Railways Act 1989

The contents of the Railways Act 1989 can be summarised as under.

Chapter I         Preliminary

Chapter II       Railway Administrations

Chapter III      Commissioners of Railway Safety

Chapter IV      Construction and Maintenance of Works

Chapter V        Opening of Railways

Chapter VI      Fixation of Rates

Chapter VII     Railway Rates Tribunal

Chapter VIII   Carriage of Passengers

Chapter IX      Carriage of Goods

Chapter X       Special Provisions as To Goods Booked To Notified Stations

Chapter XI      Responsibilities of Railway Administrations as Carriers

Chapter XII    Accidents

Chapter XIII   Liability of Railway Administration for death and injury to passengers due to accidents

Chapter XIV   Regulation of hours of work and period of rest

Chapter XV     Penalties and offences

Chapter XVI   Miscellaneous

The transportation of goods by rail in India is regulated by the provisions contained in the Railways Act 1989 which are summarised below

• Rate books to be maintained at each station where goods are received for carriage which shall contain the rate authorised for the carriage of goods from one station to another and make them available for the reference of any person during all reasonable hours without payment of any fee.
• Where any goods are entrusted to a railway administration for carriage, such carriage shall be at railway risk rate, except where owner’s risk rate is applicable in respect of such goods.
• Any goods, for which owner’s risk rate and railway risk rate are in force, may be entrusted for carriage at either of the rates and if no rate is opted, the goods shall be deemed to have been entrusted at owner’s risk rate.
• Every person entrusting any goods to a railway administration for carriage shall execute a forwarding note in such form as may be specified by the Central Government.
• A railway administration shall issue a railway receipt in such form as may be specified by the Central Government.
• In a case where the goods are to be loaded by a person entrusting such goods, on the completion of such loading; or
• In any other case, on the acceptance of the goods by it.

A railway receipt shall be prima facie evidence of the weight and the number of packages stated therein.

• No person shall take with him on a railway or require a railway administration to carry such dangerous or offensive goods, unless
• He gives a notice in writing of their dangerous or offensive nature to the railway servant authorized in this behalf; and
• He distinctly marks on the outside of the package containing such goods their dangerous or offensive nature.
• When railway administration delivers the consignment to the person who produces the railway receipt, it shall not be responsible for any wrong delivery on the ground that such person is not entitled to do so or that endorsement on the railway receipt is forged or otherwise defective.

Railways Liability

Responsibility of a Railway Administration as a Carrier of Goods – Sections 93 to 112 of the Railways Act, 1989 contain provisions on this subject. These provisions are summarized below.

• A railway administration shall be responsible for the loss, destruction, damage or deterioration in transit, or non-delivery of any consignment (goods entrusted to a railway administration for carriage), arising from any cause except the following, namely.
• An act of God;
• An act of war;
• An act of public enemies;
• Arrest, restraint or seizure under legal process;
• Orders of restrictions imposed by the Central Government or a State Government or by an officer or authority subordinate to the Central Government or a State Government authorised by it in this behalf;
• Act of omission or negligence of the consignor or consignee endorsee or the agent or servant of the consignor or the consignee or the endorsee;
• Natural deterioration or wastage in bulk or weight due to inherent defect, quality or vice of the goods;
• latent defects;
• Fire, explosion or any unforeseen risks.

The liability of a railway administration is the same as that of a common carrier. In other words, even where any loss, destruction, damage, deterioration or non-delivery is proved to have arisen from any one or more of the aforesaid nine cases, a railway administration shall not be relieved of its responsibility unless it further proves that it has used reasonable foresight and care in the carriage of the goods.

A railway administration, like a common carrier, is bound to carry the goods of every person who is willing to pay the freight and comply with other requirements.

• The railway administration shall be responsible for the loss, destruction, damage or deterioration of any consignment proved by the owner to have been caused by the delay or detention in their carriage. The railway administration can, however, avoid liability if it proves that the delay or detention arose for reasons beyond its control or without negligence or misconduct on its part or on the part of any of its servants.
• Owner’s risk rate or railway risk rate – A consignment may be carried by a railway administration either at owner’s risk rate or railway risk rate. Owner’s risk rate is a special reduced rate as the goods are carried at owner’s risk whereas railway risk rate is an ordinary tariff rate. In case of owner’s risk rate, the railway administration is not responsible unless it is proved that any loss, destruction, damage or deterioration or non-delivery of goods arose from negligence or misconduct on the part of the railway administration or its servants.
• Liability for damage to goods in defective condition or defectively packed – . Goods tendered to a railway administration to be carried by railway may be
• In a defective condition or
• Defectively packed.

If the fact of such condition or defective or improper packing has been recorded by the sender or his agent in the forwarding note, the railway administration is not responsible for any damage, deterioration, leakage or wastage unless negligence or misconduct on the part of the railway administration or of its servants is proved.

• Liability after termination of transit – Whether the goods are carried at owner’s risk rate or railway risk rate, the liability of the railway administration for any loss of goods within a period of seven days after the termination of transit is that of a bailee under Sections 151, 152 and 161 of the Indian Contract Act, 1872. But where the goods are carried at owner’s risk rate the railway administration is not liable for such loss, destruction, damage, deterioration or non-delivery of goods except on proof of negligence or misconduct on the part of the railway administration or any of its servants.

After seven days from the date of termination of transit the railway administration is not liable in any case for any loss of such goods. Notwithstanding this provision, the railway administration is not responsible after the termination of transit for the loss, destruction, damage, deterioration or non-delivery of articles of perishable goods, animals, explosives and other dangerous goods.

• Responsibility as carrier of luggage – Railway administration shall not be responsible for the loss, destruction, damage, deterioration or non-delivery of any luggage unless a railway servant has booked the luggage and given a receipt for the same. Also it is to be proved that the loss, etc., was due to the negligence or misconduct on the part of the railway administration or on the part of any of its servants.

In the case of luggage which is carried by the passenger in his own charge, the railway administration shall not be responsible for the loss, etc., unless it is proved that the loss, etc., was due to the negligence or misconduct on the part of the railway administration or on the part of any of its servants.

• Responsibility as a carrier of animals (Section 101). A railway administration shall not be responsible for any loss or destruction of, or injuries to, any animal carried by railway arising from fright or restiveness of the animal or from overloading of wagons by the consignor.
• Exoneration from liability in certain cases -Railway administration shall not be responsible for the loss, destruction, damage or deterioration or non-delivery of any consignment when
• a false description of the consignment is given, or
• a fraud by consignor or the endorsee or an agent of the consignor, consignee or endorsee, or
• where it is proved by the railway administration to have been caused by, or to have arisen from –
  • Improper loading or unloading by the consignor, or the consignee or the endorsee, or by an agent of the consignor, consignee or the endorsee;
  • Riot, civil commotion, strike, lock-out, stoppage or restraint of labour from whatever cause arising whether partial or general; or
• For any indirect or consequential loss or damage or for loss of particular market.

Merits and Demerits of Railway Transportation

Road transport and railways together play an extremely significant role in transportation of goods within the country. Transportation by road takes place through a various modes from primitive invalid carriages, carts hauled by bullocks, buffaloes, horses to motor vehicles ranging from small three wheelers to multi-axle large trucks.

The comparative merits and demerits of both the modes of transport can be summarised as follows.

• Cost: Transportation over long distance is cheaper through railways. However for on shorter distances road transportation is cheaper due to savings in packing cost and elimination of multiple handling.
• Speed: In case of transportation over short distances, road transport is quicker as goods are directly loaded on the vehicle and sent directly to the destination.
• Special services: Road transport providers provide special services as warehousing, loading, unloading and even cold storage facilities. Railways have introduced container services.
• Nature of commodity: Road transportation scores over the railways in case of transportation of perishable items which require quick delivery. However for transportation of bulky, heavy and cheap goods over a long distance railways are better suited.
• Distance: Railway transportation is preferable over longer distances.
• Safety: The losses in transportation are much lower in case of road transportation as compared to carriage by rail.
• Capital Investment: The capital investment in case of railways transport is much higher than road transportation.
• Flexibility: The route and timing can be tailored to suit the customer requirement with door-to- door delivery in case of road transport. However railway routes are fixed with specific time schedule and not flexible.