Section 107: Applications for compensation for loss, etc., of goods

Section 107 of The Railways Act, 1989 provides the procedure for filing an application for compensation related to the loss, destruction, damage, deterioration, or non-delivery of goods carried by railway. It specifies the circumstances under which a claim for compensation must be filed and the railway administration to which such an application should be directed.

Text of Section 107:

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

Detailed Explanation:

1. Application for Compensation:
   • This section specifies that if a person (the consignor or consignee) has served a notice of claim for compensation as per Section 106 due to loss, destruction, damage, deterioration, or non-delivery of goods, they must file an application for compensation with the railway administration to which the notice under Section 106 was directed.
   • Section 106 outlines the requirement for a notice to be served within six months of the issue arising. Once the notice is served, the next step for the person seeking compensation is to file the formal application for compensation.
2. Relevant Railway Administration:
   • The application for compensation must be filed with the railway administration on which the notice was served. This could be:
     • The railway administration to which the goods were initially entrusted for carriage.
     • The railway administration responsible for the destination station or where the incident occurred, such as damage, loss, or delay.
3. The choice of railway administration is determined by where the notice of claim was sent under Section 106. Essentially, the person making the claim needs to approach the railway administration that has received the initial notice of the claim.
4. Purpose of the Application:
   • The application is a formal request for compensation due to the loss, damage, or non-delivery of goods while they were under the railway’s care. This step follows after the notice of claim has been submitted and is required to start the process of adjudicating the claim.
   • The railway administration will then examine the claim, the details provided, and the evidence in order to determine whether compensation is due and the amount.

Practical Implications:

1. For Consignors or Consignees:
   • After serving the notice of claim under Section 106, the claimant must proceed with filing a formal application for compensation with the relevant railway administration.
   • Timely Filing: It is important to file the application after the notice is served but within the legal time limits. If the notice was sent within six months of the incident, the application should follow without delay to avoid losing the right to compensation.
   • Details and Evidence: The application should provide all relevant details and documentation to substantiate the claim, including proof of the goods, the incident (loss, damage, etc.), and any communications with the railway administration.
2. For Railway Administrations:
   • Once a valid application is filed, the railway administration will investigate the claim and determine whether compensation is warranted. The administration must be prepared to handle claims in accordance with the provisions of the Act.
   • The railway must ensure that all applications are addressed promptly and according to the procedures outlined in the Act.
3. For Legal Professionals:
   • Lawyers representing a claimant must ensure that both the notice and the application are properly filed within the prescribed timelines. They should guide their clients through the process to ensure all required steps are taken.
   • Application Documentation: Legal professionals should ensure that the application for compensation is comprehensive, providing all necessary details to support the claim.

Conclusion:

Section 107 of The Railways Act, 1989 outlines the process for filing an application for compensation after a notice of claim has been served under Section 106. The application must be filed with the railway administration that received the notice, and it must contain sufficient details to support the claim. This section ensures that claims for compensation are formally processed and adjudicated by the responsible railway administration.