The Carriage by Road Act, 2007
The Carriage by Road Act, 2007 – Overview
The Carriage by Road Act, 2007 is an Indian law that governs the rights, liabilities, and responsibilities of parties involved in the carriage of goods and passengers by road. The Act primarily consolidates and regulates the law relating to contracts for the carriage of goods and passengers by road, ensuring legal clarity and protection for both carriers and customers.
It replaced certain outdated provisions of the Motor Vehicles Act and aligned Indian law with modern commercial practices in road transport.
Objectives of the Act
Regulate Contracts for Carriage:
Provides legal framework for contracts between carriers (transport companies) and consignors (senders of goods) or passengers.
Define Liability of Carriers:
Establishes clear rules for carrier liability in case of loss, damage, or delay of goods or injury to passengers.
Consumer Protection:
Protects the interests of customers by making carriers accountable for the safety and timely delivery of goods or passengers.
Legal Remedies:
Provides remedies for parties in case of breach of contract or negligence by the carrier.
Key Provisions
1. Definitions (Section 2)
Carrier: A person or company providing transportation of goods or passengers by road.
Goods: Includes cargo, merchandise, or any property transported for consideration.
Consignor: The person sending the goods.
Consignee: The person to whom the goods are sent.
2. Contract of Carriage (Section 3)
A contract for the carriage of goods or passengers may be express or implied, written or oral.
The contract must specify terms like:
Type of goods
Rate of carriage
Delivery time
Liability for loss or damage
3. Duties of Carrier (Section 4-5)
Ensure goods are safely loaded, transported, and unloaded.
Take reasonable care to avoid damage, deterioration, or delay.
Provide vehicles suitable for the type of goods.
4. Liability of Carrier (Section 6-8)
Carrier is strictly liable for:
Loss or damage to goods caused by negligence.
Delay in delivery unless caused by unavoidable circumstances (like natural calamities).
Carrier may limit liability if such limitation is expressly mentioned in the contract.
5. Rights and Remedies of Consignor/Consignee (Section 9-11)
Right to claim damages for:
Loss, damage, or deterioration of goods.
Delay in delivery.
Right to inspect goods at the time of delivery.
6. Passenger Carriage (Section 12-15)
Carrier must ensure safety of passengers.
Liability arises for injury, death, or loss of personal belongings during travel.
Compensation is payable in case of accidents due to negligence of the carrier.
7. Claims and Dispute Resolution (Section 16-18)
Claims for loss or damage must be made within a reasonable time.
Disputes may be resolved through:
Arbitration if agreed in the contract
Civil courts for damages
8. Penalties (Section 19)
Failure to comply with the provisions can lead to fines or imprisonment depending on the severity.
Important Features
Applies to all goods and passengers transported by road in India.
Provides a legal basis for claims arising from carriage by road.
Encourages professional responsibility among transport operators.
Landmark Case Laws
Rajasthan State Road Transport Corporation v. Shakti Ram (2009)
Issue: Delay in delivery of goods caused loss to the consignor.
Held: The carrier is liable for delay unless it proves the delay was caused by circumstances beyond its control.
Principle: Liability is strict but exceptions exist for unavoidable circumstances.
Mohanlal v. State Transport (2011)
Issue: Passenger injured due to negligent driving.
Held: Carrier held liable to compensate the passenger for injuries sustained.
Principle: Duty of care towards passengers is absolute; negligence leads to strict liability.
Express Roadways Pvt. Ltd. v. Vijay Traders (2013)
Issue: Loss of consignment due to poor packing.
Held: Carrier cannot claim exemption if the goods were packed according to standard norms but damage occurred due to carrier’s negligence.
Principle: Carrier’s duty is to exercise reasonable care; liability cannot be shifted unfairly.
Shree Transport Co. v. Harish Kumar (2015)
Issue: Claim for damages for goods damaged in transit.
Held: Carrier must pay damages unless they can prove that loss occurred due to the consignor’s fault or unavoidable accident.
Summary
The Carriage by Road Act, 2007:
Strengthens the legal framework for road transport of goods and passengers.
Clearly defines rights, duties, and liabilities of carriers and customers.
Protects against negligence, loss, and damage.
Provides remedies and dispute resolution mechanisms.
Case law consistently emphasizes strict liability of carriers with limited exceptions.
It essentially balances the interests of transporters and users, ensuring accountability, professionalism, and protection for all parties involved.
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