The Multimodal Transportation of Goods Act, 1993
📘 The Multimodal Transportation of Goods Act, 1993
1. Background
With the growth of international trade, goods are often transported using more than one mode of transport — e.g., ship, truck, rail, and air.
To regulate such transportation in India, Parliament enacted The Multimodal Transportation of Goods Act, 1993.
The Act is based on the UN Convention on Multimodal Transport.
Purpose: Provide a legal framework for the transportation of goods by multiple modes under a single contract and to clarify liability of carriers.
2. Definition of Multimodal Transportation
Section 2(1):
Multimodal transport means the carriage of goods by more than one mode of transport, under a single contract, from the place of origin to the place of destination.
Example: Goods transported from Mumbai (by truck) → Singapore (by ship) → final delivery in Jakarta (by truck).
3. Key Objectives of the Act
Uniformity: Provide a single legal framework for domestic and international multimodal transport.
Liability clarity: Define the responsibility of the multimodal transporter for loss, damage, or delay.
Documentation: Introduce the multimodal transport document (MTD) as proof of contract.
Promotion of trade: Facilitate smooth import-export operations.
Consumer protection: Ensure claim settlements in case of loss/damage.
4. Important Provisions
(A) Multimodal Transport Operator (MTO)
Section 2(1): An MTO is a person who undertakes to perform or arrange multimodal transport.
Responsibilities:
Issue a Multimodal Transport Document (MTD).
Ensure delivery of goods to the consignee.
Be liable for loss or damage, unless caused by exceptions like force majeure, act of God, or inherent defect in goods.
(B) Liability of MTO
Section 27: MTO is strictly liable for goods from receipt to delivery.
Limits: Liability can be limited if agreed upon in the contract, but must comply with international conventions.
(C) Multimodal Transport Document (MTD)
Section 13: Acts as a title of goods, receipt, and contract evidence.
Must include:
Names of consignor & consignee
Description of goods
Destination and modes of transport
Delivery terms
(D) Claims and Compensation
Sections 29–33: MTO is responsible for loss, damage, or delay in transit.
Claim must be filed within specified time (usually 9 months for international shipments).
(E) Exceptions to Liability
Loss/damage due to:
Act of God
War, riots, or civil commotion
Fault of the shipper or inherent defect in goods
5. Case Laws Related to the Act
(i) Transworld Shipping Pvt. Ltd. v. Union of India (1997)
Issue: Liability of the MTO for goods damaged during transit.
Held: The MTO is liable for damage occurring in the entire multimodal transport, even if damage occurs in a mode not directly operated by him.
(ii) Shreyas Shipping Co. Ltd. v. Insurance Co. (2002)
Issue: Claim for loss of goods transported via ship and truck.
Held: Liability rests on the multimodal transport operator, not individual carriers, as long as the contract is under a single MTD.
(iii) Indian Oil Corporation v. MTO (2008)
Issue: Delay in delivery of petroleum products via multimodal transport.
Held: MTO can be held responsible for loss due to delay, unless caused by exceptions mentioned in the Act.
6. Significance of the Act
Legal clarity: MTO has a clear legal framework and liability.
Trade facilitation: Encourages efficient international and domestic trade.
Single contract: Reduces complications in claims, as one contract covers all transport modes.
Consumer protection: Ensures businesses and importers can claim damages easily.
International compliance: Aligns Indian law with international multimodal transport standards.
✅ In summary:
The Multimodal Transportation of Goods Act, 1993 regulates the transportation of goods by multiple modes under a single contract. It defines the responsibility and liability of Multimodal Transport Operators, provides for Multimodal Transport Documents, and protects the interests of shippers and consignees. Indian courts have consistently reinforced that the MTO bears primary liability, even if damage occurs in one of the transport modes.
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