Liability after termination of transit (Section 99 of the Railways Act 1989).
(a) The measure of Railway’s liability referred to above lasts only while the consignment is in transit. after termination of transit, the railways become liable only as ballies under sections 151, 152 and 161 of the Indian Contract Act and that also for a period of 7 days after the termination of transit.If the consignment is not taken delivery of within 7 days after the termination of the transit, no liability whatsoever will attach to the railway. If the consignment is at owner’s risk rate the railway shall not be responsible as bailee unless misconduct on the part of the railway is proved.
(b) The Railways have no responsibility even that of a bailee after termination of transit in the case of-
i )Explosives and other dangerous goods,
ii) Animals and
iii) Articles prescribed in Pt. I of Scheduled –II of Railways (Extent ofmonitery liability and prescription of Percentage Charge) Rules – 1990.
iv) Perishable goods