Hague Rules, 1924 as Amended by Visby Rules 1979 for Carriers in New Carriage of Goods by Sea Bill, 2024

· Govt Retains Powers to Amend

Bill to provide for the responsibilities, liabilities, rights and immunities attached to carriers with respect to the carriage of goods by sea and for matters connected therewith or related thereto.

[Bill No. 112 of 2024 dated 6 August, 2024]

· Carriage of Goods by Sea Act, 2024

· Definitions.

· Application of Schedule.

· No implied absolute undertaking in contracts to which applicable rules apply.

· Statement as to application of Schedule to be included in bills of lading.

· Modification of Article VI of applicable rules in relation to goods carried in sailing ships and by specified routes.

· Modification of paragraphs 4 and 5 of Article III in relation to bulk cargoes.

· Power of Central Government to issue directions.

· Power of Central Government to amend Schedule.

· Laying of notification before Parliament.

· Power to remove difficulties.

· Repeal and savings.

Statement of Objects and Reasons

The Indian Carriage of Goods by Sea Act, 1925 (the said Act) was enacted to amend the law with respect to carriage of goods by sea, with a view to establishing the responsibilities, liabilities, rights and immunities attaching to carriers under bills of lading. The said Act is substantially based on the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading of August 1924 (“Hague Rules”), which was amended by the Protocol signed at Brussels on 23rd February, 1968 and on 21st December, 1979 (“Visby Rules”). The Schedule to the said Act, provided the Hague Rules, as amended by the Visby Rules, with modifications, to be referred to as “Rules” in the said Act.

2.The said Act is applicable to outward cargo, that is, ships carrying goods from Indian port to any other port, whether in or outside India. Every bill of lading, or similar document of title, issued in India, which contains or is evidence of any contract to which the rules apply, shall contain an express statement that it is to have effect subject to the provisions of the rules as applied by the said Act.

3.Though the substantive aspects of the said Act continue to remain relevant for maritime trade, being a pre-independence statute, it is imperative that some new provisions need to be incorporated therein without changing the substance or spirit of the said Act, so as to bring it in line with modern legislations in order to facilitate simplification and ease of understanding.

4.Accordingly, it is proposed to repeal and re-enact the said Act with anew legislation and for the said purpose, to introduce the Carriage of Goods by Sea Bill, 2024 in Parliament. The salient features of the modifications proposed in the Carriage of Goods by Sea Bill, 2024, inter alia, are–

(a) to substitute the term “Rules” with “applicable rules”, which provides for Hague Rules, as amended by the Visby Rules, with modifications;

(b) to empower the Central Government to amend the Schedule by notification in the Official Gazette and to provide for laying of every such notification before Parliament;

(c) to empower the Central Government to issue such directions as it may deem fit to carry out all or any of the provisions of the Act;

(d) to omit the transitional provision relating to non-applicability of the Rules under the said Act, proposed to be repealed, to contract for the carriage of goods by sea before the first day of January, 1926;

(e) to provide for necessary repeal and savings.

5.The Bill seeks to achieve the above objectives.