Section 151 of the Contract Act 1872 says: “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, quality and value as the goods bailed.”
1. “Section 151 which refers to all kinds of bailment includes also pledges. Hence a pledge is also liable to the incidents of a bailment such as the duty to take requisite care” Thanwarin Noharsingh v. Darbarilal AIR 1952 Nagpur 8
2. Bank claiming loss as pledged goods were damaged or destroyed due to natural decay while in custody of bank-…. Bank cannot disown liability 1998 …A clause in the pledge deed that the “pawnor shall be responsible for all losses, damages or deterioration of goods caused by theft, fire, rain, floods earthquake lighting, enemy action, international commotion or any other cause” does not exonerate the liability of the pawnee where goods were lost due to his negligence because the clause provides him protection only when goods are lost due to causes beyond his control. 1998 (2) Guj LH 204
3. Share certificates and bank transfer forms are goods. Jamshed Naoroji Gamadia v. Maganlal Bankeylal AIR 1925 Bombay 314
