Clarification on bailee making unauthorised use of bailed goods


Under section 154 of ICA, 1872, it is given that if bailee makes any unauthorised use of bailed goods, bailee is liable to make compensation for any damage arising to the goods from or during such use of them. So what is the liability of bailee, if he makes an unauthorised use of bailed goods but the goods were used in such a way that no damage is caused to them but still an authorised use of the goods was made. Now in this case, Can the bailee still be made liable for unauthorised use??

Answers (1)


145 votes

To my knowledge yes he can be subject to whether the use was criminal or civil.
Additionally, even if there is no damage is caused but there has been breach of terms of bailment as per which bailee is a mere custodian of the goods bailed and unless categorically mentioned in the contract he can't use the goods for any purpose. Hence, the bailee is liable to be prosecuted under both civil and criminal proceedings.


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