DIGITAL BAILMENT

AUTHOR – VIJAY PUJAR, STUDENT AT NATIONAL LAW SCHOOL OF INDIA UNIVERSITY BENGALURU

BEST CITATION – VIJAY PUJAR, DIGITAL BAILMENT, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (11) OF 2025, PG. 177-183, APIS – 3920 – 0001 & ISSN – 2583-2344

Abstract:

This research paper explores the concept of digital bailment, an evolving legal framework situated at the intersection of traditional bailment principles and modern digital realities. While bailment traditionally applies to tangible assets, this paper however investigates the legal viability of extending bailment doctrines to intangible assets such as electronic data. It critically analyzes key U.S. court decisions like Richardson v. DSW, Sony Gaming Networks and Target, where bailment claims over data breaches were rejected, and draws parallels with Indian jurisprudence, particularly the Supreme Court’s ruling in Justice K.S. Puttaswamy v. Union of India regarding Aadhaar data retention. The paper further evaluates the duty of care expected from cloud storage providers and also critiques the proposition that such services fall within the scope of traditional bailment. It compares cloud storage with safe deposit boxes, highlighting distinctions in possession and control. The paper also engages with Shane Gallant’s “Adhesion Bailment Doctrine” in the Internet of Things (IoT) context, proposing a theoretical safeguard against state surveillance. In conclusion, the paper advocates for legislative reform to incorporate digital bailments within the Indian legal system, thereby ensuring enhanced privacy and data protection in an increasingly digitized world.