Section 71 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 71 is a single sentence. A person who finds goods belonging to another and takes them into custody is subject to the same responsibility as a bailee. The section does not describe that responsibility itself; it borrows it from the later chapter on bailment. If you have found something valuable, or your business receives lost property, the section tells you how seriously the Act expects you to look after it. For questions on a particular situation, our legal consultation service can help.
A person who finds goods belonging to another and takes them into his custody is subject to the same responsibility as a bailee. The duty arises when the goods are taken into custody. For the content of that responsibility, the Act's own footnote points to sections 151 and 152: the bailee must take as much care as a man of ordinary prudence would take of his own goods of the same bulk, quality and value.
What the section says
"A person who finds goods belonging to another, and takes them into his custody, is subject to the same responsibility as a bailee."
Three features stand out.
- "Finds goods belonging to another." The goods are someone else's property. The section does not address goods that nobody owns.
- "Takes them into his custody." A finder who merely sees an item is not caught; the responsibility begins when he takes the goods into custody. The section does not say he must take custody.
- "The same responsibility as a bailee." The section does not create a new standard. It tells you to read the standard that applies to a bailee.
A footnote to the section says: "See ss. 151 and 152, infra." Those are the sections that describe a bailee's care and when a bailee is not liable.
What "the responsibility of a bailee" points to
The Act's chapter on bailment (from section 148) is covered in later articles in this series. For this article, the two sections named in the footnote are enough.
| Section | What it says (in the Act's words, shortened) |
|---|---|
| 151 | 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. |
| 152 | The bailee, in the absence of any special contract, is not responsible for the loss, destruction or deterioration of the thing bailed, if he has taken the amount of care of it described in section 151. |
Applied to a finder, the reading is this: once you take custody, you are expected to take the level of care described in section 151, and if you have taken that level of care, section 152 says that, in the absence of any special contract, you are not responsible for loss, destruction or deterioration. A finder usually has no contract with the owner, so the phrase "in the absence of any special contract" is of limited relevance here; the section does not say more than that.
A modern example (ours)
Manoj finds a laptop bag left in a taxi after his ride and takes it home to hand over to the owner. He leaves it on his balcony table, where it is rained on and ruined. Section 71 makes him subject to the responsibility of a bailee. Under section 151, would a man of ordinary prudence have kept his own laptop bag of that quality on an open balcony? If not, he has not taken the required care. Compare Manoj's neighbour Leela, who finds a cheap umbrella and puts it in a closet, then it is stolen in a burglary that takes her own umbrellas too. If she took the care she would have taken of her own umbrella of the same quality, section 152 says she is not responsible for the loss.
Where the finder's own rights are dealt with
Section 71 deals only with the finder's responsibility. The Act deals with the finder's rights (for example, to sue for a specific reward offered, and the right to sell in certain cases) in sections 168 and 169, which are in the chapter on bailment. The arrangement of sections lists them as "Right of finder of goods; may sue for specific reward offered" and "When finder of thing commonly on sale may sell it". We cover them in a later article: see sections 168 and 169.
What can the parties change?
There is no contract between a finder and an owner in the ordinary case, so there is usually nothing to vary. If the finder and owner do make an agreement about the goods (for instance, to store them for a fee), that agreement is a "special contract" in the sense of section 152, and its terms will matter. Section 71 itself contains no "contrary intention" language. Whether other laws apply to particular kinds of found property, such as goods of a particular type, is outside this article.
Practical points
- Think before taking custody. The responsibility attaches when you take the goods into custody.
- Keep the goods safe, as you would keep your own goods of the same value, and keep them separate from your own.
- Record the find: date, place, description, photographs, and where you stored it.
- Try to trace the owner and hand over against proof of ownership; keep a receipt.
- Businesses that regularly receive lost property (hotels, taxi operators, offices) should have a written procedure, a register, and a standard receipt.
- For the wider framework of bailment, begin with section 148.
Need help with found property or custody duties?
If you hold goods that belong to someone else, or your business handles lost and found items, a short written procedure and a standard form of receipt can prevent disputes. Our legal consultation team can help you apply section 71 and the bailment provisions to your situation. Bring a description of the goods and how they came into your hands.
Key takeaways
- A person who finds goods belonging to another and takes them into custody has the responsibility of a bailee (s.71).
- The Act's footnote points to sections 151 and 152 for the content of that responsibility.
- The standard of care is that of a man of ordinary prudence caring for his own goods of the same bulk, quality and value.
- The finder's rights are in separate sections (168 and 169).
- Section 71 has no illustration in the source.
Read next
- Section 70: benefit of a non-gratuitous act and quantum meruit
- Section 72: money paid by mistake or under coercion and refund
- Section 148: bailment, bailor and bailee defined
- Bailment and pledge: overview of Sections 148 to 181
Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.