Rights under bills of lading to vest in consignee or endorsee
Section 2 of the Bills of Lading Act, 2025 deals with 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 consignment or endorsement, shall have transferred to and vested in him all rights of suit, and be subject to the same The Act was enacted on 17 Jun 2025.
(1) 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 consignment or endorsement, shall have transferred to and vested in him all rights of suit, and be subject to the same liabilities in respect of such goods as if the contract contained in the bill of lading had been made with such consignee or endorsee.
Section 2, The Bills of Lading Act, 2025 (Act 18 of 2025).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Global Integrated Bulkers Pte. Ltd. v. Cargo of 14,072.337 Mts of Limestone & Ors.
Court's Decision & Legal Precedent
DATE VERIFIED Final Order 2018-01-19 (order-2.pdf; body judgment dated 19th January, 2018 matches index Final Order): time-charterer sued in rem to arrest cargo claiming charterparty lien incorporated into the shipowner’s bill of lading naming defendant no.3 as consignee. Court held plaintiff was not a party to the bill of lading; Indian Bills of Lading Act, 1856 s.1 vests rights/liabilities in the named consignee/endorsee as against parties to the bill — it does not enable a non-party charterer to enforce charterparty terms against the consignee via Admiralty arrest; contractual lien ≠ maritime lien for arrest jurisdiction.
On this section: 2025 s.2 (successor to 1856 s.1) is the vesting gate: rights under the bill vest in the consignee/endorsee; a stranger to the bill cannot use the vesting section to invent an in rem claim against cargo based on a charterparty the consignee never contracted with the stranger.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 2
What have the courts held on Section 2 of the Bills of Lading Act?
Global Integrated Bulkers Pte. Ltd. v. Cargo of 14,072.337 Mts of Limestone & Ors. (19 Jan 2018) is the leading judgment on this section among those set out below: 2025 s.2 (successor to 1856 s.1) is the vesting gate: rights under the bill vest in the consignee/endorsee; a stranger to the bill cannot use the vesting section to invent an in rem claim against cargo based on a charterparty the consignee never contracted with the stranger.
How do I find court cases under Section 2 of the Bills of Lading Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Bills Lading Act 2025 2, section 2 Bills Lading Act 2025, section 2 of the Bills of Lading Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Global Integrated Bulkers Pte. Ltd. v. Cargo of 14,072.337 Mts of Limestone & Ors. (19 Jan 2018).
When was Section 2 of the Bills of Lading Act enacted?
Section 2 of the Bills of Lading Act, cited as Bills Lading Act 2025 2, was enacted on 17 Jun 2025 as Act 18 of 2025. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.