Section 84: Unclaimed consignment

(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 consignment shall be treated as unclaimed.

(2) The railway administration may,–

(a) 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

(b) 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 known, 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.

Simplified Explanation

Section 84 of the Railways Act, 1989 deals with unclaimed consignments, outlining the procedures that railway administrations must follow when consignments are not claimed by the consignee or consignor. The section distinguishes between perishable and non-perishable goods and provides a framework for handling, selling, and disposing of such consignments.

Key Provisions:

1. Definition of Unclaimed Consignment (Sub-section 1):
   • A consignment is considered unclaimed if the consignee, consignor, or endorsee fails to take delivery of:
     • The consignment itself.
     • The consignment released from detention (as per Section 83).
     • Any remaining part of the consignment (as per Section 83).
2. Action for Unclaimed Consignment (Sub-section 2):
   • The railway administration may take the following actions based on whether the consignment is perishable or non-perishable:
     • Perishable Goods: If the consignment is perishable in nature, the railway administration can sell the goods immediately in the same manner as provided under Section 83(2)(a) to recover the unpaid charges.
     • Non-perishable Goods: If the consignment is non-perishable, the railway must:
       • Serve a notice to the consignee (if their name and address are known) or to the consignor (if the consignee’s details are not available), requiring them to remove the goods within seven days.
       • If the notice cannot be served or if the consignee/consignor fails to remove the goods within the specified period, the railway administration may sell the goods in the manner provided under Section 83(2)(b), which includes conducting a public auction.
3. Sale of Unclaimed Goods (Sub-section 3):
   • After the sale of an unclaimed consignment, the railway administration will:
     • Retain an amount equal to the freight and other charges, including the expenses for the sale.
     • Return any surplus proceeds from the sale to the person entitled to the consignment.

Practical Implications:

1. Handling Unclaimed Goods:
   • Section 84 ensures that the railway administration has the authority to deal with unclaimed consignments effectively, reducing the potential for delays and congestion at railway stations.
   • Example: If a consignee fails to collect a consignment of non-perishable goods, the railway will notify the consignee or consignor to take delivery. If they do not, the goods will be sold through an auction.
2. Immediate Sale of Perishable Goods:
   • For perishable goods, the railway does not have to wait for the full seven-day notice period before selling the goods. This is crucial for preventing the goods from deteriorating and losing value.
   • Example: If a consignment of fruits is unclaimed, the railway can sell it immediately to avoid spoilage, as long as it follows the prescribed process.
3. Fair Process for Non-Perishable Goods:
   • For non-perishable goods, the process involves giving the consignee or consignor a chance to retrieve the consignment before it is sold. The requirement for a seven-day notice ensures that the owner has a reasonable time to claim the goods.
   • Example: If a consignment of electronics is not claimed, the railway will notify the consignee (or consignor) and, after seven days, can auction the goods if they are still unclaimed.
4. Recovery of Charges:
   • The railway administration retains the freight and sale expenses from the sale proceeds, ensuring it recovers its costs. Any surplus proceeds after the recovery of charges will be returned to the rightful owner.
   • Example: If a consignment of machinery is unclaimed and sold for ₹100,000, the railway will first deduct the freight and sale expenses, and any remaining amount will be returned to the consignor or consignee.
5. Lien on Unclaimed Goods:
   • If the consignment is unclaimed due to non-payment of freight charges, Section 84 complements the provisions of Section 83 (Lien for Freight), where the railway can detain the goods and sell them to recover outstanding charges.
   • Example: If a consignee fails to pay the freight for a consignment of non-perishable goods and does not claim the goods, the railway can follow the process outlined in Section 84 to sell the goods and recover the unpaid freight.

Conclusion:

Section 84 ensures the railway administration has a clear and structured process for dealing with unclaimed consignments, providing a balanced approach between perishable and non-perishable goods. The provision of notices and the ability to auction the goods after a period of seven days ensures fairness to both the railway and the consignor/consignee. The railway also ensures that it retains necessary charges and returns any surplus proceeds to the rightful owner of the goods.