Section 15 of The Multimodal Transportation of Goods Act, 1993
Limits of liability when the nature and value of the consignment have not been declared and stage of transport where loss or damage occurred is known.
Where a multimodal transport operator becomes liable for any loss of, or damage to, any consignment, the nature and value whereof have not been declared by the consignor before such consignment has been taken in charge by the multimodal transport operator and the stage of transport at which such loss or damage occurred is known, then the limit of the liability of the multimodal transport operator for such loss or damage shall be determined in accordance with the provisions of the relevant law applicable in relation to the mode of transport during the course of which the loss or damage occurred and any stipulation in the multimodal transport contract to the contrary shall be void and unenforceable: 1[Provided that the multimodal transport operator shall not be liable for any loss, damage or delay in delivery due to a cause for which the carrier is exempted from liability in accordance with the applicable law.]
Summary
- This section applies when the shipper did not declare the nature and value of the consignment beforehand, but the specific stage of transport where the loss or damage occurred is known.
- The limit of the operator's liability is determined in accordance with the provisions of the relevant law applicable in relation to that mode of transport during the course of which the loss or damage occurred.
- Any agreement or clause in the multimodal transport contract that tries to set a different limit of liability contrary to the applicable mode law is void and unenforceable.
- The operator is not liable for any loss, damage, or delay if the cause of the issue is something that exempts the carrier from liability under the specific law governing that mode of transport.
Practical examples
FAQ
1. Can the transport operator and shipper agree to a custom liability limit if the stage of damage is known?
No, any stipulation or clause in the contract that goes against the applicable mode-specific law is void and unenforceable.
2. Is the operator liable if the damage occurred during a stage where the carrier is legally exempt from liability?
No, the operator is not liable for any loss, damage, or delay if the cause of the issue is something that exempts the carrier from liability under the relevant law for that mode of transport.
3. What laws are used to determine liability under Section 15?
The liability is determined by the specific laws applicable to the mode of transport, such as rail, road, air, or sea, where the loss or damage actually happened.
Test yourself
1.Under Section 15 of The Multimodal Transportation of Goods Act, 1993, how is the operator's liability limit decided if the stage of transport where the damage occurred is known?
2.Under Section 15 of The Multimodal Transportation of Goods Act, 1993, what is the status of a contract clause that tries to set a liability limit contrary to the applicable mode-specific law?
3.Under the proviso to Section 15 of The Multimodal Transportation of Goods Act, 1993, is the operator liable if the damage was caused by an event that exempts the carrier under mode-specific law?
4.How does Section 15 of The Multimodal Transportation of Goods Act, 1993, differ from Section 14 of the same Act when the cargo's value is not declared?