Indian Contract Act Section 169 — When finder of thing commonly on sale may sell it
CHAPTER IX OF BAILMENT
Commercial / Corporate
Summary
If a lost item is something that is commonly sold in the market, the person who finds it may sell it in two situations. The first is when the owner cannot be found even after reasonable effort, or when the owner, after being asked, refuses to pay the finder's lawful charges. In either of those cases, the finder is allowed to sell the item.
Under sub-section (1), the finder may sell the item if it is in danger of perishing or of losing most of its value. This means the item is at risk of being destroyed or becoming worth much less, so selling it is permitted to avoid that loss.
Under sub-section (2), the finder may sell the item if the lawful charges incurred by the finder in relation to the item amount to two-thirds of the item's value. In other words, if the cost of keeping or handling the found item has reached a level equal to two-thirds of what the item is worth, the finder is allowed to sell it.
Official Text
When a thing which is commonly the subject of sale is lost, if the owner cannot with reasonable diligence be found, or if he refuses, upon demand, to pay the lawful charges of the finder, the finder may sell it—
(1) when the thing is in danger of perishing or of losing the greater part of its value, or,
(2) when the lawful charges of the finder, in respect of the thing found, amount to two-thirds of its value.