Section 75: Section 74 not to affect right of stoppage in transit or claims for freight

Nothing contained in section 74 shall prejudice or affect–

(a) any right of the consignor for stoppage of goods in transit as an unpaid vendor (as defined under the Sale of Goods Act, 1930 3 of 1930 ) on his written request to the railway administration;

(b) any right of the railway to claim freight from the consignor; or

(c) any liability of the consignee or the endorsee, referred to in that section, by reason of his being such consignee or endorsee.

Simplified Explanation

Section 75 of the Railways Act, 1989 clarifies that while Section 74 addresses the passing of property (ownership) of goods from the consignor to the consignee or endorsee upon delivery of the railway receipt, certain rights and liabilities remain unaffected by this transfer. Specifically, it safeguards the consignor’s rights and the railway’s right to claim freight.

Key Provisions:

1. Stoppage in Transit (Sub-section a):
   • Consignor’s Right: Even after the property in the goods has passed to the consignee or endorsee (as per Section 74), the consignor retains the right to stop the goods in transit if they are an unpaid vendor (as defined in the Sale of Goods Act, 1930).
   • Unpaid Vendor: If the consignor has not received payment for the goods, they can request the railway administration, in writing, to stop the goods in transit and prevent their delivery until payment is made.
2. Freight Claim by Railway (Sub-section b):
   • The railway retains its right to claim freight charges from the consignor, irrespective of the passing of property to the consignee or endorsee under Section 74.
   • This ensures that the railway can still demand payment for carriage costs from the consignor, even after the ownership of the goods has been transferred to the consignee or endorsee.
3. Liability of Consignee/Endorsee (Sub-section c):
   • The consignee or endorsee, upon receiving the railway receipt and becoming the owner of the goods, remains liable for any obligations that are attached to their role as consignee or endorsee, including any claims, charges, or damages associated with the goods.

Practical Implications:

1. Consignor’s Right to Stoppage:
   • If the consignor has not been paid for the goods, they retain the right to stop the goods in transit. This gives the consignor some control over the delivery of goods even after the property has passed to the consignee or endorsee.
   • Example: A seller sends goods to a buyer via railway but hasn’t received payment. Under Section 75, the seller (consignor) can stop the goods from being delivered to the buyer (consignee) until the buyer makes the payment.
2. Freight Claim by Railway:
   • The railway can still claim the freight charges from the consignor. This means the railway can seek payment for transport costs from the consignor, even if the goods have already passed into the hands of the consignee or endorsee.
   • Example: A railway administration can still ask the consignor to pay freight charges, even though the consignee has taken ownership of the goods under Section 74.
3. Liability of Consignee/Endorsee:
   • The consignee or endorsee continues to be liable for any issues that arise from the consignment, such as damage to the goods, payment of any remaining charges, or other legal obligations.
   • Example: If the goods are damaged or if the freight charges are not paid, the consignee or endorsee may be liable to settle these claims.

Conclusion:

Section 75 of the Railways Act, 1989 ensures that the passing of property under Section 74 does not affect certain important rights and liabilities:

• The consignor’s right to stop the goods in transit if they are an unpaid vendor.
• The railway’s right to claim freight charges from the consignor.
• The liability of the consignee or endorsee for obligations arising from the goods.

These safeguards maintain the balance of rights and responsibilities in railway transport, even after the goods have changed ownership.