Section 16 of The Multimodal Transportation of Goods Act, 1993
Where delay in delivery of the consignment occurs under any of the circumstances mentioned in the Explanation to sub-section (1) of section 13, or any consequential loss or damage arises from such delay, then the liability of the multimodal transport operator shall be limited to the freight payable for the consignment so delayed.
Summary
- This section limits how much money a multimodal transport operator (the provider who coordinates shipping across different modes like road, rail, or sea) has to pay if there is a delay in delivering the goods.
- Under the cross-referenced Section 13, a delay is deemed to occur when the goods are not delivered within the expressly agreed time, or in the absence of such agreement, within a reasonable time that a diligent operator would take.
- The liability of the operator for delay, or for any indirect or consequential loss (such as a business loss or missed penalty) arising from the delay, is capped.
- This liability cap is strictly limited to the freight payable (the transport fee) for the specific consignment that was delayed.
- To hold the operator liable for delay at all, Section 13 requires that the sender must have declared an interest in timely delivery, and this declaration must have been accepted by the operator.
Practical examples
FAQ
1. What does the law consider a delay in delivery?
Under Section 13, a delay happens if the goods are not delivered within the time specifically agreed in the contract, or if no time was agreed, within a time that a diligent operator would reasonably need under the circumstances.
2. How much compensation can I get for a delayed shipment under Section 16?
The compensation is limited to the total freight charge payable for that delayed shipment.
3. Can I get compensated for business losses caused by the delay?
Yes, but any such indirect or consequential loss is still subject to the same cap, meaning the total compensation cannot exceed the freight payable for the shipment.
4. Are there any conditions to claim compensation for delay?
Yes, under Section 13, the operator is not liable for delay unless you declared a special interest in timely delivery when making the contract and the operator accepted it.
Test yourself
Q1.Under Section 16 of The Multimodal Transportation of Goods Act, 1993, what is the maximum liability of a multimodal transport operator for losses resulting solely from a delay in delivery of goods?
Q2.How do Section 13 and Section 16 of The Multimodal Transportation of Goods Act, 1993, work together regarding an operator's liability for delay?
Q3.Under The Multimodal Transportation of Goods Act, 1993, if no delivery date was written in the contract, how is a delay determined for the purpose of triggering liability under Section 16?
Q4.Under Section 16 of The Multimodal Transportation of Goods Act, 1993, what happens if a consignor suffers a direct business loss of 100,000 rupees due to delivery delay, but the freight payable for the shipment was only 15,000 rupees?
Q5.Under Section 16 of The Multimodal Transportation of Goods Act, 1993, what is required under Section 13 for a consignor to hold an operator liable for delay-related losses?