1. THE INDIAN BILLS OF LADING ACT, ______. ARRANGEMENT OF SECTIONS. ______. Preamble. SECTIONS. 1. Rights under bills of lading to vest in. and every endorsee of a bill of lading to whom property in liabilities. the goods therein mentioned, shall pass upon or by reason of such consignment or. WHEREAS by the custom of merchants a bill of lading of goods being transferable by endorsement, the property in the goods thereby pass to the endorsee.
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Preamble1 - INDIAN BILLS OF LADING ACT, Section1 - Rights under bills of lading to vest in consignee or endorsee. Section2 - Not to affect right of. The Indian Bills Of Lading Act Bare Acts at raudone.info, a website for Indian Laws and bareacts, legal advice and law documents in. The Indian Bills of Lading Act, Language English. Attachment File: PDF icon Download The file ( KB) pdf Icon. Act No.:
Gratuitous Carrier. When a person carries goods of another free of charge, he is a gratuitous carrier. Similarly a person may give lift in his transport to another person voluntarily without any compensation.
Thus a gratuitous carrier may carry not only goods but persons also free of charge.
Responsibility of Common Carrier and Bailee. We know that a bailee is responsible only when the goods entrusted to him are lost or damaged due to his fault or negligence.
But the responsibility of a common carrier is more onerous; he is to deliver the goods safely. Distinction between a Common Carrier and a Private Carrier. The distinction between the two is as follows: i A common carrier publicly undertakes to carry from place to place the goods of any person who chooses to employ him. A private carrier does not carry regularly from place to place but is an occasional carrier. A private carrier is free to accept or reject the goods for carriage.
He is liable as a bailee as given in the Indian Contract Act, Carriage of Goods by Land As mentioned above, the following two statutes govern the carriage of goods by land: i The Carriers Act, The Carriers Act, As regards matters not covered by this Act, the rules of English Common Law will apply.
Rights of a Common Carrier. His rights are: i He is entitled to the settled remuneration and in case no remuneration was settled, to a reasonable remuneration. He can refuse to deliver them until his charges are paid. After giving notice to the consignee, the common carrier may even sell perishable goods. Duties of a Common Carrier.
His duties are: 1. A common carrier is bound to carry goods of all persons who choose to employ him. He can, however, refuse to carry goods under the following circumstances: a if there is no accommodation in the carriage; b if the person employing him is not willing to pay reasonable charges for the carriage of goods; c if the goods are such which he is not accustomed to cany; d if the goods are to be carried over a route which is not his regular route; e if the goods are-dangerous and as such subjecting him to extraordinary risk; f if the consignor refuses to disclose the nature of the goods to be carried; and g if the goods are not properly packed.
Indian Bills of Lading Act,1856
If a carrier refuses to carry the goods of a person for any reason other than those mentioned above, he may be held liable for damages. He must carry the goods over the usual and customary route and take all reasonable precautions for their safe carriage.
He must not deviate from the usual route unless rendered necessary by exceptional circumstances. He must deliver the goods at the agreed time and if no time had been fixed, within a reasonable time.
At Common Law, he is an insurer of the goods in the sense that he warrants to carry the goods safely and securely. For this purpose, the Act has classified the goods into two categories: i Scheduled goods and ii non-scheduled goods. The scheduled goods are those which are enumerated in a Schedule to the Act. They are valuable articles like gold, silver, precious stones and pearls, bills and hundis, currency and bank notes, glass, china silk, articles of ivory, time pieces, musical and scientific instruments, etc.
All other goods are non-scheduled. For scheduled articles exceeding Rs. The carrier can charge extra for carrying scheduled articles, but he cannot limit his statutory liability by any special agreement.
As regards non-scheduled articles, a common carrier can limit his liability by special agreement with the consignor. But even in this Section case he will be liable under 8 of the Act explained below.
In case of loss or damage, the claimant must notify the carrier within six months of the date of knowledge of the loss or damage.
Some of the more important provisions contained in the Act are summarised below: 1. Maintenance of rate books, etc. Every railway administration shall maintain, at each station and to such other places where goods are received for carriage, the rate books or other documents which shall contain the rate authorised for the carriage of goods from one station to another and make them available for the reference of any person during all reasonable hours without payment of any fee.
Provision of rate risks Section Forwarding note Section Every person entrusting any goods to a railway administration for carriage shall execute a forwarding note in such form as may be specified by the Central Government.
The consignor shall be responsible for the correctness of the particulars furnished by him in the forwarding note. Article Rights and immunities Neither the carrier nor the ship shall be liable for less or damage arising or resulting from unseaworthiness unless caused by due diligence on the part of carrier.
Neither the ship nor the carrier shall be responsible for less or damage arising or resulting from act, neglect, or default of the master, mariner, pilot in the navigation or in the management of ship. Neither the carrier nor the ship shall in any event be or become liable for any loss of damage to or in connection with goods in any amount exceeding Article Surrender of rights and immunities, and increase of responsibilities and liabilities The carrier has liberty to surrender in whole or in part all or any of his immunities and in return he can increase any of his responsibilities and liabilities under the rules provided they should be embodied in the Bill of lading, issued to the shipper.
Article Special condition This section applies to special condition where because of nature of cargo both shipper and carrier are in liberty to go in any agreement regarding carrier's rights and immunities and increase of responsibilities and liabilities, provided that in this case no Bill of Lading has been issued or shall be issued. All the agreed terms shall be embodied in a receipt which shall be non negotiable.
The objective of making this project is to study and research on Coastal and Waterway Transport contracts in India which is very important from the point of law of contracts. The main objective of my study is to deduce and find out the procedure of how the contracts are formed during a shipping agreement and the rights and liabilities of different people during a same contract 3.
All these concepts are different and various cases have given different judgments upon different situations. Also I came to know about how these concepts are varied in different nations like United States of America and United Kingdom.
Research questions — The research is mainly based on these questions:- 1. How did the coastal and waterway transport contracts evolve in India? Which acts and statutes have been set up for these types of contracts? Explain the procedure of how does the coastal contracts work and the documents needed for the same. What is the importance of the Bill of Lading in these types of contracts?
How does insurance play an important role in these contracts? Please give needful suggestion for the topic and how to improve the position of coastal and waterway transport contract in India. Limitation of the project:- 1. The project fails to conduct a primary research through examination, interviews and surveys due to lack of time and vague understanding.
The Indian Bills Of Lading Act, 1856
The research of the project limits to books, internet, Databases, Journals and Dictionaries. Yet this sector has remained neglected despite of the universal acceptance that transportation through both waterways, both coastline and inland, is fuel efficient, environment friendly and more economical than rail and road.
Of the navigable inland waterways, km are of inland waterways, the development and maintenance of which is the responsibility of the Indian Government while the responsibility of the rest lies with the state governments where they are located. He could escape liability only if the loss or the damage was caused by any natural calamity or Act of God, a public enemy or inherent vice of the goods. In addition in all contracts of carriage of goods by sea, there were implied undertakings by the carrier that the carrying vessel was seaworthy and that the ship would commence and carry cut the contractual voyage with reasonable diligence without unjustifiable deviation.
The Bill of lading was the basic shipping document, evidencing the contractual relationship between carrier and shipper and forming the basis of all claims arising from the transportation of goods by sea.
The Indian Bills of Lading Act, 1856
The early bills of lading contained only the common law exception. As time passed, however, ship-owners began generally to amend their bills of lading by introducing exemption clauses and thereby limit contractually the strict liability imposed upon them by maritime law. As and when court decision went against the carriers, they introduced more and more protective or pardoning clauses in the bill of lading and depending upon their bargaining position at a time when the volume of world trade exceeded the carrying capacity of shipping, there sought to exempt themselves from practically every liability of ocean carriage.
The Harter Act aimed at protection of cargo interests, prohibited clauses exonerating the carrier or his agents from liability for faults in the care and custody of the cargo but at the same time. The Act provided that the carrier was not to be held liable for results of unseaworthiness if he had exercised due diligence to make the ship seaworthy and if the damage caused to the cargo resulted from faults and errors in the navigation or management of the vessel.
The Harters Act thus established an important principle in that it settled the problem if the carriers liability by making a distinction between faults in the management and navigation of the vessel and faults in the care and custody of cargo.
The Acts of the Dominion were broadly similar to the Harter Act. The main laws governing the coastal and waterway transport contracts in India are as follows:- i The Indian Bills of Landing Act, The Bailee is responsible for exercising due care toward the goods.
Gopalan Nair [M. The two main theories of formation of contract for the coastal and waterway transport contract are the Promissory and the Consent theory. Charles Fried had given the promissory theory which described that there should be a kind of promise from the part of the insurer to the consignee for the protection of the goods so that there is safety as well as security.
There should be a clear understanding between the consigner and the consignee for the contract made and to put up to the moral aspect in the contract by assuring the safety and the security of the goods the third party also plays an important role i.
A contract of carriage of goods by sea is called a contract of affreightment and the consideration for carriage is called the freight. A contract of affreightment may take the form of a Charter Party where an entire ship is hired, or a Bill of Lading, where the goods are to be carried in a general ship which can be used for this purpose by any person.
In both these contracts, the ship owner as the carrier undertakes the responsibility of carrying the goods of the consignor safely and securely to the destination.
Seaworthiness - This means that the ship is reasonably fit to encounter the 'perils of the sea'. This is an absolute undertaking warranted by the ship-owner. Seaworthiness is a relative term meaning that the ship is fit to undertake the particular voyage and to carry the particular cargo.
Commencement of Voyage - The ship shall be ready to load the cargo and commence the voyage agreed on without undue delay and shall also complete the voyage with all reasonable dispatch. Non-deviation of Voyage - It means that if the ship does not carry out the voyage by the prescribed or usual route in the customary manner, the contract becomes void from the beginning of the voyage, no matter when and where the deviation from the usual route took place.
Dangerous Goods not to be Shipped - If the shipper ships dangerous goods and if on account of this, the charterer suffers any damage, he can recover the same from the shipper.
India has specified set of Acts governing the Transport and the waterways contracts. The charter carrier is not engaged in the regular business of transportation of goods.
The charter carrier is not bound to transport the goods of all persons. He reserves t accept or reject the goods offered to him for transportation 3. The Charter party transports the goods for selected persons of his own choice and not for everybody. The private carrier may also transport the goods gratuitously i. They are often classified under the special contracts as there are special terms and conditions. The freight charges are also more than that of the general ship because of a charter contract.
Any disputes between the owner and the party are governed by the agreement made by them. Most of the matters are solved through the arbitration which is an outside court settlement. This approach enables the parties to bargain freely and to include in the contract any stipulation allowed by law. As such, the parties are free to incorporate the terms of the Carriage of goods by sea Act by reference into the charter party, and they frequently do. Thus carious provisions of Carriage of Goods by sea Act often become terms of a charter party through contractual stipulation.
The parties are, if course, free to modify, or even exclude, Carriage of goods by sea act provisions in the contract. Such modifications are permissible as long as it does not apply by operation of law.
Even where a carrying vessel is under charter, however, there are circumstances in which it is applicable as a matter of law. This occurs where the owner has issued a bill of lading to the charterer who in turn has transferred the bill of lading to a third party, such as a consignee. Its terms may amount to a leasing of the ship, when the master and the crew of the ship become the servants of the charterer.
A charter party may be for a particular period, or for a particular voyage. In the former case it is called a time charter party and in the latter case, a voyage charter party has no specific form; the form varies from trade to trade depending on the customs of the trade.
The Charter party contracts are basically the Contracts with the Private carriers. The Act contains 3 Articles. A bill of lading is issued when goods are delivered for carriage to a general ship, which offers to carry them.
The position of the owner of a general ship is that of a common carrier. A bill of lading may be used even when a ship is chartered. A bill of lading acknowledges the receipt of goods is a document of title to the goods and is also a contract of carriage of goods. The Bill of Lading will acknowledge the quantity of goods put on board, their description and their condition. The Bill of lading form will usually be completed by the shipper or his forwarding agent and sent back to the carrier.
Bills of Lading Act 1855
As the goods are loaded they will be checked by tally clerks and if particulars are found to be correct the bill of lading will be signed for the carrier by his agent, the loading broker. However, the evidentiary value of the bills in all these cases is not the same in all case and it depends upon the circumstances of the case as whether the bill falls within the Carriage of Goods Act or not.
A bill of lading, as a document of title to the goods, can be transferred to another person by endorsement and delivery. This characteristic of a bill of lading resembles that of a negotiable instrument, but in the strict legal and technical sense it is not a negotiable instrument. It may be said that it is negotiable only in the popular sense. It will be regarded as clean bill.
The Clauses of the bill of lading:- A Bill of Lading is issued in case of a general ship contains the clauses in respect of terms if the contract of affreightment. These are generally the same as contained in a Charter Party.
The clauses of a bill of lading should state the following particulars:- 1. Name of Parties 2. Name of the ship as registered under the Indian Ship Registry Act 3. Port of Loading 4.The Delivery Order is a document issued by the shipping company to the port of discharge.
After loading a shipped bill of lading to be issued. Private Carriers A private carrier is one who does not transport goods from one place to another regularly; he may engage in some casual jobs of carrying goods for certain selected persons between certain terminals. It applies to the carriage of all goods, wares, merchandise, articles, or cargo other than live animals and goods carried on deck related to the agreement of the parties. Statement regarding the condition if the goods and their quantity or quality or weight 8.
Negotiable bill of lading: - That the goods are to be delivered to the order of a consignee; and must not contain on its face an agreement with the shipper that the bill is not negotiable.
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