Definition
The person who receives goods from the bailor for a specific purpose under a contract of bailment — responsible for taking reasonable care of the goods and returning them when the purpose is accomplished.
The bailee receives possession (not ownership) of the goods and has specific duties: (a) Section 151 — duty to take as much care of the goods as a man of ordinary prudence would take of his own goods of similar bulk, quality, and value; (b) Section 153 — must use goods only for the authorised purpose; (c) Section 160 — must return goods when the purpose is accomplished; (d) Section 163 — must return any accretion to the goods (e.g., natural increase). If the bailee fails to return goods, there is a presumption of negligence — the burden of proof shifts to the bailee to show that the loss did not occur due to their negligence.
Statutory Definition
Section 148, Indian Contract Act, 1872: 'The person to whom they [goods] are delivered is called the bailee.' Section 151: '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.'
Etymology & Origin
From Old French 'baillé' (delivered, given) — the one to whom goods are 'bailed' (delivered). From 'bailler' (to give). The suffix '-ee' (as in employer/employee, mortgagor/mortgagee) denotes the passive recipient — the one to whom the action is done.
Full Legal Analysis
Bailee: Custodian Under Duty of Care
The bailee occupies a position of legal responsibility — they have taken another’s goods into their custody and are accountable for what happens to those goods. The standard of care under Section 151 ICA is that of a prudent owner — the bailee must treat the bailed goods as carefully as they would treat their own goods of the same nature. Anything less is negligence; anything less and the bailee is liable for loss.
Standard of Care: Section 151
The Section 151 standard is that of 'a man of ordinary prudence' — not the maximum possible care, but reasonable care of a prudent person. Courts have held: (a) A warehouse man is not a guarantor of safe custody — they are required only to take reasonable precautions. (b) If the bailee exercises ordinary care and the goods are still lost (e.g., in a flood, earthquake), the bailee is not liable. (c) The standard is not absolute — it depends on the nature of the goods and what precautions a prudent person would take with their own goods of that type.
Bailee’s Right of Lien: Sections 170-171
A bailee has a right of lien — to retain the goods until their charges are paid. Section 170: particular lien — bailee can retain goods for charges related specifically to the work done on those goods (e.g., a jeweller can retain the necklace until payment for repair of that necklace). Section 171: general lien — in certain trades (bankers, factors, wharfingers, attorneys, policy brokers), the right extends to retain ANY goods of the customer until ALL debts are paid.
Liability of Bailee for Third Party Acts
Under Section 152 ICA, if the bailee takes as much care as Section 151 requires, they are not liable for any loss, destruction, or deterioration of the goods bailed. But if the bailee mixes the bailor's goods with their own without consent (Section 155), or if they make unauthorised use of the goods (Section 154), they become strictly liable — even if they took all possible care.
“The bailee has the goods but not the title. With custody comes responsibility: the duty to take reasonable care, to use the goods only as authorised, and to return them when the purpose is served. Custody is not ownership — the bailee is always accountable to the bailor.”
This Term in Indian Statutes
Indian Contract Act, 1872, 1872
"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."
Bailee's standard of care — ordinary prudence, not absolute guarantee
