A Complete Guide to The The Bills of Lading Act, 2025
Introduction
The Bills of Lading Act, 2025 is a crucial piece of legislation designed to modernize the laws governing the carriage of goods by sea. Its primary purpose is to ensure that when a bill of lading is transferred, all associated rights and liabilities—such as the right to sue—are also transferred to the new holder (the consignee or endorsee). This act clarifies legal ownership and responsibilities, making the bill of lading conclusive evidence of the goods being shipped, which strengthens trust and streamlines commercial transactions in the maritime industry.
Complete List of Sections
- Section 1: Short title and commencement.
- Section 2: Rights under bills of lading to vest in consignee or endorsee.
- Section 3: Right of stoppage in transit or claims for freight not to be affected.
- Section 4: Bill of lading in hands of consignee, etc., conclusive evidence of shipment as against master, etc.
- Section 5: Power of Central Government to give directions.
- Section 6: Repeal and savings.
Conclusion
In summary, The Bills of Lading Act, 2025 is a vital legislative update that repeals the colonial-era 1856 Act. By clarifying the transfer of contractual rights and liabilities and establishing the bill of lading as definitive proof of shipment, the Act provides a clear legal framework that supports modern trade practices, enhances security for all parties involved, and facilitates smoother international commerce.
Frequently Asked Questions
What is the main purpose of The Bills of Lading Act, 2025?
The main purpose is to ensure that when goods are sold and the bill of lading is transferred to a new owner, all legal rights (like the right to sue the carrier) and responsibilities are automatically transferred as well. It modernizes the old law from 1856.
Does this Act affect the shipper’s original responsibilities?
No, Section 3 clarifies that the Act does not affect the original shipper’s liability for freight charges or the carrier’s right of ‘stoppage in transit’ (the right to stop goods mid-journey if the buyer hasn’t paid).
What happens if a bill of lading says goods were shipped, but they weren’t?
According to Section 4, for a person who acquired the bill of lading in good faith for value, the bill is considered conclusive evidence that the goods were shipped. The ship’s master or person who signed the bill cannot later claim the goods were not on board, unless the misrepresentation was caused by fraud from the shipper and without any fault of their own.