[(1) The Indian Railways Act, 1890 (9 of 1890) and the Indian Railway Board Act, 1905 (4 of 1905) are hereby repealed.]
(2) Notwithstanding the repeal of 2[the Indian Railways Act, 1890 (9 of 1890) and the Indian Railway Board Act, 1905 (4 of 1905) (hereinafter referred to as the repealed Acts)]—
(a) anything done or any action taken or purported to have been done or taken (including any rule, notification, inspection, order or notice made or issued, or any appointment or declaration made or any licence, permission, authorisation or exemption granted or any document or instrument executed or any direction given or any proceedings taken or any penalty or fine imposed) under 3[the repealed Acts] shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act;
(b) any complaint made to the Railway Rates Tribunal under sub-section (1) of section 41 of 4[the Indian Railways Act, 1890 (9 of 1890)] but not disposed of before the commencement of this Act and any complaint that may be made to the said Tribunal against any act or omission of a railway administration under 4[the Indian Railways Act, 1890 (9 of 1890)] shall be heard and decided by the Tribunal constituted under this Act in accordance with the provisions of Chapter VII of this Act.
(3) The mention of particular matters in sub-section (2) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal.
STATEMENT OF OBJECTS AND REASONS The Indian Railways Act, 1890 was enacted at a time when the railways in India were mostly managed by private companies. The Government of India primarily played the role of a coordinating and regulating authority in various matters, such as, inter-railway movement of traffic, fixation of rates, sharing of revenue earnings of through traffic, apportionment of claims liability amongst the railways, providing reasonable facilities to passenger and goods traffic, etc. This role was accordingly reflected in the Act. But now, except for a very small portion of the railways, the entire railway system has become part of the Government of India. To give effect to the changes in the railway system from time to time, the Act had also undergone changes a number of times since its enactment in 1890. In addition, as some of the original provisions enacted in 1890 had continued without any change, a need for their replacement by new provisions more responsive to the needs of the present day was felt and some other provisions have become redundant. There has also been a demand, both within and outside Parliament, for the re-enactment of the Act so as to reflect the large number of changes that have occurred in the railways. It has, therefore, become necessary to consolidate and amend the law relating to railways by a new Railway Act. 2. The Bill, while giving effect to the changes that are necessary due to the change of circumstances, provides, among other things, for the following matters, namely:—
(i) The railways are being administered by zonal railways. This position had not been given effect to in the Act. The Bill provides for the constitution of railway zones, abolition of existing zones and appointment of General Managers as heads of these railway administrations.
(ii) Power has been given to the Central Government to fix the rates for the carriage of passengers and goods over the railways instead of the existing provisions to fix only the maximum and minimum rates for such carriage and leaving the fixation of specific rates to the railway administraţions. In addition, the railway administrations are also being authorised to specify lump sum rates for the carriage of goods.
(iii) In accordance with certain judicial pronouncements, the Bill provides for statutory recognition of the railway receipt as a negotiable instrument.
(iv) The Bill specifically provides for limiting the monetary liability of railway administrations in respect of payment of compensation for loss, damage, etc., of goods. Provision has, however, been made for full liability subject to the condition that the consignor, while entrusting the goods to a railway administration for carriage, should declare the value of the goods and pay a percentage charge on such value.
(v) The offences included in the Act have been rationalised and a few new offences have also been included in the Bill. Punishments for some of the offences had not been changed since the enactment of the Act. Penalties provided for the offences under the Act have been made more stringent which would include, among other things, a minimum punishment for many of the offences. 3. The Bill seeks to achieve the aforesaid objects. 4. The Notes on Clauses explain in detail the provisions included in the Bill.
MADHAVRAO SCINDIA. NEW DELHI; The 2nd April, 1986.