Section 152 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 152 answers the question that follows section 151. If the bailee took the care that section 151 describes, is he responsible when the goods are lost, destroyed or deteriorate? Not, says the Act, "in the absence of any special contract". For help in a dispute over goods lost or damaged while with a bailee, our legal dispute resolution service can help.
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. Two conditions: he took the section 151 care, and there is no special contract that says otherwise. The section has no illustration of its own.
The text
Section 152 reads: "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."
Section 151 describes the care of "a man of ordinary prudence" of his own goods of the same bulk, quality and value; see section 151.
Limb by limb
| Limb | Plain meaning |
|---|---|
| "in the absence of any special contract" | The rule is a default; a special contract can change it |
| "loss, destruction or deterioration" | The three kinds of harm to goods the section covers |
| "of the thing bailed" | The goods that were delivered under the bailment |
| "if he has taken the amount of care of it described in section 151" | The condition: the bailee met the section 151 standard |
| "is not responsible" | The consequence |
The section is the other side of section 151. Section 151 states the duty. Section 152 states what follows if the bailee kept it: no responsibility for loss, destruction or deterioration.
What the section does not do
- It does not say the bailee is responsible whenever goods are lost. The bailee who took the care is not.
- It does not say what the bailee must prove, or how.
- It does not define "special contract". The text leaves this to the parties' own agreement.
- It does not protect a bailee who has acted outside the bailment. Other sections address that:
- section 154: a bailee who makes an unauthorised use of the goods is liable to compensate the bailor for any damage arising to the goods from or during such use;
- section 161: if by the bailee's default the goods are not returned, delivered or tendered at the proper time, he is responsible for any loss, destruction or deterioration from that time;
- sections 156 and 157: mixture of goods without the bailor's consent.
See sections 153 and 154 for unauthorised use.
The footnote to the section
The Act's footnote under section 151 (which carries to section 152) says 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. This shows that a statute may remove the contractual flexibility for a particular body. It also points, for railways and carriers, to the Indian Railways Act, 1890 (section 72) and the Carriers Act, 1865 (section 8). Those Acts are outside this article.
A modern example of our own
Dilip leaves his furniture with Eshwar Packers & Storage. Eshwar stores it in a dry, locked room and takes ordinary precautions as a prudent person would with his own furniture. A pipe from a neighbouring unit unexpectedly bursts and some pieces are damaged. If Eshwar took the section 151 care, then, in the absence of a special contract, section 152 says he is not responsible for the deterioration.
Change the facts: Eshwar had been told about a leaking pipe above the room a week earlier and did nothing. A man of ordinary prudence would not leave his own furniture beneath a known leak. Eshwar has not taken the section 151 care, so section 152 gives him no protection.
Another variation: Dilip and Eshwar sign a storage agreement under which Eshwar agrees to answer for all loss whatever the cause. That is a "special contract", and section 152's default does not apply.
What can the parties change?
This section states its own limit: "in the absence of any special contract". The parties may agree terms about loss, destruction and deterioration that differ from the default. The Act does not set out what such a contract must look like, so the wording of the actual agreement decides.
Practical points
- Bailees: record the steps you took to look after the goods. If a loss occurs, those records show whether you took the section 151 care.
- Bailors: if you want the bailee to answer for all loss, put that in the contract as a special term.
- Check the contract for exclusion or indemnity clauses before assuming section 152 governs.
- Keep a dated inventory at delivery and at return.
- If goods are not returned when they should be, see section 161 in sections 160 to 162.
Need help with a loss of goods held by a bailee?
Whether a bailee answers for loss turns on the care he took and on the terms of any special contract. Our legal dispute resolution team can review the facts and the agreement against sections 151 and 152. Bring the storage or repair terms, delivery notes and any record of what happened.
Key takeaways
- A bailee who took the section 151 care is not responsible for loss, destruction or deterioration of the goods, in the absence of any special contract (s.152).
- A special contract can change the default.
- The default does not shelter a bailee who makes unauthorised use of goods or fails to return them on time (ss.154, 161).
- The Act's footnotes point to other statutes for a Port Trust, railways and common carriers.
Read next
- Section 151: care to be taken by bailee
- Sections 153 and 154: termination of bailment and unauthorised use of goods
- Sections 160 to 162: return of goods bailed
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.