Care to be taken by bailee
Section 151 of the Indian Contract Act, 1872 deals with care to be taken by bailee. 1In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quality and value as the goods bailed2 . The Act came into force on 01 Sep 1872.
1In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quality and value as the goods bailed2 .
Section 151, The Indian Contract Act, 1872 (Act 9 of 1872).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Chairman, Cochin Port Trust vs Seahorse Ship Agencies Pvt. Ltd.
Court's Decision & Legal Precedent
After the Port Trust takes charge of imported goods and issues a receipt therefor, liability for payment of storage charges and demurrage shifts exclusively from the steamer agent (who may remain liable only for unloading services up to custody point) to the owner of the goods, which may be the consignor, consignee, importer, or their agents. The passing of title in goods to the consignee, the endorsement of the bill of lading by the steamer agent, and whether delivery order is issued are all immaterial to determining demurrage liability post-custody. The steamer agent ceases all liability once goods are taken into Port custody as the statutory bailment relationship established between Port (as bailee) and shipowner (as bailor) is discharged by section 42(7) when receipt is given. Containers, being receptacles for goods and subject to return rather than consumption, are not themselves imported goods subject to demurrage in the same manner; demurrage ultimately charges against the cargo owner. Port Trust must exercise its discretion under sections 61-62 reasonably and within reasonable time (ordinarily four months) as required by Article 14 of the Constitution.
On this section: Responsibility of bailee for loss, destruction, deterioration; incorporated into MPT Act section 43 framework
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Chairman, Board of Trustees, C. P. T vs Arebee Star Maritime Agen. Pvt. L
Court's Decision & Legal Precedent
The statutory scheme of the Major Port Trusts Act 1963 establishes a clear demarcation of liability for port charges at the critical juncture of Port Trust taking custody of goods and issuing receipt thereof. Prior to this point steamer agents may be liable for rates payable by vessel for services performed to the vessel including charges for landing and removal of goods to storage point. Subsequent to this point and for the entire period goods are stored in Port premises the only parties liable for demurrage and storage charges are the owner of the goods or other persons entitled to the goods whether beneficially entitled or not including importers consignees and consignors or their agents. The steamer agent is absolved of all liability for goods once Port Trust assumes custody as the master or owner of vessel stands relieved of responsibility for loss or damage to goods under section 42(7) of the Act. The passing of title to goods under general law or whether bill of lading is endorsed or delivery order issued are matters wholly irrelevant to determining post-custody liability as Port Trust takes charge from ship-owner becoming bailee to ship-owner as bailor not to consignee. Containers are merely receptacles in which goods are imported and must be distinguished from the goods themselves. Containers do not become part of the mass of goods within India for import duty purposes and must be returned to their owners once destuffing occurs. Accordingly containers themselves are not subject to demurrage or storage charges once destuffed. While sections 61 and 62 of the Act confer discretion on Port Trust to sell goods marked by word 'may' not mandatory word 'shall' the Port Trust as State under Article 12 Constitution is subject to Article 14 equality constraint and must exercise this discretion reasonably including implicit constitutional duty to sell goods within reasonable time ordinarily not exceeding four months from date of landing unless strong reasons exist justifying continued detention which must be capable of judicial review.
On this section: Provisions on bailee responsibility. Referenced as basis for Port Trust's bailee liability under MPT Act.
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Board of Trustees Cochin Port. Trust vs Marine Container Ser. (south)p. L
Court's Decision & Legal Precedent
After Port Trust takes custody of imported goods and issues receipt therefor, only the importer, owner, consignee or their authorized agents are liable to pay storage charges and demurrage levied by the Port Trust. The steamer agent (shipping agent) and shipowner are absolved of all liability for storage charges post-custody, even if bill of lading has not been endorsed by the steamer agent or delivery order issued. The passing of title to goods is irrelevant in determining liability to pay storage charges. Containers that require destuffing are not 'goods' for purposes of imposing demurrage; they are receptacles and must be returned to their owners (steamer agents/shipping lines) within a reasonable period. Port Trust is constitutionally bound to exercise its discretion to sell uncleared goods within a reasonable period, ordinarily not exceeding four months from date of assuming custody, and must destuff containers and return them when consignee/owner does not clear goods.
On this section: Port Trust's responsibility as bailee governed by these provisions regarding loss, destruction, deterioration of goods
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Chairman, Cochin Port Trust vs A. P. Industries
Court's Decision & Legal Precedent
After the Port Trust takes charge of imported goods and issues a receipt therefor, the steamer agent or vessel owner shall not be liable for demurrage, storage charges, or other dues to the Port Trust. Such liability passes exclusively to the importer, owner, consignee, or their agents. The point of time at which title to goods passes to the consignee is irrelevant in determining this liability. The Port Trust's duty is to recover such charges from persons beneficially entitled to the goods, which may be determined through the legal framework of the Customs Act (importer) or the Indian Bills of Lading Act (consignee). Containers fit for repetitive use are not 'imported goods' but mere receptacles and the Port Trust bears the duty to destuff such containers and return them within reasonable time. The discretion granted to Port Trust under Sections 61-62 of the MPT Act cannot be construed as a mandatory duty but must be exercised reasonably within approximately four months from the date of landing goods, subject to the constraints of Article 14 of the Constitution.
On this section: Port Trust's responsibility for goods it takes charge of is statutorily defined as that of bailee under these sections, omitting 'absence of special contract' qualifier
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Board of Trustees Cochin Port Trust vs P and O Nedlloyd (india) Pvt. LTD
Court's Decision & Legal Precedent
Post-Landing Of Goods And After Port Trust Takes Charge And Issues Receipt Therefore, Storage Charges, Demurrage, And Ground Rent Are Payable By The Importer, Owner, Consignee, Or Their Agent, And Not By The Steamer Agent Or Vessel Owner. The Steamer Agent's Liability For Port Dues Extends Only Up To The Point When Port Trust Takes Custody Of The Goods. Title To Goods Is Irrelevant In Determining Liability For Storage Charges. Containers Are Receptacles For Goods, Not Goods Themselves, And Cannot Be Classified As Goods For Purpose Of Demurrage Charging. Port Trust Must Exercise Its Discretion To Sell Uncleared Goods Within A Reasonable Period, Ordinarily Not Exceeding Four Months From Date Of Custody, As Required Under Article 14 Of The Constitution.
On this section: Port Trust As Bailee Responsible For Loss/Deterioration Under These Sections; Bailment Attaches Only After Receipt Given By Port Trust
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Chairman, Cochin Port Trust vs Maersk India Pvt. LTD
Court's Decision & Legal Precedent
The statutory scheme of the Major Port Trusts Act 1963 establishes a two-stage liability framework: (1) STAGE ONE (PRE-LANDING TO RECEIPT): Until the Port Trust takes charge of goods and issues a receipt therefor, services rendered are for the vessel and steamer agents may be liable for landing and ancillary charges under the statutory bailment that comes into existence between vessel (bailor) and Port (bailee). (2) STAGE TWO (POST-RECEIPT/POST-LANDING): Once the Port Trust takes charge and receipt is issued, the vessel and steamer agents are absolved of all liability for the goods per section 42(7) of the Act. From this point forward, demurrage and storage charges are the liability of the importer, owner, consignee or their agents (i.e., persons beneficially entitled to the goods), not the steamer agent or vessel. (3) TITLE IRRELEVANCE: The point of time at which title to goods passes to the consignee is immaterial to determining liability for post-landing storage charges. Liability follows statutory entitlement and beneficial ownership per the MPT Act scheme, not technical title transfer. (4) CONTAINERS: A container which is a receptacle for transport and must be returned is not goods for purposes of storage charge liability. The Port Trust must destuff containers entrusted to it and return empty containers within a feasible period. (5) PORT DISCRETION: The Port Trust's power under sections 61-62 to sell goods is discretionary (may, not shall) but must be exercised reasonably with outer limit ordinarily of four months from landing date per Article 14 constraints, after which Port must justify continued detention.
On this section: Provisions governing bailee responsibility; Port Trust's responsibility defined by these sections once it takes charge
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Chairman Cochin Port Trust vs Cma Cgm Agencies India Pvt. LTD
Court's Decision & Legal Precedent
After a Port Trust takes charge of imported goods from a vessel and issues a receipt therefor, the Port Trust becomes the bailee of those goods. Demurrage and storage charges accruing thereafter for goods stored in the Port's premises are payable by the importer, owner, consignee or other person beneficially entitled to the goods, and NOT by the steamer agent or ship-owner. However, charges for services rendered at the time of landing of goods or their removal from the vessel to the Port's storage premises (such as unloading charges and labour dues) may be charged against the steamer agent as services rendered to the vessel. The time at which title in goods passes to the consignee is irrelevant in determining such liability. The Port Trust must act reasonably in exercising its discretion to sell goods under Sections 61-62 of the MPT Act and must attempt to sell goods within reasonable time from when it assumes custody, with four months from landing being the outer limit, failing which it must provide written explanation justifiable by the courts. Containers are receptacles for goods, not imported goods themselves, and must be destuffed and returned to the steamer agent or container owner within a short feasible period.
On this section: Bailee must use reasonable care for goods; responsibility for loss, destruction or deterioration; these sections apply to Port Trust as bailee of goods taken from ship-owner
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Chairman, Cochin Port Trust vs Hanjin Shipping India Pvt. LTD
Court's Decision & Legal Precedent
After the Port Trust takes charge of imported goods and issues a receipt therefor, liability for payment of storage charges and demurrage vests in the owner of the goods or other persons beneficially entitled to the goods, including the importer and consignee, and not in the steamer agent or vessel. The point at which title passes to the consignee is irrelevant to determining this liability. Steamer agents may be liable for Port Trust dues only for services rendered at the unloading stage (pre-landing), but not for storage and demurrage charges incurred after goods are placed in Port Trust custody. The Port Trust has a constitutional duty to exercise its discretion to sell stored goods reasonably, ordinarily within four months from the date of assuming custody, as Port Trust is State under Article 12 of the Constitution bound by Article 14 equality principles. Containers are not goods imported and must be destuffed and returned by Port Trust to the shipping agent within a reasonable feasible period when the owner does not collect goods.
On this section: Applies to Port Trust responsibility once goods taken in custody; establishes bailment liability framework under statutory scheme
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Chairman, Cochin Port Trust vs Marine Container Service (south) Pvt. LTD
Court's Decision & Legal Precedent
After the Port Trust takes charge of goods and issues a receipt under Section 42(2) of the Major Port Trusts Act, 1963, the steamer agent/shipowner ceases to have any liability for storage, demurrage, or other charges in respect of those goods. The liability for such charges post-landing attaches exclusively to the importer, owner, consignee, or other person beneficially entitled to the goods. The point of time at which title to goods passes is not relevant to this determination. The endorsement of the bill of lading by a steamer agent (which provides delivery mechanism) is distinct from endorsement by the consignor (which transfers title) and does not create liability on the steamer agent for storage charges. Further, as 'State' under Article 12 of the Constitution, a Port Trust must act constitutionally reasonably under Article 14, ordinarily selling uncleared goods within four months from the date of landing, and must destuff containers and return them promptly to enable resolution of the goods/container deadlock, rather than indefinitely detaining containers while charging storage to steamer agents.
On this section: Port Trust's responsibility determined by these sections as stated in Sections 42(6) and 43(1)(ii) of MPT Act. Sets standard for bailee's duties and liabilities.
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Chairman, Cochin Port Trust vs Hanjin Shipping India Pvt. LTD
Court's Decision & Legal Precedent
Upon the Major Port Trusts Act, 1963: (1) The point of time at which title to goods passes to the consignee is not relevant to determine the liability of the consignee or steamer agent in respect of charges to be paid to the Port Trust. (2) Once the Port Trust takes charge of goods and issues receipt therefor, the steamer agent may be held liable for Port Trust dues in connection with services rendered qua unloading of goods, but thereafter, the importer, owner, consignee or their agent is liable to pay demurrage charges for storage of goods. (3) The Port Trust, as 'State' under Article 12 of the Constitution, is bound by Article 14 constraints and must ordinarily sell goods within four months from the date of landing, unless reasonably justified otherwise. (4) Containers are receptacles for imported goods, not imported goods themselves; containers must be returned to steamer agents, and carrying goods in containers makes no difference to the principle that only the owner of goods or person entitled to goods is liable to pay demurrage. (5) The Port Trust is under a duty to destuff every container entrusted to it and return destuffed containers to appropriate persons within as short a period as is feasible where the owner/person entitled to goods does not come forward to take delivery. (6) The statutory scheme of the MPT Act allocates liability for storage charges post-custody exclusively to the owner/beneficial owner of goods, whether consignor, consignee, importer, or their agents, and never to the steamer agent post-custody.
On this section: Responsibility of bailee for loss or deterioration of bailed goods
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 151
What have the courts held on Section 151 of the Indian Contract Act?
Chairman, Cochin Port Trust vs Seahorse Ship Agencies Pvt. Ltd. (05 Aug 2020) is the leading judgment on this section among those set out below: Responsibility of bailee for loss, destruction, deterioration; incorporated into MPT Act section 43 framework. Another 9 judgments on this section are set out below, all of them from the Supreme Court.
How do I find court cases under Section 151 of the Indian Contract Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Contract Act 151, section 151 Contract Act, section 151 of the Indian Contract Act. People searching for it also type 151 contract act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 10 reported judgments on this section are set out on this page, beginning with Chairman, Cochin Port Trust vs Seahorse Ship Agencies Pvt. Ltd. (05 Aug 2020).
What should I read with Section 151 of the Indian Contract Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 151 of the Indian Contract Act come into force?
Section 151 of the Indian Contract Act, cited as Contract Act 151, came into force on 01 Sep 1872, having been enacted on 25 Apr 1872. It is in force as at the date shown on this page.
Other sections of this Act
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- 23. What considerations and objects are lawful, and what not596 words
- 74. Compensation for breach of contract where penalty stipulated for577 words
- 28. Agreements in restraint of legal proceeding void512 words
- 25. Agreement without consideration, void, unless it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law423 words
- 16. "Undue influence" defined397 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.