Sections 155 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.
Sections 155 to 157 answer a practical question in bailment: what if the bailee mixes the bailor's goods with his own? The answer depends on three facts: whether the bailor consented, and if not, whether the goods can still be separated. If you store or process other people's goods alongside your own and want clear terms, our legal consultation service can help.
With the bailor's consent, bailor and bailee have an interest in the mixture in proportion to their respective shares (s.155). Without consent, where the goods can be separated, the property in the goods remains in the parties respectively, but the bailee must bear the expense of separation and any damage arising from the mixture (s.156). Without consent, where the goods cannot be separated, the bailor is entitled to be compensated by the bailee for the loss of the goods (s.157).
Section 155: mixture with the bailor's consent
The text: "If the bailee, with the consent of the bailor, mixes the goods of the bailor with his own goods, the bailor and the bailee shall have an interest, in proportion to their respective shares, in the mixture thus produced."
So when the bailor consents, the mixture is shared: each has an interest in proportion to the share he contributed. The Act prints no illustration under section 155.
Section 156: mixture without consent, goods can be separated
The text: "If the bailee, without the consent of the bailor, mixes the goods of the bailor with his own goods, and the goods can be separated or divided, the property in the goods remains in the parties respectively; but the bailee is bound to bear the expense of separation or division, and any damage arising from the mixture."
Three results:
- Each side keeps ownership of his own goods ("the property in the goods remains in the parties respectively").
- The bailee bears the expense of separation or division.
- The bailee bears any damage arising from the mixture.
The Act's illustration. A bails 100 bales of cotton marked with a particular mark to B. B, without A's consent, mixes the 100 bales with other bales of his own, bearing a different mark. A is entitled to have his 100 bales returned, and B is bound to bear all the expense incurred in the separation of the bales, and any other incidental damage.
Section 157: mixture without consent, goods cannot be separated
The text: "If the bailee, without the consent of the bailor, mixes the goods of the bailor with his own goods, in such a manner that it is impossible to separate the goods bailed from the other goods, and deliver them back, the bailor is entitled to be compensated by the bailee for the loss of the goods."
The Act's illustration. A bails a barrel of Cape flour worth Rs. 45 to B. B, without A's consent, mixes the flour with country flour of his own, worth only Rs. 25 a barrel. B must compensate A for the loss of his flour.
The three sections together
| Section 155 | Section 156 | Section 157 | |
|---|---|---|---|
| Bailor's consent | Yes | No | No |
| Can goods be separated? | Not stated | Yes | No ("impossible to separate") |
| Result | Shared interest in proportion to shares | Each keeps his goods; bailee bears expense of separation and damage | Bailor compensated for loss of goods |
| Illustration | None printed | 100 marked bales of cotton | Barrel of Cape flour |
The line between sections 156 and 157 is practical: marked cotton bales can be picked out; flour poured into other flour cannot.
A modern example of our own
Jatin sends 500 kg of premium basmati rice to Kamala Traders for storage. Kamala Traders, without asking, pours it into a bin holding its own ordinary rice. The rice cannot be separated and returned. Under section 157, Jatin is entitled to be compensated for the loss of his rice. Had Jatin agreed in advance that Kamala Traders could blend stocks, section 155 would have applied: Jatin and Kamala Traders would share an interest in the blend in proportion to their shares.
A second case: Lalit stores 40 sealed, labelled drums of lubricant with a workshop. The workshop moves them into its own stock area, where its own similar drums stand, without asking. The drums can still be picked out. Under section 156, Lalit keeps ownership of his drums, and the workshop bears the cost of sorting them out and any damage caused by the mixing.
What can the parties change?
None of the three sections uses words such as "in the absence of any contract to the contrary". Section 155 depends on the bailor's consent, which the parties give by agreement; so a storage agreement that allows blending is the way to bring section 155 into play. For the other sections, the text does not say whether an agreement can alter the stated consequences.
What the sections do not say
- They do not say how "their respective shares" in section 155 are measured.
- They do not say what form the bailor's consent must take.
- Section 157 does not say how the compensation is to be measured, beyond the Act's flour illustration, which turns on the difference in value.
- They do not deal with what happens if the bailor consented to a mixture of one kind and the bailee made a different one.
Practical points
- Bailees: keep customers' goods separate and labelled unless the agreement allows blending.
- Bailors: mark your goods, for example with a distinct mark as in the cotton illustration, and record batch numbers.
- If blending is useful to both sides (for example, in bulk storage of similar commodities), say so in the agreement so that section 155 applies.
- The meaning of bailor and bailee is in section 148.
- Record the value and quality of the goods delivered. Compensation under section 157 may depend on it.
- Unauthorised use of goods is a separate matter: see sections 153 and 154.
Need help setting terms for goods stored together?
If your goods will sit alongside someone else's, or you hold customers' goods with your own, the agreement should say whether mixing is allowed and what then happens. Our legal consultation team can review your storage or processing terms against sections 155 to 157. Bring the agreement and a description of how goods are kept.
Key takeaways
- With the bailor's consent to mixing, both have an interest in the mixture in proportion to their shares (s.155).
- Without consent, where separation is possible, each keeps his goods and the bailee bears the expense of separation and any damage (s.156).
- Without consent, where separation is impossible, the bailor is entitled to compensation for the loss of the goods (s.157).
- The Act illustrates sections 156 and 157 with cotton bales and Cape flour.
Read next
- Sections 153 and 154: termination of bailment and unauthorised use of goods
- Sections 158 and 159: bailor's expenses and restoring goods lent gratuitously
- Section 151: care to be taken by bailee
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.