Bailment
The word “Bailment” has been derived from the French word “ballier” which means “to deliver”. Bailment etymologically means ‘handing over’ or ‘change of possession’. As per Section 148 of the Act, bailment is the delivery of goods by one person to another for some purpose, upon a contract, that the goods shall, according to the directions of the person delivering them. The person delivering the goods is called the “bailor”. The person to whom they are delivered is called the “bailee”.
For instance, where ‘X’ delivers his car for repair to ‘Y’, ‘X’ is the bailor and ‘Y’ is the Bailee and it is contract for bailment.
In the case of, Basavva K.D. Patil vs State of Mysore ,The court held that if police recover stolen ornaments and disappear from police custody then the state will be liable, the contract of bailment having been implied.
The essential elements of a contract of bailment are —
(a) Contract: Bailment is based upon a contract. The contract may be express or implied. No consideration is necessary to create a valid contract of bailment.
(b) Delivery of goods : It involves the delivery of goods from one person to another for some purposes. Bailment is only for moveable goods and never for immovable goods or money. The delivery of the possession of goods is of the following kinds:
i. Actual Delivery: When goods are physically handed over to the bailee by the bailor. Like, delivery of a car for repair to workshop.
ii. Constructive Delivery: Where delivery is made by doing anything that has the effect of putting goods in the possession of the bailee or of any person authorized to hold them on his behalf. For instance, delivery of the key of a car to a workshop dealer for repair of the car.
(c) Purpose: The goods are delivered for some purpose. The purpose may be express or implied.
(d) Possession: In bailment, possession of goods changes. Change of possession can happen by physical delivery or by any action which has the effect of placing the goods in the possession of bailee. The change of possession does not lead to change of ownership. In bailment, bailor continues to be the owner of goods as there is no change of ownership. Where a person is in custody without possession he does not became a bailee.
For instance, servants of a master who are in custody of goods of the master do not become bailees. Similarly, depositing ornaments in a bank locker is not bailment, because ornaments are kept in a locker whose key are still with the owner and not with the bank. The ornaments are in possession of the owner though kept in a locker at the bank.
(e) Return of goods: Bailee is obliged to return the goods physically to the bailor. The goods should be returned in the same form as given or may be altered as per bailor’s direction. It should be noted that exchange of goods should not be allowed. The bailee cannot deliver some other goods, even not those of higher value. Deposit of money in a bank is not bailment since the money returned by the bank would not be identical currency notes.
