Claims Arising From a Forged Bill of Lading

Claims Arising From a Forged Bill of Lading

A bill of lading is one of the most important documents in maritime transport. It plays a vital role in proving title to the goods, recording the carrier’s undertakings, and protecting the consignee’s rights. In international trade, it is not merely a receipt. A maritime bill of lading is commonly treated as a reliable and formal document evidencing the contract of carriage.

Now consider the consequences if this document is forged. The first and immediate impact is a serious breakdown of trust across the logistics chain, followed by widespread financial loss. Claims arising from a forged bill of lading are typically brought when one or more parties, including the carrier, seller, buyer, or bank, question the authenticity of the document or when a material discrepancy is discovered after delivery of the cargo. Given the increasing sophistication of document fraud, addressing this issue and its legal dimensions under Iranian law has become even more critical.

Legal definition of a forged bill of lading

Under Iranian law, forgery generally refers to the making or alteration of a document with the intent to deceive another party. A forged bill of lading may be a document that was never issued by the genuine carrier or one whose contents have been deliberately altered. For example, if the nature of the goods, quantity, loading date, or destination is manipulated to conceal the truth, the bill of lading may be considered forged.

In such cases, claims commonly focus on the forger’s civil and, where applicable, criminal liability and, sometimes, on certain third parties. Under Article 523 of the Islamic Penal Code, forgery of an official document constitutes a criminal offence. Because a maritime bill of lading may be treated as an official document in practice, its forgery can expose the forger to serious criminal liability.

Who may be liable in claims arising from a forged bill of lading?

In disputes involving a forged bill of lading, several parties may be held directly or indirectly liable, depending on the facts:

• The carrier: where the forged document was issued through an employee or via the carrier’s official channels
• The seller: where the seller participated in the forgery or knowingly presented a forged document
• The consignee: where the consignee knowingly used the forged document to obtain an advantage
• The bank: where payment under a documentary credit was made without adequate scrutiny
• The insurer: where the insurer refuses indemnity solely on the basis of alleged forgery, and a dispute follows

Iranian civil law generally follows a fault-based approach to liability. Accordingly, if any of these parties acted negligently in verifying authenticity, they may be required to compensate for the resulting loss.

The role of banks in claims involving forged bills of lading

In documentary credit transactions, banks play a central role as reviewers and payers. Their review of documents, including the bill of lading, is typically conducted on the basis of apparent conformity. However, if a bill of lading is forged and the bank releases funds without meeting the required due diligence standards, claims may also be directed against the bank.

In certain Iranian court decisions, banks have been held liable for negligence in examining documents. For this reason, banks should strengthen authentication procedures, including digital verification mechanisms and, where feasible, validation of issuer signatures.

Liability of the carrier

A carrier may be liable if a forged bill of lading is issued knowingly or through the negligence of its agent or representative. Under the core principles of maritime carriage, the carrier is expected to issue a bill of lading that is accurate and consistent with the facts. Where forgery occurs, the matter may give rise to civil claims for damages and, in some cases, criminal proceedings.

Claims against a carrier may lead to an order for damages and, depending on regulatory frameworks and circumstances, could even affect operational permissions. Even where the company itself did not commit the act, if the forged bill of lading was issued using the carrier’s systems or official forms, Iranian legal analysis may treat the carrier as responsible.

Rights of the consignee when faced with a forged bill of lading

A consignee presenting a forged bill of lading may encounter serious difficulties in proving title and obtaining delivery. As the bill of lading is commonly used as evidence of entitlement to the cargo, establishing forgery can undermine the document’s legal effect.

In such disputes, the consignee may bring claims against the seller, the carrier, or the bank. A key point under Iranian law is that the burden of proving forgery generally lies with the party alleging it. Therefore, collecting adequate supporting evidence is essential, including expert examination, formal correspondence, and official verification from the genuine carrier.

Criminal proceedings based on forgery of a bill of lading

Once forgery is established, criminal action may be pursued for the forgery of an official document. Article 531 of the Islamic Penal Code provides that a person who knowingly uses a forged document may be treated as liable in a manner comparable to the forger. This means that even if a party did not create the forged bill of lading, the knowing use of such a document can still result in criminal exposure.

Criminal complaints in forged bill of lading matters are often pursued to sanction the offender and deter similar conduct. In addition to punishment, criminal courts may also order compensation for losses, depending on the case and procedural posture.

The role of official expertise in proving forgery

Expert examination is often decisive in claims involving forged bills of lading. Iranian courts frequently rely on official experts to assess authenticity. Such examinations may include signature comparison, analysis of ink and paper, verification of printing dates, and other technical indicators. Without expert input, proving forgery can be highly challenging.

Accordingly, it is generally prudent to request expert examination early in the proceedings and to submit all relevant correspondence and supporting materials. Where a bill of lading has been issued digitally, reviewing system records and server logs may also be important.

Jurisdiction and competent forum for claims involving forged bills of lading

Because maritime carriage is often international, disputes may arise regarding the competent forum. Under Iranian law, if the bill of lading is issued in Iran or the contract is performed in Iran, Iranian courts may have jurisdiction. Depending on whether the dispute is civil or criminal, the matter may be brought before the civil courts or criminal courts.

Where an arbitration clause exists, referral to international arbitration may also be possible. That said, Iranian courts are attentive to territorial jurisdiction. If the forgery occurred in Iran, proceeding before Iranian authorities is generally well supported on jurisdictional grounds.

Insurer liability in the context of a forged bill of lading

If the cargo is insured and the transport document is forged, insurers may attempt to deny coverage. A common dispute is whether the insurer may rely on forgery to avoid payment. Iranian judicial practice indicates that if it is proven that the insurer accepted the risk with a reasonable opportunity to review the documentation, the insurer may still be held responsible.

In such matters, the decisive factors often include the terms of the policy, the insurer’s underwriting process, and whether the insurer exercised appropriate care when accepting the document.

Preventive measures to reduce forged bill of lading disputes

To reduce the risk of claims arising from forged bills of lading, the following measures are commonly recommended:

• issuing bills of lading through secure electronic platforms with multi-factor verification.
• specialized training for bank and carrier personnel to detect forged documentation.
• contractual remedies and agreed consequences in the event a forged document is presented.
• Inclusion of arbitration clauses and a clear choice of governing law in carriage contracts.

Claims arising from forged bills of lading are among the most complex issues in international trade and maritime transport. These disputes are often multi-party and can involve overlapping civil and criminal dimensions. Because they directly affect commercial credibility and financial security, Iranian law addresses the issue seriously through both civil and criminal mechanisms. Careful handling of transport documents, the use of electronic authentication tools, and robust contractual protections can significantly reduce the likelihood of such disputes.

Frequently Asked Questions About Claims Arising From a Forged Bill of Lading