Section 91: Sections 76 to 123 [Repealed by the Indian Sale of Goods Act, 1930]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1872

Legal Commentary & Landmark Judgments: Section 91

Section 91 of the Indian Contract Act, 1872 originally governed the legal effect of delivery of goods to a common carrier, providing that delivery to a carrier operates prima facie as delivery to the buyer; repealed by Act 3 of 1930 and succeeded by Section 39 of the Sale of Goods Act, 1930.

  • Delivery to Carrier as Delivery to Buyer: Established that delivery of goods by the seller to a carrier for transmission to the buyer is prima facie deemed to be delivery to the buyer.
  • Seller's Duty to Secure Reasonable Carrier Contract: Imposed an affirmative statutory duty on the seller to make a reasonable contract with the carrier on behalf of the buyer; failure to do so left the risk of transit loss on the seller.
  • Legislative Repeal and Modern Succession (Act 3 of 1930): Repealed by Act 3 of 1930; re-enacted and amplified in Section 39 of the Sale of Goods Act, 1930, which also requires the seller to give notice enabling the buyer to insure during sea transit.
Key Landmark Precedents:
  • Union of India v. West Punjab Factories Ltd. (1966) 1 SCR 580 / AIR 1966 SC 395: The Supreme Court analyzed the statutory presumption under Section 91 Contract Act / Section 39 SGA, ruling that delivery to the railway carrier prima facie passes property and possession to the buyer, entitling the owner to sue the railway for loss.
  • P.S.N.S. Ambalavana Chettiar v. Express Newspapers Ltd. (1968) 2 SCR 439: The Supreme Court affirmed that delivery to a carrier operates as delivery to the buyer under Section 39 SGA, subject to any reservation of the right of disposal under Section 25.
Courtroom Practice & Strategic Litigation Guidance:

When dispatching valuable consignments, ensure the seller issues a standard consignment note and retains proof of carrier engagement. Plead Section 39 SGA (succeeding Section 91) to demonstrate that delivery was perfected upon carrier handover, entitling your client to demand payment upon proof of dispatch (Lorry Receipt / Railway Receipt).