Mr. Stefen owns a chicken farm near Gurugram, whe re he breeds them and sells eggs and live chicken to retail shops in Gurugram. Mr. Flemming also…

According to section 163 of the Indian Contract Act,1872, in the absence of any contract to the contrary, the bailee is bound to deliver to the bailor, or according to his directions, any increase or profit which may have accrued from the goods bailed. In the given question, when Mr. Flemming returned from Australia there were - 1,09,000 live birds and - 15,000 eggs (₹ 1,00,000 birds and - 10,000 eggs were originally deposited by Mr. Flemming). Mr. Stefen agreed to return - 1,00,000 live birds and - 10,000 eggs only and not the increased number of live birds and eggs. In the light of the provision of law and facts of the question, following are the answers: Duties of Mr. Stefen: Mr. Stefen (pawnee) is bound to deliver to Mr. Flemming (pawnor), any increase or profit (₹ 9,000 live birds and - 5,000 eggs) which has occurred from the goods bailed (i.e. the live birds and eggs). Right of Mr. Flemmimg: Mr. Flemming is entitled to recover from Pawnee any increase in goods so pledged.