Unit-01, PPT-01

B.A.LL.B & BB.A,LL.B Semester- VII

Law of Carriage,
Transportation and Insurance
Laws governing Carriage in India

The Carriers Act, 1865 (Repealed)

• The Carriage by Road Act, 2007
• The Railway Act, 1989

.
•Warsaw and Montreal Conventions
•The Carriage by Air Act, 1972

.
• The Carriage of Goods by Sea Act, 1925
• The (Indian) Bills of Lading Act, 1856
• The Merchant Shipping Act, 1958
Historical Development

 Until the development of railroads, the most prominent mode of

transport was by water. Overland transportation of goods was
relatively slow, costly, and perilous. For this reason, the law
governing carriage of goods by sea developed much earlier than
that governing inland transportation.
 The pre-classical Greek city-states had well-developed laws
dealing with the carriage of goods by sea, along with specialized
commercial courts to settle disputes among carriers, shippers, and
consignees.
 Transportation in Ancient Time

Pre classical Greek City

Indus Valley
Sea was the
prominent
way of
Transportat
ion
Legislation in Europe

 The pre classical Greek city-states had well-developed laws dealing

with the carriage of goods by sea, along with specialized commercial
courts to settle disputes among carriers, shippers, and consignees.

 The sea laws of the island of Rhodes achieved such prominence that

a part of them was carried, many centuries later, into the legislation
Code of Justinian, Latin Codex
of Justinian. Justinianus, formally Corpus Juris Civilis
(“Body of Civil Law”), collections
of laws and legal interpretations
developed under the sponsorship of the
emperor Justinian.
Historical Development

 In English common law the principles applying to the relationship

between the carrier and his customers go back to a time when neither
railways nor canals existed.
 Early English decisions imposed on carriers the obligation not only to

carry goods but to carry them safely and to deliver them in good
condition to the owner or his agent.
 The carrier was always liable for the loss of the goods and also liable
for any damage to the goods, unless he could prove that the loss or
damage had resulted from an excepted cause.
Historical Development continue....

 This duty of the carrier to deliver the goods safely was considered to
exist without regard to obligations arising under any contract
between the parties.
 In legal language, this meant that the carrier was considered to be a
bailee, who, in certain circumstances, was liable to the bailor if he
failed to deliver the goods intact.
 This law of bailment developed in England long before the law of
contract. The contractual element of bailment was not stressed until
after the 17th century.
 … carriage as a species of the contract for the hire of services and
further subjected carriers to the same obligations as depositaries;
but the French Commercial Code of 1807 established a special legal
regime for professional carriers, making the contract of carriage a
distinct contractual form.
The Carriers Act, 1865 (In India)

 The Carriers Act, 1865 was passes at a time when the profession of
carrying goods or passengers was growing and the carriers had an open
opportunity to contract out of liability . Even for negligence or
misconduct with the result that the consignor were left wholly at their
mercy.
 Now The Carriers Act does not permit exclusion of liability in such
cases.
 This Act was the first statutory enactment in India for common carriers.
 Rights and liabilities of a common carrier were defined under the Act.
The Carriers Act, 1865 (In India)

 The Act enabled a common carrier to limit his liability by a special

contract if he chose to do so, except in case of loss caused by a
criminal act, negligence or misconduct. Else, his liability was absolute
as an insurer to the extent of value of goods of Rs. 100, and above
that if a higher value was declared by the consignor.
 No suit could be filed against a common carrier for loss, unless notice
in writing was given to him within six months of loss or injury being
known.
Carriage by Road Act, 2007 Overview

 The Carriage by Road Act, 2007 was passed to repeal the original Carriers
Act, 1865 as it had become obsolete.
 The Carriage by Road Act, 2007 received the President’s assent on 29th
September 2007 and was notified on 1.10.2007. The Act will come into force
on 1st March 2011. The Ministry of Road Transport and Highways, has
framed draft Rules under this Act namely “Carriage by Road Rules 2010” .
 The Act contains only 22 sections and envisages a central registration unit
for all common carriers and imposes deterring penalty on common carrier
for violation of provisions of the Act.
Continue....

 This Act provides for the regulation of common carriers, limiting their
liability and declaration of value of goods delivered to them to
determine their liability for loss, or damage to, such goods
occasioned by their negligence or criminal acts, their servants or
agents and for incidental matters.
 Carriage by Road Act 2007 does not apply to the Government or
private carriers.
Continue....

 This Act provides for the regulation of common carriers, limiting their
liability and declaration of value of goods delivered to them to
determine their liability for loss, or damage to, such goods
occasioned by their negligence or criminal acts, their servants or
agents and for incidental matters.
 Carriage by Road Act 2007 does not apply to the Government or
private carriers.
Features of the Act-
The Act:
(a) Provides for registration of common carriers;
(b) Provides for execution of a goods forwarding note which describes goods, and
goods receipt;
(c) Allows limits of liability of common carriers, except in case of loss caused by
criminal act;
(d) Provides that consignor/consignee need not prove negligence;
(d) Regulates the carriage of dangerous and hazardous goods;
(e) Provides that no suit can be filed against a common carrier for loss, unless
notice in writing is given within 180 days from date of booking of the
consignment.
Common Carrier- Sec 2 (a)

common carrier” means a person engaged in the business of-

collecting, storing, forwarding or distributing goods to be carried by
goods carriages under a goods receipt or transporting for hire of goods
from place to place by motorised transport on road, for all persons
indiscriminatingly and includes a goods booking company, contractor,
agent, broker and courier agency engaged in the door to- door
transportation of documents, goods or articles utilising the services of a
person, either directly or indirectly, to carry or accompany such
documents, goods or articles, but does not include the Government.
Ingredients

Business •collecting, storing, forwarding or distributing goods

•to be carried by goods carriages

Receipts •under a goods receipt or

•transporting for hire of goods from place to place

Mode •by motorised transport on road, for all persons undiscriminatingly

•includes a goods booking company, contractor, agent, broker and courier agency
Case- Ingate V Christie
 It was explained-
“Everybody who undertakes to carry for
anyone who asks him, is a common carrier. The criterion is, whether
he for a particular person only, or whether he carries for every one. If
a man holds himself out to do it for every one who asks him, he is a
common carrier; but carries for you and me only, that is a matter of
special contract.”
Classification of Carriers

 Carriers can be classified as:

i. Common carriers;
ii. Private carriers;
iii. Independent carriers; or
iv. gratuitous carriers.
Private carriers

A private carrier is distinguished from a common carrier whose

primary business is the transport of goods, and which is in business to
serve any customers that hire them, such as buses, railroads, trucking
companies, airlines and taxis. Private carriers may refuse to sell their
services at their own discretion, whereas common carriers must treat
all customers equally.
A private carrier is a company that transports only their own goods.
Usually the carrier's primary business is not transportation but rather
something else. A private carrier does not make a general offer to
carry goods for any one from one place to another for hire.
Continue...

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 Carriage by Road Act 2007.
Independent Carrier -

 Independent carrier is an individual owner-operator or trucker who

may make deals with private carriers, common carriers, contract
carriers, or others as he or she wishes.
 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.
 It is to be noted that the Carriage by Road Act 2007 does not apply to
the Government. Also though the liabilities of a common carrier are
determined by the Carriage by Road Act 2007, a private carrier’s
liability is not determined by this Act. He is liable as a bailee as given
in the Indian Contract Act, 1872.
In Next PPT