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CHAPTER IX
OF BAILMENT
148. "Bailment", "ballot", and
"bailee" defined. A "bailment" is 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 "ballot."
The person to whom they are delivered is called the "ballet."
Explanation.---If a person already in possession of the goods of another contracts
to hold them as a bailee, he thereby becomes the bailee, and the owner becomes the bailor,
of such goods although they may not have been delivered by way of bailment.
COMMENTS
Nature of the transaction.---"Bailment" is a technical term of the Common
Law, though etymologically it might mean any kind of handing over (Fr. bailler). It
involves change of possession. One who has custody without possession, like a servant, or
a guest using his host's goods, is not a bailee. But constructive delivery will create the
relation of bailor and bailee as well as actual, as stated in the Explanation.
The bailee's duly to deal with the goods according to the bailor's orders is incidental to
the contract of bailment, and arises on the delivery of the goods, although those orders
may have already been given and accepted in such a manner as to constitute a prior special
contract. As a matter of pleading this is no longer material in this country, but it might
still be material with regard to the period of limitation.
Bailment is necessarily dealt with by the Contract Act only so far as it is a kind of
contract. It is not to be assumed that without an enforceable contract there cannot in any
case be a bailment.
The words. "otherwise disposed of" in the present section express the common law
as now understood. "It seems clear that a bailee is not the less a bailee because he
is clothed with authority to sell the thing which is bailed to him," e.g., a factor
for sale. On the whole a bailment may be described as a delivery on condition, to which
the law usually attaches an obligation to redeliver the goods, or otherwise deal with them
as directed, when the condition is satisfied; but there may be, in particular cases, a
bailment without an enforceable obligation.
Where a chattel is delivered by mistake, the intention being to deliver another chattel
either with or without conditions, the legal result, whatever it may be, is not a
bailment; for there is no intention at all to deliver the chattel which is in fact
delivered, and no contract with respect to it. In the converse case of a mistake on the
part of the bailee, a bench of the Madras High Court has held that the same principles apply.
No bailment where whole property transferred.---Obviously no transaction can be a
bailment within the Act which does not satisfy the terms of this section. Accordingly
there is not a bailment if the thing delivered is not to be specifically returned or
accounted for: and so is the Common Law.
A delivery of property on a contract for an equivalent in money or in other commodities
(whether like the property delivered or not) is a sale or exchange and not a bailment, as
where farmers deliver grain to a miller to be used by him in his trade, and are entitled
to claim an equal quantity of corn of like quality or its market price.
An agent authorised to receive payment, and bound to hand over to his principal an
equivalent sum, but not necessarily the actual coin or instruments of credit received by
him, is not a bailee.
Similarly the delivery of Government promissory notes to a treasury for cancellation and
consolidation into a single note is not a bailment, for there is no contract in such a
case that the notes shall be returned or otherwise disposed of according to the directions
of the owner.
Again the relation between a indigenous banker and the person depositing money with him in
the ordinary way of business is that of borrower and lender, and the money so lodged can
be recovered only as "money lent" under art. 59 of the Limitation Act, and not
as "money deposited" under an agreement that it shall be "payable on
demand" under art. 60. In the former case the period of limitation runs from the date
of the loan, and in the latter from the date of demand. "The mere use of the term
'deposit' cannot alter the substance of the transaction". It is
in each Case a question of fact whether a transaction amounts to a mere loan or a deposit
under art. 60.
Rights and duties of bailee---What are. The bailee has no right to dispose of or
sell the property unless specifically authorised to do so. He has only a right to retain
the goods bailed with him until he receives due remuneration for the service rendered in
respect of the goods. He is responsible for the safe delivery of the goods bailed with him
and in default is responsible to the bailor for any loss of the goods.
Goods given to a person by bank on trust receipt---Person becomes a bailee---Liable for
criminal breach of trust in case of non-accounting of goods. The execution of a trust
receipt is a recognised mode of making a person bailee of the goods and in such
circumstances the Bank must be deemed to be in possession or control of the goods. The
validity and efficacy of such instruments of trust are now generally acknowledged. If a
person who has signed such a trust receipt, fails to hand over to the Bank the
sale-proceeds of the goods sold, the former would be liable for criminal breach
of trust.
Intentional wrong delivery by carrier---Carrier liable for damages.---Where the
carrier has made intentional wrongful delivery of goods, he cannot escape liability to
indemnify the plaintiff for the loss caused to him by wrongful deliveries of the consignments.
Delivery of goods---Goods delivered into custody of Port Trust---Delivery order issued to
Clearing Agent for taking delivery of goods---Clearing Agent found goods lying in damaged
condition---Goods found short per Surety Report---Such survey taking-place after 20 days
of arrival of goods at port---Condition of goods at time of survey was not necessarily
condition of goods at time of discharge---Goods, held, were discharged and delivered to
port trust in sound condition.
Entrustment of money for purchase of property---Plaintiffs alleging entrustment of Rs.
200,000 to defendant for investment in business and for purchase of property in
dispute---Plaintiffs and main defendant having business relations for long time and having
running business dealings---Held, mere allegations in plaint of having deposit money in
trust or mutual trust of parties does not create any trust---Party to show creation of
trust must prove that money paid in confidence on express condition for specific purpose
in trust---Held further, if such payment made money vests in payee for benefit
of payer.
149. Delivery to bailee how made.---The delivery to the bailee
may be made by doing anything which has the effect of putting the goods in the possession
of the intended bailee or of any person authorised to hold them on his behalf.
COMMENTS
The bailor's part need not be very active. Mere assent, for example, of a guest at a
place of public entertainment to a servants officious assumption of custody may be
sufficient evidence of delivery to make the proprietor of the house a bailees and
responsible for loss. The railway authorities were held liable as bailees where cotton was
stacked on a station platform, with the consent of the station-master, no wagon being
available, and was set on fire three days later by a spark from a passing
train. Having regard to the course of dealing of a railway company, the mere fact that
loading clerk in the employ of a railway company filled up a forwarding note and market a
number on it has been held not to amount to delivery of goods to the company within the
meaning of this section. It was further necessary that a number corresponding to the
number of the forwarding note should be marked on the goods by a railway
official. A lady employed a goldsmith for the purpose of melting old jewellery and
making new jewels. Every evening she used to receive the half-made jewels from the
goldsmith and put them into a box which was left in a room in the goldsmiths house,
of which she retained the key. It was held that there was a redelivery of the jewels to
the lady and that they were not in the possession of the goldsmith when during one night
they were stolen.
150. Bailor's duty to disclose faults in goods bailed.---The
bailer is bound to disclose to the bailee faults in the goods bailed, of which the bailer
is aware, and which materially interfere with the use of them, or expose the bailee to
extraordinary risks; and if he does not make such disclosure, he is responsible for damage
arising to the bailee directly from such faults.
If the goods are bailed for hire, the bailor is responsible for such damage, whether he
was or was not aware of the existence of such faults in the goods bailed.
Illustrations
(a) A lends a horse, which he knows to be vicious, to B. He does not disclose the fact
that the horse is vicious. The horse runs away. B is thrown and injured. A is responsible
to B for damage sustained.
(b) A hires a carriage of B. The carriage is unsafe, though B is not aware of it, and A is
injured. B is responsible to A for the injury.
COMMENTS
There is no doubt that such is the Common Law, though there is not much positive
authority. The rule of Roman Law is that if a man knowingly lends his neighbour foul or
leaky vessels, whereby the wine or oil put into them perishes or is lost, he is liable for
the damage.
A person who delivers to a carrier goods which he knows to be of a dangerous character,
such as explosives, and to require extraordinary care in handling, and omits to give
warning of it (the nature of the goods not being apparent), is liable for any resulting
damage. There is an implied warranty that the goods are not dangerous, so that the
consignor is liable, whether or not he knows the goods are dangerous, for any resulting
damage. If the goods of a third party are damaged through a breach of this warranty the
carrier can recover from the consignor the amount of the damage whether or not the carrier
is liable over to the third party.
The language of the second paragraph of the present section is open to at least there
constructions:
(i) The bailer is under a duly to take reasonable care to make the goods reasonably safe
for the purpose for which he knows they have been hired.
(ii) The bailor is under a duty to supply goods that are reasonably safe, the only defence
being that the defect is a latent one that could not be discovered by any care or skill.
(iii) There is an absolute guarantee of fitness.
In the common law, there is some authority for each of these views, but little to support
view.
With regard to illustration (b) there is some doubt whether the rule would apply to the
case where A hires of B a specific carriage, not a carriage to be provided by B at his
discretion. But the decisions upon the hiring of particular kinds of property turn rather
on questions of implied warranty, or unexpressed terms of the contract, and must be used
with great caution for the establishment of any general rules.
It does not seem, at all events, that the quite positive language of the second paragraph
of the present section would be qualified in India by any such exception.
151. Care to be taken by bailee. In all cases of bailment the
bailee is bound to take as much care of the goods bailed to him as a man of ordinary
prudence would, under similar circumstances, take of his own goods of the same bulk,
quality and value as the goods bailed.
COMMENTS
This section abolishes the distinctions in the amount of care required of various kinds
of bailees which were established, or supposed to be established. The Privy Council has
laid down the duty of a bailee for reward in English law as being to exercise the same
degree of care towards the preservation of the goods entrusted to him from injury which
might reasonably be expected from a skilled storekeeper, acquainted with the risk to be
apprehended either from the character of the storehouse itself or of its locality. It has,
however, sometimes been held that there is liability only for gross negligence, or for
failure to show such skill as the profession of the bailor implies. It is clearly not
sufficient for a gratuitous bailee to show the same care as he bestowes upon his own
goods. This is an objective standard similar to that of reasonable care, and was applied
in A.I.R. 1955 V.P. 30. When goods are destroyed by a riotous mob, the bailee is not responsible for the loss.
A special and higher responsibility, not being part of the ordinary law of bailment at
all, was imposed by the law of England upon common carriers and innkeepers. How far this
remains unaffected by the Contract Act must be separately considered.
Common carriers.---The provisions of Ss. 151 and 152 of the Contract Act embody in
effect the Common Law rule as to the liability of bailees other than common carriers and
innkeepers. The measure of care required of these bailees in respect of goods entrusted to
them was the same as a man of ordinary prudence would take of his own goods; in other.
words, the liability was one for negligence only, in the absence of special contract
Common carriers and innkeepers, on the other hand, were liable as insurers of goods; that
is they were responsible for every injury to the goods occasioned by any means whatever,
except only the act of God and the enemies. Therefore the mere proof of delivery of goods
and injury thereto, unless caused by the act of God or the enemies, was sufficient to
entitle the plaintiff to compensation without proof of negligence on the part of the
defendant. The question whether the liability of common carriers was still further reduced
by the enactment of Ss. 151 and 152 of the Contract Act, so as to render them liable for
negligence only as in the case of other bailees, came up before the High Court of Bombay
in 1878. The Court held that the definition of "bailment" in S. 148 was large
enough to include bailment for carriage, and that the provisions of those sections,
therefore, applied to common carriers. The High Court of Calcutta,
on the other hand, held in a subsequent case that the liability of common carriers was hot
affected by the Contract Act. The same point arose before the Privy Council in an appeal
from the Court of the Recorder of Rangoon, where it was held, approving the Calcutta
decision, that the duties and liabilities of a common carrier are governed by the
principles of the English Common Law in conjunction with the provisions of the Carriers
Act, and that, notwithstanding some general expressions in the chapter on Bailments, the
responsibility of a common carrier is not within the Contract Act.
Where the parties have expressly contracted to be bound by the provisions of the Carriage
of Goods Act, 1925, the rights of the parties are governed by the terms
of that Act. It may well be that in the absence of any contrary intention, a shipowner
carrying goods from one port to another can be presumed to contract with reference to the
Contract Act; but it by no means follows that the presumption is the same if the goods are
to be carried to London or New York.
Carriers by Railway.---The liability of carriers by railway is now governed by the
Railways Act, 1890. S. 72 of that Act provides that the responsibility of a railway
administration for injury to goods delivered to it to be carried by railway is, subject to
the other provisions of the Act, that of a bailee under Ss. 151, 152 and 161 of the
Contract Act, and that it shall not be affected by the Carriers Act, but that it may be
limited by a special agreement between the parties, provided that it is in writing by or
on behalf of the person sending the goods and is otherwise in a form approved by the
Governor-General in Council. Several railway companies accordingly issued what is called
"the risk note" in a form approved by the Govt., which is used when the sender
elects to despatch at a "special reduced" or "owner's risk" rate
articles for which an alternative "ordinary" or "railway risk" rate is
quoted in the tariff. The "risk note" provides that, in consideration of the
railway company carrying the goods at a special reduced rate, they shall be exempted by
the sender from liability for loss or damage to the goods from any cause whatever before,
during, or after transit over the railway or other railways working in connection
therewith. Such a note signed by the sender constitutes a special contract within the
meaning of S. 72, and a railway company cannot, therefore, be rendered liable on such a
note, whatever may be the cause of injury to the goods. Where, however, there was no
contract to the contrary, it was held that a passenger whose luggage deposited in the
cloak-room was lost was entitled to the entire value of the goods, but not to any consequential damages.
Innkeeper.---It has been held by the High Court of Allahabad that the liability of
a guest in respect of goods belonging to a hotel-keeper and used by the guest is that of a
bailee under Ss. 151 and 152 of this Act, so that the guest is not responsible for the
loss, destruction, or deterioration of the furniture in his use if he has taken as much
care of it as a man of ordinary prudence would, under similar circumstances, take of
similar furniture of his own.
Burden of Proof---In cases governed by the provisions of Ss. 151 and 152, the loss
or damage of goods entrusted to a bailee is prima facie evidence of negligence, and the
burden of proof, therefore, to disprove negligence lies on the bailee. The same rule
applies, by reason of S. 72 of the Railways Act, to a railway administration, unless the
goods are consigned under a risk note under which the railway company are absolved from
all liability for loss or damage except that due to willful negligence on the part of
their servants, in which case the, burden lies in the first instance upon the company to
prove that the loss was such as was contemplated by the contract, and when this has been
done it shifts to the plaintiff to show that the loss was due to the willful neglect of
the company or its servants. A railway company receiving goods for carriage is not bound
to inquire into the apparent owner's title or to see that the risk-note is read and
understood by the person who delivers the goods. As regard goods
delivered to a common carrier, he is liable even if there be no negligence on his part
except in certain cases mentioned above (see note "common carriers," above).
Under S. 6, however, of the Carriers Act he may by special contract limit his liability,
but even then the burden lies on him, by reason of S. 9 of the Act, to disprove negligence.
As regards bailments for hire, the rule is that if the damage caused were such that in the
ordinary course of events it would not happen to goods of the kind in question if used
with ordinary prudence. Thus where a person hires a horse for riding in a sound condition
and the horse dies the same day while it is in his custody, it is for the hirer to prove
that he had taken such care of the horse as a man of ordinary prudence would, under
similar circumstances, have taken of his own. Similarly, where goods delivered for safe
custody for reward are lost while in the possession of the bailee, the burden lies on the
bailee to prove absence of negligence on his part. But where hotel furniture used by a
guest while suffering from an infectious disease is destroyed by the hotel-keeper to
prevent infection, it lies on the hotel-keeper, if he claims damages for the loss thereof,
to prove that the guest did not take as such care of the goods as a person of ordinary
prudence would have taken of his own goods under similar circumstances.
Contract by bailee exempting himself from liability for negligence.---The learned
authors considered that a contract by a bailee purporting to exempt himself wholly from
liability for negligence was not valid. This opinion is based on the express provisions
for contracting out in S. 152, and in fact throughout the Chapter on Bailments wherever a
rule of law is to operate only in the absence of a contract to the contrary, it is
expressly so stated in the section (see sections 163, 165, 170, 171, and 174).
Carriage of Goods by Sea Act (XXVI of 1923), Sched., Art. 1 (c)---Carriage of goods by
sea---Cargo carried on deck and at consignors risk short landing at
destination---Liability for loss---Liability of carriers not governed by Ss. 151 &
152, Contract Act, 1872---Word "goods" in Art. 1 (e) of Sched. to Carriage of
Goods by Sea Act---Connotation---Cargo not governed by provisions of said Act---Negligence
alleged by substitute of consignor denied by carrier in written statement---Carrier
bringing evidence to show that goods were damaged due to act of God---Contention that
provisions of Ss. 151 & 152. Contract Act were applicable in instant case
not tenable.
Care to be taken by bailee----Theft of goods pledged with Bank---Document of pledge
containing condition that during the continuance of pledge agreement the borrowers shall
be responsible for all loss, damage, or deterioration of security caused by theft, fire,
rain or any other cause whatsoever---There being. no discrepancy between provisions of S.
151, Contract Act, 1872 and condition of document of pledge, if loss had been caused by
theft, fire, rain or any other cause, it would be the duty of the bailee to explain that
he had taken care of the goods as a man of ordinary prudence would under similar
circumstances take of his own goods and if in spite of that the goods pledged were lost in
manner as recorded in the condition of document of pledge, liability of borrower could not
be legally or equitably denied.
Goods carried at risk of carrier---Carrier not proving due diligence in carrying
goods---Carrier liable for loss. Where jute was carried at the risk of the railway and
it caught fire when a porter went to seal the door with a lamp, which showed negligence of
the Railway. Moreover the carrier failed to prove its diligence in dealing With the jute
in question throughout the period it was in its care and custody. The Railway was held
liable for the loss suffered by the consignor.
Injury to goods in transit by Railway---Onus of proof as to negligence by carrier---How
burden is to be discharged.---Where due to long delay in transit, goods carried by
Railway were damaged. Held: Although the burden of establishing want of care on the pari
of' the Railway lies on the consignor yet it is the duty of the railway to supply the
entire material from which the amount of care that is taken is ascertained. The Railway
pleaded that the delay was caused due to unavoidable circumstances but no material was
supplied in support of this plea; Therefore the presumption of want of due Care would
arise against the Railway.
Loss to goods by negligence of ship-owner---Claim for damages against shipowner
sustainable.---Held: The shipowner committed a breach of the obligation contained in
the bill of lading and as such the consignee was entitled to recover
damages.
Damage to contents of parcel---Burden of proof is on consignor--Mere damage to
containers does not prove damage to contents.---The burden of proof was on the
plaintiff to show that the damage to the contents was caused by the negligence of the
servants of the Carrier while the Crates were in its custody. No such evidence has been
produced by the plaintiff and merely, because some of the wooden crates were externally
broken and some card-board cases torn, as stated in the Survey Report, it cannot be
inferred, nor is there any evidence to show, that the external damage must have resulted
in damage to the contents.
Loss of goods in possession of bailee---Onus of proof as to negligence of bailee.---Where
goods are lost or destroyed while in .possession of bailee the onus of placing all the
materials in his possession or knowledge is on the bailee, while the onus of establishing
negligence is on the plaintiff.
Negligence of bailee---No evidence to show negligence---Bailee not required to prove
precautionary measures taken against loss by fire, etc.---Held: The plaintiff has not
suggested what were the steps which the Karachi Port Trust ought to have taken which it
had failed to take, before an adverse inference of negligence can be drawn against them.
It is not disputed that the cause of the fire was not known. Therefore, it was not
incumbent on the K.P.T. to show that the fire originated from causes beyond its control.
In the circumstances, it was enough for the Karachi Port Trust to place before the Court
all the materials in its possession and to satisfy the Court that it had taken due care
generally of the goods entrusted to its custody as statutory bailee and that it had taken
all prompt and reasonable steps in its power to put out the fire and save whatever was
possible of the goods. I am not satisfied that the plaintiff has discharged the burden of
proving negligence on the part of the Karachi Port
Trust.
Carriage of goods by sea from foreign port to Pakistan---Damage to goods---Contract Act
applies.---The provisions of the rules to the Carriage of Goods by Sea Act, 1925 do
not apply in relation to carriage of goods by sea in a ship carrying goods from a foreign
port to a port in Pakistan, as is the present case. Therefore, the rights and liabilities
of the parties have to be ascertained by reference to the proper law of the contract which
in this case, is the Pakistan law.
Damaged goods not surveyed---Nothing to show quantum of damage---Vague estimate of
damage---Damages not awarded. Held: The consignee did not apply for a survey of the
damaged goods nor is there any evidence in the survey whether the dirt stains penetrated
beyond the outer cover of the rolls and damaged the carpets inside. The value of the
alleged damage is also not indicated in the survey report. It would, therefore, appear
that the estimate of Rs. 4,675 claimed by the plaintiff as representating 5% damage to the
55 rolls of carpets can but be only a vague estimate. In this absence of material evidence
as to value of damaged goods, the claim of the
plaintiff cannot be accepted.
Damage to goods noticed by M.D. of plaintiff--Delay in making request for appointment
of surveyor---Carrier not bound by Survey report in absence of notice and survey.---
Held: The Managing Director of the plaintiff, in his deposition in Court admitted that he
noticed the alleged damage at the time of the discharge of the goods on 6-8-1965, by which
time the goods had been removed by the K.P.T. from Transit Shed to another warehouse, some
four or five furlongs away. The first intimation of the particulars of the alleged damage
was conveyed to the Carrier's Agent on 7-6-1966 just before the suit was filed, by the
plaintiff's legal notice claiming an estimated loss of Rs. 1,28,385/-. In the absence of
notice of survey, the carrier is not bound by the Survey Report. Therefore the carrier is
not liable to pay damages.
Buyer rejecting goods---If can sell them to recover ware-house charges for storing
them.---The buyer rejected the goods and then disposed them of in order to recover the
ware-house charges for having stored them. He contended that he as a bailee had the right
to do so.
Held: The buyer of the good. s having rejected them and thereafter selling them as
the goods belonging to him, stands on a different footing than the bailee contemplated
under sections 151 and 170 of the Contract Act. The principle on Which a bailee is
entitled to dispose of the goods or has lien on the goods bailed with him are entirely
different and are not applicable to the case of the sale of goods. As discussed above, the
buyer of the goods after rejecting them, has no lien on the goods in dispute and must
place them at the disposal of the seller for dealing with them in any manner
he likes.
Due care---If onus lies on the bailee---How should the onus be discharged---Duty of the
plaintiff in case of loss of goods.---Per Yakub Ali, J. Section 151 of the Contract
Act subjects a bailee to the duty of taking as much care of the goods entrusted to him as
a prudent man would take of his own goods of similar quality and bulk. That the bailee
discharged his statutory duly in respect of the goods entrusted to him can obviously be
proved the bailee and not by the bailor. The onus therefore, to prove what steps had been
taken by the bailee in discharge of the duty imposed upon him by law would initially lie
on him and not on the bailor.
The loss of goods entrusted to a bailee is prima facie evidence of his negligence, and the
question still remains to be answered whether inspite of such loss any onus remains on the
plaintiff to prove negligence after the defendant bailee has failed to prove that he had
discharged his duty as it bailee under section 151 of the Contract Act. It is obvious that
if the defendant satisfies the Court that he took as much care of the goods entrusted to
him as a man of ordinary prudence would take of his own goods of similar quality and bulk,
there will be no scope for the plaintiff to prove any negligence on the part of the
defendant to indemnify him for the loss of his goods. Vice versa, if the plaintiff
succeeds in proving negligence on the part of the defendant bailee, it will not be open to
the defendant to contend or show that in the discharge of his duty he had acted according
to what he was enjoined upon to do under section 151 of the Contract Act.
Per Akhlaq Hussain, J. In a suit against a railway company or administration the
plaintiff has to prove that the defendant failed to take the care which, under section 151
on the Contract Act, it is the duty of a bailee to take. That section, be it noted, does
not lay the onus on a ballet in a suit against him to prove that he took the care which it
was his duty to take. It only defines the measures of his duty; and a plaintiff can
succeed only by proving its absence. Therefore it would be entirely erroneous on the part
of a Court to cost any burden on the defendant by framing an issue whether he took due
care or ally care.
Another point to note is that section 105 does not cast the burden of proving due care
upon the defendant; it only makes it his duly to prove such facts relating to the care
actually taken by him which are "especially within his knowledge." The burden of
the issue whether loss has been occasioned by the failure of the defendant to take due
care rests squarely upon the plaintiff throughout, under sections 101 and 102 of the
Evidence Act; and while evidence is being led on that issue the plaintiff may be
exonerated from proving certain relevant facts" but not the issue
itself.
Goods carried by railway by route other than the usual route---Goods damaged or
deteriorated---Railway liable---Risk note is no protection.---A contract for the
carriage of goods does always mention the place where the goods are booked, the place of
destination, and impliedly also the route by which the goods are to be carried. Therefore,
if without the knowledge and consent of the party concerned the railway choose to carry
the goods by a route other than the route agreed upon or the usual route, they do so at
their own risk and cannot fall back upon the terms contained in the Risk Note contrary to
the terms on which they carry the goods by a different route, nor can they claim that they
are absolved from the general statutory liability or a bailee.
The Risk Note does not stand in the way of the claim of the plaintiff at
all.
Loss of goods during transit---Railway liable---Absence of brake---Negligence of
railway.---Where goods were lost during transit and it was found that there was no
vacuum or brake in the van of the guard so that the train could not be stopped in case of
theft in the running train.
Held: There ought to be a vacuum in a train in order that in case of theft while it
is running it may be stopped. That a vacuum should be there in the brake of the guard is
not denied and the failure to keep a vacuum against the rules would be negligence.
Therefore the failure to provide brake should be considered a negligent act on the part of
the Railway.
Held further: That there is no satisfactory evidence from which it could be inferred that
they had taken proper care of the consignment as bailer of the goods consigned. Therefore,
the railway was liable for the loss of goods.
Railway---Liability while carrying goods---Similar to that of a bailee.---Held; The
railway carries goods delivered to it by a party as a bailee under a contract and is bound
to take such care of the goods as that taken by a man of ordinary prudence. It is only
when it wants to limits its liability that it can enter into special contracts with the parties concerned.
Short delivery of goods---Goods carried on shippers risk---Company liable for
short delivery under the sections---Where the goods were carried on shipper's risk,
and the shipping company made a short delivery of goods.
Held: It cannot be said that the special contract between the shipping company and
the plaintiff is of such a comprehensive nature as to absolve the shipping company from
all liability so as to exclude sections 151, and 152, Contract Act, from coming into
operation. The company was therefore liable for loss on account of the short
delivery.
Loss of pledged goods---Liability of pledgee not affected by agreement that pledgee
would not be responsible for loss---Pledgee must prove that loss was in spite of due care
by him.---The goods pledged to a Bank were stolen. The Bank took up the plea that it
was not liable for the loss of goods in view of a term of agreement with the party by
which the Bank was not to be held responsible for loss or damage to the goods.
Held: The defendant Bank when seeking to rely on the terms of the agreement from
being excused from any liability of the pledged goods lost by theft, must first prove
satisfactorily that the theft was committed by a person or persons other than the agent or
employees of the Bank and that the theft was committed in spite of the pledgee Bank having
taken proper protection with regard to the safety of the goods. This, the pledgee Bank
must do, as even when a special agreement of this nature is entered into between the
parties, failure of the party seeking cover under special term must attract the provisions
of the sections 151 and 152 of the Contract Act.
Goods entrusted to bailee damage by act of his servant---Servant acting outside his
authority---Bailee is liable for the loss. A bailer is liable to the bailor in respect
of the goods bailed when the goods suffered from the negligence of the servant of the
bailee even though the negligent act look place while the servant was dealing with the
articles for his own purpose.
Liability of common carrier by Sea---Not governed by Ss. 151, 152---Common carrier would
be liable accordingly to terms of contract embodied in Bill of Lading---Carrier (shipper)
would be immune from liability for any loss in a case where under terms of Bill of Lading
goods were shipped on Deck and at consigner's risk.
Carriage of Goods by Sea Act (XXVI of 1925), Sched., Art. 1 (c)---Carriage of goods by
sea---Cargo carried on deek and at consignor's risk short landing at
destination---Liability for loss---Liability of carriers not governed by Ss. 151 &
152, Contract Act, 1872---Word 'goods' in Art. 1 (e) of Sched. to Carriage of Goods by Sea
Act---Connotation---Cargo not governed by provisions of said Act---Negligence alleged by
substitute of consignor denied by carrier in written statement---Carrier bringing evidence
to show that goods were damaged due to act of God---Contention that provisions of Ss. 151
& 152, Contract Act were applicable in instant case not tenable.
Bailee's liability for damages---Damage to one Case caused by negligence of servants
and/or agents of Stevedore Company engaged by Shipping Company---Shipping Company neither
taking plea of having taken as much care as man of ordinary prudence would take of his own
goods nor pleading special contract---Shipping Company, held, responsible
to importer.
Bailor and bailee, relationship of---Correspondence showing Bank from time to time
informing plaintiff about stock of plaintiff in custody of Bank---F.I.R. about theft of
goods also lodged by an officer of Bank---Chowkidar of Bank also deputed to guard goods in
question---Deliveries of goods made by Bank on delivery orders issued by plaintiff---Rent
for godown and salary of Chowkidar also recovered by Bank from plaintiff---Bank, held,
bailee for reward of goods of plaintiff.
152. Bailee when not liable for loss, etc, of thing bailed.---The
bailee, in the absence of any special contract, is not responsible for the loss
destruction or deterioration of the thing bailed, if he has taken the amount of care of it
described in Section 151.
COMMENTS
Care to be taken by bailee.---Since the standard of diligence required of a bailee
is that of the average prudent man, a bailee of goods is not liable for loss of the goods
by theft in this shop, if it is shown that he took as much care of the articles bailed as
an ordinary prudent man would under similar circumstances, take of his own goods of the
same quality and value. For the same reason if A sends jewels to B
for repairs, asking B to return them after repair as a value payable parcel, and B does
so, B is not liable for the loss of the jewels merely because he failed to insure the
parcel. Failure to insure the jewels is not evidence of want of such care as a man of
ordinary prudence would, under similar circumstances, take of his own goods, especially
when the owner himself does not insure them when sending them out for
repair. But it is negligence on the part of a carrier of goods to send jute in a boat
with twenty or thirty leaks on its side, one or one and a half inches in length, and keep
the goods in the hold of the boat for thirty hours.
The bailee's duty does not necessarily come to an end when the. goods are lost or stolen.
Liability of common carrier by Sea---Not governed by Ss. 151, 152---Common carrier would
be liable accordingly to terms of contract embodied in Bill of Lading---Carrier (Shipper)
would be immune from liability for any loss in a case whereunder terms of Bill of Lading
goods were shipped on Deck and at consigner's risks.
153. Termination of bailment by bailee's act inconsistent with,
conditions. A contract of bailment is voidable at the option of the bailor, if the
bailee does any act with regard to the goods bailed, inconsistent with the conditions of
the bailment.
Illustrations
A lets to B, for hire, a horse for his own riding. B drives the horse in his carriage. This is, at the option to A, a termination of the bailment.
COMMENTS
It is well settled law that a wrongful use or disposal of the goods by the bailee
determines to bailment and remits the bailor to the right and remedies of a person
entitled to possession; a wrongful act means, for this purpose, a dealing wholly
inconsistent with the terms of the bailment. The English authorities go into refinements
as to the precise kind of wrong committed and the precise form of action available which
are almost as subtle as anything in either European or Hindu philosophy; but, as these are
intimately connected with the old Common Law system of pleading, we have no occasion to
consider them here. Merely irregular exercise of a right, such as a sub-pledge to a third
person by a pledgee, or a premature sale by a pledgee with power of sale, has not the same
effect. The present section has the merit of simplicity, and does not appear to have given
rise to any litigation.
154. Liability of bailee making unauthorised use of goods bailed.
If the bailee makes any use of the goods bailed, which is not according to the conditions
of the bailment, he is liable to make compensation to the bailor for any damage arising to
the goods from or during such use of them.
Illustrations
(a) A lends a horse to B for his own riding only. B allows C, a member of his family,
to ride the horse. C rides with care, but the horse accidentally falls and is injured. B
is liable to make compensation to A for the injury done to the horse.
(b) A hires a horse in Karachi from B expressly to march to Hyderabad. A rides with due
care, but marches to Khairpur instead. The horse accidentally falls and is injured. A is
liable to make compensation to B for the injury to the horse.
Illustration (b) is apparently .suggested by the case put in old English books of a man
borrowing a horse to ride to York and riding to Carlisle. Discussion of the old forms of
action being here superfluous, no comment is required.
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.
COMMENTS
Performance bond---Awarding of amount claimed by plaintiff by way of refund of amounts
paid to defendant---Jurisdiction of umpire---Such question having been raised in statement
of claim before arbitrator---Umpire, held, had Jurisdiction to deal with refund of amount
forfeited by defendant in terms of bank guarantee and to allow or disallow requisite
claim---By such refund of amount umpire had impliedly found that defendant was not
entitled to forfeit Performance Bond---Umpire is not required under law to give separate
findings on each issue or point raised before him.
156. Effect of mixture without bailors 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.
Illustration
A bails 100 bags of cotton marked with a particular mark to B. B without A's consent,
mixes the 100 bales with other bales of his own bearing a different mark, A is entitled to
have his 100 bales returned, and B is bound to bear all the expense incurred in the
separation of the bales and any other incidental damage.
The proposition is almost too obvious to need stating. Not only this, but any other
difficulty caused by unauthorised acts of the bailee which may attend the return of the
bailor's goods according to the contract must be at the bailee's risk and expense.
157. 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; in such a manner that it is impossible to separate the
goods, bailed from the other goods and deliver them back, the ballot is entitled to be
compensated by the bailee for the loss of the goods.
Illustration
A bails a barrel of Cape flour, worth Rs. 45, to B.B, without As consent, mixes
the flour with country flour of his own, worth only Rs. 25 a barrel. B must compensate A
for the loss of his flour.
By the Trusts act, 1882, S. 66, "where the trustee wrongfully mingles the
trust-property with his own, the beneficiary is entitled to a charge on the whole fund for
the amount due to him."
158. Repayment by bailor of necessary expenses. Where, by the
conditions of the bailment, the goods are to be kept or to be carried, or to have work
done upon them by the bailee for the bailor, and the bailee is to receive no remuneration,
the bailor shall repay to the bailee the necessary expenses incurred by him for the
purpose of the bailment.
COMMENTS
This and the next two sections represent Storys opinion partly of what the law is
and partly of what it should be. One does not quite see why in our law the bailees
promise may not be limited to returning the goods at a certain date or on demand after a
certain date, if such is the agreement of the parties. The bailor may intend to accept a
promise so qualified as the consideration for parting with the possession of the goods,
and there is no known rule of law to prevent effect from being given to that intention.
Why not let the parties make their own terms instead of borrowing a fixed rule from a
system which has no doctrine of consideration? But the truth is that gratuitous bailments,
though very common in private life, are not matters of business and therefore do not come
into court.
159. Restoration of goods lent gratuitously. The lender of a
thing for use may at any time require its return, if the loan was gratuitous, even though
he lent it for a specified time or purpose. But, if on the faith of such loan made for a
specified time or purpose, the borrower has acted in such a manner that the return of the
thing lent before the time agreed upon would cause him loss exceeding the benefit actually
derived by him from the loan, the lender must, if he compels the return, indemnify the
borrower for the amount in which the loss so occasioned exceeds the benefit so derived.
COMMENTS
No authority has been found for Storys view, which appears, as above stated, to
be nedlessly complicated. On principal the question is what the terms of the contract
were. Quaere whether an express contract not to recall a thing gratuitously lent before
the expiration of a certain time would not be good in India notwithstanding this section.
There is no difficulty about the consideration.
160. Return of goods bailed on expiration of time or accomplishment
of purpose. It is the duly of the bailee to return, or deliver 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.
COMMENTS
Nothing is said here about the extent of the bailors remedies if the goods are
not forthcoming. He can have an action for damages against the bailee,
but also he has further equitable rights. "if the bailee sells the goods bailed, the
bailor can in equity follow the proceeds, and can follow the proceeds wherever they can be
distinguished either being actually kept separate, or being mixed up with other
moneys".
It has been established for a very long period.... that the principles relating to the
following of trust property [compare the Trusts Act, Ss. 63-65] are equally applicable to
the case of a trustee and to the case of factors, bailees, or other kinds of agents...
wherever a specific chattel is entrusted by one man to another, either for the purpose of
safe custody or for the purpose of being disposed of for the benefit of the person
entrusting the chattel; then either the chattel itself, or the proceeds of that chattel,
whether the chattel has been rightfully or wrongfully disposed of, may be followed at any
time, although either the chattel itself, or the money constituting the proceeds of the
chattel, may have been mixed and confounded in a mass of the like material. The
development of this doctrine in cases of trust is not within our scope; it is connected
with the special application and limitation of the rules as to appropriation of payments
(S. 61, above).
It is obvious that in a case where the goods are found unfit for the purpose for which
they were hired the purpose for which they were bailed is not accomplished; but the
consequences are not here declared. It seems that all the bailee is bound to do is to give
notice to the bailor of the default.
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.
COMMENTS
Unexplained failure to return the thing bailed is presumed to be by the bailee's default. A bailee who refuses to give delivery
except upon some unjust or unreasonable condition is in default.
Conversely, if a bailor or consignee omits or refuses to take his goods at the proper time
from a carrier (or, it would seem, any other kind of bailee) who is ready and willing to
deliver them, he may be liable to compensate the bailee for any necessary expenses of and
incidental to their safe custody. But the goods are not at the risk of the bailor, and the
bailee will be liable for any breach of duty under S. 151.
Bailee wrongfully converting goods kept with him---Liable for loss of bailor.---A
bailee who either refused to give delivery of the goods under his custody or fails to
return the goods to the bailor, is responsible to the bailor for any loss, destruction or
deterioration of the goods from that time.
Delivery of pledged property---How may be made---When constructive delivery is
sufficient. Delivery, either actual or constructive, of the articles pledged in
consideration of the debt or advance is essential to the contract. Constructive delivery
is where it is practically impossible to give physical possession, or where the pledge
remains in the possession of the pledgor for a special purpose and the pledge is legally
delivered though it does not actually pass from the hands of the pledgor to those of the
pledgee. Delivery of a key of a warehouse in which goods are stored, or of a delivery
order directing a warehouseman to deliver goods to the pledgee, is sufficient in law to
form constructive delivery. It is not essential that the advance and the delivery should
be contemporaneous. it is sufficient if possession be delivered within a reasonable time
of the advance, in pursuance of the contract to pledge
Pledgor and pledgee---Relationship of the parties discussed.---The general property
in goods pledged remains in the pledgor, but a special property in them passes to the
pledgee in order that he may be able to sell the pledge if his right to sell arises. This
special property is such that if a bailee accepts, as security for goods brought, an
object of value; he fraudulent retaking of the object by the bailor is larceny. By the
bailment of goods by a debtor to his creditor in pledge, or as a security for a debt, the
pledgee impliedly undertakes to deliver back the property to the pledgor, when the sum for
which it was pledged is paid, and the pledgor impliedly undertakes that the property
pledged is his own and may be safely returned to him. If the pledgor makes default in
payment at the stipulated time, the pledgee may sell the pledge, even though there be not
any express agreement to that effect, or he may sue the pledgor or his debt, retaining the
pledge as a security. But if a time for payment has not been agreed upon, or if the time
agreed upon has been extended indefinitely, the pledgee cannot sell the pledge until after
demand and notice.
162. Termination of gratuitous bailment by death, A gratuitous
bailment is terminated by the death either of the bailor or of the bailee.
The executors of persons who have borrowed things, especially books, do not always
remember this, as is shown by common experience. On the other hand, the executors of a
lender may tacitly and discreetly, in many cases, treat the loan as a gift without fear of
being Called to account for a davastavit. The problems hence arising, if any, seem to be
rather ethical than legal, save so far as the law of limitation cures this amongst other
irregularities. The present section does not, of course, exempt the bailees estate
from liability for any default in his lifetime.
163. Bailor entitled to increase or profit from goods bailed.---In
the absence of any contract to the contrary, the bailee is bound to deliver to the bailor,
or according to his directions, any increase or profit which may have accrued from the
goods bailed.
Illustration
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.
COMMENTS
Good sense, and therefore, good law, seemingly without any previous reported authority.
New shares allotted in respect of shares that have been pledged are an increase claimable by the pledger.
164. Bailor's responsibility to bailee.---The bailer is responsible
to the bailee for any loss which the bailee may sustain by reason that the bailor was not
entitled to make the bailment, or to receive back the goods or to give directions,
respecting them.
If the terms of the bailment are such that its natural determination as between the
parties is delivery over to a third person, and there is a paramount title elsewhere, the
bailee may be in difficulties, which, however, are mitigated by S. 166.
165. Bailment by several .joint owners.---If several joint
owners of goods bail them, the bailee may deliver them back to, or according to the
directions of, one joint owner without the consent of all, in the absence of any agreement
to the contrary.
"May," not "must". Even if there is an agreement to the contrary, one
of several joint owners cannot, after having accepted redelivery from the bailee, sue him
jointly with the other owners; for "one party to a contract cannot maintain an action
for a breach occasioned by his own act, and neither can three parties maintain an action
unless each party separately could."
166. Bailee not responsible on redelivery to bailer without title.
If the bailer has no title to the goods, and the bailee, in good faith, delivers them back
to, or according to the directions of, the bailer, the bailee is not responsible to the
owner in respect of such delivery.
COMMENTS
Return of goods to or to the order of the bailor.---A bailee who in good faith
returns the goods bailed to the bailor or his order is not liable to the true owner of
goods. N. entrusted certain bales of cotton to L., a muccadam (warehouseman). L pledged
the cotton with B (with whom he had dealings for several years) to secure advances made by
B to L. Subsequently L redeemed the pledge, and the cotton was returned by B to or to the
order of L.N sued B and L claiming delivery of the goods or their value. The Privy Council
held that whether the pledge by L to B was or was not valid under S. 178, the return of
the goods by B in good faith to L was a complete defence to the suit.
The section really applicable was the present section, but the case was wrongly argued as
under S. 178, which it was held unnecessary to consider.
Estoppel of bailee.---Cp. the Evidence Act, 1872, S. 117.---"...Nor shall any bailee
or licensee be permitted to deny that his bailor or licensor had, at the time when the
bailment or license commenced, authority to make such bailment or grant such
license...Expl. (2).---If a bailee delivers the goods bailed to a person other than the
bailer, he rally prove that such person had a right to them as against the bailer."
The rule of the Common Law is that generally a bailee is estopped from denying his
bailor's title. He is not only justified in delivering to the bailer or according to his
directions, but he is not justified in refusing to deliver to the bailer unless he is
under the effective pressure of an adverse claim, and defends upon the right and title and
by the authority of the third person so claiming. There must be something equivalent to an
eviction by a paramount title, which if it actually took place would of course determine
the bailment. But if the bailer has by his own act, as by mortgaging the thing bailed,
made it impossible for the bailee to redeliver to him without being exposed to an action
at the suit of a third person, then the bailee is excused.
But if a man accepts a bailment with notice at the lime of an adverse claim, he must stand
by the election he has made, and cannot afterwards rely on the adverse title against his
bailer.
A common carrier's position is not quito the same, as he must in any case accept goods
offered him for carriage and cannot make inquiries as to the ownership. He may safely
deliver in pursuance of his employment until he has notice of an adverse claim, but after
notice he would so deliver at his peril, and therefore is justified in delivering to the
real owner.
If a warehouseman, or other such like person having the custody of goods, acknowledges
that he holds them at the order of a certain person, he thereby makes himself that
person's bailee, and is estopped from denying his title to the same extent as if he had
actually accepted delivery from him.
167. Right of third person claiming goods bailed.---If a person,
other than the bailor, claims goods bailed, he may apply to the Court to stop the delivery
of the goods to the bailor, and to decide the title to the goods.
The bailee's protection against conflicting claims appears to be left to the general
directions of the Code of Civil Procedure.
168. Right of finder of goods; may sue for specific reward offered.
The finder of goods has no right to sue the owner for compensation for trouble and expense
voluntarily incurred by him to preserve the goods and to find out the owner; but he may
retain the goods against the owner until he receives such compensation; and, where the
owner has offered a specific reward for the return of goods lost, the finder may sue for
such reward, and may retain the goods until he receives it.
COMMENTS
By the Common Law a person who finds lost goods and holds them with the intention of
saving them for the true owner is certainly not a trespasser, and has no higher duties
than a bailee; but, the service being rendered without request from the owner, he does not
seem entitled to any remuneration, unless a specific reward has been offered for the
return of the goods, and the offer has come to his knowledge (see on S. 8, "General
Offers", above); and if he cannot claim compensation there is no ground on which he
can retain the goods. But it seems the Court would be astute to lay hold of any evidence
which might constitute a cause of action for a meritorious finder who had been at
substantial pains, and it is possible that in some cases he might have rights analogous to
a salvor's. It appears to have been a current opinion as late as the seventeenth century
that a finder could abandon the goods with impunity.
The rule of the present section appears to be intended to satisfy natural justice.
Presumably the compensation, if no specific reward has been offered and the parties cannot
agree, is to be what the Court considers reasonable. If the parties do agree, the owner's
promise of reward may be binding under S. 25, sub- S. 2 (ante).
169. When finder of firing commonly on sale may sell it.---When a
thing which is commonly the subject of sale is lost, if the owner cannot with reasonable
diligence be found, or if he refuses, upon demand, to pay the lawful charges of the
finder, the finder may sell it---
(1) When the thing is in danger of perishing or of losing the greater part of its value,
or,
(2) When the lawful charges of the finder, in respect of the thing found, amount to two
thirds of its value.
170. Bailee's particular lien. 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 services
he has rendered in respect of them.
Illustrations
(a) A deliver a rough diamond to B, a jeweller, to be cut and polished, which is
accordingly done. B is entitled to retain the stone till he is paid for the services he
has rendered.
(b) A gives cloth to B, a tailor, to make into a coat. B promises A to deliver the coat as
soon as it is finished, and to give A three months credit for the price. B is not
entitled to retain the coat until he is paid.
COMMENTS
Principle of bailees lien.---This section expresses the "Common Law
principle that if a man has an article delivered to him, on the improvement of which he
has to bestow trouble and expense, he has a right to detain it until his demand
is paid.
Where a bailee has expended his labour and skill in the improvement of a chattel delivered
to him, he has a lien for his charge in that respect. Thus the artificer to whom the goods
are delivered for the purpose of being worked up into form, or the farrier by whose skill
the animal is cured of a disease, or the horse-breaker by whose skill he is rendered
manageable, have liens on the chattels in respect of their charges. An agister, who merely
takes in an animal to feed it, is not entitled to a lien, as not coming within this
principle, for he does not confer any additional value on the thing entrusted to him. A
garage owner is not entitled to a lien merely for maintaining a motor car.
A bailee's lien is lost if he surrenders possession of the goods, even though he
subsequently regains possession. The line never arises unless the
bailee has a right to continuing possession of the goods, so that if the bailor has the
right to remove the goods from time to time, there is no lien, in the absence of an
express agreement that the goods shall remain "in pawn" despite temporary
removal by the bailor.
Further, where a person does work on goods delivered to him under an entire contract, the
fact that the deliveries arc at different times does not affect his right to a lien on all
goods dealt with under that contract. Accordingly, where jute was delivered to a pressing
company from time to time to be baled, but all under one contract, the lien was held to
attach to all such goods.
A bailee for reward cannot transfer his lien to a sub-contractor without the bailor's
authority. But such authority may be implied. If H, who has hired a car from a car owner
O, under a hire-purchase agreement, by the terms of which H has undertaken to keep the car
in repair, delivers the car to a garage proprietor G for repair, G has a lien not only
against H, but also against O: the express duty to repair leads to an implied authority to
create a lien for repair. This implied authority is not removed by the fact that H is in
arrear with the payments of the hire-purchase installments at the time the vehicle is
delivered to G for repair, unless O has already terminated the agreement for such default
before the car is left with G.
Contract to the contrary.---A lien, good against the owner, arises in favour of a
repairer, employed by a hirer, even though the contract of hire-purchase expressly forbids
the creation of a lien, if this prohibition is unknown to the repairer.
Where there is an express contract to do certain work for a specified sum of money, there
is no room for a quantum meruit claim. A person, therefore, to whom an organ is delivered
for repairs for a certain sum is not entitled to retain it as security for a sum of money
claimed not under the contract, but for worked done. While the special contract is in
force there is no other "due remuneration" than the sum expressly contracted
for.
Exaggerated claim made---Right to lien till payment of actual amount
due is not lost.
Goods under one contract delivered at different times---Lien is created on all
goods.----Where a person does work on goods delivered to him under an entire contract,
with reference to goods delivered at different times, such as to establish a lien, he is
entitled to that lien on all goods dealt with under that contract.
Lien created---Value of goods being disproportionate to actual amount
due does not affect lien.
Lien---Exists only Where there is right to continuous possession. The established
practice is that without the right of continuing possession there can be no right of a
lien. If the owner, therefore, has a right to assert the possession and to interrupt the
possession of the party claiming the lien such a right of the owner would be inconsistent with a lien.
Contract for packing jute---Advance payment of Rs. 30,000 made---Goods packed and found
hypothecated to third party---Packer cannot have prior charge on goods to recover balance
of packing charges. Where the plaintiff entered into a contract with defendant No. 1
for packing 30,000 pucca bales of jute and for this he received Rs. 30,000/- in advance.
Defendant No. 1 left for India leaving behind 4,000 bales of jute when the outstanding
charge still due to the plaintiff stood at Rs. 60,000/- So the plaintiff filed this stilt
under the ordinary law of contract and equity for declaring a prior lein over the existing
4,000 bales of jute and also for a decree of Rs. 60,000. The suit was contested only by
defendant No. 6 who claimed that by a written instrument dated 2-8-54 defendant No. 1 had
hypothecated and created a first charge on all. its stock of jute and as such defendant
No. 6 was entitled to take possession of the same jute.
Held: Equity can only come into play as and when it is found that the party is
subject to some hardship for no fault of his. Since the plaintiff did not put any
restriction, it cannot be said that the plaintiff is entitled to invoke principle of
equity in the matter of realisation of any charge that may be due from defendant No. 1 for
the jute stocked in his godown.
Jute delivered to pressing company for pressing---Bales placed in godown of company
with freedom to owner of bales to deal with them as he liked---Pressing company has no
lien on goods in godown in case of non-payment of bill.
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