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THE INDIAN CARRIAGE OF GOODS BY SEA ACT, 1925

1. Short title and extent. (1) This Act may be called the Indian Carriage of Goods by Sea Act, 1925.(2) It extends to 4*[the whole of India]. 2.Application of Rules. 2. Application of Rules. Subject to the provisions of this Act, the rules set out in the Schedule (hereinafter referred to as the Rules) shall have effect in relation to and in connection with the carriage of goods by sea in ships carrying goods from any port in 5*[India] to any other port whether in or outside 5*[India]. 3.Absolute warranty of sea worthiness not to be implied in contracts to which Rules apply. 3. Absolute warranty of sea worthiness not to be implied in contracts to which Rules apply. There shall not be implied in any contract for the carriage of goods by sea to which the Rules apply any absolute undertaking by the carrier of the goods to provide a seaworthy ship. 334.4.Statement as to application of Rules to be included in bills of lading. 4. Statement as to application of Rules to be included in bills of lading. Every bill of lading, or similar document of title, issued in 1*[India] which contains or is evidence of any contract to which the Rules apply, shall contain an express statement that it is to have effect subject to the provisions of the said Rules as applied by this Act. 5.Modification of Article VI of Rules in relation to goods carried insailing ships and by prescribed routes. 5. Modification of Article VI of Rules in relation to goods carried in sailing ships and by prescribed routes. Article VI of the Rules shall, in relation to (a) the carriage of goods by sea in sailing ships carrying goods from any port in 1*[India] to any other port whether in or outside 1*[India], and (b) the carriage of goods by sea in ships carrying goods from aport in 1*[India] notified in this behalf in the Official Gazette by the Central Government to a port in Ceylon specified in the said notification, have effect as though the said Article referred to goods of any class instead of to particular goods and as though the proviso to the second paragraph of the said Article were omitted. 6.Modification of Rules 4 and 5 of Article III in relation to bulkcargoes.

6. Modification of Rules 4 and 5 of Article III in relation to bulk cargoes. Where under the custom of any trade the weight of any bulk cargo inserted in the bill of lading is a weight ascertained or accepted by a third party other than the carrier or the shipper and the fact that the weight is so ascertained or accepted is stated in the bill of lading, then, notwithstanding anything in the Rules, the bill of lading shall not be deemed to be prima facie evidence against the carrier of the receipt of goods of the weight so inserted in the bill of lading, and the accuracy thereof at the time of shipment shall not be deemed to have been guaranteed by the shipper. 7.Saving and operation. 7. Saving and operation. (1) Nothing in this Act shall affect the operation of 2*[3* section 331 and Part X A] of the Merchant Shipping Act, 1958, (44 of 1958)] or the operation of any other enactment for the time being in force limiting the liability of the owners of seagoing vessels. (2) The Rules shall not by virtue of this Act apply to any contract for the carriage of goods by sea before such day 3*, not being earlier than the first day of January, 1926, as the Central Government may, by notification in the Official Gazette, appoint, nor to any bill of lading or similar document of title issued, whether before or after such day as aforesaid, in pursuance of any such contract as aforesaid 335.SCHEDULE RULES RELATING TO BILLS OF LADING ARTICLE I.Definitions. In these Rules the following expressions have the meanings hereby assigned to them respectively, that is to say (a) carrier includes the owner or the charterer who enters into a contract of carriage with a shipper: (b) contract of carriage applies only to contracts of carriage covered by a bill of lading or any similar document of title, in so far as such document relates to the carriage of goods by sea including any bill of lading or any similar document as aforesaid issued under or pursuant to a charterparty from the moment at which such bill of lading or similar document of title regulates the relations between a carrier and a holder of the same: (c) goods includes goods, wares, merchandises, 1*[containers, pallets or similar article of transport used to consolidate goods if supplied by the shipper,] and articles of every kind whatsoever, except live animals and cargo which by the contract of carriage is stated as being carried on deck and is so carried: (d) ship means any vessel used for the carriage of goods by sea:

(e) crriage of goods covers the period from the time when the goods are loaded on to the time when they are discharged from the ship. ARTICLE II.Risks. Subject to the provisions of Article VI, under every contract of carriage of goods by sea the carrier, in relation to the loading, handling, stowage, carriage, custody, care, and discharge of such goods, shall be subject to the responsibilities and liabilities, and entitled to the rights and immunities hereinafter set forth. ARTICLE III.Responsibilities and Liabilities. 1. The carrier shall be bound, before and at the beginning of the voyage, to exercise due diligence to (a) make the ship seaworthy: (b) properly man, equip, and supply the ship: 1. Ins. by Act 28 of 1993, s. 31 and Sch. (w.e.f. 16.10.1992). 336.(c) make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation. 2. Subject to the provisions of Article IV, the carrier shall properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried. 3. After receiving the goods into his charge, the carrier, or the master or agent of the carrier, shall, on demand of the shipper, issue to the shipper a bill of lading showing among other things (a) The leading marks necessary for identification of the goods as the same are furnished in writing by the shipper before the loading of such goods starts, provided such marks are stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or coverings in which such goods are contained, in such a manner as should ordinarily remain legible until the end of the voyage: (b) Either the number of packages or pieces, or the quantity, or weight, as the case may be, as furnished in writing by the shipper: (c) The apparent order and condition of the goods: Provided that no carrier, master or agent of the carrier, shall be bound to state or show in the bill of lading any marks, number, quantity, or weight which he has reasonable ground for suspecting not accurately to represent the goods actually received, or which he has had no reasonable means of checking. 4. Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods as therein described in accordance with paragraph 3 (a), (b) and (c). 1*[However, proof to the

contrary shall not be admissible when the bill of lading has been transferred to a third party acting in good faith.] 5. The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment of the marks, number, quantity, and weight, as furnished by him, and the shipper shall indemnify the carrier against all loss, damages, and expenses arising or resulting from inaccuracies in such particulars. The right of the carrier to such indemnity shall in no way limit his responsibility and liability under the contract of carriage to any person other than the shipper. 6. Unless notice of loss or damage and the general nature of such loss or damage be given in writing to the carrier or his agent at the port of discharge before or at the time of the removal of the goods into the custody of the person entitled to delivery thereof under the contract of carriage, or, if the loss or damage be not apparent, within 337.three days, such removal shall be prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading. The notice in writing need not be given if the state of the goods has at the time of their receipt been the subject of joint survey or inspection. In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is brought within one year after delivery of the goods or the date when the goods should have been delivered. 1*[This period may, however, be extended if the parties so agree after the cause of action has arisen; Provided that a suit may be brought after the expiry of the period of one year referred to in this sub-paragraph within a further period of not more than three months as allowed by the court.] In the case of any actual or apprehended loss or damage, the carrier and the receiver shall give all reasonable facilities to each other for inspecting and tallying the goods. 7. After the goods are loaded the bill of lading to be issued by the carrier, master or agent of the carrier, to the shipper shall, if the shipper so demands, be a shipped bill of lading, provided that, if the shipper shall have previously taken up any document of title to such goods, he shall surrender the same as against the issue of the shipped bill of lading, but at the option of the carrier, such document of title may be noted at the port of shipment by the carrier, master, or agent with the name or names of the ship or ships upon which the goods have been shipped and the date or dates of shipment, and when so noted the same shall for the purpose of this Article be deemed to constitute a shipped bill of lading. 8. Any clause, covenant or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with goods arising from negligence, fault or failure in the duties and obligations provided in this Article or lessening such liability otherwise than as provided in these Rules, shall be null and void and of no effect. A benefit of insurance or similar clause shall be deemed to be a clause relieving the carrier from liability.

ARTICLE IV.Rights and Immunities. 1. Neither the carrier nor the ship shall be liable for loss or damage arising or resulting from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy, and to secure that the ship is properly manned, equipped and supplied, and to make the holds, refrigerating and cool chambers and all other parts of the ship in which goods are carried fit and safe for their 338.reception, carriage and preservation in accordance with the provisions of paragraph 1 of Article III. Whenever loss or damage has resulted from unseaworthiness, the burden of proving the exercise of due diligence shall be on the carrier or other person claiming exemption under this section. 2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from (a) act, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the navigation or in the management of the ship: (b) fire, unless caused by the actual fault or privity of the carrier: (c) perils, dangers and accidents of the sea or other navigable waters: (d) act of God: (e) act of war: (f) act of public enemies: (g) arrest or restraint of princes, rulers or people, or seizure under legal process: (h) quarantine restriction: (i) act or omission of the shipper or owner of the goods, his agent, or representative: (j) strikes or lock-outs or stoppage or restraint of labour from whatever cause, whether partial or general: (k) riots and civil commotions: (l) saving or attempting to save life or property at sea: (m) wastage in bulk or weight or any other loss or damage arising from inherent defect, quality, or vice of the goods: (n) insufficiency of packing: (o) insufficiency or inadequacy of marks:

(p) latent defects not discoverable by due diligence: (q) any other cause arising without the actual fault or privity of the carrier, or without the fault or neglect of the agents or servants of the carrier, but the burden of proof shall be on the person claiming the benefit of this exception to 339.show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage. 3. The shipper shall not be responsible for loss or damage sustained by the carrier or the ship arising or resulting from any cause without the act, fault or neglect of the shipper, his agents, or his servants. 4. Any deviation in saving or attempting to save life or property at sea, or any reasonable deviation shall not be deemed to be an infringement or breach of these Rules or of the contract of carriage, and the carrier shall not be liable for any loss or damage resulting therefrom. 5. Neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with goods in an 1*[amount exceeding 666.67 Special Drawing Rights per package or unit or two Special Drawing Rights per kilogram of gross weight of the goods lost or damaged, whichever is higher], or the equivalent of that sum in other currency, unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading. 2*[Where a container, pallet or similar article of transport is used to consolidate goods, the number of packages or units enumerated in the bill of lading and as packed in such article of transport shall be deemed to be the number of packages or units for the purposes of this paragraph as far as these packages or units are concerned. Neither the carrier nor the ship shall be entitled to the benefit of limitation of liability provided for in this paragraph if it is proved that the damage resulted from an act or omission of the carrier done with intent to cause damage, or recklessly and with knowledge that damage would probably result. Where the nature or value of the goods has been knowingly misstated by the shipper in the bill of lading, the liability of the carrier or ship shall not exceed the value so stated.] This declaration if embodied in the bill of lading shall be prima facie evidence, but shall not be binding or conclusive on the carrier. By agreement between the carrier, master or agent of the carrier and the shipper another maximum amount than that mentioned in this paragraph may be fixed, provided that such maximum shall not be less than the figure above named. Neither the carrier nor the ship shall be responsible in any event for loss or damage to or in connection with goods if the nature or value thereof has been knowingly mis-stated by the shipper in the bill of lading.

6. Goods of an inflammable, explosive or dangerous nature to the shipment whereof the carrier, master or agent of the carrier, has not consented, with knowledge of their nature and character, may at any time before discharge be landed at any place or destroyed or rendered innocuous by the carrier without compensation, and the shipper of such goods shall be liable for all damages and expenses directly or indirectly arising out of or resulting from such shipment. If any such goods shipped with such knowledge and consent shall become a danger to the ship or cargo, they may in like manner be landed at any place or destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to general average, if any. ARTICLE V.Surrender of Rights and Immunities, and Increase of Responsibilities and Liabilities. A carrier shall be at liberty to surrender in whole or in part all or any of his rights and immunities or to increase any of his responsibilities and liabilities under the Rules contained in any of these Articles, provided such surrender or increase shall be embodied in the bill of lading issued to the shipper. The provisions of these Rules shall not be applicable to charterparties, but if bills of lading are issued in the case of a ship under a charterparty they shall comply with the terms of these Rules. Nothing in these Rules shall be held to prevent the insertion in a bill of lading of any lawful provision regarding general average. ARTICLE VI.Special Conditions. Notwithstanding the provisions of the preceding Articles, a carrier, master or agent of the carrier, and a shipper shall in regard to any particular goods be at liberty to enter into any agreement in any terms as to the responsibility and liability of the carrier for such goods, and as to the rights and immunities of the carrier in respect of such goods, or his obligation as to seaworthiness, so far as this stipulation is not contrary to public policy, or the care or diligence of his servants or agents in regard to the loading, handling, stowage, carriage, custody, care, and discharge of the goods carried by sea, provided that in this case no bill of lading has been or shall be issued and that the terms agreed shall be embodied in a receipt which shall be a non-negotiable document and shall be marked as such. Any agreement so entered into shall have full legal effect: Provided that this Article shall not apply to ordinary commercial shipments made in the ordinary course of trade, but only to other shipments where the charter or condition of the property to be carried or the circumstances, terms and conditions under which the carriage is to be performed, are such as reasonably to justify a special agreement. ARTICLE VII Limitations on the Application of the Rules. Nothing herein contained shall prevent a carrier or a shipper from entering into any agreement, stipulation, condition, reservation or exemption as to the responsibility and liability of the carrier or the ship for the loss or damage to or in connection with the custody and

341.care and handling of goods prior to the loading on and subsequent to the discharge from the ship on which the goods are carried by sea. ARTICLE VIII Limitation of liability The provisions of these Rules shall not affect the rights and obligation of the carrier under any Statute for the time being in force relating to the limitation of the liability of owners of seagoing vessels. ARTICLE IX The monetary units mentioned in these Rules are to be taken to be gold value
Outlines Definition of o Contract of Carriage and Classification of Carriers : In the commercial life of any country, the need for carrying goods from one place to another cannot be overemphasised. Also, goods are to be moved from one country to another. For these purposes, a contract of carriage is to be entered into. The persons, organisations or associations which carry goods are known as carriers. Goods may be carried by land (including inland waterways), sea or air. Accordingly, the law relating to carrying of goods is contained in the following enactments: 1. In case of carriage of goods by land: (i) The Carriers Act, 1865. (ii) The Railways Act, 1989. 2. In case of carriage of goods by sea: (i) The (Indian) Bills of Landing Act, 1856. (ii) The Carriage of Goods by Sea Act, 1925. (iii) The Merchant Shipping Act, 1958. (iv) The Marine Insurance Act, 1963. 3. In the case of carriage of goods by air: The Carriage by Air Act, 1972. Wherever there is no specific provision for a particular matter in these statutes, then the Indian Courts resort to English Common Law. Definition of a Contract of Carriage. A contract of carriage of goods is a contract of bailment for reward, or locatio operis faciends. However, the contract of bailment is modified by the different statutes mentioned above in the case of carriage of goods by land, sea or air. Classification of Carriers. Generally speaking carriers are classified into (i) common carriers, (ii) private carriers and (iii) gratuitous carriers. Common Carriers. The Carriers Act, 1865 defines a common carrier as any individual, firm or company (other than the government, who or which transports goods as a business, for money, from place to place, over land or inland waterways, for all persons (consignors) without any discrimination between them. A carrier must carry goods of the consignor for hire and not free of charge in order to be called a common carrier. Further, he must be engaged in the business of carrying goods for others for money from one place to another. A person who carries goods occasionally or free of charge is not a common carrier. Furthermore he is bound to carry goods for all persons (consignors) without any discrimination provided: (i) the freight chargeable by him is paid to him; (ii) there is accommodation on his conveyance; and (iii) there is nothing objectionable or illegal about the carrying of goods of a particular consignor.

If, in spite of the above conditions being satisfied, a carrier reserves to himself the right to accept or reject an offer, he is not a common carrier. It is worth noting that the Carriers Act, 1865 covers only common carriers of goods and not passengers. Private Carriers A private carrier is one who does not transport goods from one place to another regularly; he may engage in some casual jobs of carrying goods for certain selected persons between certain terminals. In fact, he carries his own goods and thats why he is known as a private carrier and not a common carrier. Also, he does not make a general offer to carry goods for any one from one place to another for hire. However, he may enter into a contract with someone to carry goods on the terms agreed upon between them. In such a situation, it is a contract of bailment. Therefore, such transactions are not covered by the Common Carriers Act, 1865. Gratuitous Carrier. When a person carries goods of another free of charge, he is a gratuitous carrier. Similarly a person may give lift in his transport to another person voluntarily without any compensation. Thus a gratuitous carrier may carry not only goods but persons also free of charge. Responsibility of Common Carrier and Bailee. We know that a bailee is responsible only when the goods entrusted to him are lost or damaged due to his fault or negligence. But the responsibility of a common carrier is more onerous; he is to deliver the goods safely. Therefore, in the case of a common carrier, it is immaterial whether the loss or damage to the goods is due to his or someone elses negligence. Distinction between a Common Carrier and a Private Carrier. The distinction between the two is as follows: (i) A common carrier publicly undertakes to carry from place to place the goods of any person who chooses to employ him. A private carrier does not carry regularly from place to place but is an occasional carrier. (ii) A common carrier is bound to carry the goods of any person provided certain conditions are satisfied. A private carrier is free to accept or reject the goods for carriage. (iii) The liabilities of a common carrier are determined by the Common Carriers Act, 1865. A private carriers liability is not determined by the Common Carriers Act, 1865. He is liable as a bailee as given in the Indian Contract Act, 1872. Carriage of Goods by Land As mentioned above, the following two statutes govern the carriage of goods by land: (i) The Carriers Act, 1865. (ii) The Railways Act, 1989. The Carriers Act, 1865. This Act defines the term common carrier and provides for his rights, duties and liabilities. As regards matters not covered by this Act, the rules of English Common Law will apply. Rights of a Common Carrier. His rights are: (i) He is entitled to the settled remuneration and in case no remuneration was settled, to a reasonable remuneration. (ii) He has a right to refuse to carry goods under certain circumstances (as enumerated under the duties of a common carrier). (iii) He has a lien on the goods for his remuneration. He can refuse to deliver them until his charges are paid. (iv) If the consignee refuses to take delivery of the goods, when tendered, the common carrier has a

right, to deal with the goods as he thinks reasonable and prudent under the circumstances. (v) He has a right to recover reasonable expenses incurred by him as a result of the consignees refusal to take delivery. After giving notice to the consignee, the common carrier may even sell perishable goods. (vi) He can recover damages from the consignor if the goods are dangerous or are loosely packed and the carrier suffers injury therefrom. (vii) He can limit his liability subject to the provisions of the Carriers Act. Duties of a Common Carrier. His duties are: 1. A common carrier is bound to carry goods of all persons who choose to employ him. He can, however, refuse to carry goods under the following circumstances: (a) if there is no accommodation in the carriage; (b) if the person employing him is not willing to pay reasonable charges for the carriage of goods; (c) if the goods are such which he is not accustomed to cany; (d) if the goods are to be carried over a route which is not his regular route; (e) if the goods are-dangerous and as such subjecting him to extraordinary risk; (f) if the consignor refuses to disclose the nature of the goods to be carried; and (g) if the goods are not properly packed. If a carrier refuses to carry the goods of a person for any reason other than those mentioned above, he may be held liable for damages. 2. He must carry the goods over the usual and customary route and take all reasonable precautions for their safe carriage. He must not deviate from the usual route unless rendered necessary by exceptional circumstances. 3. He must deliver the goods at the agreed time and if no time had been fixed, within a reasonable time. 4. At Common Law, he is an insurer of the goods in the sense that he warrants to carry the goods safely and securely. Liabilities of a Common Carrier : The liability of a common carrier of goods is laid down in the Carriers Act, 1865. For this purpose, the Act has classified the goods into two categories: (i) Scheduled goods and (ii) non-scheduled goods. The scheduled goods are those which are enumerated in a Schedule to the Act. They are valuable articles like gold, silver, precious stones and pearls, bills and hundis, currency and bank notes, glass, china silk, articles of ivory, time pieces, musical and scientific instruments, etc. All other goods are non-scheduled. For scheduled articles exceeding Rs. 100 in value, the carrier is liable for loss and damage only: (i) if the value and the description of the goods are disclosed by the consignor to the carrier; or (ii) if the loss or damage is due to a criminal act of the carrier, his agent or servant. The carrier can charge extra for carrying scheduled articles, but he cannot limit his statutory liability by any special agreement. As regards non-scheduled articles, a common carrier can limit his liability by special agreement with the consignor. But even in this Section case he will be liable under 8 of the Act (explained below). In case of loss or damage, the claimant must notify the carrier within six months of the date of

knowledge of the loss or damage. Carriage of Goods by Rail Summary of More Important Provisions The carriage of goods by rail is regulated by the Railways Act, 1989. Some of the more important provisions contained in the Act are summarised below: 1. Maintenance of rate books, etc., for carriage of goods (Section 61). Every railway administration shall maintain, at each station and to such other places where goods are received for carriage, the rate books or other documents which shall contain the rate authorised for the carriage of goods from one station to another and make them available for the reference of any person during all reasonable hours without payment of any fee. 2. Provision of rate risks (Section 63). Where any goods are entrusted to a railway administration for carriage, such carriage shall, except where owners risk rate is applicable in respect of such goods, be at railway risk rate. Any goods, for which owners risk rate and railway risk rate are in force, may be entrusted for carriage at either of the rates and if no rate is opted, the goods shall be deemed to have been entrusted at owners risk rate. 3. Forwarding note (Section 64). Every person entrusting any goods to a railway administration for carriage shall execute a forwarding note in such form as may be specified by the Central Government. The consignor shall be responsible for the correctness of the particulars furnished by him in the forwarding note. He shall indemnify the railway administration against any damage suffered by it by reason of the incorrectness or incompleteness of the particulars in the forwarding note. 4. Railway receipt (Section 65). A railway administration shall issue a railway receipt in such form as may be specified by the Central Government: (a) in a case where the goods are to be loaded by a person entrusting such goods, on the completion of such loading; or (b) in any other case, on the acceptance of the goods by it. A railway receipt shall be prima facie evidence of the weight and the number of packages stated therein. 5. Carriage of dangerous or offensive goods (Section 67). No person shall take with him on a railway or require a railway administration to carry such dangerous or offensive goods, unless (i) he gives a notice in writing of their dangerous or offensive nature to the railway servant authorised in this behalf; and (ii) he distinctly marks on the outside of the package containing such goods their dangerous or offensive nature. 6. Liability of railway administration for wrong delivery (Section 80). Where a railway administration delivers the consignment to the person who produces the railway receipt, it shall not be responsible for any wrong delivery on the ground that such person is not entitled thereto or that endorsement on the railway receipt is forged or otherwise defective. 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 summarised below. 1. 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: (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 authorised 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 common carrier vis-a-vis 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. 3. Owners risk rate or railway risk rate (Section 97). A consignment may be carried by a railway administration either at owners risk rate or railway risk rate. Owners risk rate is a special reduced rate whereas railway risk rate is an ordinary tariff rate. Owners risk rate is lower than the railway risk rate for the simple reason that the goods in this case are carried at the owners risk. In case of owners 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. 4. 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. 5. Liability after termination of transit (Section 99). Whether the goods are carried at owners 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 owners 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 nondelivery of articles of perishable goods, animals, explosives and other dangerous goods. 6. 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. 7. Responsibility as a carrier of animals (Section 101). A railway administration shall not be responsible for any loss or destruction of, or injuries to, any animal carried by railway arising from fright or restiveness of the animal or from overloading of wagons by the consignor. 8. 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. Carriage of Goods by Rail Contract of Affreightment* A contract to carry goods by sea is called the contract of affreightment and the consideration or charges paid for the carriage is called the freight. A contract of affreightment may take either of the two forms, namely (i) a charter party, where an entire ship, or a principal part of a ship is placed at the disposal of merchant (known as a charterer); or (ii) a bill of lading where the goods are to be carried in a general ship and the person consigning the goods is known as a shipper. In both these contracts, the ship owner (the carrier) undertakes the responsibility of carrying the goods of a consignor (i.e., either the charterer or the shipper) safely and securely to the destination. A contract of affreightmentwhether in the form of a charter party or a bill of lading is governed by the (Indian) Bills of Lading Act, 1856 and the Carriage of Goods by Sea Act, 1925.

Conditions Contained in a Contract of Carriage by Sea. The terms included in a contract of carriage by sea are of two kinds. These are: (i) Express terms, and (ii) Implied terms. Express terms are those which the parties have specifically agreed to and embodied in the contract. Implied terms are those which law implies in every contract of carriage by sea unless excluded specifically. There are four implied terms: (i) Implied warranty of seaworthiness. The ship owner, when he enters into a charter party for a voyage impliedly warrants that the ship is seaworthy. This is an assurance by the ship owner, at the time of entering into the charter party, that (a) the ship is fit to encounter the ordinary perils of navigation during voyage and (b) to carry the specific cargo. This warranty of seaworthiness extends only to (a) seaworthiness at the time of sailing and (b) fitness at the time of loading the cargo. Once the ship has sailed or the goods are on board, this warranty ceases to operate. But in case the voyage is divided into stages, the ship must be seaworthy at the commencement of each voyage. (ii) Implied warranty of commencement of voyage. Another implied warranty is that the ship shall be ready to commence the voyage and shall carry out the same with all reasonable dispatch and diligence. (iii) Non-deviation of voyage. Also there is an implied condition that there shall be no unnecessary deviation. Deviation means the going off from the settled or the usual or customary course of voyage between the two termini. (iv) Shipper not to ship dangerous goods. The shipper (i.e., the consignor of goods in case the charterer undertakes to carry goods of others under bills of lading) shall not ship dangerous goods. If the shipper ships dangerous goods and if on account of it the charterer suffers any damage, he can recover it from the shipper. Bill of Lading. A bill of lading is a document acknowledging the shipment of goods, signed by or on behalf of the carrier and containing the terms and conditions on which it has been agreed to carry the goods. It is a quasi-negotiable instrument. It is a document of title and can be transferred by endorsement and delivery. It is generally used for the carriage of goods on a general ship, i.e., a ship which is used for the carriage of the goods of several merchants who wish to have them conveyed by her and which is not employed for the carriage of a charterers goods only. Lord Blackburn says, a bill of lading is a writing, signed on behalf of the owner of the ship in which goods are embarked, acknowledging the receipt of the goods and undertaking to deliver them at the end of the voyage, subject to such conditions as may be mentioned in the bill of lading. It is sometimes an undertaking to deliver the goods to the shipper by name, or his assigns, sometimes to order of assigns, not naming any person which is apparently the same thing and sometimes to a consignee by name or assigns, but in all its usual forms it contains the word assigns. A bill of lading may be issued even where the ship is chartered. In such a case charter party will be the document evidencing the contract of affreightment, while the bill of lading would only operate as a mere acknowledgement of the receipt of the goods.

THE CARRIAGE BY AIR ACT, 1972

,CHAPTER ISCOPEDEFINITIONS short title , extent and commencement. (1) This Act may be called the Carriage by Air Act, 1972.(2) It extends to the whole of India. (3) It shall come into force on such date 1* as the Central Government may, by notification in the Official Gazette, appoint. 2.Definitions. 2. Definitions. In this Act, unless the context otherwise requires, (i) amended Convention means the Convention as amended by the Hague Protocol on the 28th day of September, 1955; (ii) Convention means the Convention for the unification of certain rules relating to international carriage by air signed at Warsaw on the 12th day of October, 1929.3.Application of Convention to India. 3. Application of Convention to India. (1) The rules contained in the First Schedule, being the provisions of the Convention relating to the rights and liabilities of carriers, passengers, consignors, consignees and other persons, shall subject to the provisions of this Act, have the force of law in India in relation to any carriage by air to which those rules apply, irrespective of the nationality of the aircraft performing the carriage. 1 15-5-1973, vide Notification No. S. O. 170 (E), dated the 23rd March, 1973, Gazette of India, Extraordinary, Part II, Section 3 (ii), p. 535.82.(2) The Central Government may, by notification in the Official Gazette, certify who are the High Contracting Parties to the Convention, in respect of what territories they are parties and to what extent they have availed themselves of the provisions of rule 36.in the First Schedule and any such notification shall be conclusive evidence of the matters certified therein. (3) Any reference in the First Schedule to the territory of any High Contracting Party to the Convention shall be construed as a reference to all the territories in respect of which he is a party. (4) Any reference in the First Schedule to agents of the carrier shall be construed as including a reference to servants of the carrier. (5) Every notification issued under sub-section (2) of section 2.of the Indian Carriage by Air Act, 1934 (20 of 1934) and in force immediately before the commencement of this Act shall be deemed to have been issued under sub-section (2) of this section and shall continue to be in force until such notification is superseded. 4.Application of amended Convention to India. 4. Application of amended Convention to India. (1) The rules contained in the Second Schedule, being the provisions of the amended Convention relating to the rights and liabilities of carriers, passengers, consignors, consignees

and other persons, shall, subject to the provisions of this Act, have the force of law in India in relation to any carriage by air to which those rules apply, irrespective of the nationality of the aircraft performing the carriage. (2) The Central Government may, by notification in the Official Gazette, certify who are the High Contracting Parties to the amended Convention and in respect of what territories they are parties, and any such notification shall be conclusive evidence of the matters certified therein. (3) Any reference in the Second Schedule to the territory of any High Contracting Party to the amended Convention shall be construed as a reference to all the territories in respect of which he is a party. (4) Any reference in the Second Schedule to agents of the carrier shall be construed as including a reference to servants of the carrier. 5.Liability in case of death. 5. Liability in case of death. (1) Notwithstanding anything contained in the Fatal Accidents Act, 1855 (13 of 1855) or any other enactment or rule of law in force in any part of India, the rules contained in the First Schedule and in the Second Schedule shall, in all cases to which those rules apply, determine the liability of a carrier in respect of the death of a passenger. 83.(2) The liability shall be enforceable for the benefit of such of the members of the passengers family as sustained damage by reason of his death. Explanation.In this sub-section, the expression member of a family means wife or husband, parent, step-parent, grand-parent, brother, sister, half-brother, half-sister, child, stepchild, and grand-child: Provided that in deducing any such relationship as aforesaid any illegitimate person and any adopted person shall be treated or being, or as having been, the legitimate child of his mother and reputed father or, as the case may be, of his adopters. (3) An action to enforce the liability may be brought by the personal representative of the passenger or by any person for whose benefit the liability is under sub-section (2) enforceable, but only one action shall be brought in India in respect of the death of any one passenger, and every such action by whomsoever brought shall be for the benefit of all such persons so entitled as aforesaid as either are domiciled in India or not being domiciled there express a desire to take the benefit of the action. (4) Subject to the provisions of sub-section (5), the amount recovered in any such action, after deducting any costs not recovered from the defendant, shall be divided between the persons entitled in such proportion as the Court may direct. (5) The Court before which any such action is brought may, at any stage of the proceedings, make any such order as appears to the Court to be just and equitable in view of the provisions of the First Schedule or of the Second Schedule, as the case may be, limiting the liability of a carrier and

of any proceedings which have been or are likely to be commenced outside India in respect of the death of the passenger in question. 6.Conversion of francs. 6. Conversion of francs. Any sum in francs mentioned in rule 22.of the First Schedule or of the Second Schedule, as the case may be, shall, for the purpose of any action against a carrier, be converted into rupees at the rate of exchange prevailing on the date on which the amount of damages to be paid by the carrier is ascertained by the Court. 7.Provisions regarding suits against High Contracting Parties whoundertake carriage by air. 7. Provisions regarding suits against High Contracting Parties who undertake carriage by air. (1) Every High Contracting Party to the Convention or the amended Convention, as the case may be, who has not availed himself of the provisions of the Additional Protocol thereto, shall, for the purposes of any suit brought in a Court in India in accordance with the provisions, of rule 28 of the First Schedule, or of the Second Schedule, as the case may be, to enforce a claim in respect of carriage undertaken by him, be deemed to have submitted to the jurisdiction of that Court and to be a person for the purposes of the Code of Civil Procedure, 1908 (5 of 1908). 84.(2) The High Court may make rules of procedure providing for all matters which may be expedient to enable such suits to be instituted and carried on. (3) Nothing in this section shall authorise any Court to attach or sell any property of a High Contracting Party to the Convention or to the amended Convention. 8.Application of Act to carriage by air which is not international. 8. Application of Act to carriage by air which is not international. (1) The Central Government may, by notification in the Official Gazette, apply the rules contained in the First Schedule and any provision of section 3 or section 5 or section 6 to such carriage by air, not being international carriage by air as defined in the First Schedule, as may be specified in the notification, subject, however, to such exceptions, adaptations and modifications, if any, as may be so specified. (2) The Central Government may, by notification in the Official Gazette, apply the rules contained in the Second Schedule and any provision of section 4 or section 5 or section 6 to such carriage by air, not being international carriage by air as defined in the Second Schedule, as may be specified in the notification, subject, however, to such exceptions, adaptations and modifications, if any, as may be so specified. (3) Every notification issued by the Central Government under section 4 of the Indian Carriage by Air Act, 1934 (20 of 1934) and in force immediately before the commencement of this Act shall be deemed to have been issued under sub-section (1) and shall continue to be in force until such notification is superseded.

9.Repeal. CHAPTER I SCOPEDEFINITIONS 1. (1) These rules apply to all international carriage of persons, luggage or goods performed by aircraft for reward. They apply 85.also to such carriage when performed gratuitously by an air transport undertaking. (2) In these rules, High Contracting Party means a High Contracting Party to the Convention. (3) For the purposes of these rules, the expression international carriage means any carriage in which according to the contract made by the parties, the place of departure and the place of destination, whether or not there be a break in the carriage or a transhipment, are situated either within the territories of two High Contracting Parties, or within the territory of a single High Contracting Party, if there is an agreed stopping place with a territory subject to the sovereignty, suzerainty, mandate or authority of another Power, even though that Power is not a party to the Convention. A carriage without such an agreed stopping place between territories subject to the sovereignty, suzerainty, mandate or authority of the same High Contracting Party is not deemed to be international for the purposes of these rules. (4) A carriage to be performed by several successive air carriers is deemed, for the purposes of these rules, to be one undivided carriage, if it has been regarded by the parties as a single operation, whether it has been agreed upon under the form of a single contract or of a series of contracts, and it does not lose its international character merely because one contract or a series of contracts is to be performed entirely within a territory subject to the sovereignty, suzerainty, mandate or authority of the same High Contracting Party. 2. (1) These rules apply to carriage performed by the State or by legally constituted public bodies provided it falls within the conditions laid down in rule 1.(2) These rules do not apply to carriage performed under the terms of any international postal Convention. CHAPTER IIDOCUMENTS OF CARRIAGE Part I.Passenger ticket 3. (1) For the carriage of passengers the carrier must deliver a passenger ticket which shall contain the following particulars: (a) the place and date of issue; (b) the place of departure and of destination;

86.(c) the agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercised that right, the alteration shall not have the effect of depriving the carriage of its international character; (d) the name and address of the carrier or carriers; (e) a statement that the carriage is subject to the rules relating to liability contained in this Schedule. (2) The absence, irregularity or loss of the passenger ticket does not affect the existence or the validity of the contract of carriage, which shall nonetheless be subject to these rules. Nevertheless, if the carrier accepts a passenger without a passenger ticket having been delivered he shall not be entitled to avail himself of those provisions of this Schedule which exclude or limit his liability. Part II.Luggage ticket 4. (1) For the carriage of luggage, other than small personal objects of which the passenger takes charge himself, the carrier must deliver a luggage ticket. (2) The luggage ticket shall be made out in duplicate, one part for the passenger and the other part for the carrier. (3) The luggage ticket shall contain the following particulars: (a) the place and date of issue; (b) the place of departure and of destination; (c) the name and address of the carrier or carriers; (d) the number of the passenger ticket; (e) a statement that delivery of the luggage will be made to the bearer of the luggage ticket; (f) the number and weight of the packages; (g) the amount of the value declared in accordance with rule 22(2) (h) a statement that the carriage is subject to the rules relating to liability contained in this Schedule. (4) The absence, irregularity or loss of the luggage ticket does not affect the existence or the validity of the contract of carriage, which shall none the less be subject to these rules. Nevertheless, if the carrier accepts luggage without a luggage ticket having been delivered, or if the luggage ticket does not contain the particulars 87.set out at (d), (f) and (h) of sub-rule (3), the carrier shall not be entitled to avail himself of those provisions of this Schedule which exclude or limit his liability.

Part III.Air consignment note 5. (1) Every carrier of goods has the right to require the consignor to make out and hand over to him a document called an air consignment note; every consignor has the right to require the carrier to accept this document. (2) The absence, irregularity or loss of this document does not affect the existence or the validity of the contract of carriage which shall, subject to the provisions of rule 9, be nonetheless governed by these rules. 6. (1) The air consignment note shall be made out by the consignor in three original parts and be handed over with the goods. (2) The first part shall be marked for the carrier and shall be signed by the consignor. The second part shall be marked for the consignee; it shall be signed by the consignor and by the carrier and shall accompany the goods. The third part shall be signed by the carrier and handed by him to the consignor after the goods have been accepted. (3) The carrier shall sign an acceptance of the goods. (4) The signature of the carrier may be stamped; that of the consignor may be printed or stamped. (5) If, at the request of the consignor, the carrier makes out the air consignment note, he shall be deemed, subject to proof to the contrary, to have done so on behalf of the consignor. 7. The carrier of goods has the right to require the consignor to make out separate consignment notes when there is more than one package. 8. The air consignment note shall contain the following particulars: (a) the place and date of its execution; (b) the place of departure and of destination; (c) the agreed stopping places, provided that the carrier may reserve the right to alter the stopping places in case of necessity, and that if he exercises that right the 88.alteration shall not have the effect of depriving the carriage of its international character; (d) the name and address of the consignor; (e) the name and address of the first carrier; (f) the name and address of the consignee, if the case so requires; (g) the nature of the goods; (h) the number of the packages, the method of packing and the particular marks or numbers upon them;

(i) the weight, the quantity and the volume or dimensions of the goods; (j) the apparent condition of the goods and of the packing; (k) the freight, if it has been agreed upon, the date and place of payment, and the person who is to pay it; (l) if the goods are sent for payment on delivery, the price of the goods, and if the case so requires, the amount of the expenses incurred; (m) the amount of the value declared in accordance with rule 22(2) (n) the number of parts of the air consignment note; (o) the documents handed to the carrier to accompany the air consignment note; (p) the time fixed for the completion of the carriage and a brief note of the route to be followed, if these matters have been agreed upon; (q) a statement that the carriage is subject to the rules relating to liability contained in this Schedule. 9. If the carrier accepts goods without an air consignment note having been made out, or if the air consignment note does not contain all the particulars set out in rule 8 (a) to (i) inclusive and (q), the carrier shall not be entitled to avail himself of the provisions of this Schedule which exclude or limit his liability. 10. (1) The consignor is responsible for the corrections of the particulars and statements relating to the goods which he inserts in the air consignment note. 89.(2) The consignor will be liable for all damage suffered by the carrier or any other person by reason of the irregularity, incorrectness or incompleteness of the said particulars and statements. 11. (1) The air consignment note is prima facie evidence of the conclusion of the contract, of the receipt of the goods and of the conditions of carriage. (2) The statements in the air consignment note relating to the weight, dimensions and packing of the goods, as well as those relating to the number of packages, are prima facie evidence of the facts stated; those relating to the quantity, volume and condition of the goods do not constitute evidence against the carrier except so far as they both have been, and are stated in the air consignment note to have been, checked by him in the presence of the consignor, or relate to the apparent condition of the goods. 12. (1) Subject to his liability to carry out all his obligations under the contract of carriage, the consignor has the right to dispose of the goods by withdrawing them at the aerodrome of departure or destination, or by stopping them in the course of the journey on any landing or, by calling for them to be delivered at the place of destination or in the course of the journey to a person other than the consignee named in the air consignment note, or by requiring them

to be returned to the aerodrome of departure. He must not exercise the right of disposition in such a way as to prejudice the carrier or other consignors and he must repay any expenses occasioned by the exercise of this right. (2) If it is impossible to carry out the orders of the consignor the carrier must so inform him forthwith. (3) If the carrier obeys the orders of the consignor for the disposition of the goods without requiring the production of the part of the air consignment note delivered to the latter, he will be liable, without prejudice to his right of recovery from the consignor, for any damage which may be caused thereby to any person who is lawfully in possession of that part of the air consignment note. (4) The right conferred on the consignor ceases at the moment when that of the consignee begins in accordance with rule 13.Nevertheless, if the consignee declines to accept the consignment note or the goods, or if he cannot be communicated with, the consignor resumes his rights of dispositions. 90 13. (1) Except in the circumstances set out in rule 12, the consignee is entitled, on arrival of the goods at the place of destination, to require the carrier to hand over to him the air consignment note and to deliver the goods to him, on payment of the charges due and on complying with the conditions of carriage set out in the air consignment note. (2) Uuless it is otherwise agreed, it is the duty of the carrier to give notice to the consignee as soon as the goods arrive. (3) If the carrier admits the loss of the goods, or if the goods have not arrived at the expiration of seven days after the date on which they ought to have arrived, the consignee is entitled to put into force against the carrier the rights which flow from the contract of carriage. 14. The consignor and the consignee can respectively enforce all the rights given to them by rules 12 and 13, each in his own name, whether he is acting in his own interest or in the interest of another, provided that he carries out the obligations imposed by the contract. 15. (1) Rules 12, 13 and 14 do not affect either the relations of the consignor or the consignee, with each other or the mutual relations of third parties whose rights are derived either from the consignor or from the consignee. (2) The provisions of rules 12, 13 and 14 can only be varied by express provision in the air consignment note. 16. (1) The consignor must furnish such information and attach to the air consignment note such documents as are necessary to meet the formalities of customs, octroi or police before the goods can be delivered to the consignee. The consignor is liable to the carrier for any damage occasioned by the absence, insufficiency or irregularity of any such information or documents, unless the damage is due to the fault of the carrier or his agents.

(2) The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents. CHAPTER IIILIABILITY OF THE CARRIER 17. The carrier is liable for damage sustained in the event of the death or wounding of a passenger or any other bodily injury 91.suffered by a passenger, if the accident which caused the damage so sustained took place on board the aircraft or in the course of any of the operations of embarking or disembarking. 18. (1) The carrier is liable for damage sustained in the event of the destruction or loss of, or of damage to, any registered luggage or any goods, if the occurrence which caused the damage so sustained took place during the carriage by air. (2) The carriage by air within the meaning of sub-rule (1) comprises the period during which the luggage or goods are in charge of the carrier, whether in an aerodrome or on board an aircraft, or, in the case of a landing outside an aerodrome, in any place whatsoever. (3) The period of the carriage by air does not extend to any carriage by land, by sea or by river performed outside an aerodrome. If, however, such a carriage takes place in the performance of a contract for carriage by air, for the purpose of loading, delivery or transhipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air. 19. The carrier is liable for damage occasioned by delay in the carriage by air of passengers, luggage or goods. 20. (1) The carrier is not liable if he proves that he and his agents have taken all necessary measures to avoid the damage or that it was impossible for him or them to take such measures. (2) In the carriage of goods and luggage the carrier is not liable if he proves that the damage was occasioned by negligent pilotage or negligence in the handling of the aircraft or in navigation and that in all other respects, he and his agents have taken all necessary measures to avoid the damage. 21. If the carrier proves that the damage was caused by or contributed to by the negligence of the injured person the Court may exonerate the carrier wholly or partly from his liability. 22. (1) In the carriage of passengers the liability of the carrier for each passenger is limited to the sum of 1,25,000 francs. Where damages may be awarded in the form of periodical payments, the equivalent capital value of the said payments shall not exceed 92.1,25,000 francs. Nevertheless, by special contract the carrier and the passenger may agree to a higher limit of liability.

(2) In the carriage of registered luggage and of goods, the liability of the carrier is limited to a sum of 250 francs per kilogramme, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of the value at delivery and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless he proves that that sum is greater than the actual value to the consignor at delivery. (3) As regards objects of which the passenger takes charge him self the liability of the carrier is limited to 5,000 francs per passenger. (4) The sums mentioned in this rule shall be deemed to refer to the French franc consisting of sixty-five and a half milligrammes gold of millesimal fineness nine hundred. 23. (1) Any provision tending to relieve the carrier of liability or to fix a lower limit then that which is laid down in these rules shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract which shall remain subject to the provisions of this Schedule. 24. (1) In the cases covered by rules 18 and 19 any action for damages, however founded, can only brought subject to the conditions and limits set out in this Schedule. (2) In the cases covered by rule 17, the provisions of sub-rule (1) also apply, without prejudice to the questions as to who are the persons who have the right to bring suit and what are their respective rights. 25. (1) The carrier shall not be entitled to avail himself of the provisions of this Schedule which exclude or limit his liability, if the damage is caused by his wilful misconduct or by such default on his part as is in the opinion of the Court equivalent to wilful misconduct. (2) Similarly the carrier shall not be entitled to avail himself of the said provisions, if the damage is caused as aforesaid by any agent of the carrier acting within the scope of his employment. 26. (1) Receipt by the person entitled to delivery of luggage or goods without complaint is prima facie evidence that the same have 93.been delivered in good condition and in accordance with the document of carriage. (2) In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within three days from the date of receipt in the case of luggage and seven days from the date of receipt in the case of goods. In the case of delivery the complaint must be made at the latest within fourteen days from the date on which the luggage or goods have been placed at his disposal. (3) Every complaint must be made in writing upon the document of carriage or by separate notice in writing despatched within the times aforesaid. (4) Failing complaint within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on his part.

27. In the case of the death of the person liable, an action for damages lies in accordance with these rules against those legally representing his estate. 28. An action for damages must be brought at the option of the plaintiff, either before the Court having jurisdiction where the carrier is ordinarily resident, or has his principal place of business, or has an establishment by which the contract has been made or before the Court having jurisdiction at the place of destination. 29. The right of damages shall be extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped. 30. (1) In the case of carriage to be performed by various successive carriers and falling within the definition set out in subrule (4) of rule 1, each carrier who accepts passengers, luggage or goods is subjected to the rules set out in this Schedule, and is deemed to be one of the contracting parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under his supervision. (2) In the case of carriage of this nature, the passenger or his representative can take action only against the carrier who performed the carriage during which the accident or the delay occurred, 94.save in the case where, by express agreement, the first carrier has assumed liability for the whole journey. (3) As regards luggage or goods, the passenger or consignor will have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier who performed the carriage during which the destruction, loss, damage or delay took place. These carriers will be jointly and severally liable to the passenger or to the consignor or consignee. CHAPTER IVPROVISIONS RELATING TO COMBINED CARRIAGE 31. (1) In the case of combined carriage performed partly by air and partly by any other mode of carriage, the provisions of this Schedule apply only to the carriage by air, provided that the carriage by air falls within the terms of rule 1.(2) Nothing in this Schedule shall prevent the parties in the case of combined carriage from inserting in the document of air carriage conditions ralating to other modes of carriage, provided that the provisions of this Schedule are observed as regards the carriage by air. CHAPTER VGENERAL AND FINAL PROVISIONS 32. Any clause contained in the contract and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this Schedule, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void. Nevertheless for the carriage of goods arbitration clauses are allowed, subject to these rules, if the arbitration is to take place in the territory of one of the High Contracting Parties within one of the jurisdiction referred to in rule 28.33. Nothing contained in this Schedule shall prevent the carrier either from refusing to

enter into any contract of carriage, or from making regulations which do not conflict with the provisions of this Schedule. 95.34. This Schedule does not apply to international carriage by air performed by way of experimental trial by air navigation undertakings with the view to the establishment of a regular line of air navigation, nor does it apply to carriage performed in extraordinary circumstances outside the normal scope of an aircarriers business. 35. The expression days when used in these rules means current days, not working days. 36. When a High Contracting Party has declared at the time of ratification of or of accession to the Convention that sub-rule (1) of rule 2 of these rules shall not apply to international carriage by air performed directly by the State, its colonies, protectorates or mandated territories or by any other territory under its sovereignty suzerainty or authority, these rules shall not apply to international carriage by air so performed.

The Carriers Act, 1865


An Act relating to the rights and liabilities of Common Carriers. Preamble. -Whereas it is expedient not only to enable common carriers to limit their liability for loss of or damage to property delivered to them to be carried but also to declare their liability for loss of or damage to such property occasioned by the negligence or criminal acts of themselves, their servants or agents; It is enacted as follows: 2. Interpretation-clause. In this Act, unless there be something repugnant in the, subject or context,-"Common carrier" denotes a person, other than the Government, engaged in the business of 1 [transporting property under multinodal transport document or of] transporting for hire property from place to pace, by land or in land navigation, for all persons indiscriminately; "Person" includes any association or body of persons, whether incorporated or not. 3. Carriers not to be liable for loss of certain goods above one hundred rupees in value, unless delivered as such. No common carrier shall be liable for the loss of or, damage to property delivered to him to be carried exceeding in value one hundred rupees and of the description contained in the Schedule to this Act, unless the person delivering such property to be carried, or some person duly authorised in that behalf, shall have expressly declared to such carrier or his agent the value and description thereof. 4. For carrying such property payment may he required at rates fixed by carrier.

Every such carrier may require payment for the risk undertaken in carrying property exceeding in value one hundred rupees and of the description aforesaid, at such rate of charge as he may fix: Provided that, to entitle such carrier to payment at a rate higher than his ordinary rate of charge, he shall have caused to be exhibited in the place where he carries on the business of receiving property to be carried, notice of the higher rate of charge required, printed or written in English and in the vernacular language of the country wherein he carries on such business. 5. The person entitled to recover in respect of property lost or damaged may also recover money paid for its carriage. In cases of the loss or damages to property exceeding in value one hundred rupees and of the description aforesaid, delivered to such carrier to be carried, when the value and description thereof shall have been declared and payment shall have been required in manner provided for by this Act, the person entitled to recover any money actually paid to such carrier in consideration of such risk as aforesaid. 6. In respect of what property liability of carrier not limited or affected by public notice. Carriers, with certain exception, may limit liability by special contract. The liability of any common carrier for the loss of or damage to any 1[property (including container pallet or similar article of transport used to consolidate goods) delivered] to him to be carried, not being of the description contained in the Schedule to this Act, shall not be deemed to be limited or affected by any public notice; but any such carrier, not being the owner of a railroad or tramroad constructed under the provisions of Act 22 of 1863 (to provide for taking land for works of public utility to be constructed by private persons or Companies, and for regulating the construction and use of works on land so taken) may, by special contract, signed by the owner of such property so delivered as last aforesaid or by some person duly authorised in that behalf by such owner, limit his liability in respect of the same. 7. Liability of owner of railroad or tramroad constructed under Act 22 of 1863, not limited by special contract. In what case owner of railroad or tramroad answerable for loss or damage The liability of the owner of any railroad or tramroad constructed under the provisions of the said Act 22 of 1863, for the loss of or damage to any 1[property including container pallet or similar article of transport used to consolidate goods) delivered] to him to be carried, not being of the description contained in the Schedule to this Act, shall not be deemed to be limited or affected by any special contract; but the owner of such railroad or tramroad shall be liable for the loss of or damage to property delivered to him to be carried only when such loss or damage shall have been caused by negligence or a criminal act on his part or on that of his agents or servants. 8. Common carrier liable for loss or damage caused by neglect or fraud of himself or his agent.

Notwithstanding anything hereinafter contained, every common carrier shall be liable to the owner for loss of or damage to any 1[property including container pallet or similar article of transport used to consolidate goods delivered] to such carrier to be carried where such loss of or damage shall have arisen from the criminal act of the carrier or any of his agents or servants and shall also be liable to the owner for loss or damage to any of such property other than property to which the provisions of Section 3 apply and in respect of which the declaration required by that section has not been made, where such loss or damage has arisen from the negligence of the carrier or any of his agents or servants. 9. Plaintiffs, in suit for loss, damage, or non-delivery, not required to prove negligence or criminal act. In any suit brought against a common carrier for the loss, damage or non-delivery of 1[goods including container pallets or similar article of transport used to consolidate goods) entrusted] to him for carriage, it shall not be necessary for the plaintiff to prove that such loss, damage or non-delivery was owing to the negligence or criminal act of the carrier, his servants or agents. 10. Notice of loss or injury to be given within six months. No suit shall be instituted against a common carrier for the loss of, or injury to, 1[goods including container pallets or similar article of transport used to consolidate goods) entrusted] to him for carriage, unless notice in writing of the loss or injury has been given to him before the institution of the suit and within six months of the time when the loss or injury first came to the knowledge of the plaintiff. 11. State Government to add to the Schedule. The State Government may, by notification in the Official Gazette, add to the list of articles contained in the Schedule to this Act and the Schedule shall, on the issue of any such notification, be amended to have been amended accordingly.

Carriage Of Goods By Land, 1865


The Carriers Act, 1865 and the railways Act, 1890 apply to carriage of goods by land. Carriers act applies only to common carriers as distinguished from private carriers. A common carrier may be any individual, firm or company, which transports goods as regular business for money, over land or inland waterways. A private carrier, carries his own goods and may occasionally carry goods for selected persons. He is not covered by the Carriers Act but by the Indian Contract Act. Rights, Duties and Liabilities of a Common carrier Duties

To receive and carry goods from all corners, indiscriminately To carry the goods safely To carry by his customary route without deviating from it unnecessarily To obey instructions of the consignor To deliver the goods within the agreed time at the stipulated place.

Rights The common carrier has the right to refuse carriage of goods in the following circumstances:

If he has insufficient or no room in his carrier If the goods are of a type other than what he professes to carry If the goods are not required to be carried by his customary route or to his usual destination. If the goods are dangerous to carry or expose him to risk. If the goods to be carried are not offered at a reasonable time and in reasonable manner. If the consignor is not prepared to pay reasonable amount in advance.

Liabilities A common carrier is an insurer of goods, but there are certain exceptions to this rule.

He is not liable for any loss or damage to goods caused by an act of God or natural calamity, like the vehicle being struck by lightening. He has no liability in case of injury caused by "enemies of the state. foreign with whom the country may be at war. He cannot be held responsible for loss due to any inherent vice or natural deterioration of goods in transit. For e.g. evaporation of liquids, deterioration of fruit etc. He is not liable for any loss due to neglect on the part of consignee. Such as defective packing of goods.

Scheduled And Non Scheduled Goods Goods are classified into scheduled and non-scheduled categories. Goods of high value are termed as scheduled goods. For e.g. gold coins, precious stones, currency notes, work of art, articles of ivory or sandalwood. etc. The carrier can charge extra for carrying such costly articles provided their value exceeds Rs. 100 and will be liable for loss or damage only if the value and description of goods has been disclosed by the consignor in advance or if the loss is due to a criminal act of the carrier, his agents or servants. Other types of goods are called non-scheduled goods. Carriage Of Dangerous Goods It is the duty of the consignor to warn the carrier when dangerous goods such as explosives, acids or poisons are booked for carriage. In the absence of such warning, the consignor will be responsible for any probable adverse consequences. Railways

The Indian Railways Act, 1890 lays down the duties and liabilities of the railway administration as a career of goods. These are similar to the duties and liabilities of common careers. Railways Liability Railways are liable for loss, destruction or non-delivery of goods arising from any cause except the acts of God, war or public enemies, fire, explosion or any unforeseen risk, arrest, restraint or seizure under legal process, restrictions imposed by the Central or State Govts, natural deterioration or wastage due to inherent defect, vice or quality of goods; latent defects, and any act of omission or negligence on the part of consignor or his agents. When Does The Liability Terminate? Transit of goods by the railways terminates on the arrival of the goods at the destination and the expiry of free days allowed for unloading of consignment from the railway wagon, without payment of demurrage. The liability of the railways as a carrier terminates with the termination of transit. However, for the period of 7 days after the termination of transit, the railway administration continues to be responsible as a bailee for loss, destruction, damage, deterioration or non-delivery of goods, except where the consignment is at owner's risk rate. After the expiry of 7 days the railways are not responsible

Carriage Of Goods By Sea


Goods transported by sea are governed by the Carriage of Goods by Sea Act, 1925 and the (Indian) Bills of Lading Act, 1856. Besides, the Merchant Shipping Act, 1958 and the Marine Insurance Act, 1963 are also applicable. Here we shall confine our discussion to the first two of the above mentioned Act. A contract of carriage of goods by sea is called a contract of affreightment and the consideration for carriage is called the freight. A contact of affreightment may take the form of a Charter Party where an entire ship is hired, or a Bill of Lading, where the goods are to be carried in a general ship which can be used for this purpose by any person. In both these contracts, the ship owner as the carrier undertakes the responsibility of carrying the goods of the consignor safely and securely to the destination. Conditions Implied In a contract for carriage of goods by sea, the following conditions are implied:

Seaworthiness - This means that the ship is reasonably fit to encounter the 'perils of the sea'. This is an absolute undertaking warranted by the shipowner. Seaworthiness is a relative term meaning that the ship is fit to undertake the particular voyage and to carry the particular cargo. Commencement of Voyage - The ship shall be ready to load the cargo and commence the voyage agreed on without undue delay and shall also complete the voyage with all reasonable dispatch. Non-deviation of Voyage - It means that if the ship does not carry out the voyage by the prescribed or usual route in the customary manner, the contract becomes void from the

beginning of the voyage, no matter when and where the deviation from the usual route took place. Dangerous Goods not to be Shipped - If the shipper ships dangerous goods and if on account of this, the charterer suffers any damage, he can recover the same from the shipper.

Charter Party A charter party is a contract providing for a hiring of a whole ship. Its terms may amount to a leasing of the ship, when the master and the crew of the ship become the servants of the charterer. A charter party may be for a particular period, or for a particular voyage. In the former case it is called a time charter party and in the latter case, a voyage charter party has no specific form; the form varies from trade to trade depending on the customs of the trade. Bill Of Lading A bill of lading is issued when goods are delivered for carriage to a general ship, which offers to carry them. The position of the owner of a general ship is that of a common carrier. A bill of lading may be used even when a ship is chartered. A bill of lading acknowledges the receipt of goods is a document of title to the goods and is also a contract of carriage of goods. A bill of lading, as a document of title to the goods, can be transferred to another person by endorsement and delivery. This characteristic of a bill of lading resembles that of a negotiable instrument, but in the strict legal and technical sense it is not a negotiable instrument. It may be said that it is negotiable only in the popular sense. Delivery Of Goods The prime duty and obligation of a carrier by sea is to deliver the goods to the holder of the bill of lading, provided proper payment of freight has been made. Bill of lading is commonly drawn in a set of three copies, one of which is sent to the consignee, the second is for the ship's master and the consignor retains the third. Shipowner's Liaen In the event of non-payment of freight and other charges, the shipowner has a right of lien on the cargo. He is thus entitled to retain the goods in his possession until the dues are paid. His lien exists independently of any express agreement in this regards, but ceases upon the delivery of goods.

Carriage Of Goods By Air, 1972


The Carriage by Air Act, 1972 governs the carriage of goods by air. The provisions of this Act apply to domestic flights in the same manner, as they are applicable to international flights carrying cargo. The various documents relating to carriage by air are briefly described hereunder. Passenger Ticket

The Passenger Ticket issued by a carrier must show


I. II. III. IV. V. the place and date of issue, places of departure and destination, the agreed stopping place, the name and address of the carrier, and the statement that the carriage is subject to the liabilities mentioned therein.

The absence or loss of passenger ticket does not affect the validity of the contract of carriage, but if the carrier accepts a passenger without a ticket, he cannot enjoy the benefit of limiting his liability.

Baggage Check For the carriage of baggage, the baggage check, made out in duplicate must contain the following particulars:
1. 2. 3. 4. 5. 6. 7. 8. The place and date of issues Places of departure and destination, Name and address of the carrier or carriers, The number of passenger tickets, A statement that the baggage will be delivered to the bearer of baggage check, The number and weight of the package, The amount of the value declared in accordance with Rule 22 (2), and A statement that the carriage is subject to rules relating to liability stated therein.

If the baggage check does not contain the particulars set out in (d), (f) and (h) above, the carrier shall not be entitled to the benefit of rules limiting liability. Air Way Bill This is a document handed over by the consignor to the carrier along with the goods. The Air Way Bill is prepared in triplicate, the first copy being for the carrier, the second which must accompany the goods, is for the consignee and the third is to be retained by the consignor, after the carrier has signed it in token of acceptance of goods. The Air Way Bill must contain the specified particulars for the correctness of which the consignor is responsible and he will be liable for all damages suffered due to the incompleteness of the particulars. The Air Way Bill is the prima facie evidence of the conclusion of contract of carriage, of the receipt of goods as well s the statement relating to the weight, dimensions, packing of the goods and the number of package. Limitation of Carrier's Liability In India the liability of internal or domestic carriers (e.g. Indian Airlines) for passengers and their baggage has been fixed as follows:
1. In the case of passengers 2,50,000/- francs* per passenger ; 2. For registered baggage and cargo 250* francs per kilogram, and 3. For articles in the charge of the passenger himself 5000* francs per passenger.

As per international regulations and for the purpose of ascertaining liability the prevailing exchange rate is used by courts. A carrier cannot reduce his liability but may undertake a higher liability by a special agreement. In the case of damage, the person entitled to delivery must complain to the career forthwith after discover of damage and at the latest within 3 days from the date of receipt of luggage. In case of delay in delivery of goods the complaint must be lodged within 14 days from the date on which the goods have been actually delivered.