(3)     The carriage by air within the meaning of Paragraph 1 of this Rule comprises the period during which the cargo is in the charge of the carrier.

(4)     The period of the carriage by air does not extend to any carriage by land, by sea or by inland waterway performed outside an airport. If, however, such carriage takes place in the performance of a contract for carriage by air, for the loading, delivery or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the carriage by air. If a carrier, without the consent of the consignor, substitutes carriage by another mode of transport for the whole or part of a carriage intended by the agreement between the parties to be carriage by air, such carriage by another mode of transport is deemed to be within the period of carriage by air.

19.     Delay.—The carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo. Nevertheless, the carrier shall not be liable for damage occasioned by delay if it proves that it and its servants and agents took all measures that could reasonably be required to avoid the damage or that it was impossible for it or them to take such measures.

20.     Exoneration.—If the carrier proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of the person claiming compensation, or the person from whom he or she derives his or her rights, the carrier shall be wholly or partly exonerated from its liability to the claimant to the extent that such negligence or wrongful act or omission caused or contributed to the damage. When by reason of death or injury of a passenger compensation is claimed by a person other than the passenger, the carrier shall likewise be wholly or partly-exonerated from its liability to the extent that it proves that the damage was caused or contributed to by the negligence or other wrongful act or omission of that passenger. This Rules applies to all the liability provisions in this Schedule, including Paragraph 1 of Rule 21.

21.     Compensation in case of death or injury of passengers.—(1) For damages arising under Paragraph 1 of Rule 17 not exceeding Rs. 50,00,000/-for each passenger, the carrier shall not be able to exclude or limit its liability.

(2)  The carrier shall not be liable for damages arising under Paragraph 1 of Rule 17 to the extent that they exceed for each passenger Rs.50,00,000/- if it is proved that:

(a)     such damage was not due to the gross negligence, intent to cause damage, willful misconduct or omission of the carrier or its servants or agents; or

(b)     such damage was solely due to the gross negligence, intent to cause damage, willful misconduct or omission of a third party.

22.     Limits of liability in relation to delay, baggage and cargo.—(1) The carrier is liable for damage occasioned by delay in the carriage by air of passengers, baggage or cargo to the extent of the amount of any such damage which may be proved to have been sustained by reason of such delay or of an amount representing double the sum paid for the carriage, whichever amount may be smaller:

Provided that the carrier may, in special circumstances, by special and separate contract in writing expressly by drawing specific and highly conspicuous attention of such a clause exclude, increase or decrease the limit of his liability as above provided.

(2)     In the carriage of baggage, the liability of the carrier in the case of destruction, loss, or damage is limited to Rs, 1000 per kilogramme for each passenger unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the passenger's actual interest in delivery at destination.

(3)     In the carriage of cargo, the liability of the carrier in the case of destruction, loss, or damage is limited to a sum of Rs. 1000 per kilogramme, unless the consignor has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the consignor's actual interest in delivery at destination.

(4)     In the case of destruction, loss, or damage of the part of the cargo, or of any object contained therein, the weight to be taken into consideration in determining the amount to which the carrier's liability is limited, shall be only the total weight of the package or packages concerned. Nevertheless, when the destruction, loss, or damage of a part of the cargo, or of an object contained therein, affects the value of other packages covered by the same airway bill, or the same receipt or, if they were not issued, by the same record preserved by the other means referred to in Paragraph 2 of Rule 4, the total weight of such package or packages shall also be taken into consideration in determining the limit of liability.

(5)     The foregoing provisions of Paragraphs 1 and 2 of this Rule shall not apply if it is proved that the damage resulted from an act or omission of the carrier, its servants or agents, done as a result of gross negligence, wilful misconduct or with intent to cause damage:

Provided that, in the case of such act or omission of a servant or agent, it is also proved that such servant or agent was acting within the scope of its employment.

(6)     The limits prescribed in Rule 21 and in this Rule shall not prevent the Court from awarding in addition, the whole or part of the Court costs and of the other expenses of the litigation incurred by the plaintiff, including interest. The foregoing provision shall not apply if the amount of the damages awarded, excluding Court costs and other expenses of the litigation, does not exceed the sum which the carrier has offered in writing to the plaintiff within a period of twelve months from the date of the occurrence causing the damage, or before the commencement of the action, whichever is later.

23.     Review of limits.—Without prejudice to the provisions of Rule 24 of this Schedule the limits of liability prescribed in Rules 21 and 22 shall be reviewed by the Federal Government as provided in Section 4(5) of this Bill at five-year intervals.

24.     Stipulation on limits.–A carrier may stipulate that the contract of carriage shall be subject to higher limits of liability than those provided for in this Schedule or to no limits of liability whatsoever.

25.     Invalidity of contractual provisions.—Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down in this Schedule shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Schedule.

26.     Freedom to contract.—Nothing contained in this Schedule shall prevent the carrier from refusing to enter into any contract of carriage, from waiving any defences available under the Schedule, or from laying down conditions which do not conflict with the provisions of this Schedule.

27.     Advance payments.—In the case of aircraft accidents resulting in death or injury of passengers, the carrier shall, if required by its national law, make advance payments without delay to a natural person or persons who are entitled to claim compensation in order to meet the immediate economic needs of such persons. Such advance payments shall not constitute a recognition of liability and may be offset against any amounts subsequently paid as damages by the carrier.

28.     Basis of claims.—In the carriage of passengers, baggage and cargo, any action for damages, however founded, whether under this Schedule or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in this Schedule without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights. In any such action, punitive, exemplary or any other non-compensatory damages shall not be recoverable.

29.     Servants, agents – aggregation of claims.—(1) If an action is brought against a servant or agent of the carrier arising out of damage to which the Schedule relates, such servant or agent, if they prove that they acted within the scope of their employment, shall be entitled to avail themselves of the conditions and limits of liability which the carrier itself is entitled to invoke under this Schedule.

(2)     The aggregate of the amounts recoverable from the carrier, its servants and agents, in that case, shall not exceed the said limits.

(3)     Save in respect of the carriage of cargo, the provisions of Paragraphs 1 and 2 of this Rule shall not apply if it is proved that the damage resulted from an act or omission of the servant or agent done as a result of gross negligence, willful misconduct or with intent to cause damage.

30.     Timely notice of complaints.—(1) Receipt by the person entitled to delivery of checked baggage or cargo without complaint is prima facie evidence that the same has been delivered in good condition and in accordance with the document of carriage or with the record preserved by the other means referred to in Paragraph 2 of Rule 3 and Paragraph 2 of Rule 4.

(2)  In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within three days from the date of receipt in the case of checked baggage and seven days from the date of receipt in the case of cargo. In the case of delay, the complaint must be made at the latest within fourteen days from the date on which the baggage or cargo have been placed at his or her disposal.

(3)     Every complaint must be made in writing and given or dispatched within the times aforesaid.

(4)     if no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part.

31.     Death of person liable.—In the case of the death of the person liable, an action for damages lies in a accordance with the terms of this Schedule against those legally representing his or her estate.

32.     Arbitration.—Subject to the provisions of this Rule, the parties to the contract of carriage for cargo may stipulate that any dispute relating to the liability of the carrier under this Schedule shall be settled by arbitration. Such agreement shall be in writing.

(2)     The arbitrator or arbitration tribunal shall apply the provisions of this Schedule.

(3)     The provisions of Paragraph 2 of this Rule shall be deemed to be part of every arbitration clause or agreement, and any term of such clause or agreement which is inconsistent therewith shall be null and void.

33.     Limitation of actions.—The right to damages shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.

34.     Successive carriage.—(1) In the case of carriage to be performed by various successive carriers, each carrier which accepts passengers, baggage or cargo is subject to the rules set out in this Schedule and is deemed to be one of the parties to the contract of carriage in so far as the contract deals with that part of the carriage which is performed under its supervision.

(2)  In the case of carriage of this nature, the passenger or any person entitled to compensation in respect of him or her can take action only against the carrier which performed the carriage during which the accident or the delay occurred, save in the case where, by express agreement, the first carrier has assumed liability for the whole journey.

(3)  As regards baggage or cargo, the passenger or consignor will have a right of action against the first carrier, and the passenger or consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier which performed the carriage during which the destruction, loss, damage or delay took place. These carriers will be jointly and severally liable to the passenger or to the consignor or consignee.

35.     Right of recourse against third parties.—Nothing in this Schedule shall prejudice the question whether a person liable for damage in accordance with its provisions has a right of recourse against any other person.

CHAPTER-IV

COMBINED CARRIAGE

36.     Combined carriage.—(1) In the case of combined carriage performed partly by air and partly by any other mode of carriage, the provisions of this Schedule shall, subject to Paragraph 4 of Rule 18, apply to the carriage by air.

(2) Nothing in this Schedule shall prevent the parties in the case of combined carriage from inserting in the document of air carriage conditions relating to other modes of carriage, provided that the provisions of this Schedule are observed as regards the carriage by air.

CHAPTER-V

CARRIAGE BY AIR PERFORMED BY A PERSON OTHER THAN THE CONTRACTING CARRIER

37.  Contracting carrier – actual carrier.—The provisions of this Chapter apply when a person (hereinafter referred to as "the contracting carrier") as a principal makes a contract of carriage governed by this Schedule with a passenger or consignor or with a person acting on behalf of the passenger or consignor, and another person (hereinafter referred to as "the actual carrier") performs, by virtue of authority from the contracting carrier, the whole or part of the carriage, but is not with respect to such part a successive carrier within the meaning of this Schedule. Such authority shall be presumed in the absence of proof to the contrary.

38.     Respective liability of contracting and actual carriers.—If an actual carrier performs the whole or part of carriage which, according to the contract referred to in Rule 37, is governed by this Schedule, both the contracting carrier and the actual carrier shall, except as otherwise provided in this Chapter, be subject to the rules of this Schedule, the former for the whole of the carriage contemplated in the contract, the latter solely for the carriage which it performs.

39.     Mutual liability.—(1) The acts and omissions of the actual carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the contracting carrier.

(2)  The acts and omissions of the contracting carrier and of its servants and agents acting within the scope of their employment shall, in relation to the carriage performed by the actual carrier, be deemed to be also those of the actual carrier. Nevertheless, no such act or omission shall subject the actual carrier to liability exceeding the amounts referred to in Rules 21, 22 and 23. Any special agreement under which the contracting carrier assumes obligations not imposed by this Schedule or any waiver of rights or defences conferred by this Schedule or any special declaration of interest in delivery at destination contemplated in Rule 22 shall not affect the actual carrier unless agreed to by it.

40.     Addressee of complaints and instructions.—Any complaint to be made or instruction to be given under this Schedule to the carrier shall have the same effect whether addressed to the contracting carrier or to the actual carrier. Nevertheless, instructions referred to in Rule 12 shall only be effective if addressed to the contracting carrier.

41.     Servants and agents.—In relation to the carriage performed by the actual carrier, any servant or agent of that carrier or of the contracting carrier shall, if they prove that they acted within the scope of their employment, be entitled to avail themselves of the conditions and limits of liability which are applicable under this Schedule to the carrier whose servant or agent they are, unless it is proved that they acted in a manner that prevents the limits of liability from being invoked in accordance with this Schedule.

42.     Aggregation of damages.—In relation to the carriage performed by the actual carrier, the aggregate of the amounts recoverable from that, carrier and the contracting carrier, and from their servants and agents acting within the scope of their employment, shall not exceed the highest amount which could be awarded against either the contracting carrier or the actual carrier under this Schedule, but none of the persons mentioned shall be liable for a sum in excess of the limit applicable to that person.

43.     Addressee of claims.—In relation to the carriage performed by the actual carrier, an action for damages may be brought, at the option of the plaintiff; against that carrier or the contracting carrier, or against both together or separately. If the action is brought against only one of those carriers, that carrier shall have the right to require the other carrier to be joined in the proceedings.

44.     Invalidity of contractual provisions.—Any contractual provision tending to relieve the contracting carrier or the actual carrier or the actual carrier of liability under this Chapter or to fix a lower limit than that which is applicable according to this Chapter shall be null and void, but the nullity of any such provision does not involve the nullity of the whole contract, which shall remain subject to the provisions of this Chapter.

45.     Mutual relations of contracting and actual carriers.—Except as provided in Rule 42, nothing in this Chapter shall affect the rights and obligations of the carriers between themselves, including any right of recourse or indemnification.

CHAPTER-VI

OTHER PROVISIONS

46.     Mandatory application.—Any clause contained in the contract of carriage and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by this Schedule, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void.

47.     Carriage performed in extraordinary circumstances.—The provisions of Rules 3 to 5, 7 and 8 relating to the documentation of carriage shall not apply in the case of carnage performed in extraordinary circumstances outside the normal scope of carrier's business.

48.     Definition of days.—The expression "days" when used in this Schedule means calendar days, not working days,

49.     Insurance.—(1) The carrier shall maintain adequate insurance covering all possible liability under this Schedule. A carrier may be required by the Federal Government to furnish evidence that it maintains adequate insurance covering its liability under this Schedule.

(2)  The carrier shall comply with rules that may be notified through publication in the Official Gazette by the Federal Government regarding the obligation of the carrier to maintain adequate insurance coverage.

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