment as 'a delivery of goods in trust, upon contract, either expressed or
implied, that the trust shall be faithfully executed on the part of the bailee'.

Example:- Sanju delivers a piece of cloth to Manju, a tailor, to be stitched into a suit. There is a contract of
bailment between Sanju and Manju.

Essential elements of bailment :To constitute a contract of bailment, the following conditions
are to be satisfied.

 Delivery of possession of goods : Delivery of goods from one person to another person for some
purpose is an essential elements of bailment.
 Delivery of possession upon a contract : There can be no bailment without a contract. all
conditions for valid contract are to be satisfied
 Return or dispose of goods according to the direction.

Case law
Jagdish Chandra Trikha Vs. Punjab National Bank :-
The plaintiff's father had entrusted a box
containing 480 tolas, i.e., about 5600 grams gold ornaments & jewellery to the defendant Bank at
Peshawar(now in Pakistan)before the partition of the country.The jewellery box was locked,wrapped and
sealed when delivered.A proper receipt describing the contents of the box was given by the Bank.From
Peshawar the box came to Lahore branch of the bank and thereafter to the Delhi branch.It was found that
when the jewellery box was delivered to the plaintiff in Delhi,it was not in the same condition as it was
delivered at Peshawar.The Lahore branch of the bank had put their own wrapper on the box and it was not
now locked.

The plaintiff claimed the gold ornaments & jewellery deposited with the bank or their value amounting
to Rs. 3,72,400.

Held:-It was held that the position of the bank was that of a bailee and it failed in its duty to take due care of
the goods and return them to plaintiff.The bank was held liable to pay the sum of Rs. 3,72,400 along with
simple interest @ 12% p.a. from the date of the institution of the suit till the date of
realization of the amount.

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Types of bailment

Classification based on Reward

Gratuitous Bailment

When a bailment is made without any consideration of benefit to the bailor or to the bailee, it is referred to
as gratuitous bailment. In simple terms, it is a bailment without any consideration.

For example, when one lends a book to a friend free of cost.

Non-Gratuitous Bailment

When generally there is a consideration for bailment between the bailor and the bailee then it is referred to
as non-gratuitous bailment.

For example, when someone gets a book issued from a library in exchange for a fee.

Classification based on Benefit

Bailment for the Exclusive Benefit of the Bailor − A bailment in which the bailor delivers goods
to the bailee only for the benefit of the bailor himself.

As an example, A gives his valuables to his relative B for safekeeping at no charge. This is a bailment for
the exclusive benefit of bailor 'A'.

Bailment for the Exclusive Benefit of the Bailee − This is a bailment in which the bailor delivers
goods to the bailee only for the benefit of the bailee.

For example, X lent his car to his friend Y for a brief time at no charge. This is a bailment for the exclusive
benefit of bailee 'Y'.

For the mutual benefit of them both

For example, giving a bike for repair to a mechanic, for which the mechanic gets paid.

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Classification On The Basis Of Consent Of Bailee
Depending upon whether bailment is with the consent of bailee or not it is of two types:

1. Voluntary bailment;

II. Involuntary bailment.

i. Voluntary bailment: when bailment is with the consent of bailee it is known as voluntary bailment

ii. Involuntary bailment: when bailment is not with the consent of bailee it is known as involuntary
bailment. In such bailment there is no contract of bailment between the parties. It is only by the law, that
relation resembling those created by the contract of bailment are established between the parties.

In case of Howard vs Harris', the court defined involuntary bailee as where a person who gets possession of
goods through no act of his own and without his consent.

Termination Of Bailment
There are various situations when the [bailment] can be ended which are:

 On the expiry of the term of bailment: where it is already specified that the bailment will be
for a specific period of time, the [bailment] will be considered ended on that date.

 On the fulfilment of the object: the bailment will be considered ended when the object of
the [bailment] has been fulfilled.

 Destruction of goods: if the goods which were used in the [bailment] were destroyed due to any
reason, the contract of bailment will be terminated.

 On the death of Bailor or Bailee: on the death of either of the party, the [bailment]will be
terminated.

 On the inconsistent act: if either of the party failed to comply with the terms of the [bailment],
the [bailment]will be terminated.

 By notice: the bailment can be terminated by notice.

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Conclusion
In light of the above I have discussed the nature and concept of bailment, the duties, rights of both the bailee
and the bailor. We have found that bailment is one of the most important branch under law of contract which
offers the society some benefit to keeping valuable goods in custody of some good people who are known in
legal term as bailee. Some people may not feel secured to keep some valuable goods or other movable
property in this own custody for fear of thieves or robbers. In those cases, the owner of the goods may
consider to keep the goods in custody of some other people who are reliable and pious in the society.
Another important point is that the law of bailment clearly specifies the duties, rights and liabilities of the
bailee to avoid any disputes between the bailor and the bailee.

Bibliography
Statute:
The Indian Contract Act,1872

Books:
Contract II by Dr, R.K. Bangia

Websites:
https://www.tutorialspoint.com/bailment-under-indian-contract-act

https://blog.ipleaders.in/bailment-meaning-introduction/

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