The term "at owner's risk" appears in every goods receipt or consignment note issued by the transporters to whom the goods are entrusted by traders, manufacturers or businessmen for delivery to their dealers or customers.
Does this term completely exonerate the transport company from its liability if the goods so consigned are not delivered, late delivered or delivered in a damaged condition?
Transporters say so and invariably advance this plea if any action is taken against them. Courts too have struggled hard to reconcile the situation and even the Supreme Court had to go into this baffling question on several occasions.
1. Rungta Brothers case :
National Consumer Disputes Redressal Commission ordered at 2003 CTJ 480 (CP) in the matter of Vijay Goods Transport Company v. Rungta Brothers, and held the transporter liable to make good the loss.
2. In the case of Nath Brothers v. Best Roadways Limited, 2000 CTJ 335(SC)(CP), the Supreme Court held the liability of a carrier to whom the goods are entrusted for carriage is that of an insurer and is absolute in terms which means the carrier has to deliver the goods safely, undamaged and without loss at the destination. The court also observed that "the expression, 'owner risk', does not exempt a carrier from his own negligence or the negligence of his servants or agents."
3. Patel Roadways v. Birla Yamaha Ltd. 2000 CTJ 241 (SC) (CP)
4. Transport Corporation of India v. Oriental Insurance Co. Ltd judgment dated October 13, 2011
5. In Associated Road Carriers Ltd. v. Tridoss Laboratories Ltd. (F.A. No. 125 of 1999) the NC on November 2, 2011 observed "the carrier cannot disown the liability by saying he did not cause the loss".
From the above legal position, it is manifest that while certainly the consignors would be advised to insure the precious goods transported through the transporters, the mere fact that the goods receipt mentions that the goods were dispatched at "owner's risk" should not by itself deter the consignors in claiming compensation from the transporters.
