S Singh 07 August 2015

Damages done by bailee

There is a bailment contract between A (bailor) and B (bailee)

Third party C files suit against A and B and claim the subject-matter.

C takes out an IA and obtains an order upon B to maintain status-quo

with respect to the subject-matter till the final hearing and final disposal of IA.

But astonishingly in the mean time B delivers the subject-matter to C.

B also issues a letter to A for anticipatory cancellation of the contract with him.

Today the subject-matter has been alienated and also the IA withdrawn by C.

What are the remedies left out to A for recovering damages?

(I am A and the subject-matter is the dematerialized company shares)

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3 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 07 August 2015

There is no question of Shipping of title. Though possession goes to bailee, title rests with bailer.

H.M.Patnaik (Proprietor) 07 August 2015

As it seems, the purpose of bailment/ intention thereof is yet to be satisfied and therefore the property in question has been transferred to a third party. However, as rightly pointed out by Mr. Rangachary, the title of the property has not changed hands. Upon satisfaction of the purpose behind the Bailment agreement , the property shall come back to the original owner.