Executive Summary:
The Bills of Lading Act, 2025, was enacted by Parliament and received presidential assent on July 24, 2025. It provides for the transfer of rights of suit and liabilities to the consignee or endorsee of a bill of lading, and addresses issues related to goods not laden on board. The Act also repeals the Indian Bills of Lading Act, 1856, with certain savings provisions.
Key Points / Main Content:
* **Transfer of Rights and Liabilities:**
* Consignees and endorsees of a bill of lading, to whom the property in the goods passes, have all rights of suit and are subject to the same liabilities as if the contract were made directly with them.
* **Rights Not Affected:**
* The Act does not prejudice rights of stoppage in transit, claims for freight against the original shipper, or liabilities of the consignee/endorsee due to their status or receipt of goods.
* **Bill of Lading as Evidence:**
* A bill of lading in the hands of a consignee or endorsee for valuable consideration is conclusive evidence of shipment against the master or person signing it.
* The signing party can be exonerated if misrepresentation was due to fraud by the shipper or holder, without their own default.
* This provision does not apply if the holder knew the goods were not laden.
* **Central Government Powers:**
* The Central Government may issue directions to carry out the provisions of the Act.
* **Repeal and Savings:**
* The Indian Bills of Lading Act, 1856, is repealed.
* The repeal does not affect prior operations, rights, obligations, or liabilities under the repealed Act.
* Existing rules, notifications, or orders remain in force if consistent with this Act, until repealed or superseded.
* Penalties and proceedings under the repealed Act can still be enforced.
* References to the repealed Act in other legal instruments are to be construed as references to this Act.
Impact Analysis:
* **Consignees and Endorsees:**
* Impact: They gain direct rights to sue and assume liabilities under the bill of lading, but are also protected as holders in due course.
* Action Required: Understand their new rights and liabilities under the Act.
* **Shippers:**
* Impact: Their liabilities may shift to the consignee/endorsee.
* Action Required: Ensure accurate information is provided on the bill of lading to avoid fraud claims.
* **Masters and Persons Signing Bills of Lading:**
* Impact: They are bound by the bill of lading as evidence of shipment, but have a defense against fraud.
* Action Required: Exercise due diligence in verifying shipment and ensure bills of lading accurately reflect the cargo loaded.
* **Central Government:**
* Impact: Responsible for implementing and providing direction under the Act.
* Action Required: Issue necessary directions to give effect to the Act's provisions.
Key Entities Referenced
Bills of Lading Act, 2025: This is the primary Act being enacted, concerning the transfer of rights and liabilities related to bills of lading.
Parliament: The legislative body that passed the Bills of Lading Act, 2025.
President: The head of state who gave assent to the Bills of Lading Act, 2025.
Ministry of Law and Justice: The government ministry responsible for the Legislative Department which published the Act.
Indian Bills of Lading Act, 1856: The Act that is being repealed by the Bills of Lading Act, 2025.
General Clauses Act, 1897: An Act whose provisions regarding the effect of repeal are applicable to the repeal of the Indian Bills of Lading Act, 1856.
New Delhi: The city where the Ministry of Law and Justice is located and where the Gazette of India is published. Union Territory of Delhi.
Dr. Rajiv Mani: Secretary to the Government of India.
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MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 24th July, 2025/Shravana 2, 1947 (Saka)
The following Act of Parliament received the assent of the President on the
24th July, 2025 and is hereby published for general informationB:i—llNo.111-F of 2024
THE BILLS OF LADING ACT, 2025
THE BILLNSo O. F18 L oAfD 2I0N2G5 BILL, 2025
(AS PASSED BY THE HOUSES OF PARLIAMENT)
[24th July, 2025.]
A
An Act to make provisions for the traBnIsLfLe r of rights of suit and all liabilities
to mtoa ktheep croovnissiiognnse efo rn athmeetdr ainns fae rboilfl roigf hltasdoinfgs uaitndan edvaelrlyl ieanbdiloitriesseet oofth ae
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to whom the property in the goods mentioned in the bill of lading shall pass,
bill of lading shall pass, upon or by reason of a consignment or an
upon or by reason of a consignment or an endorsement, and for matters
endorsement, and for matters connected therewith or related thereto.
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 WHEREAS it is expedient that such rights should pass with the property;2
2 THE GAZETTE OF INDIA EXTRAORDINARY [Part II—
AND WHEREAS it frequently happens that the goods in respect of which bills
of lading purport to be signed have not been laden on board;
AND WHEREAS it 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-sixth Year of the Republic of
India as follows:—
Short title and 1. (1) This Act may be called the Bills of Lading Act, 2025.
commencement.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
Rights under 2.Every consignee of goods named in a bill of lading and every endorsee of
bills of lading to
a bill of lading, to whom the property in the goods therein mentioned shall pass,
vest in
consignee or upon or by reason of such consignment or endorsement, shall have transferred to
endorsee. and vested in him all rights of suit, and be subject to the same liabilities in respect
of such goods as if the contract contained in the bill of lading had been made with
such consignee or endorsee.
Right of 3.Nothing contained in this Act shall prejudice or affect––
stoppage in
transit or claims (a)any right of stoppage in transit; or
for freight not to
be affected. (b)any right to claim freight against the original shipper or owner; or
(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.
Bill of lading in 4. (1) Every bill of lading in the hands of a consignee or endorsee for
hands of
valuable consideration, representing goods to have been shipped on board a
consignee, etc.,
conclusive vessel, shall be conclusive evidence of such shipment as, against the master or
evidence of other person signing the same, notwithstanding that such goods or some part
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.
Power of 5. The Central Government may give such directions, as it may deem
Central necessary, for carrying out all or any of the provisions of this Act.
Government to
give directions.
Repeal and 6.(1) The Indian Bills of Lading Act, 1856 is hereby repealed. 9 of 1856.
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; or3
Sec. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
(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
10 of 1897. section 6 of the General Clauses Act, 1897 shall apply with regard to the effect
of repeal.
———
DR. RAJIV MANI,
The above Bill has been passed by the HouseSse ocrf ePtaarrlyi atmo ethnet. Govt. of India.
Dated the Chairman.
—————
I assent to this Bill.
Dated the President.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
MGIPMRND—142GI(S4)—24-7-2025.