Chapter IX - Of Bailment
Section 149
Section 149: Delivery of possession to a bailee
Delivery for bailment can occur through an act that puts goods into the intended bailee’s possession.
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This article is for general information. Refer to the Indian Contract Act, 1872 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
The delivery to the bailee may be made by doing anything which has the effect of putting the goods in the possession of the intended bailee or of any person authorized to hold them on his behalf.
Rule and business relevance
Possession may be given to the bailee or to someone authorised to hold on the bailee’s behalf. The practical effect of the act matters.
Limits and related provisions
A document or assertion of delivery is not enough if it does not put the goods into the relevant possession. Check authority where an intermediary receives them.
Hypothetical business example
Hypothetical example: Goods are handed to a warehouse employee authorised to receive them for the warehouse operator. The receipt can evidence delivery to the bailee.
Practical decision flow
Identify the act said to transfer possession.
Confirm the recipient’s authority to hold for the bailee.
Keep the receipt, inventory and custody record.
Check the applicable legal framework
This guide explains the central provision. Applicable State amendments, the agreement, transaction date and other governing laws can affect its application. Check the current legal framework before relying on it for a commercial decision.
Practical checklist
Do
- Identify the act said to transfer possession.
- Confirm the recipient’s authority to hold for the bailee.
- Keep the receipt, inventory and custody record.
Avoid
- A document or assertion of delivery is not enough if it does not put the goods into the relevant possession. Check authority where an intermediary receives them.
Glossary
- Delivery
- An act placing goods in the relevant possession.
- Authorised holder
- A person authorised to possess on behalf of the bailee.
Frequently asked questions
Must goods be handed directly to the bailee?
No. An authorised holder may receive them.
Does the effect of the act matter?
Yes. It must put the goods into the stated possession.
What evidence helps?
A delivery record identifying the goods, recipient and authority.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026