Kaliaperumal Pillai v. Visalakshmi

Quick Summary

The court asked a simple question: did delivery happen so that a bailment was created? The jewellery box stayed locked and the owner kept the key. Because control never passed to the jeweller, there was no delivery under Section 149. So, no bailment and no liability as bailee.

• Author: Gulzar Hashmi
• Location: India
• Published: 2025-10-25
• Keywords: bailment, delivery, Sections 148–149

Issues

1. Did the situation amount to delivery of goods under Section 149?
2. If not, could the defendant be treated as a bailee and made liable for the theft?

Rules

• Section 148 (Contract Act): Bailment is delivery of goods for a purpose, to be returned or disposed of as directed.
• Section 149: Delivery may be made by doing anything that has the effect of putting the goods in the possession of the intended bailee (actual or constructive delivery).
• Key test: Has control/possession truly passed? Keeping the only key usually means possession has not passed.

Facts (Timeline)

• Work with Jeweller: Plaintiff visited defendant to get jewellery reworked; after each day she placed items in a box.
• Control Kept: She locked the box and took the key home every day.
• Supervised Making: She opened the box herself on each visit and watched the work.
• Theft Occurred: Jewellery was stolen; plaintiff blamed the defendant.
• Suit Filed: Plaintiff sued, saying the defendant was a bailee responsible for loss.

Arguments

Judgment

The court held that the defendant was not a bailee. There was no delivery within Section 149 because the plaintiff kept the key and control. Mere presence of the box in the defendant’s room did not transfer possession. Hence, the defendant was not liable for the theft.

Ratio Decidendi

Possession, not place, creates bailment. For bailment, possession must pass to the bailee. If the owner keeps exclusive control (key/custody), no delivery occurs, even if the goods are physically on the other’s premises.

Why It Matters

• Clarifies the difference between location and possession under Ss.148–149.
• Guides artisans, jewellers, and customers on safe transfer and record of custody.
• Helps students answer: what counts as delivery for bailment?

Key Takeaways

• Delivery = transfer of possession/control, not just physical presence.
• Keeping the key usually means no delivery → no bailment.
• To create bailment, hand over control (keys/receipts) and record the handover.

Mnemonic + 3-Step Hook

Mnemonic: “KEY = KEEP = NO BAILMENT” — If the owner keeps the key, bailment usually fails.

1. Ask: Who controlled access?
2. Check: Was there a handover (key/receipt/charge)?
3. Decide: No control transfer → no delivery → no bailee liability.

IRAC Outline

Glossary

Bailment

Temporary transfer of possession (not ownership) for a purpose, to be returned or disposed of as directed.

Delivery

Act (or equivalent) that puts goods into the bailee’s possession or control.

Constructive Delivery

Legal recognition of delivery without physical handover, if control effectively passes.

FAQs

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