CONTENTS - Central Public Works Department

SECTION 40
(3) Specimen draft conditions to be incorporated in tender documents for such works is as per Annexure.
This may be adopted with suitable changes, if required, to suit local conditions.
(4) While endorsing the Railway Receipts in favour of cartage contractor in such a contract where
requisite bank guarantee has been received, the under-noted form of endorsement may be adopted,
and the consignee should suffix his dated signature over his stamp showing designation, etc.:
“Please hand over the material to Shri........................... whose signature is attested below’’.
40.3 Responsibility for loss in transit
(1) Whenever the losses or damages occur in transit, the responsibility for the same varies according
to the circumstances of each case and the terms of contract. In the case of contracts stipulating
delivery F.O.R. station of destination, the supplier is liable for any loss or damage that may occur
in transit, and to make good the same by replacement free of charge at destination, or accept
deduction from his bill for the quantity lost or damaged in transit.
(2) In the case of contracts stipulating delivery F.O.R. station of despatch, if the suppliers have
agreed to the indentor’s condition that they will be responsible until the stores contracted for are
received in good condition at the destination, the responsibility rests with them as mentioned in
para above.
(3) In cases, however, where the suppliers do not agree to take responsibility for loss or damage in
transit, the goods pass to the name of the consignee as soon as the same are accepted by the
Railway Administration for carriage, the Railway acting as a bailee. Thereafter, the supplier is
ordinarily not responsible for any loss or damage to goods that may occur enroute, if he has been
able to book the goods in a rail-worthy condition under a clear receipt without any adverse remarks
as to the condition of the goods or the packing.
(4) The goods are to be despatched by clear RR only. However, in cases where the goods are
despatched under a “Said to contain” receipt, the supplier shall be fully responsible for loss in
transit. The consignee should incorporate a certificate on the receipt certificate, in the Inspection
Certificate or firm’s invoice on the following lines:
“Consignment(s) was/were despatched under clear/said to contain Railway Receipts at Railway/
Owner’s risk”.
(5) For shortages/ damages in respect of consignments despatched under clear Railway Receipt at
Railway risk, the suppliers will not be responsible. The consignee will take up the matter with the
carrying Railway for direct settlement. If the claims are rejected by the carrier, the indentor/
consignee will have to bear the loss. The concerned Pay and Accounts Officer (Supply) will
make full payment for the quantity despatched.
(6) Full details in respect of deficiencies and breakages, etc. which are clearly attributable to the
carriers should be shown against paragraph 3(a) of the Receipt Certificate portion of Form DGS&D
84, and the consignee should prefer a formal claim against the carrier for the loss or damages.
The Pay and Accounts Officer (Supply) shall send a copy of the consignee’s report to the Purchase
Officer. No deduction will be made on this account from the suppliers’ bill if the stores are booked
against clear R/Rs, and the suppliers are not responsible for breakages/losses in transit.
(7) For shortages/damages in consignment despatched either under said to contain Railway Receipt
or at owner’s risk, the Pay and Accounts Officers (Supply) will make necessary recoveries on
the basis of remarks incorporated by the consignees on the Receipt Certificate.
(8) In cases where consignees do not exhibit particulars mentioned in the Receipt Certificates
mentioned above, or where the suppliers get balance 10%/5%/2% payment without consignee’s
receipt certificate, the Pay and Accounts Officer (Supply) will assume that the R/Rs were clear,
and that no recoveries were to be looked for and/or effected by him.
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