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Legal Review and Analysis of M/s Bajaj Trading Company vs Union of India 2026 INSC 711
Owner's Risk Booking and "Said to Contain" Railway Receipts
Case Snapshot
Case Name: M/s Bajaj Trading Company v. Union of India
Citation: 2026 INSC 711
Bench: Justice Sanjay Karol and Justice Nongmeikapam Kotiswar Singh
Date of Judgment: July 16, 2026
Area of Law: Railways Act, 1989; Carrier Liability; Burden of Proof; Negligence
Judgment in Brief
The Supreme Court dismissed the appeal and upheld the concurrent findings of the Railway Claims Tribunal and the Gauhati High Court, which had rejected the consignor's claim for shortage of 1,742 bags of salt (valued at ₹3,48,400) during transit. The Court held that since the goods were booked at "owner's risk" and the railway receipt contained the remark "said to contain," the burden of proof lay on the consignor to establish the quantity loaded and to prove negligence or misconduct on the part of the railway administration. The consignor failed to discharge this burden. The Court distinguished between the general responsibility under Section 93 and the limited liability under Section 97 of the Railways Act, 1989, and held that the non-obstante clause in Section 97 overrides Section 93.
Relevant Facts
The appellant entrusted 40,444 bags of salt for shipment from Chiari Junction, Gujarat, to Dharmanagar, Assam, on November 10, 2009.
When the consignment reached Dharmanagar, delivery recorded only 38,702 bags, a shortage of 1,742 bags.
The railway authorities issued a shortage certificate on March 19, 2010.
The appellant filed a claim notice for ₹3,48,400 at the rate of ₹200 per bag.
The Railway Claims Tribunal rejected the claim, noting from transshipment tallies that there were discrepancies in loading, suggesting either improper loading or criminal interference.
The Gauhati High Court affirmed the rejection, observing that: (a) the goods were loaded directly from trucks to wagons by the consignor's employees; (b) loading was not supervised by railway staff; (c) sender's weight was acce
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