(1) The bailor shall disclose to
the bailee any fault in the goods bailed of which the bailor is aware
and which interferes with the use of them or can cause any loss or
damage to the bailee or warrants separate provision or arrangement
for their protection.
(2) If the bailor does not make such disclosure knowingly
as required to be made pursuant to sub-section (1), to the bailee the
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bailor shall be liable for any loss or damage arising from such
goods or such non-disclosure.
(3) Notwithstanding anything contained in sub-section (2),
if the goods are bailed for hire, the bailor shall be responsible for any
loss or damage resulted from any faults in such goods even if the
bailor was not aware of the existence of such faults in such goods.