SUBMITTED TO- DR.K.K.

DWIVEDI (FACULTY OF CONTRACT)

SUBMITTED BY- Shailesh Anand ROLL NO 458 3RD SEMESTER

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ACKNOWLEDGEMENT
Writing a project is one of the most significant academic challenges I have ever faced. Though this project has been presented by me but there are many people who remained in veil, who gave their all support and helped me to complete this project. First of all I am very grateful to my subject teacher DR.K.K. DWIVEDI without the kind support of whom and help the completion of the project was a herculean task for me. He donated his valuable time from his busy time to help me to complete this project and suggested me that from where and how to collect data. I am very thankful to the librarian who provided me several books on this topic which proved beneficial in completing this project. I acknowledge my friends who gave their valuable and meticulous advice which was very useful and could not be ignored in writing the project. Shailesh Anand ROLL NO 458 3RD SEMESTER

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Acknowledgement ......................................................................................................... 2 1. Introduction ............................................................................................................ 4

Aims And Objectives ..................................................................................................... 4 Research Methodology .................................................................................................. 4 Mode Of Study............................................................................................................... 4 Scope .............................................................................................................................. 5 2. Finder Of Goods ..................................................................................................... 6 2.1- Status In English Law ......................................................................................... 6 3. Liability And Rights Of The Finder ....................................................................... 7 Liability Of The Bailor Or Finder .............................................................................. 7 I. Duty Of Care ................................................................................................... 7

II. Other Duties .................................................................................................... 8 4. I. Bailee Is Not Liable ................................................................................................ 9 Finding Out The Real Owner .............................................................................. 9

II. Returning Of Goods: ........................................................................................... 9 5. I. Right Of Finder Of Goods .................................................................................... 10 Right Of Lien: ................................................................................................... 10

6. Difference Between A Bailee And A Finder Of Goods .......................................... 12 6. Conclusion ............................................................................................................ 13

Bibliography ................................................................................................................ 14

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1. INTRODUCTION
Liability of finder of goods is discussed in Section -71 of Indian Contract Act,1872. In this, it is discussed that who is a finder of goods? According to this section a person who is finder of goods have the same responsibilities as a Bailee. Now, bailee is discussed in section-151 and 152 of this act. The definition of bailor, bailment and bailee is also given in section-148. The rights and responsibilities of a bailee is given 154 and 168 of this act. Now as we know that laws are made for the well being of the citizen of the country. With this sections and rules one can be sure about his/her goods. In our day to day life we left our thing so this act gives us assurance that nothing is going to be wrong with the goods and if the goods consist with the appropriate information it can be returned back to the owner. But these act are not only to give assurance to the owner but also to the person who finds the good and return it back to its real owner. These situations are similar to those of bailment hence this topic is studied with bailment. Now we will be discussing about the duties of finder of goods, liabilities and rights of finder of goods, difference between a bailee and a finder of goods.

AIMS AND OBJECTIVES

The aims and objective of the researcher in the project work is to study the liabilities that is inposed upon the finder of the goods and also various rights associated with him.

RESEARCH METHODOLOGY
The research methodology that is followed in this project work is Doctrinal Research Method. It consists of Printed Documents particularly Books and Articles.

MODE OF STUDY
Mode of Study is basically analytical where provisions talked of the topic have been used analysed.Its application, usefulness and lacunas have been specifically analysed.
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SCOPE
No limitation has narrowed the scope of research work as such,but time-borrowed research has made it somehow or the other influenced. However, time factor has not made this research work absurd.

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2. FINDER OF GOODS
The liability of finder of goods is given under Section 71 Of Indian Contract Act,1872. SECTION 71- a person who finds goods belonging to another and takes him into custody, is subject to the same responsibilties as a bailee1.2 A person who finds in a public place is not bound to take charge of it, but an occupier of land is under an obligation to search for goods lost on his property, and to take them into custody3.Once a finder accepts the responsibility for the goods, his liability is of gratuitous bailee 4 . On taking possession of goods, the finder must take reasonable steps to locate the owner, to take due care for the safety and preservation of the goods, and to return it to the owner on demand. He posses, in Indian law, aright of lien for the trouble and expenses incurred by him in preserving it, can be sue for reward, if announced, and to retain the goods until he received the reward. In certain case, if the expense on the goods is more than 2/3rd of its value then the finder can sell the good5. 2.1- STATUS IN ENGLISH LAW In English law, the finding of lost chattel is not really a bailment, but the finder is treated as a gratuitous bailee for some purpose on the basis of an implied request from the owner to take the chattel into possession on the behalf of the owner,and the finder has no right of lien on thechattel for any expenses to which he may have been put in keeping or preserving it, In Newman vs.Bourne and Hollingsworth6, P, a customer

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SECCTION 151 AND 152 INDIAN CONTRACT ACT,1872 3 HalsburyLaws of England, dameges, fourth edn, reissue, vol.12, para 1811; Treasure Trove act 1878 about finding of treasure being anything of value hidden in the soul, or anything affixed thereto. 4 As to who is a bailee, and his rights and obligation is defined in sec.148 of Indian Contract act 5 Indian contract act,1872 Section-169 6 (1915) 31 TLR 209 LIABILITY OF FINDER OF GOODS Page 6

in Ds shop , put down a brooch with her coat, and forget to pick it up. One of Ds assistants found it and placed in a drawer over the weekend. It was found missing on Monday, in this case D held liable to P in view of the absence of that ordinary care which in the circumstances a prudent man have taken. So, it clearly impose the duty to take care of the goods which a prudent man can take. This was about the finder of goods now we will discuss about the liability of finder of goods which is similar to the duties of a bailor.

3. LIABILITY AND RIGHTS OF THE FINDER

Now as we know that this process is considered similar to that of bailment, finder is considered as bailee. These terms are defined in Sec.148 of Indian Contract Act,1872 which as follows: A bailmentis a delivery of goods by one person to another for some purpose, upon a contract that they shall,when the purpose is accomplished, be returned or otherwise disposed of according to the direction of the person delivering them. The person delivering the goods is called bailor. The person to whom they are deliverd is called bailee. LIABILITY OF THE BAILOR OR FINDER I. Duty of care

Liability of finder or bailee is discussed in section 151 of Indian contract act,1872. The section as follows: In all cases of bailment the bailee is bound to take as much care of the goods bailed to him as a man of ordinary prudence would, under similar circumstances, take of his own goods of the same bulk, quantity and value as the goods bailed. Prudent man care: The duty to take care laid down in this section is very general. It will depend upon the facts of each case to determine whether the bailee has taken the required of him by this section.
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good sense and policy of the law impose some limit upon the amount of care, skill and nerve required of a person in a position of duty who has to encounter a sudden emergency. In a moment of peril and difficulty the court should not expect perfect presence of mind, accurate judgment and promptitude .. if in sudden emergency a man does something which he might, as he know the circumstances, reasonably think proper, he is not to be held guilty of negligence, because, upon review of the facts, it can be seen that the course he was adopted was not in fact the best.7 This section abolishes the distinction in the amount of care required of various kinds of bailee which were established, or supposed to be established, by the judgment of Holt,C.J., in Coggs v. Bernard.8 Whether the required care of goods has been taken is a question of fact , but that in a fire, the bailees own goods were also destroyed is not itself evidence that he had taken the required care.9 The bailee is not bound to take reasonable care of goods depending on the circumstances of the particular case, irrespective of whether the bailment is gratuitous or for reward. Mere indication by bailee about a difficult situation arising out of labour disorder or other wise is not sufficient to repudiate bailees liability.10
II. OTHER DUTIES

The bailees responsibility does not completely cease after the expiry of bailment. If, on expiry of the bailment period, the bailee does not want to keep the goods longer, he has to inform the bailor to take away the goods within a specific time, and if the goods are not taken away by him the bailee may dispose them off after serving proper notice of intended sale on the bailor. The bailee cannot repudiate his responsibilities for the safety of the goods bailed so long as they are in his custody. A bailee is also under a duty not to convert them even by stealing by a third party ;11 or not to intentionally do in the relation to the goods, an act inconsistent with

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Dwarka v. River steam Navigation Co. Ltd. , BOM L.R. 735: (1917) A.P.C. 173 (1703) 2 Ld. Raym. 909, 1 Sm. L.C. 173 9 Calcutta Credit Corporation v. Prince Peter (64) A.C. 374 10 Vijaya Bank v. United Corpn. AIR 1991 Ker 209,p.217 11 [1965] 2 ALL ER 725 LIABILITY OF FINDER OF GOODS Page 8

the bailors right of property therein. A bailee cannot escape liability by delegating his task, or entrusting the goods, to another. It is also the duty of the bailee to try and minimize the loss.

4. BAILEE IS NOT LIABLE

Bailee is not liable if the goods are destroyed by a riotous mob, the bailee is not responsible for the loss.12 Thus a bailee of grain was not held lible for the damages caused by flood, the appearance of which was described as unknown and unprecedented in the annals of Agra.13 I. Finding out the real owner A person, who find goods belonging to another and takes them into his custody, is subject to the responsibility of taking due care of them and trying to find out the real owner of the goods. It is also to be remembered that the finder has a good title over the things found and that his right is enforceable against all except the real owner. It is the duty of the finder of the goods to make possible effort in order to find out the real owner of the goods. He may retain such goods until he finds true owner by advertisement in case of costly thing. As it is the duty of the bailee to return the goods to the bailor safely. The finder is supposed to return the goods to its owner safely. II. Returning of goods: It is the duty of finder to return the lost goods to real owner when he receives reasonable compensation for his services he has rendered in respect of them. These duties are mentioned in section 160 which as follows 160. Return of goods bailed, on expiration of time or a complishment of purpose - 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.

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Sunder Lal v. Ram Sarup Shanti Lal v. Tara Chand Madan Gopal AIR 1933 All 158 Page 9

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When the finder finds the real owner the bailment is over and it is the duty of the finder to return these goods to the owner. If the goods are not properly returned it is the responsibility to the bailor for any type of loss, distructiion or detoriation of the goods from that time.14

5. RIGHT OF FINDER OF GOODS

I. Right of lien: The finder of goods has a right of lien over the goods for his expenses. As such he

can retain the goods against the owner until he receives compensation for trouble and expenses incurred in preserving the goods and finding out the owner. But he has no right to sue the owner for any such compensation. This is discussed under section 170 which as follows: Section 170: Bailee's particular lien Where the bailee has, in accordance with the purpose of the bailment, rendered any service involving the exercise of labour or skill in respect of the goods bailed he has in the absence of a contract to the contrary, a right to retain such goods until he receives due remuneration for the services he has rendered in respect of them.

If the charges of the bailee is not paid he may retain the goods. The right to retain any property until the charges due in respect of the property are paid, called right of lien. The Supreme Court cited the following passage from the Halsburys Laws of England15 as to nature of this right : Lien is in its primary sense a right in one man to retain that which is in his possession belonging to another until certain demands of the person in possession are satisfied. In this primary sense it is given by law not by contract. In the case of Syndicate Bank v.Vijay Kumar Supreme Court held that the bailee cannot be deprived of his possession for any superior claim. He has to be paid first. Where goods are taken away from bailee under court order, his lien survived and applied to the sale proceeds of goods for his payment.

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Indian Contract Act,1872 sec.160 P.552,para 695, Vol20, 2nd edition Page 10

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1. Right to sue for reward. The finder can sue for any specific reward which the owner has offered for the return of the goods. He may also retain the goods until he receives the reward. (Section 168) Section 168 gives right to the bailee to sue for the specific reward 168. Right to finder of goods may sue for specified reward offered The finder of goods has no right to use the owner for compensation for trouble and expense, voluntary incurred by him to preserve the goods and to find out the owner; but he may retain the goods again the owner until he receive such compensation; and where the owner has offered a specific required for the return of goods lost, the finder may sue for such reward, and may retain the goods until he received it.

2. Right or resale: this right is awarded to the bailee under section 169 of this act 169. When finder of thing commonly on sale may sell it When thing which is commonly the subject of sale is lost, if the owner cannot with reasonable diligence be found, or if he refuses upon demand, to pay the lawful charges of the finder, the finder may sell it (1) When the thing is in danger of perishing or of losing the greater part of its value, or (2) When the lawful charges of the finder, in respect of the thing found, amount to two-thirds of its value. Section 168 and 169, however protect the intrest of finder in two ways. Section 168 allows the finder to retain the goods against the owner until he receives compensation for trouble and expenses. Further, where the owner has offered a specific reward for the return for the return of the goods loss, the finder may sue such rewards, and may sue for such rewards, and may retain the goods until he receives it. Section 169 allows the finder to sell the goods in certain cases where the thing found is commonly the subject of sale and if the owner cannot be found with reasonable diligence, or if he refuses to pay the lawful charges of the finder, the finder may sell the goods in the following cases: (a). when the thing is in danger of perishinig or of losing graeter part of its value , or (b). when the lawful charges of the finder, in respect of the thing found, amounts to two third of its value.
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6. DIFFERENCE BETWEEN A BAILEE AND A FINDER OF GOODS

Bailee TYPE OF CONTRACT SELLING RIGHTS PROFIT GRATIOUTS SELL Finder of goods NON-GRATIOUTS CANT SELL

FOR THE PROFIT OF FOR BOTH PARTIES THE OWNER

TYPE OF DUTY REWARD

VOLUENTRY MAY CLAIM

NON-VOLUENTRY CANT CLAIM

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6. CONCLUSION
Now from the above mentioned rules and laws we are well acquainted about the fact. Now , we are knowing about the rights and duties of a finder of goods as per the difference sections of Indian contract act. Different section gives different right to the owner as well as the finder as section 169 gives right to the finder to sell the goods. Section 155-157 tells about not to mix the goods with your own goods. Section 151152 impose duty on the finder to take care of the goods and so. This law helps us as many times we forget about our things such as documents, cellphones etc. so it imposes a duty on the finder to search the owner and return it back. From the above mentioned section we come to know about rights as a finder of goods and as a owner of goods.

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BIBLIOGRAPHY BOOKS J.Beatson, Anson On Contracts, Oxford :London, Ed. 2010, 2010 Sir Frederick Pollock & Sir Dinshaw Fardunji Mulla, Pollock And Mulla The Indian Contract And Specific Relief Acts, Lexis Nexis Butterworths : Nagpur, 2010 R.K. Bangia, Law Of Contracts, Allahabad Law Agency : Faridabad, 2010 Avtar Singh, Law Of Contracts, Eastern Law House : Lucknow, 2010 M.C. Shukla, A Manual Of Mercantile Law Third Edition, S.Chand & Co. Mulla Indian Contract Act,13th Edition ,ed., R.G.Padia

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