Introduction
The Bills of Lading Bill 2024, introduced in the Lok Sabha on 9th August 2024, seeks to modernize the legal framework surrounding bills of lading. It proposes the transfer of all rights and liabilities from shippers to consignees and endorsers upon consignment or endorsement, effectively replacing the Indian Bills of Lading Act of 1856. This new legislation addresses the previously separate property rights and contractual obligations linked to bills of lading. It affirms that a bill of lading held by a bona fide holder constitutes conclusive evidence of shipment, regardless of whether the goods were loaded. It also preserves existing rights such as stoppage in transit and claims for freight. Furthermore, the bill authorizes the Central Government to issue necessary implementation directives while retaining certain provisions from the repealed Act. The overarching goal is to streamline the transfer of rights and liabilities within the shipping industry, aligning with contemporary practices.
Legislative Overview
This Bill aims to:
- Facilitate the transfer of rights of suit and all liabilities to the consignee and endorses of a bill of lading upon consignment or endorsement.
- Address the ongoing issue of property rights and contracts in the context of bills of lading.
Key Reasons for Enactment:
- The existing custom allows for bills of lading to transfer property rights by endorsement; however, original rights remain with the shipper.
- Rights should pass along with the property as a matter of expediency.
- Instances frequently arise where goods referenced in bills of lading may not have been loaded onto the vessel.
- It is essential that bona fide holders are not questioned on the validity of such bills based on the actual loading of goods.
The new Bill is enacted by Parliament in the Seventy-fifth Year of the Republic of India as follows:
1. Short Title and Commencement
- This Act may be cited as the Bills of Lading Act, 2024.
- The Act will take effect from a date appointed by the Central Government via notification in the Official Gazette.
2. Rights Under Bills of Lading
Every named consignee and endorsee in a bill of lading will inherit all rights of suit and liabilities concerning the consigned goods. This modification accords them the same status as if they were the original contracting parties.
3. Preservation of Rights
The Act stipulates that:
- The right of stoppage in transit remains unaffected.
- Claims for freight against the original shipper are preserved.
- Consignees and endorsers maintain their liabilities resultant from the receipt of goods through consignment or endorsement.
4. Conclusive Evidence of Shipment
- Bills of lading held by a consignee or endorsee for valuable consideration will serve as conclusive evidence of shipment against the master or signatory of the bill, even if the goods were not shipped.
- This provision does not apply if the bill holder was aware at the time of receipt that the goods were not loaded.
5. Central Government Directions
The Central Government is authorized to issue directions necessary for the implementation of this Act.
6. Repeal and Savings
- The Indian Bills of Lading Act, 1856 is hereby repealed.
- The repeal will not affect:
- Previous actions or rights accrued under the repealed Act.
- Any existing rules or notifications that are consistent with this new legislation.
- Penalties incurred under the repealed Act.
- Ongoing proceedings related to rights, privileges, or liabilities from the repealed Act.
- The provisions of section 6 of the General Clauses Act, 1897 will also apply concerning the repeal's effects.
Statement of Objects and Reasons
The Indian Bills of Lading Act, 1856 aimed to address two primary concerns:
- The transfer of rights in the bill of lading to consignees or endorsees along with the property.
- The status of bills of lading held by bona fide holders as conclusive evidence of shipment.
Given the significance of transferring rights through bills of lading in maritime commerce, the proposed legislation realizes the need for modernization. The original Act, being a pre-independence statute, warrants revision to align it with contemporary legislative practices while retaining its core principles. This new Bill is designed to streamline processes and improve clarity and understanding in dealings associated with bills of lading.
Ultimately, the Bills of Lading Bill, 2024, is introduced into Parliament to fulfill these objectives.