Section 99: Responsibility of a railway administration after termination of transit

(1) A railway administration shall be responsible as a bailee under sections 151, 152 and 161 of the Indian Contract Act, 1872 (9 of 1872), for the loss, destruction, damage, deterioration or non-delivery of any consignment up to a period of seven days after the termination of transit:

Provided that where the consignment is at owners risk rate, the railway administration shall not be responsible as a bailee for such loss, destruction, damage, deterioration or non-delivery except on proof of negligence or misconduct on the part of the railway administration or of any of its servants.

(2) The railway administration shall not be responsible in any case for the loss, destruction, damage, deterioration or non-delivery of any consignment arising after the expiry of a period of seven days after the termination of transit.

(3) Notwithstanding anything contained in the foregoing provisions of this section, a railway administration shall not be responsible for the loss, destruction, damage, deterioration or non-delivery of perishable goods, animals, explosives and such dangerous or other goods as may be prescribed, after the termination of transit.

(4) Nothing in the foregoing provisions of this section shall affect the liability of any person to pay any demurrage or wharfage, as the case may be, for so long as the consignment is not unloaded from the railway wagons or removed from the railway premises.

Simplified Explanation

This section outlines the liability of the railway administration for loss, destruction, damage, deterioration, or non-delivery of consignments after the termination of transit, including specific exceptions and conditions.

Key Provisions

1. Responsibility for Goods up to Seven Days After Termination of Transit (General Liability):
   • A railway administration is responsible as a bailee for any loss, destruction, damage, deterioration, or non-delivery of a consignment for a period of seven days after the termination of transit.
   • The railway administration’s liability is based on the provisions of Sections 151, 152, and 161 of the Indian Contract Act, 1872, which govern the duties and responsibilities of a bailee (the party entrusted with goods for safekeeping).
   • Exception for Owner’s Risk Rate:
     • If the consignment is carried at the owner’s risk rate, the railway administration is not liable for such loss or damage, except if negligence or misconduct on the part of the railway administration or its servants is proven.
2. No Responsibility After Seven Days (Limitation of Liability):
   • After the expiry of the seven-day period from the termination of transit, the railway administration is not responsible for the loss, destruction, damage, deterioration, or non-delivery of any consignment.
3. Exceptions for Certain Goods:
   • The railway administration is not responsible for the loss, destruction, damage, deterioration, or non-delivery of perishable goods, animals, explosives, or other dangerous goods (as prescribed) after the termination of transit, regardless of the time elapsed.
4. Liability for Demurrage or Wharfage:
   • The liability for demurrage or wharfage is not affected by the provisions of this section.
   • A demurrage charge is the fee paid when goods are not removed from the railway station within a certain time frame, and wharfage refers to the charge for storing goods at the railway station. The consignor or consignee may still be liable for these charges if the goods are not unloaded or removed from the premises.

Implications of Section 99

1. Bailee’s Responsibility:
   • The railway administration’s role as a bailee means it is legally responsible for safely holding and delivering goods in its possession, similar to how a person holding property in trust must care for it. This responsibility extends for seven days after transit ends.
2. Owner’s Risk Rate:
   • If goods are transported at the owner’s risk rate, the railway is relieved of responsibility unless it can be shown that the loss or damage occurred due to the railway’s negligence or misconduct.
3. Perishable and Dangerous Goods:
   • For goods like perishables, animals, and explosives, the railway’s liability ends immediately after transit terminates, without the seven-day window. This reflects the special nature of these goods, which can deteriorate or become hazardous quickly.
4. Timely Removal:
   • The section ensures that the railway’s liability does not extend indefinitely and encourages the timely removal of goods. However, the owner remains liable for demurrage or wharfage charges if the goods are not cleared promptly from the railway’s possession.

Conclusion

Section 99 clarifies the time frame within which the railway administration is responsible for goods after the termination of transit and establishes a clear period of seven days for its liability as a bailee. It also outlines exceptions for perishable, dangerous goods, and consignments carried at owner’s risk. The railway is not responsible for any loss or damage after the expiration of the seven-day period unless negligence or misconduct is proven. Importantly, this section also underscores the owner’s obligation to remove goods in a timely manner to avoid additional charges like demurrage or wharfage.