Banker As A Bailee
- IJLLR Journal
- Apr 4
- 1 min read
S Tanmayee Shekhar, B.COM LL.B., BMS College of Law
ABSTRACT
The banker and a customer relationship extends beyond financial transactions and encompasses legal obligations, including the principles of bailment.1 This research paper explores the concept of a banker functioning as a bailee, as governed by the Indian Contract Act, 1872.2 Sections 148 to 171 of the Act establish the legal framework for bailment, which arises when a bailor entrusts goods or valuables to a bailee for a particular The banker and a customer relationship purpose, with the expectation of their return upon fulfilling that purpose.
The study examines the essential elements of bailment, such as the transfer of possession, the designated purpose of delivery, and the obligation to return the goods.3 A key legal duty imposed on bankers as bailees is the safekeeping of entrusted goods, ensuring they are neither misused nor wrongfully withheld.4 Negligence in fulfilling this responsibility can lead to legal liabilities.
Additionally, the paper discusses the rights of bankers in their role as bailees, including the right to claim reasonable compensation for expenses incurred in maintaining the goods and the right to exercise a lien until any outstanding dues are cleared.5 These rights help maintain a balance between safeguarding customer interests and protecting the banker from financial losses arising from the bailment arrangement.
