Sections 160 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 160 to 162 deal with the end of a bailment. Section 160 says the bailee must return the goods, or deliver them as the bailor directs, without being asked, once the time has expired or the purpose has been accomplished. Section 161 makes the bailee responsible for loss, destruction or deterioration from the proper time if he defaults in returning them. Section 162 says a gratuitous bailment ends on the death of either the bailor or the bailee. If goods are not coming back and you need to make a formal demand, our legal notice drafting service can help.
It is the duty of the bailee to return, or deliver according to the bailor's directions, the goods bailed, without demand, as soon as the time for which they were bailed has expired, or the purpose for which they were bailed has been accomplished (s.160). If, by the bailee's default, the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any loss, destruction or deterioration of the goods from that time (s.161). A gratuitous bailment is terminated by the death either of the bailor or of the bailee (s.162).
Section 160: the duty to return without demand
The text: "It is the duty of the bailee to return, or deliver according to the bailor's directions, the goods bailed, without demand, as soon as the time for which they were bailed has expired, or the purpose for which they were bailed has been accomplished."
| Limb | Plain meaning |
|---|---|
| "to return, or deliver according to the bailor's directions" | Either give the goods back or deliver them as the bailor directs |
| "without demand" | The bailor need not ask first |
| "as soon as the time ... has expired" | When the agreed period ends |
| "or the purpose ... has been accomplished" | When the job is done, for example repair completed |
This echoes section 148, where the contract is that goods "shall, when the purpose is accomplished, be returned or otherwise disposed of according to the directions" of the bailor. See section 148.
Section 161: when goods are not duly returned
The text: "If, by the default of the bailee, the goods are not returned, delivered or tendered at the proper time, he is responsible to the bailor for any loss, destruction or deterioration of the goods from that time."
Limb by limb:
- "By the default of the bailee": the failure must be the bailee's default.
- "Not returned, delivered or tendered at the proper time": any one of these failures at the time due.
- "Responsible ... for any loss, destruction or deterioration ... from that time": from the proper time onward.
This is the counterpart to section 152, under which a bailee who took the section 151 care is not responsible for loss, in the absence of a special contract. After a default under section 161, the bailee answers for loss, destruction or deterioration from the time the goods should have been returned. See section 152.
The footnotes to section 161 say that the section has been declared to apply to the responsibility of the Trustees of the Port of Madras for goods in their possession under the Madras Port Trust Act, 1905, and that for railway contracts the Indian Railways Act, 1890, section 72, should be seen. These are outside this article.
Section 162: death ends a gratuitous bailment
The text: "A gratuitous bailment is terminated by the death either of the bailor or of the bailee."
The section applies to a gratuitous bailment, that is, one without payment. It does not say that death ends a bailment for hire, and it does not deal with what then happens to the goods; read with section 160, the duty to return or deliver according to the bailor's directions is the starting point, though the text does not spell out how that works after a death. The Act prints no illustration under sections 160 to 162.
The three sections together
| Section | Trigger | Result |
|---|---|---|
| 160 | Time expires or purpose accomplished | Bailee must return or deliver as directed, without demand |
| 161 | Bailee's default in returning, delivering or tendering at the proper time | Bailee responsible for loss, destruction or deterioration from that time |
| 162 | Death of bailor or bailee in a gratuitous bailment | Bailment terminated |
A modern example of our own
Qadir's firm sends a printing machine to Rani Engineering for overhaul. The job is completed on 10 March. Under section 160 Rani Engineering must return the machine, or deliver it as Qadir directs, as soon as the purpose has been accomplished, without Qadir having to ask. If Rani Engineering, by its own default, does not return or tender it on 10 March, and a fire in its workshop on 20 March damages the machine, section 161 makes it responsible for the damage from that time.
A second example: Sheela agrees to look after her neighbour Tarun's bicycle while he is abroad, without charge. If Tarun dies, section 162 says the gratuitous bailment is terminated.
What can the parties change?
None of the three sections says "in the absence of any contract to the contrary". The time for return and the purpose are set by the bailment contract, so the parties shape section 160 through those terms. The text does not say whether section 161 or section 162 can be varied by agreement; take advice on any clause that attempts it.
What the sections do not say
- Section 160 does not say that a bailee may keep goods while a dispute is resolved; the Act's rules on lien are in sections 170 and 171.
- Section 161 does not say what counts as "tender", or how much loss may be recovered.
- Section 162 does not say what the bailor's heirs or the bailee's heirs must do afterwards.
Practical points
- Bailors: write the return date or the purpose clearly in the agreement. Keep a written record of the date when goods should have come back.
- Bailees: return on time and keep proof of delivery or tender. If you cannot return, say why in writing at once.
- If the bailee does not return the goods, a written notice stating the date due and demanding return is the usual first step.
- A bailee's right to hold goods until paid, for work done, is a separate matter: see section 170.
Need help getting goods back?
If a bailee has not returned your goods when the time has expired or the purpose is done, a clear written notice setting out the due date and your directions is a sound first step. Our legal notice drafting team can prepare it. Bring the bailment terms, delivery records and any messages about return.
Key takeaways
- The bailee must return the goods, or deliver them as directed, without demand, when the time expires or the purpose is accomplished (s.160).
- If he defaults, he is responsible for loss, destruction or deterioration from the proper time (s.161).
- A gratuitous bailment ends on the death of either bailor or bailee (s.162).
- The Act prints no illustration under these sections.
Read next
- Sections 158 and 159: bailor's expenses and restoring goods lent gratuitously
- Sections 163 to 167: bailor entitled to increase, joint owners and third-party claims
- 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.