Indian Contract Act, 1872 · Chapter IX: Of Bailment
Section 151: Care to be taken by bailee
In plain words
In every bailment, the bailee must take as much care of the goods as a person of ordinary prudence would take of their own goods of the same bulk, quality and value in similar circumstances.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Read the in-depth explanation, with key Supreme Court rulings ↓
Official text
1In 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 bailed2 .
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 15 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Understanding this section
Section 151 fixes the bailee's duty of care: as much care as a person of ordinary prudence would, in similar circumstances, take of their own goods of the same bulk, quality and value. It applies in all cases of bailment, paid or gratuitous.
An objective standard
The standard is that of a reasonable person looking after their own goods of the same kind. A bailee who is careless with their own belongings gets no relief from that habit. What is reasonable depends on the value of the goods: cash and jewellery call for more care than old furniture.
Burden in practice
Because the goods were in the bailee's sole custody, the bailee is the one who knows what happened. Courts therefore expect the bailee to explain the loss and show the care taken. In Taj Mahal Hotel the Court adopted a rule of prima facie negligence: once loss in the bailee's custody is shown, the bailee must prove it took the care section 151 requires.
Contracting out
Section 152 allows a special contract to vary liability. Courts read such clauses strictly against the bailee, and there is a strong body of opinion that a bailee cannot contract out of liability for its own negligence. For carriers, the Supreme Court has held that even goods booked at owner's risk do not excuse loss caused by the carrier's negligence.
Carriers
Common carriers are governed by the Carriers Act, 1865 (now the Carriage by Road Act, 2007), which places a heavier duty on them than section 151. Even a booking at 'owner's risk' does not excuse loss caused by their negligence.
Key Supreme Court rulings
Taj Mahal Hotel v. United India Insurance Co. 2019 INSC 1245
Common law strict liability of innkeepers was too burdensome for India; instead the rule of prima facie negligence applies, under which the hotel as bailee must show it took the care required.
Nath Bros. Exim International Ltd. v. Best Roadways Ltd. 2000 INSC 152
A common carrier whose warehouse fire destroyed goods booked at owner's risk was liable for loss caused by its own negligence or that of its agents; even a special contract cannot absolve the carrier of that.
Common mistakes
- Measuring care by the bailee's own habits instead of an ordinary prudent person's.
- Putting the whole burden on the bailor to prove exactly how the goods were lost.
- Assuming an owner's risk notice automatically excuses a negligent bailee.
Read with: Section 152 Indian Contract Act, 1872, Section 148 Indian Contract Act, 1872, Section 161 Indian Contract Act, 1872
Prepared with AI assistance as a study aid. Every ruling listed was checked against the Supreme Court's own judgments on this site, and quoted words appear in those judgments; linked names open the full judgment. Read the judgments themselves before relying on them. Not legal advice.
Supreme Court judgments citing the section 151
- M/s. D. N. SINGH v. COMMISSIONER OF INCOME TAX,
- Taj Mahal Hotel v. United India Insurance Company Ltd. & Ors.
- The Chairman, Board of Trustees Cochin Port Trust v. M/S Arebee Star Maritime Agencies Pvt. Ltd. & Ors.
- M/S. Everest Wools Pvt. Ltd. and Ors. v. U.P. Financial Corporation and Ors.
- Nath Bros. Exim International Ltd. v. Best Roadways Ltd.
- The Board of Trustees of the Port of Bombay and Ors v. M/S Sriyanesh Knitters
- St. Joseph Textiles v. Union of India and Anr.
- The Trustees of the Port of Bombay v. The Premier Automobiles Ltd.
- State of Kerala v. General Manager, Southern Railway, Madras
- Union of India v. Steel Stock Holders Syndicate, Poona
- Trustees of the Port of Madras v. M/S. Aminchand Pyarelal & Ors .
- Trustees of Port of Bombay v. The Premier Automobiles Ltd. and Another
- Union of India v. West Punjab Factories Ltd.
- Patnaik & Company v. State of Orissa
- The Trustees of the Port of Madras by Its Chairman v. K. P. v. Sheik Mohamed Rowther & Co. and Others