Rights and duties of a finder of any lost goods in India
POSITION OF FINDER OF GOODS
According
to section 71 of Indian Contract Act, a person who find goods belonging to
another and takes them into his custody, is subject to the same responsibility
as a bailee. Since the position of the finder of the goods is that of a bailee
he is supposed to take the same amount of care with regard to the goods as is
expected of a bailee under section 151. He is also subject to all the duties of
a bailee, including a duty to return the goods after the true owner is found.
If he refuses to return, he could be made liable for conversion.
RIGHTS OF FINDER OF GOODS
Section
168 and 169 confer certain rights on the finder of goods.
·
SECTION
168 – MAY SUE FOR SPECIFIC REWARD OFFERED :
The finder of goods has no
right to sue the owner for compensation for trouble and expense voluntarily
incurred by him to preserve the goods and to find out the owner, but he may
retain the goods against the owner until he receives such compensation, and
where the owner has offered a specific reward for the return of goods lost, the
finder may sue for such reward, and may retain the goods until he receives it.
·
RIGHT
OF LIEN
According to section 168, a
finder of goods has no right to sue the owner for trouble and expenses
voluntarily incurred by him to preserve the goods and to find the owner. He
has, however, the right of particular lien in respect of those goods. He may retain
the goods against the owner until he receives compensation for trouble and
expense voluntarily incurred by him to preserve the goods and to find the owner
·
RIGHT
OF CLAIMING THE REWARD, IF ANNOUNCED BY THE OWNER
It has been noted above that
the finder has the right to retain the goods until he Is paid compensation for
trouble and expense voluntarily incurred by him to preserve the goods and find
the owner. In addition to that, where the owner has offered a specific reward
for the return of goods lost the finder may sue for such reward and also may
retain the goods until he receives it.
If the goods have already been
found voluntarily, and then the owner of the goods promises to compensate the
finder for his past voluntary services, the contract is binding and the owner
is bound to pay the promised amount.
·
SECTION
169 – WHEN FINDER OF THING COMMONLY ON SALE MAY SELL IT:
When a 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 charge of the finder,
finder may sell it –
1.
When the thing is in danger of
perishing or losing the greater part of its value,
2.
When the lawful charge of the
finder, in respect of the thing found amount to two-third of its value,
·
RIGHT
TO SELL THE GOODS FOUND (SEC.169)
The finder of the goods has
also been given the right to sell the goods found by him under certain
circumstances mentioned in section 169.
Such a right is available to
the finder of the lost goods when the following conditions are satisfied:
1.
If the owner of the goods
cannot be found; or if he refuses to pay the lawful charges of the finder, and
2.
When the good is in danger of
perishing its value; or when the lawful charges of the founder in respect of
the thing found amount to two-third of its value.
DUTIES OF FINDER OF ANY LOST GOODS
If a person finds any lost
goods he does not become the actual of those goods. He, in fact, becomes a
special kind of bailee in the sense that he has to take care of the goods until
the actual owner of the goods is found. Thus he possesses same duties towards
the lost goods as of a bailee, and therefore finder’s position has been
considered along with bailment. A finder of the lost goods has to observe
following duties towards the goods he possesses:
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