The Carriage by Road Act, 2007

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EXTRAORDJNARY
'lPT fI- ~1
PART II - Section 1
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PUBLISHED BY AUTHORITY
1fo49J
No. 49]
1{ ~, m.rcm, ~1, 2007 / a:rrftcr.T9, 1929
NEW DELHI, MONDAY, OCTOBER 1,2007 IASVINA 9,1929
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Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi. the 1st October; 2007/9Asvina, 1929(Saka)
The following Act of Parliament received the assent of the President on the
29th September. 2007, and is hereby published for general information:-
THE CARRIAGE BY ROAD ACT, 2007
No. 41 OF 2007
[29th September, 2007.]
An Act to provide for the regulation of common carriers, limiting their liability
and declaration of value of goods delivered to them to determine their
liability for loss of, or damage to, such goods occasionedby the negligence
or criminal acts of themselves, their servants or agents and for matters
connected therewith or incidental thereto.
BE it enacted by Parliament in the Fifty-eighth Year of the Republic of India as
follows:-
1. (I) This Act may be called the Carriage by Road Act, 2007.
(2) It extends to the whole of India, except the State of Jammu and Kashmir.
(3) It shall come into force on such date as the Central Government may, by
notification in [he Official Gazette, appoint.
Short title.
extent and
commencement.

Defirunons
Persons not
to engage ill
business of
common
carrier
without
registration.
2 THE GAZETTE OF INDlA EXTRAORDfNARY [PARTII-
2. In this Act, unless the context otherwise requires,-
(a) "common carrier" means a person engaged in the business of collecting,
storing, forwarding or distributing goods to be carried by goods carriages under
a goods receipt or transporting for hire of goods from place to place by
motorised transport on road, for all persons undiscriminatingly and includes a
goods booking company, contractor, agent, broker and courier agency engaged
in the door-to-door transportation of documents, goods or articles utilising the
services of a person, either directly or indirectly, to carry or accompany such
documents, goods or articles, but does not include the Government;
(b) "consignee" means the person named as consignee in the goods
forwarding note:
(el "consignment" means documents, goods or articles entrusted by the
consignor to the common carrier for carriage, the description or details of
which are given in the goods forwarding note;
(d) "consignor" means a person, named as consignor in the goods
forwarding note, by whom or on whose behalf the documents, goods or articles
covered by such forwarding note are entrusted to the common carrier for carriage
thereof;
(e) "goods" includes-
(i) containers, pallets or similar articles of transport used to
consolidate goods; and
(ii) animals or livestock;
(/) "goods forwarding note" means the document executed under section 8;
(g) "goods receipt" means the receipt issued under section 9;
(h) "person" includes any association or body of persons, whether
incorporated or not, a road transport booking company, contractor and an agent
or a broker carrying on the business of a common carrier;
(i) "prescribed" means prescribed by rules made under this Act;
(j) "registering authority" means a State Transport Authority or a
Regional Transport Authority constituted under section 68 of the Motor Vehicles
Act, 1988; 59 of 1988.
(k) "registration" means the registration granted or renewed under sub-
section (5) of section 4.
3. (1) No person shall engage in the business of a common carrier, after the
commencement of this Act, unless he has been granted a certificate of registration.
(2) Any person who is engaged, whether wholly or partly, in the business of a
common carrier, immediately before the commencement of this Act, shall,-
(a) apply for a registration within ninety days from the date of such
commencement;
(b) cease to engage in such business on the expiry of one hundred and
eighty days from the dare of such commencement uniess he has applied for
registration and the certificate of registration has been granted by the registering
authority.

SEC. 1] THE GAZETTE OF INDLA EXTRAORDINARY
4. (I) Any person, who is engaged or intends to engage in the business of a
common carrier, shall apply for the grant or renewal of a certificate of registration for
carrying on the business of common carrier to the registering authority. .
(2) An application under sub-section (1) shall be made, to the registering
authority having jurisdiction in the area in which the applicant resides or has his
principal place of business stating that the application is for the main office, in such
form and manner and accompanied by such fees payable to the registering authority
as may be prescribed.
(3) An application for grant or renewal of certificate of registration for the main
office shall contain the details of branch office, if any, to be operated outside the
jurisdiction of the State or Union territory in which the main office is to be registered
in such form and manner as may be prescribed:
Provided that an application for the purpose to open or close a branch office
shall be made to the registering authority having jurisdiction over the main office.
(4) A registering authority shall, before granting or renewing a certificate of
registration, satisfy itself that the applicant fulfills such conditions as may be
prescribed.
(5)' The registering authority may, on receipt of an application under sub-section
(2) or sub-section (3) and after satisfying itself that the applicant fulfills the
requirements of sub-section (4), grant the certificate of registration or renew it, as the
case may be, for carrying on the business of a common carrier, in such form and
subject to such conditions as may be prescribed:
Provided that no application for the grant or renewal of a certificate of
registration shall be refused by the registering authority unless the applicant has
been given an opportunity of being heard and the reasons for such refusal are given
in writing by the registering authority within sixty days from the date of receipt of
such application:
Provided further that if such refusal has not been communicated within sixty
days of the date of application, the registering authority shall grant or renew certificate
of registration within a further period of thirty days.
(6) A certificate of registration granted or renewed under sub-section (5) shall
contain the details of branch offices to be operated in various States and Union
territories, and shall be valid for a period of ten years from the date of such grant or
renewal, as the case may be:
Provided that in the case of registration in respect of branch offices referred to
in sub-section (3), the validity of such registration shall be restricted to the validity
of the registration granted in respect of the main office.
(7) The holder of a certificate of registration shall-
(a) maintain a register in such form and manner as may be prescribed;
(b) for shifting the main office mentioned in the certificate of registration
submit an application to the registering authority which granted the certificate
of registration:
Provided that such registering authority shall grant or refuse permission
for shifting the main office within thirty days from the date of receipt of such
application and that no application for shifting the main office shall be refused
unless the applicant has been given an opportunity of being heard and reasons
for such refusal are given in writing by the registering authority:
Provided further that in case the registering authority has not either
granted or refused the permission within thirty days it shall be deemed that the
permission for shifting has been granted.
3
Application
for grant or
renewal of
registration.

Suspension or
cancellation of
registration.
4 THE GAZETTE OF INDIA EXTRAORDINARY [PARTII-
(c) submit to the registering authority under whose jurisdiction the main
office is located and the Transport Research Wing of the Ministry or Department
of the Central Government dealing with road transport and highways such
information and return as may be prescribed with.n one hundred and twenty
days after the thirty-first day of March every year;
(d) display at a prominent place in its or its main office and each branch
office, if any, a certificate of registration in original or certified copy thereof
attested by the concerned registering authority, a notary or a Gazetted Officer
of the Central or State Government.
(8) A common carrier shall not load the motor vehicle beyond the gross vehicle
weight mentioned in the registration certificate whose registration number is mentioned
in the goods forwarding note or goods receipt, and the common carrier shall not
allow such vehicle to be loaded beyond the gross vehicle weight.
5. (1) If the registering authority is satisfied that the holder of certificate of registration
has failed to comply with any of the provisions of sub-section (7) of section 4, it may give
a notice by registered post or through electronic media or by any verifiable means to the
holder of certificate of registration to rectify within a period of thirty days and in case
such a holder fails to do so, it may revoke the certificate of registration on completion of
enquiry.
(2) If a complaint is received by the registering authority against a common carrier
from a consignor in respect of,-
(/) non-issuance of receipt of goods;
(il) non-disclosure of the whereabouts of the goods in transit when asked by the
consignor or consignee; or
(iiI) detention of goods for delivery without valid reasons; or
(iv) demand for unreasonable additional charges at the time of delivery, which
were neither disclosed nor agreed upon between the consignor and the consignee
earlier; or
(v) non-payment of charges agreed and payable to truck-owners,
it may give a notice by registered post or through electronic media or by any other verifiable
means to the holder of certificate of registration to rectify the same within a period of thirty
days and in case such holder fails to do so, it may revoke certificate of registration for a
period as may be prescribed under the rules on completion of that enquiry.
(3) If the registering authority or any other authority so authorised under the Motor
Vehicles Act, 1988 has received proof of violation of provision of sub-section (8) of 59 of 1998.
section 4, it shall be competent to impose the penalty prescribed under section 194 of the
Motor Vehicles Act. 1988 on the common carrier, notwithstanding the fact that such penalty
have been already imposed on and realised from the driver or the owner of the goods vehicle
or the consignor, as the case may be.
e4) Any action for revocation of certificate of registration shall not be taken under sub-
sections (J) and (2) unless the holder of the certificate of registration is given an opportunity
of being heard in the enquiry and reasons for such action are given in writing by the registering
authoriry.
(5) The registering authority in whose jurisdiction the main office of the common
carrier is located shall be competent to take action under sub-sections(I) and (2) and any
other registering authority who has noticed the violations or has receivedcomplaintsunder
the said sub-sections, shall report such matter to the registering authority havingjurisdiction
over the main office.
(6) When the certificate of registration is revoked, the holder of the certificate of
registration shall surrender the certificate of registration to the registering authority within a

59 of 1988.
59 of 1988.
SEC. 1] THE GAZETIE OF INDIA EXTRAORDINARY 5
period ofthirty days and it would be incumbent on the holder of the certificate of registration
to complete the delivery and transactions in respect of the consignments already accepted
by the common carrier from any consignor prior to the revocation of the certificate of
registration.
(7) The holder of a certificate of registration may, at any time, surrender the certificate
to the registering authority which granted the registration and on such surrender the
registering authority shall, after obtaining declaration from the holder of the certificate of
registration that no liability is outstanding against him and that he shall discharge such
liability, if held liable, revoke the certificate of registration:
Provided that if the surrender is in respect of a branch office, the endorsement in
respect of the branch office shall be deleted from the certificate of registration and such
deletion shall be notified by the registering authority havingjurisdiction over the main office
to such other authorities as may be prescribed.
6. (1) Any person aggrieved by an order of the registering authority refusing to Appeal.
grant or renew a certificate of registration or suspending or revoking a registration
under this Act, may, within sixty days from the date of such order, appeal to the State
Transport Appellate Tribunal constituted' under sub-section (2) of section 89 of the
Motor Vehicles Act, 1988.
(2) An appeal under sub-section (I) shall be preferred in duplicate in the form
of a memorandum setting forth the grounds of objection to the order of the registering
authority and shall be accompanied by such fee as may be prescribed.
(3) Without prejudice to the provisions of sub-sections (1) and (2), the
provisions of sub-sections (1) and (2) of section 89 of the Motor Vehicles Act, 1988,
as in force immediately before the commencement of this Act, with regard to appeal,
shall, as far as may, apply to every appeal as if the provisions aforesaid were enacted
by this Act subject to the modification that any reference therein to the "permit"
shall be construed as a reference to the "registration".
7. The State Transport Authority in respect of each State or Union territory Submission of
shall submit annually to the Ministry or Department of the Central Government dealing annual return.
with road transport and highways a consolidated annual return giving the details of
the goods carried by the common carriers in that State or the Union territory, as the
case may be, on the basis of the returns received from the holders of the registration
as specified under clause (c) of sub-section (7) of section 4.
8. (J) Every consignor shall execute a goods forwarding note, in such form and
manner as may be prescribed, which shall include a declaration about the value of the
consignment and goods of dangerous or hazardous nature.
Goods
forwarding
note.
(2) The consignor shall be responsible for the correctness of the particulars
furnished by him in the goods forwarding note.
(3) The consignor shall indemnify the common carrier against any damage
suffered by him by reason of incorrectness or incompleteness of the particulars on
the goods fcrwarding note.
9. (1) A common carrier shall,-
(a) in case where the goods are to be loaded by the consignor, on the
completion of such loading; or
(b) in any other case, on the acceptance of the goods by him,
issue a goods receipt in such form and manner as may be prescribed.
(2) The goods receipt shall be issued in triplicate and the original shall be given
to the consignor.
Goods receipt.

Liability of
common
carrier.
6 THE GAZETTE OF INDIA EXTRAORDINARY [PARTll-
(3) The goods receipt shall be prima facie evidence of the weight or measure
and other particulars of the goods and the number of packages stated therein.
(.J)The goods receipt shall include an undertaking by the common carrier about
the liability under section 10 or section 11.
IO. (1) The liability of the common carrier for loss of, or damage to any
consignment, shall be limited to such amount as may be prescribed having regard to
the value, freight and nature of goods, documents or articles of the consignment,
unless the consignor or any person duly authorised in that behalf have expressly
undertaken to pay higher risk rate fixed by the common carrier under section 11.
(2) The liability of the common carrier in case of any delay up to such period as
may be mutually agreed upon by and between the consignor and the common carrier
and specifically provided in the goods forwarding note including the consequential
loss or damage to such consignment shall be limited to the amount of freight charges
where such loss, damage or delay took place while the consignment was under the
charge of such carrier:
Provided that beyond the period so' agreed upon in the goods forwarding note,
compensation shall be payable in accordance with sub-section (1) or section 11:
Provided further that the common carrier shall not be liable if such carrier proves
that such loss of, or damage to, the consignment or delay in delivery thereof, had not
taken place due to his fault or neglect or that of his servants or agents thereof.
Rates of charge 11. Every common carrier may require payment for the higher risk undertaken
to be fixed by by him in carrying a particular consignment at such rate of charge as he may fix and
common earner di I hi I· bili ld b . d . h I b dfor carriage of correspon mg y, IS. ia 1 ity wou e In accor ance Wit t te terms as may e agree
consignment at upon with the consignor: .
a higher risk
rate.
Conditions
limiting
exonerating
the liability of
the common
carrier.
Provided that to entitle such carrier to claim payment at a rate higher than his
ordinary rate of charge, he should have exhibited a printed or written notice, in
English and the vernacular language of the State, of the higher rate of charge in the
• place or premises where he carries on the business of common carrier.
12. (1) Every common carrier shall be liable to the consignor for the loss or
damage to any consignment in accordance with the goods forwarding note, where
such loss or damage has arisen on account of any criminal act of the common carrier,
or any of his servants or agents.
(2) In any suit brought against the common carrier for the loss, damage or non-
delivery of consignment, it shall not be necessary for the plaintiff to prove that such
loss, damage or non-delivery was owing to the negligence or criminal act of the
common carrier, or any of his servants or agents.
(3) Where any consignment has been detained for examination or scrutiny by a
competent authority and upon such examination or scrutiny it is found that certain
prohibited goods or goods on which due tax was not paid or insufficiently paid have
been entrusted to the common carrier by the consignor which have not been described
in the goods forwarding note, the cost of such examination or scrutiny shall be borne
by the consignor and the common carrier shall not be liable for any loss, damage or
deterioration ca~sed by such detention of the consignment for examination or scrutiny:
Provided that the onus of proving that such incorrect description of goods in
the goods forwarding note was received from the consignor shall be on the common
carrier.
Explanation.-For the purposes of this section, "competent authority" means
any person or authority who is empowered to examine or scrutinise goods by or
under any law for the time being in force to secure compliance of provisions of that
law.

SEC. 1] THE GAZETIE OF lNDLA EXTRAORDINARY
13. (/) No goods of dangerous or hazardous nature to human life shall be
carried by a common carrier except in accordance with such procedure and after
complying with such safeguards as may be prescribed.
(2) The Central Government may, by rules made in this behalf, specify the
goods of dangerous or hazardous nature to human life and the label or class of labels
to be carried in, or displayed on, the motor vehicle or such goods in the course of
transportation.
(3) Notwithstanding anything contained in any other· law for the time being in
force, every common carrier shall scrutinise and ensure before starting transportation
of any consignment containing goods of dangerous or hazardous nature to human
life that the consignment is covered by, one or more insurance policies under a
contract of insurance in respect of such goods providing relief in case of death or
injury to a person or damage to any property or the consignment, if an accident takes
place.
14. The Central Government may, by notification in the Official Gazette, specify,
in public interest, the goods or class or classes of goods which shall not be carried
by a common carrier. '
15. (1) If the consignee fails to take delivery of any consignment of goods
within a period of thirty days from the date of notice given by the common carrier,
such consignment may be deemed as unclaimed:
Provided that in case of perishable consignment, the period of thirty days shall
not apply and the consignment shall be deemed unclaimed after a period of twenty-
four hours of service of notice or any lesser period as may be mutually agreed to by
and between the common carrier and the consignor.
(2) In the case of an unclaimed consignment under sub-section (1), the commcn
carrier may,-
(a) if such consignment is perishable in nature, have the right to sell the
consignment; or
(b) if such consignment is not perishable in nature, cause a notice to be
served upon the consignee or upon the consignor if the consignee is not
available, requiring him to remove the goods within a period of fifteen days
from the date of receipt of the notice and in case of failure to comply with the
notice, the common carrier shall have the right to sell such consignment without
any further notice to the consignee or the consignor, as the case may be.
(3) The common carrier shall, out of the sale proceeds received under sub-
section (2), retain a sum equal to the freight, storage and other charges due including
expenses incurred for the sale, and the surplus, if any, from such sale proceeds shall
be returned to the consignee or the consignor, as the case may be.
(4) Unless otherwise agreed upon between the common carrier and consignor,
the common carrier shall be entitled to detain or dispose off the consignment in part
or full to recover his dues in the event of the consignee failing to make payment of
the freight and other charges payable to the common carrier at the time of taking
delivery.
16. No suit or other legal proceeding shall be instituted against a common
carrier for any loss of, or damage to, the consignment, unless notice in writing of the
loss or damage to the consignment has been served on the common carrier before the
institution of the suit or other legal proceeding and within one hundred and eighty
days from the date of booking of the consignment by the consignor.
7
Provision for
carriage of
goods of
dangerous or
hazardous
nature to
human life.
Power
of Central
Government to
prohibit carriage
of certain class
of goods.
Right of
common
carrier in case
of consignee's
default.
Notice for
institution of
a suit.

Gener-il
responsibility
of common
carrier.
8 THE GAZETTE OF INDIA EXTRAORDINARY [PARTII-
17. Save as otherwise provided in this Act, a common carrier shall be responsible
for the loss, destruction, damage or deterioration in transit or non-delivery of any
consignment entrusted to him for carriage, arising from any cause except the following,
namely:-
(a) act of God;
(b) act of war or public enemy;
(c) riots and civil commotion;
(d) arrest, restraint or seizure under legal process;
(e) order or restriction or prohibition imposed by the Central Government
or a State Government or by an officer or authority subordinate to the Central
Government or a State Government authorised by it in this behalf:
Provided that the common carrier shall not be relieved of its responsibility for
the loss, destruction, damage, deterioration or non-delivery of the consignment if the
common carrier could have avoided such loss, destruction, damage or deterioration
or non-delivery had the common carrjer exercised due deligence and care in the
carriage of the consignment.
Punishment for 18. (1) Whoever contravenes the provisions of section 3, section 13 or a
contravention notification issued under section 14 shall be punishable for the first offence with fine
in relation to which may extend to five thousand rupees, and for the second or subsequent offence
no n-r e s is tr a-
tion,ca~ry;ng with fine which may extend to ten thousand rupees.
goods of
dangerous or
hazardous
nature, or
prohibited
goods.
Composition
of offences.
Power to
make rules.
(2) If the person committing an offence under this Act is a company, every
person who, at the time the offence was committed, was in charge of, and was
responsible to, the company for the conduct of the business of the company, as well
as the company, shall be deemed to be guilty of the offence and shall be liable to be
proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment, if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of
such offence.
(3) Notwithstanding anything contained in sub-section (1), where any offence
under this Act has been committed by a company and it is proved that the offence
has been committed with the consent or connivance of, or is attributable to any
neglect on the part of, any director, manager, secretary or other officer of the company,
such director, manager, secretary or other officer shall be proceeded against and
punished accordingly.
Explanation.-For the purpose of this section,-
(a) "company" means any body corporate and includes a firm or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
19. (1) Any offence committed under section 18, may either before or after the
institution of the prosecution, be compounded by such officers or authorities and for
such amount as the State Government may, by notification in the Official Gazette,
specify.
(2) Where an offence has been compounded under sub-section (1), the offender
shall be discharged and no further proceedings shall be taken against him in respect
of such offence.
20. (1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Act.

SEC. I] THE GAZETTE OF INDIA EXTRAORDINARY 9
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-
(a) the form and manner of making an application for grant or renewal of a
certificate of registration for main office or branch office and the fee thereof
under sub-sections (2) and (3) of section 4;
(b) the other conditions of eligibility which are required to be fulfilled by
an applicant under clause (d) of sub-section (4) of section 4;
(c) the form in which and the conditions subject to which certificate of
registration or renewal may be granted under sub-section (5) of section 4;
(d) the form and manner of maintaining a register under clause (a) of sub-
section (7) of section 4;
(e) the information and return which may be furnish.ed to the registering
authority and the transport research wing under clause (c) of sub-section (7)
of section 4;
(j) fee for submitting the memorandum of appeal under sub-section (2) of
section 6;
(g) the form and manner in which a goods forwarding note shall be executed
by the consignor under sub-section (I) of section 8;
(h) the form and manner in which a common carrier shall issue goods
receipt under sub-section (1) of section 9; .
(i) liability of the common carrier for loss Of, or damage to any consignment
under sub-section (1) of section 10;
(j) the procedure and safeguards to be complied with for carrying goods
of dangerous or hazardous nature under sub-section (1) of section 13;. '
(k) the specification of the goods of dangerous or hazardous nature to
human life and the label or class of labels to be carried or displayed in or on the
motor vehicle or on such goods in the course of their transportation under sub-
section (2) of section 13; and
(l) any other matter which is required to be, or may be, prescribed.
(3) Every rule made under this section and every notification issued under
section 14 shall be laid, as soon as may be after it is made or issued, before each
House of Parliament, while it is in session, for a total period of thirty days which may
be comprised in one session or in two or more successive sessions, and if, before the
expiry of the session immediately following the session or the successive sessions
aforesaid, both Houses agree in making any modification in the rule or the notification,
or both Houses agree that the rule or the notification should not be made or issued,
, the rule or the notification shall thereafter have effect only in such modified form or
be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity' of anything previously done
under that rule or notification.
21. (1) If any difficulty arises in giving effect to the provisions of this Act, the
Central Government may, by general or special order published in the Official Gazette,
make such provisions. not inconsistent with the provisions of this Act as appear to
it to be necessary or expedient for removing the difficulty:
Provided that 110 such order shall be made under this section after the expiry of
two years from the date of commencement of this Act.
Power to'
remove
difficulties,

10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II-S sc. I]
Repeal and
saving.
(2) Every order made under sub-section (1) shall be laid, as soon as may be,
after it is made, before each House of Parliament.
22. (1) The Carriers Act, 1865, is hereby repealed. 3 of iS65.
(2) Notwithstanding the repeal of the Carriers Act, 1865, anything done or any :3 of 1865.
action taken under the said Act shall, in so far as such thing or action is not
inconsistent with the provisions of this Act, be deemed to have been done or taken under
the provisions of this Act arid shall continue in force accordingly until superseded by
anything done or any action taken under this Act.
(3) The mention of particular matters in this section shall not be held to prejudice or
affect the general application of section 6 of the General Clauses Act, 1897 with regard to 10 of 1897.
the effect of repeals.
K.N. CHATURVEDI,
Secy. to the Govt. oj india.
PRINTED BY THE MANAGER. GOVERNMENT OF INDIA' PRESS. )\·IlNTO ROAD. NEW DELHi
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 2007.
'..
MGIPMRNO-4i06GI(S5)-3-10-2007.

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