Law of Carriage, Transportation and Insurance
Carriage by Rail
Railway Act, 1989
Responsibility of a Railway
Administration as a Carrier of Goods.
Sections 93 to 112 of the Railways Act, 1989 contain provisions on
this subject. These provisions are summarized below.
General responsibility of a railway administration as carrier of
goods (Section 93). A railway administration shall be responsible
for the loss, destruction, damage or deterioration in transit, or non-
delivery of any consignment (goods entrusted to a railway
administration for carriage), arising from any cause except the
following, namely:-
Exceptions-
(i) an act of God; Government authorised by it in this
(ii) an act of war; behalf;
(iii) an act of public enemies; VI- act of omission or negligence of
(iv) arrest, restraint or seizure the consignor or consignee
under legal process; endorsee or The agent or servant of
(v) orders of restrictions imposed the consignor or The consignee or
by the Central Government or a the endorsee;
State Government or by an officer (vii) natural deterioration or
or authority subordinate to the wastage in bulk or weight due to
Central Government or a State inherent defect, quality or vice of
the goods;
(viii) latent defects;
(ix) fire, explosion or any
unforeseen risks.
Liability-
The liability of a railway administration- The liability of a railway
administration is the same as that of a common carrier. In other words,
even where any loss, destruction, damage, deterioration or non-
delivery is proved to have arisen from any one or more of the aforesaid
nine cases, a railway administration shall not be relieved of its
responsibility unless it further proves that it has used reasonable
foresight and care in the carriage of the goods [Union of India v Orissa
Textile Mills, AIR (1979) Ori. 165].
A railway administration, like a common carrier, is bound to carry the
goods of every person who is willing to pay the freight and comply with
other requirements.
2. Delay or retention in transit (Section 95). A railway administration
shall be responsible for the loss, destruction, damage or deterioration
of any consignment proved by the owner to have been caused by the
delay or detention in their carriage. The railway administration can,
however, avoid liability if it proves that the delay or detention arose
for reasons beyond its control or without negligence or misconduct
on its part or on the part of any of its servants.
Owner’s risk rate or railway risk rate
(Section 97)
A consignment may be carried by a railway administration either at
owner’s risk rate or railway risk rate. Owner’s risk rate is a special
reduced rate whereas railway risk rate is an ordinary tariff rate.
Owner’s risk rate is lower than the railway risk rate for the simple
reason that the goods in this case are carried at the owner’s risk. In
case of owner’s risk rate, the railway administration is not
responsible unless it is proved that any loss, destruction, damage or
deterioration or non-delivery of goods arose from negligence or
misconduct on the part of the railway administration or its servants.
Liability for damage to goods in defective
condition or defectively packed (Section 98)
Goods tendered to a railway administration to be carried by railway may
be-
(a) in a defective condition or
(b) defectively packed. As a result of these, goods are liable to damage,
deterioration, leakage or wastage. If the fact of such condition or defective
or improper packing has been recorded by the sender or his agent in the
forwarding note, the railway administration is not responsible for any
damage, deterioration, leakage or wastage unless negligence or
misconduct on the part of the railway administration or of its servants is
proved.
Liability after termination of transit
(Section 99)
When the goods are carried at railway risk rate, the liability of the
railway administration for any loss of goods within a period of seven
days after the termination of transit is that of a bailee under Sections
151, 152 and 161 of the Indian Contract Act, 1872.
But where the goods are carried at owner’s risk rate the railway
administration is not liable for such loss, destruction, damage,
deterioration or non-delivery of goods except on proof of negligence
or misconduct on the part of the railway administration or any of its
servants.
After seven days from the date of termination of transit the railway
administration is not liable in any case for any loss of such goods.
Notwithstanding this provision, the railway administration is not
responsible after the termination of transit for the loss, destruction,
damage, deterioration or non-delivery of articles of perishable goods,
animals, explosives and other dangerous goods
Exoneration from liability in certain cases
(Section 102)
A railway administration shall not be responsible for the loss,
destruction, damage or deterioration or nondelivery of any
consignment —
(i) when such loss, etc., is due to the fact that a materially false
description of the consignment is given; or
(ii) where a fraud has been practised by the consignor or the endorsee,
or by an agent of the consignor, consignee or the endorsee; or
(iii) where it is proved by the railway administration to have been
caused by, or to have arisen from –
(a) improper loading or unloading by the consignor, or the
consignee or the endorsee, or by an agent of the consignor,
consignee or the endorsee;
(b) riot, civil commotion, strike, lock-out, stoppage or restraint of
labour from whatever cause arising whether partial or general; or
(iv) for any indirect or consequential loss or damage or for loss of
particular market
Responsibility as carrier of luggage
(Section 100)
A railway administration shall not be responsible for the loss,
destruction, damage, deterioration or non-delivery of any luggage
unless a railway servant has booked the luggage and given a receipt
therefor. Also it is to be proved that the loss, etc., was due to the
negligence or misconduct on the part of the railway administration or
on the part of any of its servants.
In the case of luggage which is carried by the passenger in his own
charge, the railway administration shall not be responsible for the
loss, etc., unless it is proved that the loss,
etc., was due to the negligence or misconduct on the part of the
railway administration or on the part of any of its servants.
Delivery of goods against receipt or
otherwise- Sec 76
Surrender of railway receipt ( Sec- 76 ) —
The railway administration shall deliver the consignment under a
railway receipt on the surrender of such railway receipt: Provided
that in case the railway receipt is not forthcoming, the
consignment may be delivered to the person, entitled in the
opinion of the railway administration to receive the goods, in such
manner as may be prescribed.
Sec- 77
Power of railway administration to deliver goods or sale
proceeds thereof in certain cases.—
Where no railway receipt is forthcoming and any consignment or the
sale proceeds of any consignment are claimed by two or more
persons, the railway administration may withhold delivery of such
consignment or sale proceeds, as the case may be, and shall
deliver such consignment or sale proceeds in such manner as may
be prescribed.
Railways (Manner Of Delivery Of Consignments And Sale
Proceeds In The Absence Of Railway Receipt) Rules, 1990
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