Indian Contract Act Section 166 — Bailee not responsible on re-delivery to bailor without title

CHAPTER IX OF BAILMENT

Commercial / Corporate

Summary

If the person who handed over the goods to the bailee (the bailor) does not actually own them, and the bailee, acting honestly and without knowing this, returns the goods to that bailor or follows the bailor's instructions for where to send them, the bailee cannot be held liable to the true owner for making that delivery.

Official Text

If the bailor has no title to the goods, and the bailee, in good faith, delivers them back to, or according to the directions of, the bailor, the bailee is not responsible to the owner in respect of such delivery1.