CARRIER LIABILITYSubmitted to : Submitted By:Dr. V.B. Patel Shiv Chevli (08)

Alok Parmar (18)Harsh Naik (14)

INTRODUCTION

The party who undertake to carry the goods or people for payment is called Carrier, e.g. Railway, steamship, aircraft company.

Carriers are classified under two categories :1) Common Carriers & 2) Private

Carriers The Carriage of goods may take place either

by land or by sea or by air. There are three categories of laws.1. Laws related to carriage by land.2. Laws related to carriage by sea.3. Laws related to carriage by air.

CONTRACT OF CARRIAGE

A contract where by person or company agrees to carry goods or people from one place to another in return for payment is known as Contract of Carriage.

Laws related to carriage by land:1. The common carriers Act, 18652. The Indian Railways Act, 1890

Common Carriers :- The common carrier Act,1865 defines a common carrier “as a person or body of persons whether incorporated or not (other than government), engaged in the business of transporting goods for hire from place to place, by land or inland navigation, for all persons indiscriminately who think fit to employ him.”

Private Carriers :- A private carrier is one who makes no general offer, but carries goods as a casual operation and not as a business and for particular persons on special terms, mutually agreed upon. He enjoys the discretion of accepting or rejecting any proposal for carriage of goods.

A common carrier can law fully refuse to carry the goods under the following circumstances:

1. If there is no space in his vehicle.2. If there goods are not of the type he actually

professes to carry,3. If the goods are of dangerous nature and

subject him to some extra ordinary risk.4. If the destination, to which the goods are to

be carried is not on his normal route.5. If reasonable charges for the carriage are

not paid.6. If goods are not properly packed.

DUTIES OF COMMON CARRIERS The Common Carrier Act, 1865 impose the following

duties for the common carrier:1. A Common Carrier is bound to carry goods of the class

which he holds himself out as being ready to carry, along his usual route, for any persons offering to pay hire, unless his vehicle is already full or the goods are inadequately packed.

2. A Common Carrier must follow the customary or agreed route. He must not deviate from it unless rendered necessary.

3. He must carry the goods with reasonable care.4. The carrier must deliver the goods at the place of

destination at the agreed time or (if no time had been agreed upon) within a reachable time.

5. When goods are in transit, the carrier is bound to obey the instructions of the consignor as to alteration of delivery.

RIGHTS OF COMMON CARRIER:

1. A common carrier is entitled to the agreed remuneration or (if nothing had been agreed upon) to a reasonable remuneration for his services. He can demand payment in advance as well.

2. He has a right to retain the goods and refuse delivery thereof until the changes for the carriage are paid.

3. On refusal to accept delivery of the goods by the consignee, the carrier is entitled to take such steps as are reasonable in the circumstances. He can sell goods if they are of a perishable nature or store them in a warehouse. He can recover warehousing expenses etc., from the consigner.

4. He can recover damages from the consignor for loss suffered by him because of dangerous nature of goods but not being explained to him by the consignor.

LIABILITIES OF COMMON CARRIER:

The Indian carrier act has classified the goods for the purpose of carrier’s liability into two categories:1. Scheduled goods, and 2. Non – Scheduled goods.

Scheduled goods include valuable goods such as gold, silver, precious stones, pearls, jewelry, bills, currency notes, opium, Government securities etc.

Regarding the liabilities of a customer carrier in respect of the two classes of goods, the provisions of the Act can be summed up as follows:

1. As regards non – scheduled goods, the common carrier is not liable for any loss or damage to the goods carried by him, unless there is negligence on his part. But he may limit his liability by a special agreement with the consignor. He can also increase his liability by agreement.

2. As regards the scheduled goods where the value of such goods exceeds Rs. 100/-, the carrier cannot be held liable, even in spite of negligence on his part; if the value and description of the goods have not been so declared expressly by the consignor. The carrier will be liable for loss caused by his negligence. But he cannot limit his liability by any special agreement with the consignor (in case of scheduled goods). He is however, entitled to charge extra freight for carrying scheduled goods he can also increase the liability to that of an insurer by agreement.

3. The carrier is always liable (whether the goods are scheduled or non – scheduled) for loss or damages to the goods caused by any criminal act (i.e., deliberate wrong like Theft) of the carrier himself; his servant or agent and for unlawful acts misfeasance (i.e., converting the goods to his own use or knowingly delivering them to wrong person). This laterality also cannot be avoided by a special agreement with the consignor.

Forwarding note:Every consignor of goods or animals has to prepare a note called forwarding note or consignment note. It contains the description of the goods, number of packages, weight, names and addresses of the consignor and the consignee and the liability of railway and freight paid and freight to pay.o Fright Paido Fright to Pay

DEFINITION: ACCORDING TO SECTION 3 OF THE RAILWAY ACT 1890 “RAILWAY OR ANY PORTION OF RAILWAY FOR A PUBLIC CARRIAGE OF PASSENGERS, ANIMAL OR GOODS”

Railway Receipt (R/R): On submission of the forwarding note to the railway ‘parcel office’ the consignor is given a receipt acknowledging the goods with an undertaking to carry them in accordance with the terms and conditions.

1) Duty to provide facility2) Duty to treat equally3) Duty to follow directions

DUTIES OF RAILWAY ADMINISTRATION

1)Liability at ‘railway risk’ :If the consignment is at railways risk the

railway is responsible for any loss, destruction in transit arises. Except

Act of God Act of war Fire explosion and any unforeseen risk

LIABILITIES OF RAILWAY’S ADMINISTRATION

2) Liability at ‘owners risk’ : If the goods are carried by

railway at ‘owner’s risk’ it is not liable for any loss or damage of goods unless its proved that such loss was due to negligence or mishandling by its servant.

3) Liability for delay or detention in transit : A railway is not

responsible for loss, destruction, damage or deterioration or animals or goods caused by delay or detention unless the proved negligence or misconduct of railway.

4) Liability for wrong delivery: where railway

delivers the goods or animals in a good faith to the person who produces the original railway receipt.

5) Liability after termination of transit:

transit terminates on the expiry of the free time allowed for uploading the good. The liability of railway administration during seven days after the termination of transit is the same as that of a bailee under contract act.

6) Liability as a carrier of animals: In case of

animals, the liability of railway administration for loss or damage etc. shall not exceed:

Elephant Rs.50000 Horned cattle or camel Rs.15000

Horse Rs.10000 Dog, Donkey, Goat or Bird Rs.1000

7) Liability in carriage of passengers luggage: A railway is not liable

for the personal luggage of a passenger which has not been booked and the passenger takes with him at his own risk.

8) Liability in article of special value: when the package or parcel of

which the value has been declared, the compensation for loss shall not exceed the value so declared.

9) Liability in case of accident of passenger: If a passenger dies or is

injured as a result of railway accident, the railway shall be liable to pay Rs.100000 to the heirs of deceased and Rs.10000 to the injured passenger.

10) Liability in case of accident of a person other than passenger:

The railway shall be liable for to pay Rs100000 to heirs of the deceased and Rs.10000 to the injured. If the accident is proved to proved to have occurred due to railway’s negligence.

11) Responsibility in case of goods falsely described:

A railway shall not be responsible for the loss, destruction or deterioration of any goods which have been falsely declared.

12)Notification of claim: A person shall not be entitled to a refund

of an overcharge in respect of animals or goods carried by railway or to compensation for the loss, destruction or deterioration of animals or goods unless his claim has been made in writing within six months from the date of deliver of the animals or goods.

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