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Section 168: Right of finder of goods; may sue for specific reward offered

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Competent Court / Tribunal
Act 1872
Section 167 All 266 Sections of Indian Contract Act Section 169

Legal Commentary & Landmark Judgments: Section 168

Section 168 defines the statutory rights of a finder of lost goods, establishing that while the finder cannot sue the owner for voluntary preservation expenses, he possesses a possessory lien to retain the goods until compensated, and holds an actionable right to sue for any specific reward offered for their return.

  • No Actionable Claim for Voluntary Upkeep: The finder cannot maintain an affirmative suit against the owner to recover expenses or trouble voluntarily incurred in preserving the goods or searching for the owner.
  • Possessory Lien for Lawful Expenses: The finder is statutorily granted a specific possessory lien, entitling him to retain possession of the lost chattel against the true owner until reasonable preservation expenses are paid.
  • Enforceable Cause of Action for Specific Reward: Where the owner has offered a specific advertised reward for the return of the lost article, the finder may maintain a civil suit for recovery of the reward and retain the goods until paid.
Key Landmark Precedents:
  • Lalman Shukla v. Gauri Datt (1913) 11 ALJ 489: The Allahabad High Court ruled that a person who finds lost property without knowledge of an advertised reward cannot claim the reward, but knowledge of the reward prior to performance creates an enforceable contract under Section 168.
  • Newman v. Bourne & Hollingsworth (1915) 31 TLR 209: The Court held that a finder who takes possession of lost goods assumes the responsibilities and lien rights of a bailee under the law.
  • Carlill v. Carbolic Smoke Ball Co. [1893] 1 QB 256: The Court of Appeal confirmed that unilateral offers of reward to the world become binding contracts upon performance of the condition, directly supporting the right to sue under Section 168.
Courtroom Practice & Strategic Litigation Guidance:

When representing a finder claiming a reward, plead specific knowledge of the reward offer prior to returning or tendering the chattel. If representing the owner, demand immediate inspection and itemized proof of preservation expenses before tendering payment. The finder cannot use the lien as leverage to extract ransom or unconscionable fees.

Section 167 All 266 Sections of Indian Contract Act Section 169