Rights of Bailee

Bailment is a kind of activity in which the property of one person temporarily goes into the possession of another. The ownership of the property remains with the giver, while only the possession goes to another. Several situations in day to day life such as giving a vehicle for repair, or parking a scooter in a parking lot, giving a cloth to a tailor for stitching, are examples of bailment. Section 148 of Indian Contract Act 1872, defines bailment as follows:- 

Section 148 -  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 bailor and the person to whom they are delivered is called the bailee.

Explanation -  If a person is already in possession of the goods of another contracts to hold them as a baliee, he thereby becomes the bailee and the bailor becomes the bailor of such goods although they may not have been delivered by way of bailment.

Following rights are available to bailee:-

1. Right to get compensation:-When a thing has been bailed to the bailor and bailee has neither any right in that thing nor any right to get back that thing and as a result thereof the bailee sustains certain loss the bailee can get compensation for that loss from the bailor. (S. 164. Indian Contract Act).

2. Compensation for the loss caused by non-disclosure of faults in goods bailed:-When a goods is bailed gratuitously and that contains a fault which is known to the bailor but bailor does not convey it to the bailee and as a result thereof bailee sustains some injury the bailee can ask for the compensation.

3. Compensation for the loss caused by the defects of thing bailed:- When the thing has been bailed for hire or rent the bailee can ask for the compensation for the loss or injury caused by both latent or patent defects of the thing bailed irrespective of awareness of bailor about those defects. (S. 150, Indian Contract Act)

4. Right to be reimbursed for the expenses incurred as necessary expenses:- (S. 158, Indian Contract Act). The bailee has the right to be reimbursed for the necessary expenses he has incurred.

5. Right of lien for the payment or reimbursement of necessary expenses:- (Ss. 170. 171 Indian Contract Act). The bailee is entitled to lien for the payment or reimbursement of necessary expenses.

6. Right to sue:-The bailee has the right to sue the wrong-doer, who wrongfully deprives the bailee of the use or possession of the goods bailed or does them any injury. (S. 180, Indian Contract Act).

Courtesy:- Legal Point Foundation