Question

Under Carriers Act 1865

Under Carriers Act a common carrier enjoys what right and

Bears what liabilities?

400 words

Answer 1

The 1865 carrier act was the first statutory enactment in India for common carriers. It clearly defined the rights and liabilities of the common carriers (that is, transporters other than the government).

The liability of a common carrier under the Carriers Act is that of an insurer. The Act enabled a common carrier to limit his or her liability by a special contract if he chose to do so. This was in exception to case of loss caused by a criminal act, negligence or misconduct. Else, his liability was absolute as an insurer to the extent of value of goods of Rs.100. The liability could go higher than that that if a higher value was declared by the consignor beforehand, and in writing.

In extension to the above, no suit could be filed against a common carrier for loss, unless notice in writing was given to him within six months of loss or injury being known.

As mentioned, this does not include loss arising from neglect, fault or misconduct. If the loss or damage arises from the neglect, fault or failure in the duties and obligations as provided in the statutory Articles or rules then a clause in the bill of lading exempting the carrier from liability for such loss and damage would be null and void and of no effect. It means that if it was proven that the loss was due to the actions of the insurer- such as misconduct, negligence or fault, then the liability is not limited to only 100 rupees. Then the liability would be decided based on the value of the merchandise.

Also, if it has been declared, in writing and prior, the specific value of the goods- then also the liability is not limited to only 100 rupees. Then the liability would be based on the value declared prior in writing. Since the parties agreed to these terms beforehand, the carrier cannot then later claim the liabilities to be only of 100 rupees.