Section 180 Indian Contract Act 1872 - Suit by Bailor or Bailee Against Wrong-doer

Section 180 of the Indian Contract Act, 1872 protects the interests of a bailor and a bailee when a third person wrongfully interferes with, deprives the bailee of, or injures goods that are under bailment.

Text of Section 180 - Suit by Bailor or Bailee Against Wrong-doer

Section 180. If a third person wrongfully deprives the bailee of the use or possession of the goods bailed, or does them any injury, the bailee is entitled to use such remedies as the owner might have used in the like case if no bailment had been made; and either the bailor or the bailee may bring a suit against a third person for such deprivation or injury.

Meaning and Scope of Section 180

Section 180 deals with wrongful acts committed by a third person against goods that have been bailed. The provision gives the bailee a right to use remedies similar to those that the owner could have used if the goods had not been bailed. It also expressly permits either the bailor or the bailee to bring a suit against the third-party wrong-doer for the deprivation of, or injury to, the goods.

What Are Bailment, Bailor and Bailee?

Section 148 of the Indian Contract Act, 1872 defines bailment as the delivery of goods by one person to another for a purpose, upon a contract that, when the purpose is accomplished, the goods shall be returned or otherwise disposed of according to the directions of the person delivering them. The person delivering the goods is called the bailor, and the person receiving them is called the bailee.

Essential Elements of Section 180

  • There must be goods held under a bailment.
  • A third person must wrongfully deprive the bailee of the use or possession of those goods, or cause injury to them.
  • The bailee may use the remedies that an owner could have used in similar circumstances.
  • Either the bailor or the bailee may sue the third person for the wrongful deprivation or injury.

Who Can File a Suit Under Section 180?

The statutory language gives a right of action to both the bailor and the bailee. This is important because the bailor ordinarily has the ownership interest in the goods, while the bailee has possession or a possessory interest during the bailment. Section 180 therefore enables protection of the goods against interference by an outsider without requiring the bailee to be the owner.

Relationship With Section 181

Section 181 of the Indian Contract Act, 1872 complements Section 180. Where relief or compensation is obtained in a suit of this nature, Section 181 provides that, as between the bailor and bailee, it is to be dealt with according to their respective interests.

Simple Example

A gives machinery to B for repair. While the machinery is lawfully in B's possession, C wrongfully takes it away or damages it. Section 180 allows B, as bailee, to pursue remedies that the owner could have pursued, and it also permits either A or B to sue C for the wrongful deprivation or injury. Any relief or compensation recovered is then subject to the respective interests of A and B under Section 181.

Official Legal Source

The Indian Contract Act, 1872 is Central Act No. 9 of 1872. For the official text and current statutory record, see the India Code - The Indian Contract Act, 1872.

Legal note: This page provides general legal information. The facts of a dispute, the nature of possession, ownership interests, limitation, relief claimed and other applicable laws can affect the remedy available in a particular case.

Updated: 21 September 2026