CASE STUDY

Bailor & Bailee

Sudarshan bails a certain quantity of "First Grade" petrol, to be stored safely till the end of March 2011. Raghman, without the consent of Sudarshan mixes the first grade petrol with his own "Second Grade" petrol on 1st April, 2011, when Sudarshan asked Raghman for his first grade petrol Raghman tells him to take the bailed quantity of petrol out of the mixed petrol. Sudarshan refused to take the mixed petrol and instead claims the prices of the "First Grade" petrol, which is higher than "Second Grade". Raghman refuses to compensate Sudarshan for the above on the ground of impossibility of performance.

1. Whether Raghman is liable to compensate Sudarshan for the loss?

2.Can Raghman be held liable for bearing the expenses which might be incurred for the separation of the two kinds of goods? If it was not petrol but the goods which is capable of being separated?