Indian Contract Act Section 180 — Suit by bailor or bailee against wrong-doer

CHAPTER IX OF BAILMENT — Suits by bailees or bailors against wrong-doers

Commercial / Corporate

Summary

If a third person wrongly takes away the bailee's use or possession of the bailed goods, or damages them, the bailee can use the same legal remedies that the owner could have used if the goods had not been bailed at all. This means the bailee stands in the owner's shoes for the purpose of seeking a remedy against the wrongdoer.

Either the bailor (the owner who gave the goods) or the bailee (the person who received the goods) may file a lawsuit against that third person for the deprivation or injury. Both parties have the right to sue, but the section does not specify how they would divide any recovery between themselves.

Official Text

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.