The property in the consignment covered by a railway receipt shall pass to the consignee or the endorsee, as the case may be, on the delivery of such railway receipt to him and he shall have all the rights and liabilities of the consignor.
Simplified Explanation
Section 74 of the Railways Act, 1989 deals with the transfer of ownership of goods that are being carried by railway. It specifies when the property in the consignment, as described in the railway receipt, passes from the consignor to the consignee or endorsee.
Key Provisions:
- Transfer of Property (Sub-section 1):
- The property (ownership) in the goods described in a railway receipt is transferred to the consignee or the endorsee (the person to whom the goods have been endorsed for delivery) upon delivery of the railway receipt.
- Rights and Liabilities:
- Once the property in the goods has passed, the consignee or endorsee assumes the rights and liabilities of the consignor.
- This means the consignee or endorsee becomes responsible for any obligations related to the goods and has the right to take possession and deal with the goods as the owner.
Practical Implications:
- Legal Effect of Transfer: The transfer of property in goods under this section means that once the railway receipt is delivered to the consignee or endorsee, they gain full ownership of the goods. This also means that they are legally responsible for the goods and must fulfill any contractual or financial obligations associated with them.
- Rights of Consignee/Endorsee: The consignee or endorsee inherits the rights to the goods, such as the right to claim delivery, inspect the goods, and, if necessary, take legal action to protect those rights.
- Liabilities of Consignee/Endorsee: Similarly, the consignee or endorsee also inherits the liabilities of the consignor related to the goods, which could include responsibilities like paying for the carriage charges, handling claims, or addressing damage to the goods.
Example:
- Example 1: A consignor sends goods via railway to a consignee. Once the railway receipt is delivered to the consignee, the ownership of the goods passes to the consignee. The consignee can now claim the goods, and if any issues arise, such as damage to the goods during transit, the consignee is responsible for dealing with the matter.
- Example 2: If the consignor has a legal obligation, such as paying the freight charges, and the railway receipt is transferred to the endorsee, the endorsee will take on that responsibility, as they inherit the liabilities of the consignor once the property in the goods has passed.
Conclusion:
Section 74 of the Railways Act, 1989 establishes the moment when ownership (property) in the goods covered by a railway receipt passes from the consignor to the consignee or endorsee. Upon delivery of the railway receipt, the consignee or endorsee gains both the rights and liabilities related to the goods, including the ability to claim and manage the goods, and assume any financial or contractual obligations tied to them.
