Indian Contract Act • Official Statutory Text & Practice Guide
Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872
Section 151 of Indian Contract Act: Care to be taken by bailee
Official Bare Act Text
Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary
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.
Statutory Defined Terms in this Section:(Click any term for official legal definition)
In all cases of bailment, the bailee is legally bound to take as much care of the goods bailed to them as a person of ordinary prudence would, under similar circumstances, take of their own goods of the same bulk, quality, and value as the goods bailed. This provision establishes a uniform, objective standard of reasonable commercial prudence across all categories of bailment.
Core Legal Standard: Section 151 establishes a uniform standard of care for bailees, requiring them to take as much care of the goods bailed as an ordinary prudent person would take of their own goods under similar circumstances.
Bail & Custodial Standards: English common law gradations of negligence (slight, ordinary, and gross negligence based on whether the bailment was gratuitous or for mutual benefit), imposing a singular, adaptable standard of reasonable care.
Key Landmark Precedents:
Basavva Kom Dyanmangouda Patil v. State of Mysore (1977) 4 SCC 358: The Supreme Court held that the State, when retaining seized property in police custody, is in the position of a bailee and must take reasonable care under Section 151; loss of seized jewelry due to police negligence mandated payment of compensation by the State.
Union of India v. Udho Ram & Sons (AIR 1963 SC 422): The Supreme Court held that where goods were stolen from a stationary railway wagon because railway protection force personnel left their posts, the bailee failed to exercise the ordinary prudence mandated by Section 151.
Legal Commentary:
Can a bailee contract out of Section 151 through an exemption clause? High Courts across India have consistently held that a contract exempting a bailee from all liability for gross negligence violates public policy under Section 23 and is void; a bailee cannot contract below the minimum prudent standard imposed by Section 151.
Legal Commentary & Landmark Judgments: Section 151
In all cases of bailment, the bailee is legally bound to take as much care of the goods bailed to them as a person of ordinary prudence would, under similar circumstances, take of their own goods of the same bulk, quality, and value as the goods bailed. This provision establishes a uniform, objective standard of reasonable commercial prudence across all categories of bailment.
Can a bailee contract out of Section 151 through an exemption clause? High Courts across India have consistently held that a contract exempting a bailee from all liability for gross negligence violates public policy under Section 23 and is void; a bailee cannot contract below the minimum prudent standard imposed by Section 151.