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Consignments booked by rail c an sometimes get lost or damaged in transit. In such cases

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TypeCommercial Circular
Topicclaims
CurrencyCurrency not verified

Summary

value of the consignment the monetary liability for the consignment shall not exceed such amount

Text of the circular

254
Section - 6
1.
Consignments booked by rail c  an sometimes get lost or damaged in transit. In such cases,
claims for compensation can be lodged with the Railways. Liability of the Railways as carrier is
contained in section 93 to 112 of the Railways Act, 1989. Certain other sections of the Railways
Act having a bearing on the subject are Section 64,65,67,69,76,80 & 81. The main sections are
explained below-
General responsibility of Railways as carrier of goods
2.
General responsibility of Railways as carrier of goods is contained in section 93 of the
Railways Act 1989, which is reproduced below :
“93. General responsibility of a railway administration as carrier of gods. – save as otherwise
provided in this Act, a railway administration shall be responsible for the loss, destruction damage
or deterioration in transit, or non-delivery of any consignment, arising from any cause except the
following namely :-
(a)
act of God;
(b)
act of war;
(c)
act of public enemies;
(d)
arrest, restrain or seizure under legal process;
(e)
order or restrictions imposed by the Central Government or a State Government or by
an officer or authority subordinate to the central Government or a State Government
authorized by it in this behalf:
(f)
act or omission or negligence of the consignor or the consignee or the endorsee or the
agent or servant of the consignor or the consignee or  the endorsee;
(g)
natural deterioration wastage in bulk or weight due to inherent defect, quality or vice of
the goods;
(h)
latent defect;
(i)
fire, explosives or any unforeseen risk; Provided that even 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 shall not be relieved of its responsibility
for the loss, destruction, damage, deterioration or non-delivery unless the railway
administration further proves that it has used reasonable foresight and care in the carriage
of the goods”
Part VI- Claims and Liability of Railways as carriers

255
Section - 6
Responsibility for goods delivered at a siding
3.
Section 94 of the Railways Act provides that when consignment is to be delivered at a
private siding, the railway Administration shall not be responsible for loss, destruction, etc. after
the wagon containing the consignment has been placed at the specified point of inter-changed
and the owner of the siding has been informed accordingly. Thus a siding holder has to point out
the shortages, if any at the point of interexchange at the time of placement of the wagon and if he
fails to do so the Railway do not agree to any further responsibility.
Responsibility for goods carried at owner’s risk rate
4.
Owner risk rate is lower than the Railway risk rate. Therefore,  according to section 97 of
the Railways Act. For goods booked at owner’s risk rate, Railway do not accept any responsibility
for loss etc. except on proof that such loss etc. occurred due to misconduct of Railways. Thus in
such   cases the burden of proof lies on the claimant.
Delay or retention in transit
5.
Section 95 of the Railways Act 1989 gives exemption from responsibility for loss etc.
caused by delay or dentention in transit, if it could be proved that the delay or detention arose for
reasons beyond the control of Railways and no misconduct or negligence on the part of their staff
etc. was involved.
Good in defective condition or defectively packed
6.
Section 98 of the Railways Act 1989 frees Railways from liability for goods in defective
condition or defectively packed until negligence or misconduct on the part of the railway
administration or of any of its servants is proved.
Liability after termination of transit
7.
Definition of transit as contained in section 2(21) of the Railways act 1989 is reproduced
below:-
“section 2(21)-”In transit” in relation to the carriage of goods by railway, means the period
between the commencement  and the termination of transit of such goods, and unles

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