Indian Contract Act Section 161 — Bailee’s responsibility when goods are not duly returned

CHAPTER IX OF BAILMENT

Commercial / Corporate

Summary

If the bailee fails to return, deliver, or offer to return the goods at the proper time, and this failure is due to the bailee's own fault, then the bailee becomes responsible to the bailor for any loss, destruction, or deterioration of the goods that happens from that point onward.

Official Text

If, by the default of the bailee, the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any loss, destruction or deterioration of the goods from that time.2