Transportation is the
means of marketing of our huge national production. It is an important link in
the development of many industries in the country. The vast system of
collection of raw materials and distribution of finished products would not be
possible without the present development of the various forms of
transportation-train, truck, plane, ship.
A carrier is one who
undertakes the transportation of persons or goods either for hire or
gratuitously. The consignor or shipper is the person who delivers goods to the
carrier for shipment. The consignee is the person whom the goods are addressed
and to whom the carrier should deliver the goods.
The law relating to
carriage of goods is contained in the following statues:
1. Carriage by land –
(i) The common Carriers Act, 1805, which
deals with Common Carriers of goods over land and inland water ways.
(ii) The Railway Act, 1890, which deals with
carriage by railways.
2. Carriage by sea –
(i) The Bills of Lading Act, 1856,
(ii) The Carriage of Goods by Sea Act, 1925,
(iii) The Merchant Shipping Act, 1958,
(iv) The Marine
Insurance Act, 1963.
3. Carriage by air –
Carriage by Air Act, 1972.
The statutes
mentioned above are not exhaustive. On points where the Acts are silent, the
courts apply the principles of English Common Law.
Classification of carriers
Carriers may be
classified into carriers of passengers and carriers of goods. However, the same
carrier may carry both goods and passengers. Another way to classify carriers
is on the basis of reward, that is gratuitous carriers and carriers for reward
or non-gratuitous carriers.
The common law
recognizes two classes of carriers namely common carriers and private carriers.
Common carriers
A common carrier is
one who undertakes for hire to transport from one place to another the goods of
all such persons as think fit to employ him. According to the Carriers Act,
1865 common carrier denotes “a person other than the Government engaged in the
business of transporting for hire property from place to place by land or
inland navigation, for all persons indiscriminately”. Person includes any
association or body of persons whether incorporated or not. A common carrier
exercises the public employment of carrying goods for hire. The carrier is not
at liberty to refuse business. A person who reserves the right of accepting or
rejecting the offers of goods for carriage is not a common carrier.
Nevertheless, if a
carrier offers to carry only a particular kind of goods, he is a common carrier
of that class of goods only. Similarly if a carrier offers to carry goods from
one specified place to another, he is only a common carrier between those
places and not to intermediate places or anywhere else.
Characteristics: To
render a person liable as a common carrier, the following characteristics must
be present.
1. The person must be
engaged in the business of transporting. Where a man carries goods occasionally
or by special agreement, he is not a common carrier. The business of
transporting should not be merely a casual occupation.
2. The term common
carrier is applied only in case of carriage by land or inland navigation. Thus
carriers by sea are excluded.
3. Generally, common
carriers are carriers of goods or money. A carrier of passengers is not a
common carrier. It may, however, be noted that a post office is not a common
carrier though it is a carrier of goods.
4. The common carrier
should get some consideration for carriage. He is not a common carrier when
there is no consideration.
5. The most important
characteristic of a common carrier is that he must carry for all persons
indiscriminately. If he retains the right to choose as among persons or goods,
he is not a common carrier. If a man holds himself out to do it for every one
who asks him, he is a common carrier.
A common carrier is lawfully justified in
refusing to carry the goods –
(1) if the conveyance is already full;
(2) if the goods subject him to some
extraordinary risk or danger;
(3) if the goods are such that the carrier is
not in the habit of carrying or does not profess to carry;
(4) if the goods are to be carried over a
route over which he does not operate;
(5) if the consignor is not willing to pay
reasonable charges for the carriage;
(6) if the goods are not properly packed;
(7) if the consignor refuses to disclose the
nature goods offered for carriage.
Private carriers
A private carrier
carries goods on occasions, and for particular persons of his own choosing
under a special contract, either for hire or gratuitously. Thus, he is one who,
instead of serving all alike, picks and chooses his customers. Private carriers
do not carry regularly from place to place.
Difference between common carriers and private carriers
1. A common carrier
is one who is engaged in regular trade or business, while a private carrier is
engaged in a causal occupation and carries goods on occasions or under a
special contract.
2. A common carrier
carries goods for all persons indiscriminately, while a private carrier carries
goods of particular persons of his own choice.
3. Subject to any
particular person or Railway Administration, or any particular description of
traffic to any undue or unreasonable.
4. Disadvantage in
any respect whatsoever Liability of the
railways. The liability of the railway administration.
