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EXTRAORDINARY
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PART II — Section 2
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PUBLISHED BY AUTHORITY
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No. 18] NEW DELHI, FRIDAY, AUGUST 9, 2024/SRAVANA 18, 1946 (Saka)
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Separate paging is given to this Part in order that it may be filed as a separate compilation.
LOK SABHA
————
The following Bills were introduced in Lok Sabha on 9th August, 2024:—
Bill No. 110 of 2024
Bill No. 110 of 2024
A Bill further to amend the Reserve Bank of India Act, 1934, the Banking
Regulation Act, 1949, the State Bank of India Act, 1955, the
Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970 and the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980.
BEit enacted by Parliament in the Seventy-fifth Year of the Republic of India
as follows:––
CHAPTER I
PRELIMINARY
1.(1) This Act may be called the Banking Laws (Amendment) Act, 2024. Short title and
commencement.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint:2 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
Provided that different dates may be appointed for different provisions of this
Act, and any reference in any such provision to the commencement of this Act, shall
be construed as a reference to the coming into force of that provision.
CHAPTER II
AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934
Amendment of 2.In the Reserve Bank of India Act, 1934, in section 42,— 2 of 1934.
section 42.
(a) in sub-section (1), in the Explanation, for clause (b), the following
clause shall be substituted, namely:—
‘(b) “fortnight” means the period from the first day to the fifteenth
day of each calendar month or sixteenth day to the last day of each
calendar month, both days inclusive;’;
(b)in sub-section (2),—
(i)in the long line,—
(A)for the words “each alternate Friday”, the words “the last
day of each fortnight” shall be substituted;
(B) for the words “seven days”, the words “five days” shall
be substituted;
(ii)in the second proviso,—
(A)for the words “such alternate Friday”, the words “the last
day of any such fortnight” shall be substituted;
(B) for the words “that Friday”, the words “the last day of
that fortnight” shall be substituted;
(iii)the third proviso shall be omitted;
(c)sub-section (2A) shall be omitted.
CHAPTER III
AMENDMENTS TO THE BANKING REGULATION ACT, 1949
Amendment of 3. In the Banking Regulation Act, 1949 (hereafter in this Chapter referred to 10 of 1949.
section 5. as the Banking Regulation Act of 1949), in section 5, in clause (ne), in
sub-clause (i), for the words “five lakhs of rupees”, the words “two crore rupees or
such other amount as may be notified in the Official Gazette by the Central
Government” shall be substituted.
Amendment of 4.In the Banking Regulation Act of 1949, in section 10A, in sub-section (2A),
section 10A. in clause (i), after the words “eight years”, the words “and ten years in case of
aco-operative bank” shall be inserted.
Amendment of 5. In the Banking Regulation Act of 1949, in section 16, in sub-section (3),
section 16. after the words “Reserve Bank”, the following shall be inserted, namely:—
“or the director of a central co-operative bank elected to the Board of the
state co-operative bank in which he is a member”.
Amendment of 6.In the Banking Regulation Act of 1949, in section 18,—
section 18.
(a)in sub-section (1),—
(i)for the words “last Friday”, the words “last day” shall besubstituted;
(ii)for the words “alternate Fridays”, the words “the last day of the
fortnight” shall be substituted;Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
(iii)for the words “such Fridays or if any such Friday”, the words
“the last day of the fortnight or if the last day of any such fortnight” shall
be substituted;
(b) in the Explanation, for clause (b), the following clause shall be
substituted, namely:—
‘(b) “fortnight” shall mean the period from the first day to the
fifteenth day of each calendar month or sixteenth day to the last day of
each calendar month, both days inclusive;’.
7.In the Banking Regulation Act of 1949, in section 24,— Amendment of
section 24.
(a) in sub-section (2A), for the word “Friday”, the word “day” shall be
substituted;
(b) in sub-section (3), for the words “each alternate Friday during the
month, or if any such Friday”, the words “the last day of each fortnight during
the month, or if the last day of any such fortnight” shall be substituted;
(c)in sub-section (4),—
(i) in clause (a), for the words “any alternate Friday or, if such
Friday”, the words “the last day of any fortnight or, if the last day of any
such fortnight” shall be substituted;
(ii)for clause (b), the following clause shall be substituted, namely:—
“(b) if the default occurs again on the last day of the next
succeeding fortnight, or, if the last day of such fortnight is a public
holiday, on the preceding working day, and continues on the last
day of the succeeding fortnights or preceding working days, as the
case may be, the rate of penal interest shall be increased to a rate
of five per cent. per annum above the bank rate on each such
shortfall in respect of last day of that fortnight and last day of each
succeeding fortnight or preceding working day, if last day of such
fortnight is a public holiday, on which the default continues.”;
(d)in sub-section (7),—
(i) for the words “next succeeding alternate Friday, or if such
Friday is a public holiday”, the words “last day of the next succeeding
fortnight, or if the last day of such fortnight is a public holiday” shall be
substituted;
(ii) for the words “subsequent alternate Friday”, the words “last
day of every subsequent fortnight” shall be substituted.
8.In the Banking Regulation Act of 1949, in section 25,— Amendment of
section 25.
(a) in sub-section (1), for the words “last Friday of every quarter or, if
that Friday”, the words “last day of every quarter or, if that day” shall be
substituted;
(b)in sub-section (2), for the words “last Friday of the previous quarter,
or, if that Friday”, the words “last day of the previous quarter, or, if that day”
shall be substituted.
9.In the Banking Regulation Act of 1949, in section 27, in sub-section (1), for Amendment of
the words “last Friday of every month or if that Friday”, the words “last day of every section 27.
month, or, if that day” shall be substituted.
10.In the Banking Regulation Act of 1949, in section 45ZA,— Amendment of
section 45ZA.
(a) in sub-section (1), for the words “one person”, the words “one or
more persons not exceeding four, either successively or simultaneously” shall
be substituted;4 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
(b) after sub-section (1), the following sub-sections shall be inserted,
namely:—
“(1A) Where the nomination is made successively in favour of
more than one person under sub-section (1), the nomination shall be
effective only in favour of one person in the order of priority specified
in section 45ZG.
(1B) Where the nomination is made simultaneously in favour of
more than one person under sub-section (1), the nomination shall be
effective in favour of all such persons in proportion to which it is
declared, and the following terms and conditions shall apply, namely:—
(a)the nomination shall not be made in favour of more than
four persons;
(b) the nomination shall explicitly state the proportion of
amount of deposit in percentage in favour of each nominee;
(c) the nomination shall be made in respect of the whole
amount of deposit;
(d) if any nominee dies before receiving deposit from the
banking company, the nomination in respect of such nominee
alone shall become ineffective and the amount of deposit
purported to be nominated in favour of deceased nominee shall be
treated as if nomination had not been made in respect of that
portion of deposit,
and any nomination which does not comply with any of the terms and
conditions specified in clauses (a) to (c), shall be invalid, as if nomination had
not been made by the depositor or all the depositors together, as the case may
be.”.
Amendment of 11.In the Banking RegulationAct of 1949, in section 45ZC, insub-section (1),
section 45ZC. for the words “one person”, the words “one or more persons not exceeding four,
successively,” shall be substituted.
Amendment of 12.In the Banking Regulation Act of 1949, in section 45ZE, forsub-section (1),
section 45ZE. the following sub-section shall be substituted, namely:—
“(1) Where one or more individuals hire a locker from a banking
company, whether such locker is located in the safe deposit vault of such
banking company or elsewhere, the individual or, as the case may be, all the
individuals together, may nominate one or more persons not exceeding four,
successively, to whom, in the event of the death of the sole hirer or the death
of all the hirers, the banking company may give access to the locker and liberty
to remove the contents of the locker.”.
Insertion of 13.In the Banking Regulation Act of 1949, after section 45ZF, the following
new section section shall be inserted, namely:––
45ZG.
“45ZG. (1) Where the nomination is made in favour of more than one
Priority of
successive person successively under sub-section (1) of section 45ZA or sub-section (1)
nominations. of section 45ZC or sub-section (1) of section 45ZE, the nomination shall be
effective only in favour of one person in the following order of priority,
namely:––
(a) nomination of the first nominee shall be effective if that
nominee survives the person or persons who made the nomination;
(b)nomination of the second nominee shall become effective only
after the death of the first nominee;Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 5
(c) nomination of any nominee lower in the order of nomination
shall become effective only after the death of all the nominees whose
names are higher in the order of nomination.
(2) Where the order of nomination is not mentioned, persons shall be
deemed to have been nominated in the order in which their names appear in
the nomination.
(3) The provisions of this section shall not apply to the nominations
made simultaneously in favour of more than one person under sub-section (1)
of section 45ZA.”.
14.In the Banking Regulation Act of 1949, in section 56,— Amendment of
section 56.
(a) in clause (c), for sub-clause (ii), the following sub-clause shall be
substituted, namely:—
“(ii) clause (nb) shall be omitted;”;
(b)in clause (j) relating to substitution of section 18, in sub-section (1),—
(i) for the words “last Friday”, the words “last day” shall be
substituted;
(ii)for the words “alternate Friday”, the words “the last day of the
fortnight” shall be substituted;
(iii)for the words “such Fridays or if any such Friday”, the words
“the last day of the fortnight or if the last day of any such fortnight” shall
be substituted;
(iv)in the Explanation, for clause (b), the following clause shall be
substituted, namely:—
‘(b) “fortnight” shall mean the period from the first day to
the fifteenth day of each calendar month or sixteenth day to the last
day of each calendar month, both days inclusive;’.
CHAPTER IV
AMENDMENTS TO THE STATE BANK OF INDIAACT, 1955
23 of 1955. 15.In the State Bank of India Act, 1955, in section 38A,— Amendment of
section 38A.
(a)in the marginal heading, for the word “dividend”, the word “money”
shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted,
namely:—
“(3) The State Bank shall transfer, in accordance with the rules
made under section 124 of the Companies Act, 2013, to the Investor
18 of 2013.
Education and Protection Fund established under section 125 of the
said Act,—
(i) any money which remains unpaid or unclaimed for a
period of seven years from the date of its transfer in the Unpaid
Dividend Account of the State Bank;
(ii)all shares in respect of which dividend has not been paid
or claimed for a period of seven consecutive years, along with a
statement thereof containing the details specified in the said rules;
(iii)any interest or redemption amount upon any bond issued
by the State Bank which remain unpaid or unclaimed for a period
of seven years from the date such interest or such redemption
amount became due for payment.6 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
(4) Any person whose shares or unclaimed or unpaid money has
been transferred to the Investor Education and Protection Fund under
sub-section (3), shall be entitled to claim the transfer or refund from the
said Fund, in accordance with the rules made under section 124 and
section 125 of the Companies Act, 2013. 18 of 2013.
(5) The money transferred under sub-section (3) to the Investor
Education and Protection Fund shall be utilised for the purposes and in
the manner specified in section 125 of the Companies Act, 2013.”. 18 of 2013.
Amendment of 16.In the State Bank of India Act, 1955, in section 41,— 23 of 1955.
section 41.
(a) in sub-section (1), for the words and figures “section 226 of the
Companies Act, 1956”, the words and figures “section 141 of the Companies 1 of 1956.
Act, 2013” shall be substituted; 18 of 2013.
(b) for sub-section (2), the following sub-section shall be substituted,
namely:—
“(2) The auditors shall receive such remuneration as the State Bank
may fix.”.
CHAPTER V
AMENDMENTS TO THE BANKINGCOMPANIES (ACQUISITION AND TRANSFER OF
UNDERTAKINGS)ACT, 1970
Amendment of 17. In the Banking Companies (Acquisition and Transfer of Undertakings)
section 10.
Act, 1970 (hereafter in this Chapter referred to as the Act of 1970), in section 10, in 5 of 1970.
sub-section (2),—
(a)for the words and figures “section 226 of the Companies Act, 1956”, 1 of 1956.
the words and figures “section 141 of the Companies Act, 2013” shall be 18 of 2013.
substituted;
(b)for the words “Reserve Bank may fix in consultation with the Central
Government”, the words “corresponding new bank may fix” shall be
substituted.
Amendment of 18.In the Act of 1970, in section 10B,—
section 10B.
(a)in the marginal heading, for the words“dividend to Unpaid Dividend
Account”, the word “money” shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted,
namely:—
“(3) The corresponding new bank shall transfer, in accordance
with the rules made under section 124 of the Companies Act, 2013, to 18 of 2013.
the Investor Education and Protection Fund established under section 125
of the said Act,—
(i) any money which remains unpaid or unclaimed for a
period of seven years from the date of its transfer in the Unpaid
Dividend Account of the corresponding new bank;
(ii)all shares in respect of which dividend has not been paid
or claimed for a period of seven consecutive years, along with a
statement thereof containing the details specified in the said rules;
(iii)any interest or redemption amount upon any bond issued
by the corresponding new bank which remain unpaid or unclaimed
for a period of seven years from the date such interest or such
redemption amount became due for payment.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 7
(3A) Any person whose shares or unclaimed or unpaid money has
been transferred to the Investor Education and Protection Fund under
sub-section (3), shall be entitled to claim the transfer or refund from the
said Fund, in accordance with the rules made under section 124 and
18 of 2013. section 125 of the Companies Act, 2013.”;
(c)in sub-section (4), for the words, figures and letter “section 205C of
1 of 1956. the Companies Act, 1956”, the words and figures “section 125 of the
18 of 2013. Companies Act, 2013” shall be substituted.
CHAPTER VI
AMENDMENTS TO THE BANKINGCOMPANIES (ACQUISITION AND TRANSFER OF
UNDERTAKINGS)ACT, 1980
19. In the Banking Companies (Acquisition and Transfer of Undertakings) Amendment of
section 10.
40 of 1980. Act, 1980 (hereafter in this Chapter referred to as the Act of 1980), in section 10, in
sub-section (2),––
1 of 1956. (a)for the words and figures “section 226 of the Companies Act, 1956”,
18 of 2013. the words and figures “section 141 of the Companies Act, 2013” shall be
substituted;
(b)for the words “Reserve Bank may fix in consultation with the Central
Government”, the words “corresponding new bank may fix” shall be
substituted.
20.In the Act of 1980, in section 10B,— Amendment of
section 10B.
(a)in the marginal heading, for the words “dividend to Unpaid Dividend
Account”, the word “money” shall be substituted;
(b) for sub-section (3), the following sub-sections shall be substituted,
namely:—
“(3) The corresponding new bank shall transfer, in accordance
with the rules made under section 124 of the Companies Act, 2013, to
18 of 2013.
the Investor Education and Protection Fund established under
section 125 of the said Act,—
(i) any money which remains unpaid or unclaimed for a
period of seven years from the date of its transfer in the Unpaid
Dividend Account of the corresponding new bank;
(ii)all shares in respect of which dividend has not been paid
or claimed for a period of seven consecutive years, along with a
statement thereof containing the details specified in the said rules;
(iii)any interest or redemption amount upon any bond issued
by the corresponding new bank which remain unpaid or unclaimed
for a period of seven years from the date such interest or such
redemption amount became due for payment.
(3A) Any person whose shares or unclaimed or unpaid money has
been transferred to the Investor Education and Protection Fund under
sub-section (3), shall be entitled to claim the transfer or refund from the
said Fund, in accordance with the rules made under section 124 and
section 125 of the Companies Act, 2013.”;
18 of 2013.
(c)in sub-section (4), for the words, figures and letter “section 205C of
1 of 1956. the Companies Act, 1956”, the words and figures “section 125 of the Companies
18 of 2013. Act, 2013” shall be substituted.8 THE GAZETTE OF IN8DIA EXTRAORDINARY [Part II—
STATEMENT OF OBJECTS AND REASONS
As the banking sector has evolved over the years and with a view to improve
bank governance and investor’s protection, it has become necessary to make certain
amendments in the Reserve Bank of India Act, 1934, the Banking Regulation
Act, 1949 (the “BR Act”), the State Bank of India Act, 1955, the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking
Companies (Acquisition and Transfer of Undertakings) Act,1980.
2. The proposed Bill seeks, inter alia, to improve governance standards,
provide consistency in reporting by banks to the Reserve Bank of India, ensure
better protection for depositors and investors, improve audit quality in public sector
banks, bring customer convenience in respect of nominations and to provide for
increase in the tenure of the directors in co-operative banks.
3. Therefore, it is felt necessary to amend the said enactments and for that
purpose to introduce the Banking Laws (Amendment) Bill, 2024 in Parliament. The
salient features of the amendments proposed in the said Bill, interalia, are—
(a) to amend clause (ne) of section 5 of the BR Act so as to redefine
“substantial interest”, increasing the threshold for shareholding of a beneficial
interest by an individual, etc., from five lakhs rupees to two crore rupees, to
reflect the present value, as the same was last fixed in 1968;
(b)to amend clause (i) of sub-section (2A) of section 10A of the BR Act,
increasing the tenure of directors (excluding the chairman and whole-time
director) in co-operative banks from eight years to ten years, so as to align
with the Constitution (Ninety-Seventh Amendment) Act, 2011;
(c)to amend sub-section (3) of section 16 of the BR Act, so as to allow
a director of a central co-operative bank to serve on the board of a state
co-operative bank;
(d)to amend sections 18, 24, 25 and section 56 of the BR Act, to revise
the reporting dates for the submission of statutory reports by banks to the
Reserve Bank of India, so as to align them to the last day of the fortnight or
month or quarter, to ensure consistency in reporting;
(e)to amend sections 45ZA, 45ZC, and 45ZE of the BR Act, so as to allow
for the nomination of up to four persons, including provisions for simultaneous
and successive nominations, to ease services for depositors and their nominees,
particularly regarding deposits, articles in safe custody, and safety lockers;
(f)to amend section 38A of the State Bank of India Act, 1955, section 10B
of the Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1970
and section 10B of the Banking Companies (Acquisition and Transfer of
Undertakings) Act, 1980, so as to provide for the transfer of unclaimed dividends,
shares, and interest or redemption of bonds to the Investor Education and Protection
Fund, and allow individuals to claim transfers or refunds from that fund;
(g)to amend section 41 of the State Bank of India Act, 1955, section 10
of the Banking Companies (Acquisition and Transfer of Undertakings)
Act, 1970 and section 10 of the Banking Companies (Acquisition and Transfer
of Undertakings) Act, 1980, so as to provide discretion to public sector banks
in the matter of remuneration of auditors.
4.The Bill seeks to achieve the above objectives.
NEWDELHI; NIRMALA SITHARAMAN.
The6thAugust,2024.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 9
BillNo. 112 of2024
Bill No. 112 of 2024
A Bill to provide for the responsibilities, liabilities, rights and immunities
attached to carriers with respect to the carriage of goods by sea and
for matters connected therewith or related thereto.
WHEREAS the delegates at the International Conference on Maritime Law
held at Brussels in October, 1922, agreed unanimously to recommend their
respective Governments to adopt as the basis of a Convention a draft Convention
for the unification of certain rules relating to bills of lading;
AND WHEREAS at a meeting held at Brussels in October, 1923, the rules
contained in the said draft Convention were amended by the Committee appointed
by the said Conference;
AND WHEREAS the said rules were amended by the Protocol signed
at Brussels on 23rd February, 1968 and by the Protocol signed at Brussels
on 21st December, 1979;10 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
ANDWHEREAS it is expedient that the said rules as so amended and as set out
with modifications in the Schedule thereto should, subject to the provisions of this
Act, have the force of law with a view to establishing the responsibilities,
liabilities, rights and immunities attaching to carriers under bills of lading.
BE it enacted by Parliament in the Seventy-fifth Year of the Republic of
India as follows:—
Short title and 1.(1) This Act may be called the Carriage of Goods by Sea Act, 2024.
commencement.
(2)It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
Definitions. 2.In this Act, unless the context otherwise requires,—
(a) “applicable rules” mean the applicable rules provided in the
Schedule to this Act;
(b) “notification” means a notification published in the Official
Gazette and the expression “notify” with its grammatical variation and
cognate expressions shall be construed accordingly; and
(c)“Schedule” means the Schedule annexed to this Act.
Application of
3.Subject to the provisions of this Act, the applicable rules laid down in the
Schedule. Schedule shall have effect in relation to and in connection with the carriage of
goods by sea in ships carrying goods from any port in India to any other port,
whether in or outside India.
No implied 4. There shall be no implied absolute undertaking in any contract for the
absolute carriage of goods by sea, to which the applicable rules apply, by the carrier of the
undertaking in
goodsto provide a seaworthy ship.
contracts to
which applicable
rules apply.
Statement as to 5. Every bill of lading, or similar document of title, issued in India, which
application of contains or is evidence of any contract to which the applicable rules apply, shall
Schedule to be
contain an express statement that it is to have effect subject tothe applicable rules
included in bills
laid down in the Schedule, as applied by this Act.
of lading.
Modification of 6.Article VI of the applicable rules shall, in relation to—
Article VI of
(a)the carriage of goods by sea in sailing ships, carrying goods from
applicable rules
in relation to any port in India to any other port whether in or outside India;
goods carried in
(b) the carriage of goods by sea in ships, carrying goods from a port
sailing ships and
by specified in India notified in this behalf, to a port in Sri Lanka specified in the said
routes. notification,
have effect as though the said Article referred to goods of any class instead of to
particular goods and as though the proviso to the second paragraph of the said
Article were omitted.
Modification of 7.Where under the custom of any trade,––
paragraphs 4
(a) the weight of any bulk cargo inserted in the bill of lading is a
and 5 of Article
IIIin relation to weight ascertained or accepted by a third party other than the carrier or the
bulk cargoes. shipper;and
(b)the fact that the weight is so ascertained or accepted is stated in the
bill of lading,
then, notwithstanding anything contained in the applicable rules, the bill of lading
shall not be deemed to be prima facie evidence against the carrier of the receipt
of goods of the weight so inserted in the bill of lading, and the accuracy thereof
at the time of shipment shall not be deemed to have been guaranteed by the
shipper.
Power of Central 8.The Central Government may give such directions, as it may deem necessary,
Government to
for carrying out all or any of the provisions of this Act.
issue directions.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 11
9. (1) If the Central Government is satisfied that is necessary or expedient Power of
Central
so to do, it may, by notification, amend the Schedule.
Government to
amend
(2) Any amendment notified under sub-section (1) shall have effect as if
Schedule.
enacted in this Act and shall come into force on the date of the notification, unless
the notification otherwise directs.
10.Every notification issued under this Act shall be laid, as soon as may be Laying of
after it is issued, before each House of Parliament, while it is in session, for a total notification
before
period of thirty days which may be comprised in one session or in two or more
Parliament.
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 notification or both Houses agree that the notification should
not be made, 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 in pursuance of that notification.
11.(1) If any difficulty arises in giving effect to the provisions of this Act, Power to
the Central Government may, by order published in the Official Gazette make remove
difficulties.
such provisions, not inconsistent with the provisions of this Act as may appear to
it to be necessary for removing the difficulty:
Provided that no such order shall be made under this section after the expiry
of a period of two years, from the commencement of this Act.
(2)Every order made under this section shall be laid, as soon as may be after
it is made, before each House of Parliament.
26 of 1925. 12.(1) The Indian Carriage of Goods by Sea Act, 1925 is hereby repealed. Repeal and
savings.
(2) Notwithstanding the repeal of the Act referred to in sub-section (1), it
shall not affect,––
(a)the previous operation of the Act so repealed or anything done or
any action taken or purported to have been done or taken or suffered
thereunder under the Act so repealed; or
(b) any right, privilege, obligation or liability acquired, accrued or
incurred under the Act so repealed; or
(c) the operation of any rule, notification, order, notice or direction
issued or exemption granted thereunder, in so far as it is not inconsistent
with the provisions of this Act, and shall be in force until it is repealed or
superseded under the corresponding provisions of this Act; or
(d) any proceeding or remedy in respect of any such right, privilege,
obligation, liability, penalty as aforesaid, and any such proceeding or
remedy may be instituted, continued or enforced, and any such penalty may
be imposed as if that Act had not been repealed;or
(e) the reference made to the repealed Act under any other legislation,
rule, order, or any other legal instrument and any such reference shall, in so
far as it is not inconsistent with the provisions of this Act, be construed to
as a reference to this Act or its corresponding provisions.
(3) Nothing in this Act shall affect the operation of section 331 and the
44 of 1958. provisions of Part XA, of the Merchant Shipping Act, 1958, or the operation of
any other enactment for the time being in force limiting the liability of the owners
of sea-going vessels.
(4)Without prejudice to the provisions of sub-section (2), the provisions of
10 of 1897. section 6 of the General Clauses Act, 1897 shall apply with regard to the effect of
repeal.12 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
THE SCHEDULE
[Seesections 3, 5 and9]
APPLICABLERULES RELATING TO BILLS OF LADING
ARTICLE I:Definitions.––In these applicable rules the following expressions
have the meanings hereby assigned to them respectively, that is to say—
(a) “carriage of goods” covers the period from the time when the
goods are loaded on to the time when they are discharged from the ship;
(b) “carrier” includes the owner or the charterer who enters into a
contract ofcarriagewith a shipper;
(c)“contract of carriage” applies only to contracts of carriage covered
by a bill of lading or any similar document of title, in so far as such
document relates to the carriage of goods by sea including any bill of lading
or any similar document as aforesaid issued under or pursuant to a
charterparty from the moment at which such bill of lading or similar
document of title regulates the relations between a carrier and a holder of
the same;
(d) “goods” includes any property including live animals as well as
containers, pallets or similar articles of transport or packaging supplied by
the consignor, irrespective of whether such property is to be or is carried on
or under deck;
(e)“ship” means any vessel used for the carriage of goods by sea.
ARTICLE II:Risks.––Subject to the provisions of Article VI, under every
contract of carriage of goods by sea the carrier, in relation to the loading, handling,
stowage, carriage, custody, care, and discharge of such goods, shall be subject to
the responsibilities and liabilities, and entitled to the rights and immunities
hereinafter set forth.
ARTICLE III: Responsibilities and liabilities.––(1) The carrier shall be
bound, before and at the beginning of the voyage, to exercise due diligence to —
(a)make the ship seaworthy;
(b)properly man, equip, and supply the ship; and
(c)make the holds, refrigerating and cool chambers, and all other parts
of the ship in which goods are carried, fit and safe for their reception,
carriage and preservation.
(2) Subject to the provisions of Article IV, the carrier shall properly and
carefully load, handle, stow, carry, keep, care for and discharge the goods carried.
(3) After receiving the goods into his charge, the carrier, or the master or
agent of the carrier, shall, on demand of the shipper, issue to the shipper a bill of
ladingshowing among other things—
(a)the leading marks necessary for identification of the goods, as the
same are furnished in writing by the shipper before the loading of such
goods starts, provided such marks are stamped or otherwise shown clearly
upon the goods if uncovered, or on the cases or coverings in which such
goods are contained, in such a manner as should ordinarily remain legible
until the end of the voyage;
(b)either the number of packages or pieces, or the quantity, or weight,
as the case may be, as furnished in writing by the shipper;
(c)the apparent order and condition of the goods:Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 13
Provided that no carrier, master or agent of the carrier, shall be bound to
state or show in the bill of lading any marks, number, quantity, or weight, which
he has reasonable ground for suspecting not accurately to represent the goods
actually received, or which he has had no reasonable means of checking.
(4)Such a bill of lading shall be prima facie evidence of the receipt by the
carrier of the goods as therein described in accordance with clauses (a), (b)
and (c) of paragraph 3 of this Article. However, proof to the contrary shall not be
admissible when the bill of lading has been transferred to a third party acting in
good faith.
(5) The shipper shall be deemed to have guaranteed to the carrier the
accuracy at the time of shipment of the marks, number, quantity, and weight, as
furnished by him, and the shipper shall indemnify the carrier against all loss,
damages, and expenses arising or resulting from inaccuracies in such particulars.
The right of the carrier to such indemnity shall in no way limit his responsibility
and liability under the contract of carriage to any person other than the shipper.
(6)(a) Unless notice of loss or damage and the general nature of such loss
or damage be given in writing to the carrier or his agent at the port of discharge
before or at the time of the removal of the goods into the custody of the person
entitled to delivery thereof under the contract of carriage, or if, the loss or damage
be not apparent, within three days, such removal shall be prima facie evidence of
the delivery by the carrier of the goods as described in the bill of lading.
(b) The notice in writing need not be given if the state of the goods has at
the time of their receipt beenthe subject ofjoint surveyor inspection.
(c)In any event the carrier and the ship shall be discharged from all liability
in respect of loss or damage unless suit is brought within one year after delivery of
the goods or the date when the goods should have been delivered. This period may,
however, be extended if the parties so agree after the cause of action has arisen:
Provided that a suit may be brought after the expiry of the period of one year
referred to in this sub-paragraph within a further period of not more than three
months as allowed by the court.
(d)In the case of any actual or apprehended loss or damage, the carrier and
the receiver shall give all reasonable facilities to each other for inspecting and
tallying the goods.
(7)After the goods are loaded, the bill of lading to be issued by the carrier,
master or agent of the carrier, to the shipper shall, if the shipper so demands, be a
“shipped” bill of lading, provided that, if the shipper shall have previously taken
up any document of title to such goods, he shall surrender the same as against the
issue of the “shipped” bill of lading, but at the option of the carrier, such document
of title may be noted at the port of shipment by the carrier, master, or agent with
the name or names of the ship or ships upon which the goods have been shipped
and the date or dates of shipment, and when so noted the same shall for the
purpose of this Article be deemed to constitute a “shipped” bill of lading.
(8)Any clause, covenant or agreement in a contract of carriage relieving the
carrier or the ship from liability for loss or damage to or in connection with goods
arising from negligence, fault or failure in the duties and obligations provided in
this Article or lessening such liability otherwise than as provided in these
applicable rules, shall be null andvoid and of no effect.
(9) A benefit of insurance or similar clause shall bedeemed tobea clause
relieving the carrier fromliability.
ARTICLE IV:Rights and immunities.––(1) Neither the carrier nor the ship
shallbeliable for loss or damage arising or resulting from unseaworthiness unless14 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
caused by want of due diligence on the part of the carrier to make the ship
seaworthy, and to secure that the ship is properly manned, equipped and supplied,
and to make the holds, refrigerating and cool chambers and all other parts of the
ship in which goods are carried fit and safe for their reception, carriage and
preservation in accordance with the provisions of paragraph 1 of Article III.
Whenever loss or damage has resulted from unseaworthiness, the burden of
proving the exercise of due diligence shall be on the carrier or other person
claiming exemption under this section.
(2) Neither the carrier nor the ship shall be responsible for loss or damage
arising or resulting from—
(a)act, neglect, or default of the master, mariner, pilot, or the servants
of the carrier in the navigation or in the management of the ship;
(b)fire, unless caused by the actual fault or privity of the carrier;
(c)perils, dangers and accidents of the sea or other navigable waters;
(d)act of God;
(e)act of war;
(f)act of public enemies;
(g)arrest or restraint of princes, rulers or people, or seizure under legal process;
(h)quarantine restriction;
(i)act or omission of the shipper or owner of the goods, his agent, or
representative;
(j)strikes or lock-outs or stoppage or restraint of labour from whatever
cause, whether partial or general;
(k)riots and civil commotions;
(l)saving or attempting to save life or property at sea;
(m)wastage in bulk or weight or any other loss or damage arising from
inherent defect, quality, or vice of the goods;
(n)insufficiency of packing;
(o)insufficiency or inadequacy of marks;
(p)latent defects not discoverable by due diligence;
(q) any other cause arising without the actual fault or privity of the
carrier, or without the fault or neglect of the agents or servants of the carrier,
but the burden of proof shall be on the person claiming the benefit of this
exception to show that neither the actual fault nor privity of the carrier nor
the fault or neglect of the agents or servants of the carrier contributed to the
loss or damage.
(3)The shipper shall not be responsible for loss or damage sustained by the
carrier or the ship arising or resulting from any cause without the act, fault or
neglect of the shipper, his agents, or his servants.
(4)Any deviation in saving or attempting to save life or property at sea, or
any reasonable deviation shall not be deemed to be an infringement or breach of
these applicable rules or of the contract of carriage, and the carrier shall not be
liable for any loss or damage resulting therefrom.
(5)(a) Neither the carrier nor the ship shall in any event be or become liable for
any loss or damage to or in connection with goods in an amount exceeding 666.67
Special Drawing Rights per package or unit or two Special Drawing RightsSec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 15
per kilogram of gross weight of the goods lost or damaged, whichever is higher
or the equivalent of that sum in other currency, unless the nature and value of such
goods have been declared by the shipper before shipment and inserted in the bill
of lading. This declaration if embodied in the bill of lading shall be prima facie
evidence, but shall not be binding or conclusive on the carrier.
(b)Where a container, pallet or similar article of transport is used to consolidate
goods, the number of packages or units enumerated in the bill of lading and as packed
in such article of transport shall be deemed to be the number of packages or units for
the purposes of this paragraph as far as these packages or units are concerned.
(c) Neither the carrier nor the ship shall be entitled to the benefit of
limitation of liability provided for in this paragraph if it is proved that the damage
resulted from an act or omission of the carrier done with intent to cause damage,
or recklessly and with knowledge that damage wouldprobably result.
(d) Where the nature or value of the goods has been knowingly mis-stated
by the shipper in the bill of lading, the liability of the carrier or ship shall not
exceed the value so stated.
(e)By agreement between the carrier, master or agent of the carrier and the
shipper, another maximum amount than that mentioned in this paragraph may be
fixed, provided that such maximum shall not be less than the figure above named.
(f)Neither the carrier nor the ship shall be responsible in any event for loss
or damage to or in connection with goods if the nature or value thereof has been
knowingly mis-stated by the shipper in the bill of lading.
(6) (a) Goods of an inflammable, explosive or dangerous nature to the
shipment whereof the carrier, master or agent of the carrier, has not consented,
with knowledge of their nature and character, may at any time before discharge
be landed at any place or destroyed or rendered innocuous by the carrier without
compensation, and the shipper of such goods shall be liable for all damages and
expenses directly or indirectly arising out of or resulting from such shipment.
(b) If any such goods shipped with such knowledge and consent shall
become a danger to the ship or cargo, they may in like manner be landed at any
place or destroyed or rendered innocuous by the carrier without liability on the
part of the carrier except to general average, if any.
ARTICLE V: Surrender of Rights and Immunities, and Increase of
Responsibilities and Liabilities.—A carrier shall be at liberty to surrender in
whole or in part all or any of his rights and immunities or to increase any of his
responsibilities and liabilities under the applicable rules contained in any of these
Articles, provided such surrender or increase shall be embodied in the bill of
lading issued to the shipper. The provisions of these applicable rules shall not
apply to charterparties, but if bills of lading are issued in the case of a ship under
a charterparty they shall comply with the terms of these applicable rules. Nothing
in these applicable rules shall be held to prevent the insertion in a bill of lading of
any lawful provision regarding general average.
ARTICLE VI : Special conditions.––Notwithstanding the provisions of the
preceding Articles, a carrier, master or agent of the carrier, and a shipper shall, in
regard to any particular goods be at liberty to enter into any agreement in any
terms to the responsibility and liability of the carrier for such goods, and as to the
rights and immunities of the carrier in respect of such goods, or his obligation as
to seaworthiness, so far as this stipulation is not contrary to public policy, or the
care or diligence of his servants or agents in regard to the loading, handling,
stowage, carriage, custody, care, and discharge of the goods carried by sea,
provided that in this case no bill of lading has been or shall be issued and that the
terms agreed shall be embodied in a receipt which shall be a non-negotiable
document and shall be marked as such. Any agreement so entered into shall have
full legal effect:16 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
Provided that this Article shall not apply to ordinary commercial shipments
made in the ordinary course of trade, but only to other shipments where the charter
or condition of the property to be carried or the circumstances, terms and
conditions under which the carriage is to be performed, are such as reasonably to
justify a special agreement.
ARTICLE VII: Limitations on the application of the applicable rules.––
Nothing herein contained shall prevent a carrier or a shipper from entering into
any agreement, stipulation, condition, reservation or exemption as to the
responsibility and liability of the carrier or the ship for the loss or damage to or in
connection with the custody and care and handling of goods prior to the loading
on and subsequent to the discharge from the ship on which the goods are carried
by sea.
ARTICLE VIII: Limitation of liability.––The provisions of these applicable
rules shall not affect the rights and obligations of the carrier under any statute
for the time being in force relating to the limitation of the liability of owners of
sea-going vessels.
ARTICLE IX: Gold value.––The monetary units mentioned in these
applicable rules are to be taken to be gold value.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 17
STATEMENT OF OBJECTS AND REASONS
The Indian Carriage of Goods by Sea Act, 1925 (the said Act) was enacted
to amend the law with respect to carriage of goods by sea, with a view to
establishing the responsibilities, liabilities, rights and immunities attaching to
carriers under bills of lading. The said Act is substantially based on the
International Convention for the Unification of Certain Rules of Law relating to
Bills of Lading of August 1924 (“Hague Rules”), which was amended by the
Protocol signed at Brussels on 23rd February, 1968 and on 21st December, 1979
(“Visby Rules”). The Schedule to the said Act, provided the Hague Rules, as
amended by the Visby Rules, with modifications, to be referred to as “Rules” in
the said Act.
2.The said Act is applicable to outward cargo, that is, ships carrying goods
from Indian port to any other port, whether in or outside India. Every bill of lading,
or similar document of title, issued in India, which contains or is evidence of any
contract to which the rules apply, shall contain an express statement that it is to
have effect subject to the provisions of the rules as applied by the said Act.
3.Though the substantive aspects of the said Act continue to remain relevant
for maritime trade, being a pre-independence statute, it is imperative that some
new provisions need to be incorporated therein without changing the substance or
spirit of the said Act, so as to bring it in line with modern legislations in order to
facilitate simplification and ease of understanding.
4. Accordingly, it is proposed to repeal and re-enact the said Act with a
new legislation and for the said purpose, to introduce the Carriage of Goods by
Sea Bill, 2024 in Parliament. The salient features of the modifications proposed
in the Carriage of Goods by Sea Bill, 2024, inter alia,are––
(a)to substitute the term “Rules” with “applicable rules”, which provides
for Hague Rules, as amended by the Visby Rules, with modifications;
(b) to empower the Central Government to amend the Schedule by
notification in the Official Gazette and to provide for laying of every such
notification before Parliament;
(c)to empower the Central Government to issue such directions as it
may deem fit to carry out all or any of the provisions of the Act;
(d) to omit the transitional provision relating to non-applicability of
the Rules under the said Act, proposed to be repealed, to contract for the
carriage of goods by sea before the first day of January, 1926;
(e)to provide for necessary repeal and savings.
5.The Bill seeks to achieve the above objectives.
NEWDELHI; SARBANANDASONOWAL.
The 6th August, 2024.18 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
BiBllilNlo N.1o1. 11 1o1f 2o0f 224024
A Bill to make provisions for the transfer of rights of suit and all liabilities
to the consignee named in a bill of lading and every endorsee of a bill of
lading, to whom the property in the goods mentioned in the bill of lading
shall pass, upon or by reason of a consignment or an endorsement, and
for matters connected therewith or related thereto.
WHEREAS by the custom of merchants, a bill of lading of goods being
transferable by endorsement, the property in the goods may thereby pass to the
endorsee, but nevertheless all rights in respect of the contract contained in the bill
of lading continue in the original shipper or owner;
AND WHEREASit is expedient that such rights should pass with the property;Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 19
AND WHEREASit frequently happens that the goods in respect of which bills
of lading purport to be signed have not been laden on board;
AND WHEREASit is proper that such bills of lading in the hands of a bona fide
holder for value should not be questioned by the master or other person signing
the same, on the ground of the goods not having been laden as aforesaid.
BE it enacted by Parliament in the Seventy-fifth Year of the Republic of
India as follows:—
1.(1)This Act may be called the Bills of Lading Act, 2024. Short title and
commencement.
(2)It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
2.Every consignee of goods named in a bill of lading and every endorsee of Rights under
bills of lading to
a bill of lading, to whom the property in the goods therein mentioned shall pass,
vest in
upon or by reason of such consignment or endorsement, shall have transferred to consignee or
and vested in him all rights of suit, and be subject to the same liabilities in respect endorsee.
of such goods as if the contract contained in the bill of lading had been made with
such consignee or endorsee.
3.Nothing contained in this Act shall prejudice or affect–– Right of
stoppage in
(a)any right of stoppage intransit; or transit or claims
for freight not to
(b)any right to claim freight against the original shipper or owner; or be affected.
(c)any liability of the consignee or endorsee by reason or in consequence
of his being such consignee or endorsee, or of his receipt of the goods by
reason or in consequence of such consignment or endorsement.
4. (1) Every bill of lading in the hands of a consignee or endorsee for Bill of lading in
hands of
valuable consideration, representing goods to have been shipped on board a
consignee, etc.,
vessel, shall be conclusive evidence of such shipment as, against the master or conclusive
other person signing the same, notwithstanding that such goods or some part evidence of
shipment as
thereof may not have been so shipped:
against master,
etc.
Provided that the master or other person so signing may exonerate himself
in respect of such misrepresentation, by showing that it was caused without any
default on his part, and wholly by the fraud of the shipper, or of the holder, or
some person under whom the holder claims.
(2) Nothing in sub-section (1) shall apply where the holder of the bill of
lading shall have had actual notice at the time of receiving such bill of lading that
the goods had not been laden on board.
5. The Central Government may give such directions, as it may deem Power of
necessary, for carrying out all or any of the provisions of this Act. Central
Government to
give directions.
9 of 1856. 6.(1)The Indian Bills of Lading Act, 1856 is hereby repealed. Repeal and
savings.
(2) Notwithstanding the repeal of the Act referred to in sub-section (1), it
shall not affect,––
(a)the previous operation of the Act so repealed or anything done or
any action taken or purported to have been or taken or suffered thereunder
under the Act so repealed; or
(b) any right, privilege, obligation or liability acquired, accrued or
incurred under the Act so repealed; or20 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
(c) the operation of any rule, notification, order, notice or direction
issued, or exemption granted thereunder, in so far as it is not inconsistent
with the provisions of this Act, and shall be in force until it is repealed or
superseded under the corresponding provisions of this Act; or
(d)any penalty incurred in respect of any contravention under the Act
so repealed; or
(e) any proceeding or remedy in respect of any such right, privilege,
obligation, liability, penalty as aforesaid, and any such proceeding or
remedy may be instituted, continued or enforced, and any such penalty may
be imposed as if that Act had not been repealed;
(f)the reference made to the repealed Act under any other legislation,
rule, order, or any other legal instrument and any such reference shall, in so
far as it is not inconsistent with the provisions of this Act, be construed as a
reference to this Act or its corresponding provisions.
(3)Without prejudice to the provisions of sub-section (2), the provisions of
section 6 of the General Clauses Act, 1897 shall apply with regard to the effect 10 of 1897.
of repeal.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 21
STATEMENT OF OBJECTS AND REASONS
The Indian Bills of Lading Act, 1856 (the said Act) was enacted to amend the
Law relating to Bills of Lading with a view to address two aspects, namely,––
(a) transferring of all rights in respect of the contract contained in the
bill of lading along with the property to the consignee or endorsee of the bill
of lading; and
(b)ensuring that a transferred bill of lading in the hands of a bona fide
holder be treated as conclusive evidence of the goods being laden on board.
2.Since endorsement of rights over bills of lading is an important aspect of
its use in carriage of goods by sea, the provisions of the said Act have extensive
commercial applicability and is crucial to determine the transfer of rights of suit
and liabilities to endorsees and consignees to whom any bill of lading has been
transferred.
3. Though the substantive aspects of the said Act continue to remain
relevant, being a pre-independence statute, it is imperative that the provisions of
the said Act require to be revisited without changing the substance or spirit of the
said Act, so as to bring it in line with modern legislations in order to facilitate
simplification and ease of understanding. Further, a new provision is proposed to
be incorporated to empower the Central Government to issue directions to carry
out the provisions of the proposed legislation.
4.Accordingly, it is proposed to repeal and reenact the said Act with a new
legislation and for the said purpose, to introduce the Bills of Lading Bill, 2024 in
Parliament.
5.The Bill seeks to achieve the above objectives.
NEWDELHI; SARBANANDA SONOWAL.
The6thAugust, 2024.22 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
Bill No. 113 of 2024
A Bill furtherto amend the RailwaysAct,1989.
BE it enacted by Parliament in the Seventy-fifth Year of the Republic of
India as follows:––
1.(1) This Act may be called the Railways (Amendment) Act, 2024.
Short title and
commencement.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
Amendment of 2. In section 2 of the Railways Act, 1989 (hereinafter referred to as the 24 of 1989.
section 2. principal Act), after clause (1A), the following clause shall be inserted, namely:––
‘(1B) “Board” means the Railway Board constituted under sub-section (1)
of section 2A;’.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 23
3. After Chapter I of the principal Act, the following Chapter shall be Insertion of new
ChapterIA.
inserted, namely:––
“CHAPTER IA
RAILWAY BOARD
2A. (1) There shall be constituted a body to be known as the Railway Railway Board.
Board to exercise the powers conferred upon, and to perform the functions
assigned to it under this Act and the Railway Board constituted under the
Resolution of the Government of India, Public Works Department No. 256G,
dated the 18th February, 1905, with its composition as revised from time to
time,shall be deemed to be the Railway Board constituted under this Act.
(2) The Central Government may, by notification, invest the Railway
Board, either absolutely or subject to any conditions, with all or any of the
powers or functions of the Central Government under this Act with respect
to all or any Railways.
(3)The qualification, experience and terms and conditionsof appointment
of the Chairman and the other Members of the Board and the manner of
filling up the said posts shall be such as may be prescribed.
(4) The Board shall consist of such number of Members as may be
prescribed.
(5)The Board shall be provided with a Secretary and such officers and
other employees as may be necessary to exercise such powers and discharge
such duties under this Act and all correspondence shall be addressed to the
Secretary to the Board.
(6) The terms and conditions of service of the Secretary and other
officers and employees of the Board shall be such as may be prescribed.
(7) The Chairman and Members of the Board appointed under the
Resolution of the Government of India, Public Works Department No. 256G,
dated the 18th February, 1905, with its composition as revised from time to
time and the Secretary, officers and other employees appointed to the Board
before the commencement of the Railways (Amendment) Act, 2024, shall be
deemed to have been appointed under this Act:
Provided that the terms and conditions of service of the Chairman,
Members, Secretary, officers and other employees of the Board holding the
office as such immediately before the commencement of the Railways
A Bill furtherto amend the RailwaysAct,1989.
(Amendment) Act, 2024 shall not be varied to their disadvantage after their
appointment.
BE it enacted by Parliament in the Seventy-fifth Year of the Republic of
India as follows:–– 2B. Any notice, determination, direction, requisition, appointment,
Mode of
expression of opinion, approval or sanction, to be given or signified on the signifying
1.(1) This Act may be called the Railways (Amendment) Act, 2024.
Short title and part of the Board, for any of the purposes of, or in relation to, any powers or communications
commencement. from Board.
(2) It shall come into force on such date as the Central Government may, by functions with which it may be invested by notification under sub-section (2)
notification in the Official Gazette, appoint. of section 2A, shall be sufficient and binding if in writing signed by the
Secretary to the Board, or by any other person authorised by the said Board
Amendment of 2. In section 2 of the Railways Act, 1989 (hereinafter referred to as the 24 of 1989.
to act in its behalf in respect of the matters to which such authorisation may
section 2. principal Act), after clause (1A), the following clause shall be inserted, namely:––
relate; and the Board shall not in any case be bound in respect of any of the
‘(1B) “Board” means the Railway Board constituted under sub-section (1) matters aforesaid unless by some writing signed in manner aforesaid.”.
of section 2A;’.24 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
Amendment of 4.In section 200 of the principal Act,––
section 200.
(i) for sub-section (1), the following sub-section shall be substituted,
namely:––
“(1) The Indian Railways Act, 1890 and the Indian Railway 9 of 1890.
Board Act, 1905 are hereby repealed.”; 4 of 1905.
(ii)in sub-section (2),––
(a) in the opening portion, for the words, figures and brackets
“the Indian Railways Act, 1890 (hereinafter referred to as the repealed 9 of 1890.
Act)”, the words, figures and brackets “the Indian Railways Act, 1890
and the Indian Railway Board Act, 1905 (hereinafter referred to as the 4 of 1905.
repealed Acts)” shall be substituted;
(b)in clause (a), for the words “the repealed Act”, the words “the
repealed Acts” shall be substituted;
(c) in clause (b), for the words “the repealed Act”, at both the
places where they occur, the words and figures “the Indian Railways
Act, 1890” shall be substituted. 9 of 1890.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 25
Amendment of 4.In section 200 of the principal Act,–– STATEMENT OF OBJECTS AND REASONS
section 200.
(i) for sub-section (1), the following sub-section shall be substituted, Establishment of railway network started as a branch of the Public Works
namely:–– Department before independence.
“(1) The Indian Railways Act, 1890 and the Indian Railway 9 of 1890. 2. When the network expanded, Indian Railways Act, 1890, was enacted to
Board Act, 1905 are hereby repealed.”; 4 of 1905. enable proper functioning of different railway entities.
(ii)in sub-section (2),–– 3. As railways gained popularity, many Princely States and other entities
came up to establish and expand railway network.
(a) in the opening portion, for the words, figures and brackets
“the Indian Railways Act, 1890 (hereinafter referred to as the repealed 9 of 1890. 4. Soon it was realised that railways need a structure different from the
Act)”, the words, figures and brackets “the Indian Railways Act, 1890 Public Works Department because of two major reasons,namely:—
and the Indian Railway Board Act, 1905 (hereinafter referred to as the 4 of 1905.
(a) First, railway is an operating organisation and therefore, it requires
repealed Acts)” shall be substituted;
flexibility and independent policy making.
(b)in clause (a), for the words “the repealed Act”, the words “the
(b) Second, railway has network effect and therefore, uniform
repealed Acts” shall be substituted;
standards are needed for harmonious development.
(c) in clause (b), for the words “the repealed Act”, at both the
5. Based on the aforesaid reasons, railway organisation was separated from
places where they occur, the words and figures “the Indian Railways
the Public Works Department. The Railway BoardAct, 1905was enacted.
Act, 1890” shall be substituted. 9 of 1890.
6. Acontemporary railway law,the Railways Act, 1989 was enacted in 1989
by repealing the Indian Railways Act, 1890. That time itself, the Indian
Railway Board Act, 1905 could also have been merged with the main law to
make it comprehensive.
7. The current Bill proposes to simplify the legal framework by
incorporating the proposals of the Indian Railway Board Act, 1905 in the Railways
Act, 1989. This will reduce the need to refer to two laws. Instead reference will be
required only to one law.
8. The functioning and independence of Railway Board will be enhanced
with this Bill. All the provisions in the Indian Railway Board Act, 1905 are
proposed to be incorporated in the Railways Act, 1989 through this Bill.
NEWDELHI; ASHWINI VAISHNAW.
The7th August, 2024.26 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
FINANCIAL MEMORANDUM
The Bill seeks to repeal the Indian Railway Board Act, 1905 by suitably
incorporating the provisions for constitution and composition of Railway Board into
the Railways Act, 1989. The Railway Board is already in existence. The expenditure
of Railway Board will continue to be met from yearly Budgetary provision under
revenue Budget of Indian Railways as being done presently. The Bill does not
propose to create any new Board or body resulting in additional financial
implication.
2. The provisions regarding the terms and conditions of service of the
Chairman, Members of the Board, Secretary and the officers and other employees’
are already in place and no change is proposed in the proposed Bill. These provisions
may result in expenditure in the discharge of statutory functions of the Government
in regular course of business, which would be met from yearly budgetary provision
under revenue segment of Railway’s budget. However, any additional financial
implication at this stage is not quantifiable.
3.The expenditure for Railway Board proposed to be constituted as statutory
body under the Railways Act, 1989 would continue to be met from budgetary
provision under revenue segment of Railway’s budget. The Budget allocation for
the Railway Board for financial year 2024-25 is Rs. 440.01 crore under Revenue
Head.Sec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 27
MEMORANDUM REGARDING DELEGATED LEGISLATION
Sub-clause (3) of clause 3 of the Bill empowers the Central Government to
make rules for providing the qualification, experience and terms and conditions of
appointment of the Chairman and the other Members of the Railway Board and the
manner of filling up the said posts.
2. Sub-clause (4) of the said clause empowers the Central Government to
makerules for providingthe Board with such number of Members.
3. Sub-clause (6) of the said clause empowers the Central Government to
make rules for providing the terms and conditions of service of the Secretary and
other officers and employees of the Board.
4. The matters in respect of which rules may be made are matters of
procedure and administrative detail and it is not practicable to provide for them in
the Bill itself. The delegation of Legislative power is, therefore, of a normal
character.
————
UTPAL KUMAR SINGH
Secretary General
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—210GI(S3)—9-8-2024.