Bills of Lading Act, 1856

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THE BILLS OF LADING ACT, 1856 
 
 
 
CONTENTS 
1.  Rights under bills of lading to vest in consignee or endorsee.  
2.  Not to affect right of stoppage in transitu or claims for  
3.  Bill of lading in hands of consignee, etc., conclusive evidence of the shipment as against 
master, etc.  
 

 
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1[THE 2* BILLS OF LADING ACT, 1856] 
Act No. IX OF 1856 
 [11th April, 1856] 
An Act to amend the Law relating to Bills of Lading 
 WHEREAS by the custom of merchants a bill of lading of goods being tra nsferable by 
endorsement, the property in the goods may thereby pass to the endorsee, but nevertheless all rights 
in respect of the contract contained in the bill of lading continue in the original shipper or owner, and 
it is expedient that such rights sho uld pass with the property; And whereas it frequently happens that 
the goods in respect of which bills of lading purport to be signed have not been laden on board, and it 
is proper that such bills of lading in the hands of a bona fide holder for value shou ld not be 
questioned by the master or other person signing the same, on the ground of the goods not having 
been laden as aforesaid; It is enacted as follows:- 
 1. Rights under bills of lading to vest in consignee or endorsee.  Every consignee of goods 
named in a bill of lading, and every endorsee of a bill of lading to whom the property in the goods 
therein mentioned shall pass, upon or by reason of such consign ment or endorsement shall have 
transferred to and vested in him all rights of suit, and be subje ct to the same liabilities in respect of 
such goods as if the contract contained in the bill of lading had been made with himself. 
 2. Not to affect right of stoppage in transitu or claims for freight.  Nothing herein 
contained shall prejudice or affect any  right of stoppage in transitu3, or any right to claim freight 
against the original shipper or owner, or any liability of the consignee or en dorsee by reason or in 
consequence of his being such consignee or endorsee, or of his receipt of the goods by reas on or in 
consequence of such consignment or endorsement. 
 3. Bill of lading in hands of consignee, etc., conclusive evidence of the shipment as 
against master, etc.  Every bill of lading in the hands of a consignee or endorsee for valuable 
consideration, re presenting goods to have been shipped on board a vessel shall be conclusive 
evidence of such shipment as against the master or other person signing the same, notwithstand ing 
that such goods or some part thereof may not have been so shipped, unless such ho lder of the bill of 
lading shall have had actual notice at the time of receiving the same that the goods had not in fact 
been laden on board: 
 Provided that the master or other person so signing may exo nerate himself, in respect of such 
misrepresentation, by showing that it was caused without any default on his part, and wholly by the 
fraud of the shipper or of the holder, or some person under whom the holder claims. 
________ 
Date: 13-09-2024 
lShort title given by the Short Titles Act, 1897 (14 of 1897). 
This Act is based on the Bills of Lading Act, 1855 (18 &19 Vict., c.111).  
It has been declared to be in force in all the Provinces and the Capital of the Federation except the Scheduled Districts, by  the Laws Local Extent Act, 
1874 (15 of 1874), s. 3. 
It has been declared, by notification under s. 3(a) of the Scheduled Districts Act, 1874 (14 of 1874), to be in force in the foll owing Scheduled Districts 
namely:__ 
Sind    ..    ..    ...  See Gazette of India, 1880, Pt. I., p. 672. 
 2The word “Indian” rep. by the Federal Laws (Revision and Declaration) Act, 1951 (26 of 1951), s. 3 and II Sch. 
3As to stoppage in transit, see the Contract Act, 1872 (9 of 1872), ss. 99-106.