Sunday, 8 September 2013

Courier Service and Law

Courier industry is one of the fastest growing service sectors in India. Estimated to be growing at a rate of 25% per year, the private courier industry probably has more than 50% market share of the mail service. Here we discuss some legal aspects of the courier industry. 

Is Courier Service Legal?

Courier services are operating in India for decades. But according to Sec. 4 of the Indian Post Office Act, 1898, private parties can not convey letters. Conveying letters is a privilege reserved only for the government. Unsuccessful attempts have been made to update the antiquated law to permit private couriers, but as far as we can tell, Sec. 4 still stands and so strictly speaking, private courier systems are illegal!
If you have problems with a courier service, can you get legal redress? 
Even though the Indian Post Office Act prohibits private couriers, the parliament has passed a law, The Carriage by Road Act, 2007 which explicitly covers private couriers! TCRA fixes the liability of couriers if the material sent through couriers is lost or damaged or not delivered due to the negligence of the courier. In such cases, one can file a case in the civil court under TCRA and obtain compensation for the loss suffered. The consumer also has the option of filing a complaint before the consumer court under the Consumer Protection Act, 1986 and  get compensation in a speedy and inexpensive manner.  
It may appear that there is a problem with using the CPA and approaching the consumer courts. Sec. 14(1)(d) of the CPA allows compensation only for any loss due to the negligence of the opposite party. If the loss is not attributable to the negligence of the opposite party, you can not get compensation. According to Sec. 101 of the Indian Evidence Act, 1872, any person who approaches a court to give judgment on a liability dependent on the existence of facts, must prove that those facts exist. Therefore, if the consumer approaches the consumer court for compensation for the negligence of the courier, he must prove that the courier was negligent. The article you sent through a courier may be lost or damaged, but how can you prove that it was because of the NEGLIGENCE of the courier? This is not easy at all.  
Here is where The Carriage by Roads Act comes to help. According to Sec. 12 of the Act, in a complaint against the courier, it is not necessary for the plaintiff to prove the negligence of the courier. It is to be assumed that the loss, damage or nondelivery of the letter was due to the negligence of the courier unless the courier proves otherwise.  
Is there a limit on the compensation you can get? 
The conditions printed on the backside of the receipt given by the courier company usually include a statement limiting the liability of the courier to Rs. 100 in case of loss or damage. But if these conditions were not explained to you and you did not sign the consignment note, the conditions are not binding and the consumer court can award a higher compensation. A judgment of the National Consumer Commission (III 92003) CPJ 160 (NC)) can be quoted in your favour to obtain higher compensation.

M.Akarsh, Mysore Grahakara Parishat