Court affirms Railway Claims Tribunal's decision; Indian Railways not liable for losses incurred during transit from Pakistan.
Chandigarh, May 29, 2026 — In a significant ruling, the Punjab and Haryana High Court dismissed an appeal filed by Oriental Insurance Co. Ltd., thereby upholding the decision of the Railway Claims Tribunal, Chandigarh Bench, which rejected the insurance company’s claim for compensation over the loss of goods in transit from Lahore, Pakistan to Amritsar, India.
The case revolved around a consignment of 106 bags of copper scrap dispatched by M/s. World Wide Traders from Lahore to Amritsar. Upon arrival in Amritsar, it was discovered that 9 bags were missing and several others were open, resulting in a shortage of 1104 kg of copper scrap. The goods were insured, and Oriental Insurance compensated the shipper, subsequently seeking to recover the amount from Indian Railways.
The crux of the judgment was the applicability of Section 76(E) of the Indian Railways Act, 1890. Justice Pankaj Jain, who presided over the case, noted that this section absolves railway administration from liability for losses occurring on foreign railways unless it is proven that the loss occurred on the railway administered by Indian Railways. The court observed that the appellant failed to provide such proof.
The appellant’s counsel, Mr. R.C. Gupta, argued that the Tribunal erred in relying on the 1890 Act and should have considered Section 93 of the Railways Act, 1989, which imposes a duty on railways to use reasonable foresight and care. However, the court clarified that since the consignment was booked before the 1989 Act came into effect, the provisions of the 1890 Act were applicable.
The court found no fault in the Tribunal’s findings that the goods were dispatched in sealed wagons from Lahore and received in the same sealed condition in Amritsar. With no evidence to suggest the loss occurred on Indian Railways, the court dismissed the appeal, affirming the Tribunal's decision to reject the claim.
This judgment underscores the complexities involved in cross-border transportation and the stringent requirements for proving liability in cases involving multiple jurisdictions.
Bottom line:-
Responsibility of railway administration for loss of goods in transit from a foreign country to India - Applicability of Section 76(E) of the Indian Railways Act, 1890.
Statutory provision(s): Indian Railways Act, 1890 Section 76(E), Railways Act, 1989 Section 93
Oriental Insurance Co. Ltd. v. Union of India, (Punjab And Haryana) : Law Finder Doc id # 2934545
