BAILMENT AND PLEDGE PART 1

Ø  CA INTER CORPORATE AND OTHER LAWSB
BAILMENT AND PLEDGE 1
WWW.GARGSHASHI.COM

Ø  OTHER LAWS ( SPECIAL CONTRACT)

Ø  SHASHI AGGARWAL ECONOMICS AND LAW CLASSES

Ø  CONTENTS :

1. MEANING OF BAILMENT
2. TYPES OF BAILMENT
3. FEATURES OF BAILMENT
4. RIGHT AND DUTIES OF BAILOR

• MEANING OF BAILMENT
• THE TERM BAILMENT DERIVED FROM FRENCH TERM BAILLIOR MEANS TO DELIVER
• SEC 148 DEFINES THE BAILMENT:-

1. DELIVERY OF GOODS BY ONE PERSON TO ANOTHER FOR SOME PURPOSE UPON A CONTRACT
2. THAT THEY SHALL WHEN THE PURPOSE IS ACCOMPLISHED BE RETURNED OR DISPOSED
3. ACCORDING TO THE DIRECTION OF THE PERSON DELIVERING THEM
4. BAILOR IS THE PERSON WHO DELIVER THE GOODS
5. BAILEE IS THE PERSON TO WHOM GOODS ARE DELIVERED

• EXAMPLE
• A HANDED CERTAIN JEWELRY TO X TO BE USED BY HER IN SOME FUNCTION. JEWELRY IS TAKEN ON THE LOAN AND TRANSACTION WAS ONE OF THE NATURE OF THE BAILMENT.
• WHEN WE DEPOSIT MONEY INTO BANK HERE THE RELATION IS OF LENDER AND BORROWER NOT BAILOR AND OR BAILEE

• ESSENTIAL CHARACTERISTICS

1. CONTRACT:- EXPRESS AGREEMENT OR IMPLIED BY LAW. IT IS THE RESULT OF CREATION OF A CONTRACT.MINOR CAN NOT ENTER INTO CONTRACT. HE CAN BE COMPELLED TO REDELIVER THE GOODS TO THE BAILOR IF THE GOODS ARE IN HIS POSSESSION. BUT HE IS NOT LIABLE AS BAILEE IF HE MISUSES

• FAMOUS CASE STATE OF GUJARAT VS MENON MOHAAMED:
• CERTAIN MOTOR VEHICLES AND OTHER GOODS BELONGING TO THE PLAINTIFF WAS SEIZED BY THE STATE IN EXERCISE OF ITS POWERS UNDER A SEA CUSTOM ACT. THE GOODS WHILE IN THE CUSTODY OF THE STATE REMAINED TOTALLY UNCARED FOR.THE STATE WAS HELD AS LIABLE AS BAILEE

2. DELIVERY OF POSSESSION : ACTUAL/CONSTRUCTIVE AND ALSO FOR SOME PURPOSE. DELIVERY MEANS CHANGE OF POSSESSION FROM ONE PERSON TO ANOTHER AND NOT CHANGE OF OWNERSHIP

1. FAMOUS CASE:-KALIAPERUMAL PILLAI VS VISALAXMI:-A LADY WAS GETTING NEW JEWELRY MADE OUT OF OLD ORANAMENTS. EVERY EVENING SHE RECEIVED THE FINISHED JEWELRY AND PUT INTO BOX KEPT AT JEWELER'S SHOP. KEY WAS WITH THE LADY. ONE NIGHT THE JEWELRY WAS STOLEN FROM THE BOX. HELD THERE WAS NO BAILMENT

3. SOME DEFINITE PURPOSE
4. RETURN OF GOODS:-GOODS MUST BE RETURNED EITHER IN ORIGINAL OR ALTERED FORM
5. SECRETARY OF STATE VS SHER SINGH RAI
6. ESSENTIALS OF VALID CONTRACT
7. OWNERSHIP NOT TRANSFERRED

MOVEABLE GOODS:-THE BAILMENT CAN BE ONLY OF MOVEABLE GOODS.MONEY IS NOT INCLUDED IN MOVEABLE GOODS. TRANSFER OF IMMOVABLE GOODS DOES NOT CONSTITUTE BAILMENT.

• CLASSIFICATION OF BAILMENT

1. VOLUNTARY AND  INVOLUNTARY BAILMENT:- EXPRESS CONTRACT/OPERATION OF LAW
2. GRATUITOUS:- KEPT THE GOODS FOR THE BAILOR WITHOUT REWARD
3. NON GRATUITOUS:- SOME CONSIDERATION IS THERE

4. ACCODRING TO THE BENEFIT:-

a)    EXCLUSIVE BENEFIT OF BAILOR

b)    EXCLUSIVE BENEFIT FOR THE BAILEE

c)    BAILMENT FOR MUTUAL BENEFIT

• DUTIES OF THE BAILOR

a)    DUTY TO DISCLOSE KNOWN MATERIEL DEFECTS:-

1. A GRATUITOUS BAILOR : BOUND TO DISCLOSE ALL THOSE DEFECT WHICH HE IS AWARE AND WHICH EXPOSES TO THE BAILEE TO SOME EXTRA ORDINARY RISK
2. BAILOR FOR REWARD:-THE BAILOR MUST SEE THAT THE GOODS HE GIVE ON HIRE ARE SAFE AND CAN NOT PLEAD HE WAS NOT AWARE
3. BILED FOR HIRE: IF THE GOODS ARE BAILED FOR HIRE THE BALIOR IS RESPONSIBLE FOR DAMAGE WHETHER HE WAS AWARE OR NOT

b)    DUTY TO REPAY NECESSARY EXPENSES IN CASE OF GRATUITOUS BAILMENT

c)    DUTY TO REPAY EXTRA ORDINARY EXPENSES IN CASE OF NON GRATUITOUS BAILMENT

d)    DUTY TO RECEIVE BACK THE GOODS

e)    DUTY TO BEAR NORMAL RISK

• RIGHTS OF BAILOR
• ENFORCEMENT OF BAILEE’S DUITIES:-

a)    RIGHT TO CLAIM COMPENSATION FOR LOSS CAUSED TO THE GOODS BY THE NEGLIGENCE OF THE BAILEE

b)    RIGHT TO CLAIM COMPENSATION FOR UNAUTHORIZED MIXING

c)    DAMAGES FOR UNAUTHORIZED USE OF GOODS

d)    ANY NATURAL ACCRETION TO THE GOODS

• RIGHT OF TERMINATION
• RESTORATION OF THE GOODS LENT GRATUITOUSLY
• RIGHT TO FILE A SUIT AGAINST ANY WRONG DOER: IF A THIRD PARTY DOES SOME WRONG ACT AND THEN BAILOR HAS THE RIGHT TO FILE A SUIT AGAINST THE WRONG DOER AND CLAIM COMPENSATION FROM HIM