Report No. 56

35. Period of limitation under the Limitation Act, 1963 for a suit for compensation for loss, destruction or deterioration of animals or goods delivered to be carried by railway.-

We have considered the question whether our recommendation, in so far as it affects section 78B Railways Act1, renders it desirable to make any change in the Limitation Act in respect of the period of limitation for suits for compensation for loss etc. of goods carried on railway. The Limitation Act, 1963, Article 30 provided one year as the period of Limitation for suits against a carrier for compensation for loss of or injury to goods. On the recommendation of the Law Commission2, the Limitation Act of 1963 has provided the period of three years3 as the period of limitation for such suits.

1. Para. 27, supra.

2. Law Commission of India, 3rd Report (Limitation Act), para. 72.

3. Article 10, Limitation Act, 1963.

36. We do not think that any modification of the period of limitation provided in respect of suits against the Railways1 is required. In practice, there is not much likelihood of stale demands or dishonest claims, because the normal period of limitation would still apply.

1. Article 10, Limitation Act, 1963.