Section 151 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 151 sets the standard of care for anyone who holds goods as a bailee. In all cases of bailment, the bailee must take as much care of the goods as a man of ordinary prudence would, in similar circumstances, take of his own goods of the same bulk, quality and value. If you store, repair or carry other people's goods and want that duty reflected in your terms, our service agreement drafting can help.
In 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 bailed. The test is one standard for every bailee, whether the bailment is for hire or without reward. The standard is measured against a prudent person's care of his own comparable goods.
The text
Section 151 reads: "In 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 bailed."
Bailment, bailor and bailee are defined in section 148.
Limb by limb
| Limb | Plain meaning |
|---|---|
| "In all cases of bailment" | The standard applies whether or not the bailee is paid. The section makes no exception |
| "as much care ... as a man of ordinary prudence would" | The measure is an ordinarily prudent person, not an expert and not the bailee's own habits |
| "under similar circumstances" | The circumstances of the bailment are taken into account |
| "of his own goods of the same bulk, quality and value" | The comparison is with a prudent person's care of goods like these |
Three points to notice in the wording:
- One standard. The section does not say higher care for paid bailees and lower care for unpaid ones; it says "in all cases".
- An objective test. The measure is the care of "a man of ordinary prudence", so a careless bailee cannot say he treats his own goods carelessly.
- Bulk, quality and value. The goods compared must be like the goods bailed: a careful person looks after valuable goods differently from cheap ones.
What counts as the circumstances
The section says "under similar circumstances". The text does not list them. The Act's illustrations elsewhere in the chapter (horses, cotton bales, a cow) do not turn on this standard, so the text gives no further examples under this section. This article does not add to it.
How section 151 links to section 152
Section 152 says: "The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151." So the standard in section 151 is the line that decides whether the bailee answers for loss. See section 152.
Footnotes the Act itself gives
The footnotes printed with section 151 in the source text say:
- The responsibility of the Trustees of the Port of Madras, in regard to goods, has been declared to be that of a bailee under these sections, without the qualifying words "in the absence of any special contract" in section 152, by section 40(1) of the Madras Port Trust Act, 1905.
- As to railway contracts, see the Indian Railways Act, 1890, section 72. As to the liability of common carriers, see the Carriers Act, 1865, section 8.
So for carriers and for particular statutory bodies, other laws may also apply. They are outside this article.
A modern example of our own
Ajay Cold Storage keeps pharmaceutical stock for a client, Beena. Ajay is a bailee. Under section 151 he must take as much care of Beena's stock as a man of ordinary prudence would take of his own goods of the same bulk, quality and value. For temperature-sensitive stock of high value, a prudent person would not leave the stock in a room with a broken cooling unit. If the stock spoils because Ajay ignored the broken unit, he has not met the section 151 standard. If, on the other hand, he met the standard and the stock was still damaged by an event he could not prevent, section 152 says he is not responsible, in the absence of a special contract.
A second example: Chetan lends his camera to a friend for a trip. The friend is a bailee, though unpaid. Section 151 still requires him to take the care of a prudent person with a camera of that value, for example not leaving it on an open car seat overnight.
What can the parties change?
Section 151 itself has no wording about contrary contracts. Its companion section 152 expressly contemplates a "special contract". So the parties may set out in a contract what care is to be taken and what happens on loss; the effect of such terms on the section 151 standard should be read from the contract itself and with advice. The text of section 151 is stated to apply "in all cases of bailment".
What the section does not say
- It does not say what damages follow a breach; that is for the general part of the Act and the other sections of this chapter.
- It does not distinguish between kinds of bailee, such as warehouse keepers, repairers or carriers; for carriers the footnote points to the Carriers Act, 1865.
- It does not say who must prove the care taken.
Practical points
- Bailees: write down your handling, storage and security procedures for customers' goods, and follow them.
- Bailors: describe the goods and any special handling needs at delivery. Value and quality bear on what care is ordinary.
- Photograph or list goods at handover and at return.
- If the goods are special, state the care needed in the contract so there is no doubt what a prudent person would do.
Need help setting the terms of care?
If you take goods from customers for storage, repair or carriage, the contract should state the care you will take and what happens on loss. Our service agreement team can draft those terms against section 151 and 152. Bring a description of the goods and how you handle them.
Key takeaways
- Every bailee must take the care a man of ordinary prudence would take of his own goods of the same bulk, quality and value (s.151).
- The standard applies "in all cases of bailment", paid or not.
- Section 152 relieves the bailee of responsibility for loss if he took that care, in the absence of a special contract.
- The Act's footnotes point to other statutes for certain bodies and carriers.
Read next
- Section 152: when bailee is not liable for loss of thing bailed
- Sections 153 and 154: termination of bailment and unauthorised use of goods
- Bailment and Pledge: sections 148–181 overview
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.