Chapter IX - Of Bailment
Section 167
Section 167: Third-party claims to bailed goods
A third person claiming bailed goods may ask the court to stop delivery to the bailor and decide title.
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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
If a person, other than the bailor, claims goods bailed he may apply to the Court to stop the delivery of the goods to the bailor, and to decide the title to the goods.
Rule and business relevance
The provision supplies a route for a claimant other than the bailor. The court can address both delivery and ownership.
Limits and related provisions
A claim alone should not be presented as a final title judgment. The bailee should respond to legal process and safeguard the goods while obtaining advice.
Hypothetical business example
Hypothetical example: A third-party owner disputes a warehouse depositor’s entitlement and applies to court to stop release while title is determined.
Practical decision flow
Identify the third-party claim and supporting documents.
Check whether an application or order exists.
Preserve the goods and comply with the applicable court directions.
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 third-party claim and supporting documents.
- Check whether an application or order exists.
- Preserve the goods and comply with the applicable court directions.
Avoid
- A claim alone should not be presented as a final title judgment. The bailee should respond to legal process and safeguard the goods while obtaining advice.
Glossary
- Title claim
- A claim to legal entitlement to the goods.
- Delivery restraint
- Court intervention sought to stop delivery to the bailor.
Frequently asked questions
Who may apply under this section?
A person other than the bailor claiming the goods.
What can the application seek?
Stopping delivery to the bailor and a decision on title.
Is a bare assertion already a title decision?
No. The provision envisages determination by the court.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026