C
Commercialpedia Indian Railways commercial circulars and policies

COMPENSATION FOR LOSS, DAMAGE ETC. OF

Study materialclaims

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TypeCommercial Circular
Topicclaims

Summary

Accordingly, a claims case which becomes three years old is termed as suit-

Text of the circular

COMPENSATION FOR LOSS, DAMAGE ETC. OF 
GOODS/ANIMALS  
What is a Railway Claim (Goods/Animals) - 
 
A railway claim may be defined as a formal demand by the rightful claimant for 
compensation in respect of the goods or animals entrusted to the Railway 
Administration for carriage from one station to the other and that have not reached the 
destination in the condition handed over by virtue of -  
a)  
Complete non-delivery of the consignment.  
b)  
Partial delivery of the consignment. 
c)  
Pilferage, damage, deterioration of packages.  
d)  
Rotting of perishables like fruits and vegetables. 
  
False Claims 
 
Section 149: Making a false claim for compensation  
 
If any person requiring compensation from a railway administration for loss, 
destruction, damage, deterioration or non-delivery of any consignment makes a claim 
which is false or which he knows or believes to be false or does not believe to be true, 
he shall be punishable with imprisonment for a term which may extend to three years, 
or with fine, or with both.  
 Time-barred claims 
 
As per the provision in Section 106 of the Railways Act, 1989, claims for non-
delivery or partial delivery or damage of consignment has to be filed within 6 months 
from the date of booking of the consignment. After expiry of the period of six months, 
the case becomes time-barred and are generally not entertained. The General Managers 
of zonal railways are however, empowered to settle time-barred cases at their 
discretion after satisfying themselves about the reasonableness of late filing of claims.  
Suit-barred claims 
 
The definition of suit-barred cases may be seen in the light of item Nos. 10 & 11 
of Part II of the schedule of the Indian Limitation Act 1963 which read as under : 
Description of Suit  
Period of 
Limitation  
Time from which 
period starts  
10. Against a carrier for compensation 
for losing or injuring goods 
Three years 
When the loss or 
injury occurs 
11. Against a carrier for compensation 
for non-delivery of, or delay in 
delivering goods 
Three years 
When goods ought 
to be delivered

Accordingly, a claims case which becomes three years old is termed as suit-
barred and thus, no suit can be filed against the railways in regard to that case. The 
reasons for the case becoming three years old may be many i.e. for want of relevant 
documents (not accompanying the claims notice), for want of some clarification from 
the party, etc. after which the claims is normally repudiated. However, in some cases, 
the delay in settlement of claims is on account of the railways i.e. for want of report of 
the tracing inspectors, for fixing of Inter-railway liability & Staff responsibility, etc. 
resulting in the case becoming suit-barred. Such cases are however, not repudiated 
casually as suit-barred but are decided on merit of the case. The General Managers of 
zonal railways enjoy the discretionary powers for waiver of suit-bar aspect.   
 Not Received Cell  
 
In order to achieve the objective of giving better after-sale service to the 
customers, the Indian Railways have established "Not Received Cells (NR Cells) at 
Divisional & Zonal level. The duty of these Cells involve tracing and connecting 
consignments which do not reach the desired destination within reasonable transit-
time. For even better monitoring of cases, an NR Cell is also working at Railway 
Board. An aggrieved customer can directly contact the NR Cell/concerned officer on 
phone or by E-mail.  
N R Cell 
          Phone. No.            Fax. No. 
       E-mail 
 
Railway Board            011-3384416          011-3386950    dtcclaim@rb.railnet.gov.in 
          011-3303850  
                   nrcell@rb.railnet.gov.in  
          011-3303858 
 
   
West Central Railway   9752415977         0761-2677072  
Jabalpur  
          0761-2627480      0761-2678280 
Bhopal                          0755-2454602      0755-2457166 
Kota                              0744-2467021      0744-2467160   
   

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