An Overview of Bills of Lading Bill 2024
Hon’ble shipping minister Mr. Sarbananda Sonowal introduced the Bills of Lading Bill 2024 (“Bill”) on 9th August 2024. It aims to replace the Bills of Lading Act 1856 (“Act 1856”), which was enacted to make changes in the law relating to the bill of lading in two key aspects, which are as follows:
(a)Granting the consignee or endorsee of the bill of lading all rights about the contract contained in the bill of lading, as well as the property; and
(b)Guaranteeing that a transferred bill of lading in the possession of a legitimate holder be regarded as final proof of the goods being loaded onto the vessel.
The introduction of the Bill states that “a bill to make provisions for the transfer of rights of suit and all liabilities to the consignee named in a bill of lading and every endorsee of a bill of lading, to whom the property in the goods mentioned in the bill of lading shall pass, upon or by reason of a consignment or an endorsement,
and for matters connected therewith or related thereto.”
Key provisions of the Bill are as follows:-
●The consignee or endorsee shall be granted all rights under the bills of lading (Section 2);
●The Right to stoppage in transit or claims for freight will not be affected by the enactment of this law (Section 3);
●The bill of lading in the hands of consignee or endorsee is conclusive evidence of shipments against the master (Section 4);
●The Bill provides power to the central government to issue directions to carry out all or any of the provisions (Section 5).
Conclusion:
The statement of object and reasons of the Bill makes it crystal clear that the principal aspects of the Act 1856 will continue to be present, however, in view of the government it was necessary to bring new legislation aiming to facilitate the simplification and wider understanding concerning the laws relating to the bill of ladings. Thus, vide this law the government seeks to simplify the regulations pertaining to the issuance of bill of lading as well as to grant the central government power to regulate the same.
