Section 152 of Indian Contract Act, 1872 - When a Bailee Is Not Liable for Loss

Section 152 forms part of Chapter IX on bailment. It protects a bailee from responsibility for loss, destruction or deterioration of the goods bailed when the bailee has taken the degree of care required by Section 151, unless a special contract provides otherwise.

Text of Section 152

152. Bailee when not liable for loss, etc., of thing bailed.

The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151.

Meaning and Scope of Section 152

Section 152 must be read with Section 151. Section 151 requires a bailee, in every bailment, to take as much care of the goods as a person of ordinary prudence would take of his or her own goods of the same bulk, quality and value under similar circumstances.

Accordingly, Section 152 does not make the bailee an insurer of the goods. If the required standard of care has been taken, the bailee is ordinarily protected from liability merely because the goods were lost, destroyed or deteriorated. The statutory protection is expressly subject to any special contract governing responsibility between the parties.

Essential Requirements

  • There must be a bailment of goods within the meaning of Section 148.
  • The goods must have suffered loss, destruction or deterioration.
  • The bailee must have exercised the care required by Section 151.
  • The terms of any special contract must be considered because Section 152 itself makes its rule subject to such a contract.

Relationship Between Sections 151 and 152

Section 151 establishes the bailee's standard of care; Section 152 states the consequence of meeting that standard. The two provisions therefore operate together. Whether the bailee has taken sufficient care depends on the circumstances surrounding the particular goods and bailment.

Practical point: A claim involving damaged or missing bailed goods should be examined not only under Section 152, but also in light of the agreed terms of bailment and related provisions such as Sections 153, 154 and 160-161 where applicable.

Related Bailment Provisions

The succeeding provisions deal with conduct inconsistent with the bailment and unauthorized use. See Section 153 - termination by an inconsistent act and Section 154 - unauthorized use of goods bailed.

Official Statutory Source

For the authoritative text and current Central Act record, refer to The Indian Contract Act, 1872 on India Code.