Limitation of Action:-
Under the CTD rules of India , the CTO shall be discharged of all liabilities unless claim is lodged within nine months after ;
1) ----- The delivery of Goods .
2) ----- The date when the goods should have been delivered .
3) ----- The date when in accordance with conditions of contract failure or deliver the goods would in the absence of evidence to the contrary give the party entitled to receive delivery , the right to treat the goods as lost .
As against these provisions Article 25 of the U.N. Convention lays down the time limit of two years of institute the judicial or arbitral proceedings against the MTO with a provision that a notice of claim is to be lodged in writing within six months of delivery of goods or stipulated period of such delivery .
The limitation period commences on the date of delivery of goods or the expiry of the last day on which the goods should have been delivered . Thus in cases of delay as well as loss or damage the provisions regarding limitation of action is more precious and specific under U. N. Convention .
The U. N. Convention on other hand does not make any distinction between the loss resulting from loss of or damage to the consignment and the loss resulting from the delay in delivery except that the liability for loss due to delay would be limited to two and half times the amount of freight payable for the goods delayed and not exceeding the total freight payable under the Multimodal Transport Contract .