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CHAPTER XXI CLAIMS FOR COMPENSATION AND FOR REFUNDS OF OVERCHARGES 2101

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TypeCommercial Circular
Topicclaims
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Official PDFindianrailways.gov.in

Summary

of overcharges and payment of compensation claims, should

Text of the circular

CHAPTER XXI
CLAIMS FOR COMPENSATION AND FOR 
REFUNDS OF OVERCHARGES
2101. Prevention of claims for compensation.—
Loss, destruction, damage, deterioration or non-delivery of animals
and goods booked by rail not only involves claims for compensation
but also results in loss of public goodwill. As such, reduction in the
claims bill will be one of the indices of efficiency of the railway.
Every effort must, therefore, be made by staff at all levels to
reduce railway's claims bill.
2102. General responsibility of the railway administration.—
In terms of section 93 of the Railways Act, 1989, a railway
administration is responsible for the loss, destruction, damage,
deterioration or non-delivery of animals or goods delivered to the
administration for carriage by railway arising from any cause except
the following :—
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CHAPTER XXI  CLAIMS FOR COMPENSATION AND FOR REFUNDS OF OVERCHARGES  2101
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(a) act of God;
(b) act of war;
(c) act of public enemies;
(d) arrest, restraint or seizure under legal process;
(e) orders or restrictions imposed by the Central Government or a
State Government or by any officer or authority subordinate to the
Central Government or a State Government authorized in this
behalf;
(f) act or omission or negligence of the consignor or the consignee
or the endorsee or the agent of servant of the consignor or
consignee or the endorsee.
(g) natural deterioration or wastage in bulk or weight due to
inherent defect, quality or vice of the goods;
(h) latent defects; and
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CHAPTER XXI  CLAIMS FOR COMPENSATION AND FOR REFUNDS OF OVERCHARGES  2101
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(i) fire, explosion or any unforeseen risk.
Where such loss, destruction, damage, deterioration, or non-
delivery is proved to have arisen from any one or more of the
aforesaid causes, the railway administration can seek protection
from liability for compensation only, if the administration further
proves that it has used reasonable foresight and care in the
carriage of the animals or goods.
2103. Liability after termination of transit (Section 99 of the
Railways Act, 1989). (a) The measure of railway's liability
referred to in Para 2102 lasts only while the consignments is in
transit. After termination of transit, the railways become liable only
as bailee under sections 151, 152 and 161 of the Indian Contract
Act and that also for a period of 7 days after the termination of
transit. If the consignment is not taken delivery of within 7 days of
the termination of transit, no liability whatsoever will attach to the
railway. If the consignment is at owner's risk rate the railway shall
not be responsible as bailee unless misconduct on the part of the
railway is proved.
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CHAPTER XXI  CLAIMS FOR COMPENSATION AND FOR REFUNDS OF OVERCHARGES  2101
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(b) The railways have no responsibility even that of a bailee after
termination of transit in the case of— 
(i) explosives and other dangerous goods; 
(ii) animals; and
(iii) articles prescribed in Part I of Schedule II of Railways (Extent
of Monetary Liability and Prescription of Percentage Charge) Rules,
1990.
(iv) pertshable goods.
2104. Liability in respect of consignments booked at owner's
risk rate.—In the case of goods booked at owner's risk rates, the
railway administration is not responsible for loss, destruction,
damage or deterioration or as bailee during the period of 7 days
after the termination of transit except on proof of negligence or
misconduct as is the position while such traffic is in the course of
transit.
2105. Liability in respect of consignments booked to sidings.
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CHAPTER XXI  CLAIMS FOR COMPENSATION AND FOR REFUNDS OF OVE

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