New Maritime Law passed by Lok Sabha- The Bills of Lading Act, 2025

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Dated: 22.07.2025

New Maritime Law passed by Lok Sabha- The Bills of Lading Act, 2025

Introduction

The Bills of Lading Act, 2025, as passed by the Lok Sabha in March 2025 and Rajya Sabha in July 2025, marks a significant legislative reform in the arena of maritime and shipping laws in India. Repealing the colonial-era Indian Bills of Lading Act, 1856, the new law aligns India’s legal framework with modern international trade practices, particularly concerning the rights and obligations of parties under a bill of lading.

This article unpacks the key provisions of the Act, its objectives, implications for trade and shipping stakeholders, and how it enhances legal certainty in international and domestic carriage of goods by sea.

Objective of the Act

The core objective of the Bills of Lading Act, 2025 is:

To formalize and legally vest the rights of suit and obligations under a bill of lading in the consignee or endorsee.
To ensure that title to goods and associated contractual rights transfer effectively upon endorsement or consignment.
To protect bonafide holders of bills of lading, especially in cases where goods may not have actually been loaded.

Key Provisions of the Act

1. Short Title and Commencement [Section 1]

The Act is titled the Bills of Lading Act, 2025.
It shall come into force on a date notified by the Central Government.

2. Rights and Liabilities Vest in Consignee or Endorsee [Section 2]

Every consignee or lawful endorsee of a bill of lading, to whom the property in the goods passes, shall:
- Have all rights of suit,
- Be subject to all liabilities under the contract of carriage, as if they were an original party to the contract.

3. Preservation of Certain Rights [Section 3]

The Act does not affect:
- The right of stoppage in transit,
- The right to claim freight from the original shipper,
- Any liabilities arising from receipt of goods by consignee or endorsee.

4. Conclusive Evidence of Shipment [Section 4]

A bill of lading in the hands of a bonafide holder for value, stating that goods were shipped on board, shall be conclusive evidence of shipment against the master or signatory, even if goods were not actually shipped.
Exception: If the holder had actual notice at the time of receipt that the goods were not loaded, this protection will not apply.
The signatory (e.g., master) can exonerate themselves if misrepresentation was due to fraud by the shipper or holder, without any fault of their own.

5. Powers of the Central Government [Section 5]

The Central Government is empowered to issue directions for effective implementation of the Act.

6. Repeal and Savings [Section 6]

The Indian Bills of Lading Act, 1856 stands repealed.
However, the repeal does not affect:
- Any previous actions, rights, liabilities, penalties, or ongoing legal proceedings under the repealed Act.
- References in other laws to the repealed Act shall be construed as references to the new Act, unless inconsistent.

Legal and Commercial Implications

For Importers and Exporters

Greater legal clarity and protection for parties dealing in endorsed bills of lading.
Enables smooth transfer of title and contractual rights through endorsements.

For Shipping Lines and Carriers

Clarity on who bears liability under the contract of carriage.
Possibility to exonerate themselves from false statements if done without fault.

For Banks and Insurers

Reinforces the evidentiary value of bills of lading in documentary credit transactions.
Promotes reliance on documentary integrity in financing and insuring shipments.

Repeal of the 1856 Act: A Historic Move

The repeal of the Indian Bills of Lading Act, 1856, a relic of colonial maritime trade regulation, is a landmark reform. The 2025 Act introduces modern legal constructs to support digitalization, international trade norms, and stakeholder protection in logistics and maritime transport.

Conclusion

The Bills of Lading Act, 2025 is a commendable effort to modernize India’s maritime trade law. By legally aligning the transfer of rights, liabilities, and title to goods under bills of lading, the Act reduces ambiguity and promotes confidence in international and coastal shipping operations.

As global trade becomes more complex and digitized, this law lays a firm legal foundation to support India’s aspirations as a global maritime and logistics hub.

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Source: Lok Sabha Secretariat, Govt of India

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