Lecture- 10

Railway Act
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;
(ii) an act of war;
(iii) an act of public enemies;
(iv) arrest, restraint or seizure under legal process;
(v) orders of restrictions imposed by the Central Government or a State
Government or by an officer or authority subordinate to the Central
Government or a State Government authorized by it in this behalf;
(vi) act of omission or negligence of the consignor or consignee
endorsee or the agent or servant of the consignor or the consignee or
the endorsee;
(vii) natural deterioration or wastage in bulk or weight due to inherent
defect, quality or vice of the goods;
(viii) latent defects;
(ix) fire, explosion or any unforeseen risks.
Liability of a carrier 

 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.
 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)
Whether the goods are carried at owner’s risk rate or 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
termination of
administration is not responsible after the
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 non delivery of any
consignment —
(i) when such loss, etc., is due to the fact that amaterially false
description of the consignment is given ; or
(ii) where a fraud has been practiced by theconsignor 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