Rights Duties and liabilities of a Bailee

Rights of Bailee:

Particular Lien: (Sec 170) Where the bailee has, in accordance with the purpose of bailment rendered any service involving the exercise of labor 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.


a) A delivers a rough diamond to B, a jeweler, to be cut and polished, which is accordingly done. B is entitled to retain the stone till he is paid for the services rendered.
b) A gives cloth to B, a tailor to make into a coat 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.

To know faults in the goods bailed to him: (Sec 150). The bailee has a right to know the faults in the goods bailed to him, of which the bailor is aware and which materially interfere with the use of them. Or expose the bailee to extraordinary risks. If the bailor does not make such disclosures, bailee is entitled to receive damages arising directly from such faults.

(This is a corresponding duty of the bailor to disclosure faults discussed above under duties and liabilities of the bailor)

Claim proportionate share in goods mixed: (Sec 155) If the bailee mixes the goods of the bailor with his own goods with the consent of the bailor, the bailor has a right to claim proportionate share in the goods so mixed.

Claim expenses of bailment: (Sec 158) Where the goods are bailed and the work is to be carried on by the bailee and the bailee is to receive no remuneration, the bailee is entitled to claim necessary expenses incurred by him. As discussed above, this right can be claimed by gratuitous bailee.

Claim losses for defect in title of bailor: (Sec 160) If the bailor’s title to the goods was defective by reason of which he was not entitled to make the bailment, or to receive back of the goods or to give directions regarding them, the bailee is entitled to claim compensation for any loss which he may thereby sustain.

Gratuitous bailee to claim indemnity: (Sec 159) Where the bailee is gratuitous and the bailor demands back the return of goods before the time agreed upon or before the purpose is accomplished, the bailee is entitled to be indemnified by the bailor if he is put to any loss caused by earlier demand.

Wrongful deprivation of goods – Action against third person: (Secs 180 & 181) If a third person wrongfully deprives the bailee of the use or possession of the goods bailed, or does them an injury, the bailee is entitled to use such remedies as the owner might have used in the like case as if no bailment had been made. Either the bailee or the bailor may bring a suit against a third person for such deprivation of injury.

The right which belongs to the owner is given to the bailee under this section by virtue of his possession over the goods, if any person wrongly deprives him of the use or possession of the goods bailed to him, or causes any injury to such goods.

Whatever is obtained by way of relief or compensation in any such suit shall, as between the bailor and the bailee, be dealt with according to their respective interests.

Enforcement of rights: The bailee may enforce the duties and liabilities of the bailor.