Section 98: Goods in defective condition or defectively packed

(1) Notwithstanding anything contained in the foregoing provisions of this Chapter, when any goods entrusted to a railway administration for carriage–

(a) are in a defective condition as a consequence of which they are liable to damage, deterioration, leakage or wastage; or

(b) are either defectively packed or not packed in such manner as may be prescribed and as a result of such defective or improper packing are liable to damage, deterioration, leakage or wastage, and the fact of such condition or defective or improper packing has been recorded by the consignor or his agent in the forwarding note, the railway administration shall not be responsible for any damage, deterioration, leakage or wastage or for the condition in which such goods are available for delivery at destination:

Provided that the railway administration shall be responsible for any such damage, deterioration, leakage or wastage or for the condition in which such goods are available for delivery at destination if negligence or misconduct on the part of the railway administration or of any of its servants is proved.

(2) When any goods entrusted to a railway administration for carriage are found on arrival at the destination station to have been damaged or to have suffered deterioration, leakage or wastage, the railway administration shall not be responsible for the damage, deterioration, leakage or wastage of the goods on proof by railway administration,–

(a) that the goods were, at the time of entrustment to the railway administration, in a defective condition, or were at that time either defectively packed or not packed in such manner as may be prescribed and as a result of which were liable to damage, deterioration, leakage or wastage; and

(b) that such defective condition or defective or improper packing was not brought to the notice of the railway administration or any of its servants at the time of entrustment of the goods to the railway administration for carriage by railway:

Provided that the railway administration shall be responsible for any such damage, deterioration, leakage or wastage if negligence or misconduct on the part of the railway administration or of any of its servants is proved.

Simplified Explanation

This section outlines the responsibility of railway administrations in situations where goods entrusted for carriage are either in a defective condition or defectively packed, leading to potential damage, deterioration, leakage, or wastage.

Key Provisions

1. Exemption from Liability (Defective Goods or Packaging):
   • If goods are entrusted to the railway administration and are:
     • In defective condition, making them prone to damage, deterioration, leakage, or wastage; or
     • Defectively packed or packed in a manner not in compliance with prescribed packing standards, resulting in similar risks;
   • And if the consignor or their agent records this condition in the forwarding note at the time of handing over the goods:
     • The railway administration is not responsible for any damage, deterioration, leakage, or wastage resulting from such conditions.
     • The railway is also not liable for the condition in which the goods are available for delivery at the destination station.
2. Exception to the Exemption:
   • Despite the above, the railway administration can still be held responsible if:
     • Negligence or misconduct on the part of the railway or its employees is proven to have contributed to the damage or deterioration of the goods.
3. Proof of Defective Condition or Packing:
   • If goods are found to be damaged, deteriorated, leaked, or wasted upon arrival at the destination station:
     • The railway administration must prove:
       • The goods were in a defective condition or improperly packed at the time of entrustment to the railway.
       • The defective condition or improper packing was not communicated to the railway administration or its employees at the time of entrustment.
   • If the railway can prove these facts, it will not be responsible for the damage or deterioration.
4. Exception to Proof Requirement:
   • If negligence or misconduct on the part of the railway administration or its employees is proven, the railway is held responsible for the damage, deterioration, leakage, or wastage of the goods, regardless of their defective condition or packing.

Implications of Section 98

1. Responsibility of the Consignor:
   • The consignor plays a critical role in ensuring that the goods are properly packed and in good condition. If the goods are defectively packed or inherently defective, and this is notified in the forwarding note, the railway administration is not liable for damages during transit.
2. Notification Requirement:
   • The railway administration’s liability depends on whether the defective condition or improper packing is recorded in the forwarding note. If the consignor fails to inform the railway about the condition or packing issues, the railway is not responsible for the resulting damages or losses.
3. Exemptions Based on Proof:
   • The railway is not automatically exempt from liability. If there is proof of negligence or misconduct on the part of the railway administration or its employees, they are still liable for the damage, even if the goods were defective or improperly packed.
4. Burden of Proof:
   • In cases where goods are damaged, deteriorated, or leaked upon arrival, the burden of proof is on the railway administration to establish that the goods were defective or improperly packed at the time of entrustment and that this fact was not communicated by the consignor.

Conclusion

Section 98 seeks to clarify the circumstances under which the railway administration is not responsible for damages, deterioration, or losses in goods that are defective or poorly packed. It emphasizes the importance of the consignor’s responsibility to report such conditions and the requirement for the railway to prove that the damage was due to defects or improper packing. However, the railway remains liable if negligence or misconduct can be established, ensuring that even in such cases, the railway cannot escape its responsibilities entirely.