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:

Act of God -

This term signifies some convulsion of nature so extraordinary and overwhelming that it could not have been foreseen or, if foreseen, could not have been guarded against. When loss, injury etc. are caused directly and exclusively by some convulsion of nature without any human intervention, liability for such loss etc., will not attach to the carrier, such loss or injury having been caused by an Act of God. For example a horse was killed by lightning while being carried in the usual way in horsebox. It is an accident, which may happen again, but it is something against which the Railway cannot accept to guard on which the railway will not be able to prevent. A tempest of extra-ordinary violence or an extra-ordinary high tide would be Acts of God exonerating the railway from liability for loss, destruction, etc., arising from such cause, if otherwise reasonable foresight and care have been taken in the carriage of the affected consignments. A certificate regarding affected areas be obtained by Station Master from meteorological department, civil authorities, copy of which be sent to claim office along with the MGRs.

Act of War -

The term includes those occurrences which are directly associated with War. In includes not only the action of the army of a belligerent nation but almost the action of the fighting forces of the country itself. For example, a consignment is lost either because it fell within the power of the enemy, or is destroyed due to aerial bombing from enemy aircraft. In either case, the loss is due to an Act of War. Even when troops belonging to the army of the country of the carrier find it necessary to destroy wagonloads of petroleum in a yard in order that they may not fall in enemy hands, it would be a loss caused by an act of War absolving the railway of any liability. A certificate regarding areas of affect be obtained by Station Master from Civil Authorities, copy of which be sent to Claim Office along with MGRs.

Act of Public Enemies -

The expression 'Public Enemy' has been explained as under by Max J. Givertyman, in his book entitled "Law of Transportation in its relation to transportation insurance". "The public enemy means a nation at war with our own country. It does not mean a band of thieves or murders or mob of strikers or gangs or organized or unorganized criminals. For the acts of such, the Carrier remains liable even though he was blameless and free from negligence". Whether a saboteur is a "public enemy" or not within the meaning of the above definition is a controversial issue and when a claim arises, due to loss, destruction, damages etc., or the like, legal opinion should invariably be obtained before arriving at the final decision. A certificate regarding areas of affect be obtained by Station Master from Civil Authorities, copy of which be sent to Claim Office along with MGRs.

Arrest, restraint or seizure under legal process -

The object of this exception is to give protection to the Railways against all seizure effected by executive or judicial order. The seizure of a consignment or the arrest of a person who is indispensable in the carriage of the consignment under the orders of competent court would come under this exception. When a consignment is seized by a Police Officer in the lawful performance of his duty and if as a result of such seizure the consignment is delayed or damaged, the railway can avail of this plea. An injunction restraining the railway from delivering a consignment is a restraint under legal process, which exonerates the railway from consequences, which follow naturally and directly from such restraint. A copy of Seizure Memo, if any be sent to Claim Office along with the MGRs.

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.

The item is self-explanatory. It refers to civil bans and restriction imposed by Central and State Government or by an officer authorized by either of these Governments. The protection will naturally be available to the railway only if the consignment has been accepted and booked prior to the imposition of the restriction or ban. It will be definitely apply to cases of re-booking and diversion when after the initial booking the owner wants it to be re-booked from or to a restricted area. Copy of such orders/restrictions be pasted at the notice board of Goods Office/Parcel Office and one copy be sent to Claims Office along with MGRs.

Act of 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 -

A consignor who sends goods which are apparently good condition warrants that the goods are safe and fit for carriage. If the unfitness of the consignment to move by the particular mode and usual manner of transport is not disclosed and thereby the railways cannot take necessary steps to move it in a more careful manner it will certainly be an omission or negligence for which the railway shall not be liable. For instance, labels like : Glass with care: or "This side up" are not given onb fragile goods or jars or bottles packed inside boxes and containing liquids. Such failure will exonerate the carrier being negligence on the part of sender to properly label the packages. Omission means not doing a thing, which it is the duty of the person to do. Negligence is doing a thing without proper care and without giving any thought to what the consequences would be. If a consignor or a consignee or any agent or either of them is responsible for doing a thing which he should not have done or has done a thing without taking the necessary degree of care and without caring that his act or omission might prove harmful to the consignment, the railway cannot be liable for the loss or injury of which such action or omission is the proximate cause. It is the duty of the consignor or consignee when he loads or unloads highly inflammable articles like petroleum to see that naked fire is not brought near. If the consignor or the consignee or any agent of either of them lights a cigarette which results in fire and destruction of the consignment, the railway stands absolved. Generally, omission or negligence is committed by the consignor in execution of Forwarding Note, Packing, Labelling, Marking and Loading of goods for which a suitable remark be obtained from the consignor or his agent in the forwarding note.

Natural deterioration or wastage in bulk or weight due to inherent defect, quality of vice of the goods -

Inherent defect, quality or vice means a property or attribute which is inseparable from the goods or commodity concerned. This means some defect, which goes with the thing itself and by its development leads to injury or destruction of the thing carried. The best examples are perishables, which have a propensity for natural decay. Ice melts and there is natural wastage of bulk and weight. Similarly, certain liquids are subject to evaporation and there are other commodities, which are subject to spontaneous combustion. Such inherent vice or quality may be harmless as long as the thing is not moved but it may cause injury as soon as the thing is carried from place to place though the carrier uses all reasonable care. In such cases the railway will not become liable if reasonable care has been taken. Proper remark to this effect be obtained from the consignor or his agent in the Forwarding Note.

Latent defects -

The expression means hidden defects. In a case where an engine with a shaft was being pulled by horses and the shaft broke and the horses were frightened resulting in damage to the engine, the damage was held to have been caused due to latent defect in the shaft. In another case a tyre of a wheel of a carriage in which a person was traveling broke and the breaking was not attributable to any fault on the part of the manufacturer which could have been detected before the breaking by the usual methods of tests. It was held that the accident was due to latent defect in the tyre and the carrier was not responsible. Latent defect may be either in the consignment itself or in the equipments of transport. If, for example, there is a latent defect in a crane which is used for loading and unloading and the jib of the crane suddenly breaks and the consignment is damaged, it would come under this exception provided the defect was not such which could be attributable to fault manufacture and detectable by usual tests.

Fire, explosion or any unforeseen risk -

Care should be taken by the Station Master to extinguish fire and fire brigade be called in order to save the consignment.

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.

Section 94 : Goods to be loaded or delivered at asiding not belonging to Railway Administration

Where goods are required to be loaded at the siding not belonging to a railway administration for carriage by railway, the railway administration shall not be responsible for any loss, destruction, damage or deterioration of such goods from whatever cause arising, until the wagon containing the goods has been placed at the specified point of interchange of wagons between the siding and the railway administration and a railway servant authorized in this behalf has been informed in writing accordingly by the owner of the siding.

Where any consignment is required to be delivered by a railway administration at a siding not belonging to a railway administration, the railway administration shall not be responsible for any loss, destruction, damage or deterioration or non-delivery of such consignment from whatever cause arising after the wagon containing the consignment has been placed at the specified point of interchange of wagons between the railway and the siding and the owner of the siding has been informed in writing accordingly by a railway servant authorized in this behalf.

Section 95 : Delay and Detention in Transit

A railway administration shall not be responsible for the loss, destruction, damage or deterioration of any consignment proved by the owner to have been caused by the delay or detention in their carriage if the railway administration proves that the delay or detention arose for reasons beyond its control or without negligence or misconduct on its part or on the part of any of its servants.

Section 96 : Traffic passing over Railways in India and Railways in Foreign Countries

Where in the course of carriage of any consignment from a place in India to a place outside India or from a place outside India to a place in India or from one place outside to another place outside India or from one place in India to another place in India over any territory outside India, it is carried over the railways of any railway administration in India, the railway administration shall not be responsible under any of the provisions of the Chapter for the loss, destruction, damage or deterioration of the goods, from whatever cause arising, unless it is proved by the owner of the goods that such loss, destruction, damage or deterioration arose over the railway of the railway administration.

Section 97 : Goods carried at Owner's Risk

Notwithstanding anything contained in Section 93, a railway administration shall not be responsible for any loss, destruction, damage, deterioration or non-delivery in transit, of any consignment carried at owner's risk rate, from whatever cause arising, except upon proof that such loss, destruction, damage, deterioration or non-delivery was due to negligence or misconduct on its part or on the part of any of its servants:

Provided that -

where the whole of such consignment or the whole of any package forming part of such consignment is not delivered to the consignee or the endorsee and such non-delivery is not proved by the railway administration to have been due to fire or to any accident to the train; or

where in respect of any such consignment or of any package forming part of such consignment which had been so covered or protected that the covering or protection was not readily removable by hand, it is pointed out to the railway administration on or before delivery that any part of that consignment or package had been pilfered in transit,

the railway administration shall be bound to disclose to the consignor, the consignee or the endorsee how the consignment or the package was dealt with throughout the time it was in its possession or control, but it negligence or misconduct on the part of the railway administration or of any of its servants cannot be fairly inferred from such disclosure, the burden of proving such negligence or misconduct shall lie on the consignor, the consignee or the endorsee.

Section 98 : Goods in defective condition or defectively packed

Notwithstanding anything contained in the foregoing provisions of this Chapter, when any goods entrusted to a railway administration for carriage -

are in a defective condition as a consequence of which they are liable to damage, deterioration, leakage or wastage; or

are either defectively packed or not packed in such manner as may be prescribed and as a result of such defective or improper packing are liable to damage, deterioration, leakage or wastage, and the fact of such condition or defective or improper packing has been recorded by the consignor or his agent in the forwarding note, the railway administration shall not be responsible for any damage, deterioration, leakage or wastage or for the condition in which such goods are available for delivery at destination; provided that the railway administration shall be responsible for any such damage, deterioration, leakage or wastage or for the condition in which such goods are available for delivery at destination if negligence or misconduct on the part of the railway administration or any of its servants is proved.

When any goods entrusted to a railway administration for carriage are found on arrival at the destination station to have been damaged or to have suffered deterioration, leakage or wastage, the railway administration shall not be responsible for the damage, deterioration, leakage or wastage of the goods on proof by railway administration :

that the goods were, at the time of entrustment to the railway administration in a defective condition, or were at that time either defectively packed or not packed in such manner as may be prescribed and as a result of which were liable to damage, deterioration, leakage or wastage; and

that such defective condition or defective or improper packing was not brought to the notice of the railway administration or any of its servants at the time of entrustment of the goods to the railway administration for carriage by railway: Provided that the railway administration shall be responsible for any such damage, deterioration, leakage or wastage if negligence or misconduct on the part of the railway administration or of any of its servants is proved.

Section 99 : Responsibility of a Railway Administration after Termination of Transit

A railway administration shall be responsible as a bailee under Section 151, 152 & 161 of the Indian Contract Act, 1872, for the loss, destruction, damage, deterioration or non-delivery of any consignment up to a period of seven days after the termination of transit. Provided that where the consignment is at owner's risk rate, the railway administration shall not be responsible as a bailee for such loss, destruction, damage, deterioration or non-delivery except on proof of negligence or misconduct on the part of the railway administration or of any of its servants.

The railway administration shall not be responsible in any case for the loss, destruction, damage, deterioration or non-delivery of any consignment arising after the expiry period of seven days after the termination of transit.

Notwithstanding anything contained in the foregoing provisions of this section, a railway administration shall not be responsible for the loss, destruction, damage, deterioration or non-delivery of perishables goods, animals, explosives and such dangerous or other goods as may be prescribed, after the termination of transit.

Nothing in the foregoing provisions of this section shall affect the liability of any person to pay any demurrage or wharfage, as the case may be, for so long as the consignment is not unloaded from the railway wagons or removed from the railway premises.

Section 100 : Responsibililty as carrier of luggage

A railway administration shall not be responsible for the loss, destruction, damage, deterioration or non-delivery of any luggage unless a railway servant has booked the luggage and given a receipt therefor and in the case of luggage which is carried by the passenger in his charge, unless it is also proved that the loss, destruction, damage or deterioration was due to the negligence or misconduct on its part or on the part of any of its servants.

Section 101: Responsibility as a carrier of animals

A railway administration shall not be responsible for any loss or destruction of, or injuries to, any animal carried by railway arising from fright or restiveness of the animal or from overloading of wagons by the consignor.

Section 102 : Exoneration from liability in certain cases

A railway administration shall not be responsible for the loss, destruction, damage, deterioration or non-delivery of any consignment -

When such loss, destruction, damage, deterioration or non-delivery is due to the fact that a materially false description of the consignment is given in the statement delivered under sub-section (1) of Section 66; or

Where a fraud has been practiced by the consignor or the consignee or the endorsee or by an agent of the consignor, consignee or the endorsee; or

Where it is proved by the railway administration to have been caused by, or to have arisen from -

Improper loading or unloading by the consignor or the consignee or the endorsee or by an agent of the consignor, consignee or the endorsee;

Riot, civil commotion, strike, lock-out, stoppage or restraint of labour from whatever cause arising whether partial or general; or

For any indirect or consequential loss or damage or for loss of particular market.

Section 103: Extent of Monetary Liability in respect of any consignment

Where any consignment is entrusted to a railway administration for carriage by railway and the value of such consignment has not been declared as required under sub-section (2) by the consignor, the amount of liability of the railway administration for the loss, destruction, damage, deterioration or non-delivery of the consignment shall in no case exceed such amount calculated with reference to the weight of the consignment as may be prescribed, and where such consignment consists of an animal, the liability shall not exceed such amount as may be prescribed.

Notwithstanding anything contained in sub-section (1), where the consignor declares the value of any consignment at the time of its entrustment to a railway administration for carriage by railway, and pays such percentage charge as may be prescribed on so much of the value of such consignment as is in excess of the liability of the railway administration as calculated or specified, as the case may be, under sub-section (1), the liability of the railway administration for the loss, destruction, damage, deterioration or non-delivery of such consignment shall not exceed the value so declared.

The Central Government may, from time to time, by notification, direct that such goods as may be specified in the notification shall not be accepted for carriage by railway unless the value of such goods is declared and percentage charge is paid as required under sub-section (2).

Section 104 : Extent of liability in respect of goods carried in open wagon

Where any goods, which under ordinary circumstances, would be carried in covered wagon and would be liable to damage, if carried otherwise, are with the consent of the consignor, recorded in the forwarding note, carried in open wagon, the responsibility of railway administration for destruction, damage or deterioration which may arise only by reason of the goods being so carried, shall be one-half of the amount of liability for such destruction, damage or deterioration determined under the Act.

Section 105 : Declaration of Articles

Where the value has been declared under section 103 in respect of any consignment a railway administration may make it a condition of carrying such consignment that a railway servant authorized by it in this behalf has been satisfied by examination or otherwise that the consignment tendered for carriage contain the articles declared.

Section 106 : Time limit for filing claims

A person shall not be entitled to claim compensation against a railway administration for the loss, destruction, damage, deterioration or non-delivery of goods carried by a railway, unless a notice thereof is served by him or on his behalf -

to the railway administration to which the goods are entrusted for carriage; or

to the railway administration on whose railway the destination station lies, or the loss, destruction, damage or deterioration occurs; within a period of six months from the date of entrustment of the goods.

Any information demanded or enquiry made in writing from, or any complaint made in writing to, any of the railway administrations mentioned in sub-section (1) by or on behalf of the person within the said period of six months regarding the non-delivery or delayed delivery of the goods with particulars sufficient to identify the goods shall, for the purpose of this section, be deemed to be a notice of claim for compensation.

Section 107 : Filing of claim

An application for compensation for loss, destruction, damage, deterioration or non-delivery of goods shall be filed against the railway administration on which a notice under Section 106 has been served.

Section 108 : Right of person producing RR

If a railway administration pays compensation for the loss, destruction, damage, deterioration or non-delivery of goods entrusted to it for carriage, to the consignee or the endorsee producing the railway receipt, the railway administration shall be deemed to have discharged its liability and no application before the Claims Tribunal or any other legal proceedings shall lie against the railway administration on the ground that the consignee or the endorsee was not legally entitled to receive such compensation.

Nothing in sub-section (1) shall affect the right of any person having any interest in the goods to enforce the same against the consignee or the endorsee receiving compensation under the sub-section.

Section 109 : For Death or Injury

An application before the Claims Tribunal for compensation for the loss of life or personal injury to a passenger, may be instituted against -

the railway administration from which the passenger obtained his pass or purchased his ticket, or

the railway administration on whose railway the destination station lies or the loss or personal injury occurred.

Section 110 : Burden of proof

(1)

In an application before the claims Tribunal for compensation for loss, destruction, damage, deterioration or non-delivery of any goods, the burden of proving -

the monetary loss actually sustained; or

where the value has been declared under subsection of Section 103, in respect of any consignment that the value so declared is its true value,

shall lie on the person claiming compensation, but subject to the other provisions contained in the Railway Act, it shall not be necessary for him to prove how the loss, destruction, damage, deterioration or non-delivery was caused.

Section 111 : Liability for carriage by sea

When a railway administration contracts to carry passengers or goods partly by railway and partly by sea, a condition exempting the railway administration from responsibility for any loss of life, personal injury or loss or damage to goods which may happen during the carriage by sea from act of God, public enemies, fire, accidents from machinery, boilers and steam and all and every other dangers and accidents of the seas, rivers and navigation of whatever nature and kind shall, without being expressed, be deemed to be part of the contract, and subject to that condition, the railway administration shall, irrespective of the nationality or ownership of the ship used for the carriage by sea, be responsible for any loss of life, personal injury or loss or damage to goods which may happen during the carriage by sea, to the extent to which it would be responsible under the Merchant Shipping Act, 1958, if the ships were registered that Act and the railway administration were owner of the ship and not to any greater extent.

The burden of proving that any such loss, injury or damage as is mentioned in sub-section (1) happened during the carriage by sea shall lie on the railway administration.

The Central Government may, by notification, make rules to carry out the purposes of this Chapter.

In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely -

the manner of packing of goods entrusted to a railway administration under clause (b) sub-section (1) of Section 98;

the goods for the purposes of sub-section (3) of Section 99; and

the maximum amount payable by the railway administration for loss, destruction, damage, deterioration or non-delivery of any consignment under sub-section (1) of Section 103.

Where a railway administration delivers the consignment to the persons who produce the railway receipt, it shall not be responsible for any wrong delivery on the ground that such person is not entitled thereto or that the endorsement on the railway receipt is forged or otherwise defective.

Where the consignment arrives in a damaged condition or shows signs of having been tampered with and the  consignee or the endorsee demands open delivery, the railway administration shall give open delivery in such manner as prescribed.

(1)

The consignee or endorsee shall as soon as the consignment or part thereof is ready for delivery, take delivery of such consignment or part thereof notwithstanding that such consignment or part thereof is damaged.

(2)

In the case of partial delivery under sub-section (1) the railway administration shall furnish a partial delivery certificate, in such form as may be prepared.

(3)

If the endorsee or consignee refuses to take delivery under sub-section (1), the consignment or part thereof shall be subject to wharfage charges beyond the time allowed for removal.

1.

If the consignor, the consignee or the endorsee fails to pay on demand any freight or other charges due from him in respect of any consignment, the railway administration may detain such consignment or part thereof or if such consignment is delivered it may detain any other consignment of such person which is in or thereafter comes into its possession.

2.

The railway administration may, if the consignment detained under sub-section (1) is:

a) perishable in nature, sell at once; or
b) not perishable in nature, sell by public auction.

Such consignment or part thereof as may be necessary to realize a sum equal to freight or other charges;

Provided that where a railway administration for reasons to be recorded in writing is of the opinion that it is not expedient to hold the auction, such consignment or part thereof may be sold in such manner as may be prescribed.

3.

The railway administration shall give a notice of not less than seven days of the public auction under clause (b) of sub-section (2) in one or more local newspaper or where there are no such newspaper in such manner as may be prescribed.

4.

The railway administration may, out of the sale proceeds received under sub-section (2), retain a sum equal to the freight and other charges including expenses for the sale due to it and the surplus of such proceeds and the part of the consignment, if any, shall be rendered to the person entitled thereto.

1.

If any person fails to take delivery of:

(a) any consignment or
(b) the consignment released from detention made under sub-section (1) of Section 83 or
(c) any remaining part of the consignment under sub-section (2) of Section 83

such consignments shall be treated as unclaimed.

2.

The railway administration may:

in the case of an unclaimed consignment which is perishable in nature, sell such consignment in the manner provided in clause (a) of sub-section (2) of Section 83; or

in the case of an unclaimed consignment which is not perishable in nature, cause a notice to be served upon the consignee if his name and address are knows, and upon the consignor if the name and address of the consignee are not known, requiring him to remove the goods within a period of seven days from the receipt thereof and if such notice cannot be served or there is a failure to comply with the requisition in the notice, sell such consignment in the manner provided in clause (b) of sub-section (2) of Section 83.

3.

The railway administration shall, out of the sale proceeds received under sub-section (2) retain a sum equal to the freight and other charges including expenses for the sale due to it and the surplus, if any, of such sale proceeds shall be rendered to the person entitled thereto.

Where by reason of any flood, land-slip, breach of any lines of rails, collision between trains, derailment of, for other accident to a train or any other cause, traffic on any route is interrupted and there is no likelihood of early resumption of such traffic, nor is there any other reasonable route whereby traffic of perishable consignment may be diverted to prevent loss or deterioration of, or damage to such consignment, the railway administration may sell them in the manner provided in clause (a) of sub-section (2) of Section 83.

(2)

The railway administration shall, out of the sale proceeds received under subs-section (1), retain a sum equal to the freight and other charges including expenses for the sale due to it and the surplus, if any, of such sale proceeds, shall be rendered to the person entitled thereto.