The Warehousing Corporations Act, 1962
Administered Ministry: Ministry of Consumer Affairs, Food and Public Distribution / Department of Food and Public Distribution
Section
Section 20 Management of a State Warehousing Corporation.
(1) The general superintendence and management of the affairs of a State Warehousing Corporation shall vest in a board of directors which shall consist of the following, namely:--
(a) five directors nominated by the Central Warehousing Corporation, of whom one shall be nominated in consultation with the State Bank and one at least shall be a non-official;
(b) five directors nominated by the State Government; and
(c) a managing director, appointed by the State Government in consultation with the directors referred to in clauses (a) and (b) and 1[under intimation to] with the previous approval of the Central Warehousing Corporation.
(2) The Chairman of the board of directors shall be appointed by the State Government from among the directors of the State Warehousing Corporation with the previous approval of the Central Warehousing Corporation.
(3) The managing director shall--
(a) exercise such powers and perform such duties as the board of directors or the State Warehousing Corporation may entrust or delegate to him; and
(b) receive such salary and allowances as the State Warehousing Corporation may, in consultation with the Central Warehousing Corporation, and with previous approval of the State Government, fix.
(4) The board of directors shall act on business principles having regard to public interest and shall be guided by such instructions on questions of policy as may be given to them by the State Government or the Central Warehousing Corporation.
(5) If any doubt arises as to whether a question is or is not a question of policy, or, if the State Government and the Central Warehousing Corporation give conflicting instructions, the matter shall be referred to the Central Government whose decision thereon shall be final.
(6) The directors of a State Warehousing Corporation, other than the managing director, shall be entitled to receive by way of remuneration such sums as may be prescribed:
Provided that no official director shall be entitled to receive any remuneration other than any allowances admissible to him under the rules regulating his conditions of service.
(7) The term of office of, and the manner of filling casual vacancies among, directors shall be such as may be prescribed.
(a) five directors nominated by the Central Warehousing Corporation, of whom one shall be nominated in consultation with the State Bank and one at least shall be a non-official;
(b) five directors nominated by the State Government; and
(c) a managing director, appointed by the State Government in consultation with the directors referred to in clauses (a) and (b) and 1[under intimation to] with the previous approval of the Central Warehousing Corporation.
(2) The Chairman of the board of directors shall be appointed by the State Government from among the directors of the State Warehousing Corporation with the previous approval of the Central Warehousing Corporation.
(3) The managing director shall--
(a) exercise such powers and perform such duties as the board of directors or the State Warehousing Corporation may entrust or delegate to him; and
(b) receive such salary and allowances as the State Warehousing Corporation may, in consultation with the Central Warehousing Corporation, and with previous approval of the State Government, fix.
(4) The board of directors shall act on business principles having regard to public interest and shall be guided by such instructions on questions of policy as may be given to them by the State Government or the Central Warehousing Corporation.
(5) If any doubt arises as to whether a question is or is not a question of policy, or, if the State Government and the Central Warehousing Corporation give conflicting instructions, the matter shall be referred to the Central Government whose decision thereon shall be final.
(6) The directors of a State Warehousing Corporation, other than the managing director, shall be entitled to receive by way of remuneration such sums as may be prescribed:
Provided that no official director shall be entitled to receive any remuneration other than any allowances admissible to him under the rules regulating his conditions of service.
(7) The term of office of, and the manner of filling casual vacancies among, directors shall be such as may be prescribed.
1. Subs. by Act 23 of 2001, s. 3, for "with the previous approval of" (w.e.f. 1-11-2001).
Section 21 Disqualification for office of director of the Corporation.
A person shall be disqualified for being chosen as, and for being, a director of a State Warehousing Corporation--
(i) if he is found to be a lunatic or becomes of unsound mind; or
(ii) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or
(iii) if he is or has been convicted of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months, unless a period of five years has elapsed from the date of expiry of the sentence; or
(iv) if he has been removed or dismissed from service of Government or a corporation owned and controlled by the Government; or
(v) except in the case of the managing director, if he is a salaried official of 1* * * a State Warehousing Corporation; or
(vi) if he is personally interested in a subsisting contract made with, or in any work being done for, the State Warehousing Corporation except as a shareholder (other than a director) in any public company as defined in the Companies Act, 1956 (1 of 1956):
Provided that where any such person is a shareholder, he shall disclose to the Warehousing Corporation the nature and extent of the shares held by him in such company.
(i) if he is found to be a lunatic or becomes of unsound mind; or
(ii) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or
(iii) if he is or has been convicted of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months, unless a period of five years has elapsed from the date of expiry of the sentence; or
(iv) if he has been removed or dismissed from service of Government or a corporation owned and controlled by the Government; or
(v) except in the case of the managing director, if he is a salaried official of 1* * * a State Warehousing Corporation; or
(vi) if he is personally interested in a subsisting contract made with, or in any work being done for, the State Warehousing Corporation except as a shareholder (other than a director) in any public company as defined in the Companies Act, 1956 (1 of 1956):
Provided that where any such person is a shareholder, he shall disclose to the Warehousing Corporation the nature and extent of the shares held by him in such company.
1. The words "the Central Warehousing Corporation or" omitted by Act 23 of 2001, s. 4 (w.e.f. 1-11-2001).
Section 22 Removal of directors from office.
(1) The State Government may, at any time, 1[under intimation to] of the Central Warehousing Corporation, remove the managing director from office after giving him a reasonable opportunity of showing cause against the proposed removal.
(2) The board of directors may remove from office any director who--
(a) is or has become subject to any of the disqualifications mentioned in section 21; or
(b) is absent without leave of the board of directors for more than three consecutive meetings of the board without cause sufficient, in the opinion of the board, to exonerate his absence.
(2) The board of directors may remove from office any director who--
(a) is or has become subject to any of the disqualifications mentioned in section 21; or
(b) is absent without leave of the board of directors for more than three consecutive meetings of the board without cause sufficient, in the opinion of the board, to exonerate his absence.
1. Subs. by s. 5, ibid., for "with the previous approval of" (w.e.f. 1-11-2001).
Section 23 Appointment of officers, etc., and their conditions of service.
(1) A State Warehousing Corporation may appoint such officers and other employees as it considers necessary for the efficient performance of its functions.
(2) Every person employed by a State Warehousing Corporation under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations made by the Corporation under this Act.
(2) Every person employed by a State Warehousing Corporation under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations made by the Corporation under this Act.
Section 24 Functions of the State Warehousing Corporation.
Subject to the provisions of this Act, a State Warehousing Corporation may--
(a) acquire and build godowns and warehouses at such places within the State as it may, 1[after consultation with] the Central Warehousing Corporation, determine;
(b) run warehouses in the State for the storage of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities;
(c) arrange facilities for the transport of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities to and from warehouses;
(d) act as an agent of the Central Warehousing Corporation or of the Government for the purposes of the purchase, sale, storage and distribution, of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities; 2* * *
3[(da) enter into, with the previous approval of the State Government, joint ventures with the Central Warehousing Corporation; and]
(e) carry out such other functions as may be prescribed.
(a) acquire and build godowns and warehouses at such places within the State as it may, 1[after consultation with] the Central Warehousing Corporation, determine;
(b) run warehouses in the State for the storage of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities;
(c) arrange facilities for the transport of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities to and from warehouses;
(d) act as an agent of the Central Warehousing Corporation or of the Government for the purposes of the purchase, sale, storage and distribution, of agricultural produce, seeds, manures, fertilizers, agricultural implements and notified commodities; 2* * *
3[(da) enter into, with the previous approval of the State Government, joint ventures with the Central Warehousing Corporation; and]
(e) carry out such other functions as may be prescribed.
1. Subs. by Act 23 of 2001, s. 6, for "with the previous approval of" (w.e.f. 1-11-2001).
2. The word "and" omitted by s. 6, ibid. (w.e.f. 1-11-2001).
3. Ins. by s. 6, ibid. (w.e.f. 1-11-2001).
2. The word "and" omitted by s. 6, ibid. (w.e.f. 1-11-2001).
3. Ins. by s. 6, ibid. (w.e.f. 1-11-2001).
Section 25 Executive Committee.
(1) There shall be an Executive Committee of a State Warehousing Corporation which shall consist of--
(a) the Chairman of the board of directors;
(b) the managing director; and
(c) three other directors chosen in the prescribed manner, of whom one shall be a director referred to in clause (a) of sub-section (1) of section 20.
(2) The Chairman of the board of directors shall be the Chairman of the Executive Committee.
(3) Subject to any general or special directions as the board of directors may, from time to time, give, the Executive Committee shall be competent to deal with any matter within the competence of the State Warehousing Corporation.
(a) the Chairman of the board of directors;
(b) the managing director; and
(c) three other directors chosen in the prescribed manner, of whom one shall be a director referred to in clause (a) of sub-section (1) of section 20.
(2) The Chairman of the board of directors shall be the Chairman of the Executive Committee.
(3) Subject to any general or special directions as the board of directors may, from time to time, give, the Executive Committee shall be competent to deal with any matter within the competence of the State Warehousing Corporation.
Section 26 Submission of programme of activities and financial estimates.
(1) Every Warehousing Corporation shall prepare before the commencement of each year a statement of programme of its activities during the forthcoming year as well as a financial estimate in respect thereof.
(2) A statement prepared under sub-section (1) shall, not later than three months before the commencement of each year, be submitted for approval--
(a) in the case of the Central Warehousing Corporation, to the Central Government;
(b) in the case of a State Warehousing Corporation, to the Central Warehousing Corporation and the State Government.
(3) The statement and the financial estimate of a Warehousing Corporation referred to in sub-section (1) may, with the approval of the Central Government in the case of the Central Warehousing Corporation, or with the approval of the Central Warehousing Corporation and the State Government in the case of a State Warehousing Corporation, be revised by the Warehousing Corporation.
(2) A statement prepared under sub-section (1) shall, not later than three months before the commencement of each year, be submitted for approval--
(a) in the case of the Central Warehousing Corporation, to the Central Government;
(b) in the case of a State Warehousing Corporation, to the Central Warehousing Corporation and the State Government.
(3) The statement and the financial estimate of a Warehousing Corporation referred to in sub-section (1) may, with the approval of the Central Government in the case of the Central Warehousing Corporation, or with the approval of the Central Warehousing Corporation and the State Government in the case of a State Warehousing Corporation, be revised by the Warehousing Corporation.
Section 27 Borrowing powers of Warehousing Corporation.
(1) A Warehousing Corporation may, in consultation with the Reserve Bank and with the previous approval of the appropriate Government, issue and sell bonds and debentures carrying interest for the purpose of raising funds:
Provided that the total amount of bonds and debentures issued and outstanding and of the other borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up share capital and the reserve fund of the Corporation.
(2) A Warehousing Corporation may, for the purpose of carrying out its functions under this Act, borrow money--
(i) from the Reserve Bank, or
(ii) from the State Bank, for such periods for which, and upon any of the securities against which, it is authorised to advance and lend moneys, under the provisions of 1[the State Bank of India Act, 1955 (23 of 1955), or]
2[(iii) from any 3[scheduled bank], or
(iv) from such insurance company, investment trust or other financial institution as may be approved by the Central Government in this behalf.]
(3) Subject to the proviso to sub-section (1), the Central Warehousing Corporation may borrow money from the Central Government and a State Warehousing Corporation may borrow money from the State Government and the Central Warehousing Corporation on such securities and on such terms and conditions as may be agreed upon between the borrowing Corporation and the lender, in each case.
(4) The bonds and debentures of a Warehousing Corporation may be guaranteed by the appropriate Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the appropriate Government on the recommendation of the board of directors of the Corporation at the time the bonds or debentures are issued.
Provided that the total amount of bonds and debentures issued and outstanding and of the other borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up share capital and the reserve fund of the Corporation.
(2) A Warehousing Corporation may, for the purpose of carrying out its functions under this Act, borrow money--
(i) from the Reserve Bank, or
(ii) from the State Bank, for such periods for which, and upon any of the securities against which, it is authorised to advance and lend moneys, under the provisions of 1[the State Bank of India Act, 1955 (23 of 1955), or]
2[(iii) from any 3[scheduled bank], or
(iv) from such insurance company, investment trust or other financial institution as may be approved by the Central Government in this behalf.]
(3) Subject to the proviso to sub-section (1), the Central Warehousing Corporation may borrow money from the Central Government and a State Warehousing Corporation may borrow money from the State Government and the Central Warehousing Corporation on such securities and on such terms and conditions as may be agreed upon between the borrowing Corporation and the lender, in each case.
(4) The bonds and debentures of a Warehousing Corporation may be guaranteed by the appropriate Government as to the repayment of principal and the payment of interest at such rate as may be fixed by the appropriate Government on the recommendation of the board of directors of the Corporation at the time the bonds or debentures are issued.
1. Subs. by Act 42 of 1976, s. 7, for "the State Bank of India Act, 1955 (23 of 1955)" (w.e.f. 24-3- 1976).
2. Ins. by s. 7, ibid. (w.e.f. 24-3-1976).
3. Subs. by Act 45 of 2005, s. 5, for "nationalised bank" (w.e.f. 15-11-2005).
2. Ins. by s. 7, ibid. (w.e.f. 24-3-1976).
3. Subs. by Act 45 of 2005, s. 5, for "nationalised bank" (w.e.f. 15-11-2005).
Section 28 Deposit account.
All moneys belonging to a Warehousing Corporation shall be deposited in the Reserve Bank or the State Bank 1[or any nationalised bank] or, subject to any rules made under this Act, in 2[any other scheduled bank] or co-operative bank.
1. Ins. by Act 42 of 1976, s. 8 (w.e.f. 24-3-1976).
2. Subs. by s. 8, ibid., for "any scheduled bank" (w.e.f. 24-3- 1976).
2. Subs. by s. 8, ibid., for "any scheduled bank" (w.e.f. 24-3- 1976).
Section 29 Investment of funds.
A Warehousing Corporation may invest its funds in the securities of the Central or any State Government or in such other manner as may be prescribed by the appropriate Government.
Section 30 Disposal of profits.
(1) Every Warehousing Corporation shall establish a reserve fund out of its annual net profits.
(2) After making provision for bad and doubtful debts, depreciation on assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956), a Warehousing Corporation may, out of its net annual profits, declare a dividend:
Provided that for so long as the reserve fund is less than the paid-up share capital of the Central Warehousing Corporation and until there has been repaid to the Central Government such sum, if any, as that Government may have paid under a guarantee given in pursuance of sub-section (1) of section 5 or sub-section (4) of section 27, the rate of such dividend, in the case of the Central Warehousing Corporation, shall not exceed the rate guaranteed by the Central Government under subsection (1) of section 5.
(2) After making provision for bad and doubtful debts, depreciation on assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956 (1 of 1956), a Warehousing Corporation may, out of its net annual profits, declare a dividend:
Provided that for so long as the reserve fund is less than the paid-up share capital of the Central Warehousing Corporation and until there has been repaid to the Central Government such sum, if any, as that Government may have paid under a guarantee given in pursuance of sub-section (1) of section 5 or sub-section (4) of section 27, the rate of such dividend, in the case of the Central Warehousing Corporation, shall not exceed the rate guaranteed by the Central Government under subsection (1) of section 5.
Section 31 Accounts and audit of Warehousing Corporation.
(1) Every Warehousing Corporation shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed:
Provided that, in the case of the Central Warehousing Corporation, the accounts relating to the Warehousing Fund and the General Fund shall be maintained separately.
(2) The accounts of a Warehousing Corporation shall be audited by an auditor duly qualified to act as an auditor of companies under section 226 of the Companies Act, 1956 (1 of 1956).
(3) The said auditor shall be appointed by the appropriate Government on the advice of the Comptroller and Auditor-General of India.
(4) The auditor shall be supplied with a copy of the annual balance sheet and the profit and loss account of the Warehousing Corporation and it shall be his duty to examine them together with the accounts and vouchers relating thereto, and he shall have a list delivered to him of all books kept by the Corporation and shall at all reasonable times have access to the books, accounts and other documents of the Corporation and may require from any officer of the Corporation such information and explanations as the auditor may think necessary for the performance of his duties as auditor.
(5) The auditor shall make a report to the shareholders on the accounts examined by him and on the annual balance sheet and the profit and loss account and in every such report, he shall state whether in his opinion the accounts give a true and fair view--
(a) in the case of the balance sheet, of the state of the Corporation's affairs at the end of its financial year, and
(b) in the case of the profit and loss account, of the profit or loss for its financial year,
and in case he has called for any explanation or information from the officers, whether it has been given and whether it is satisfactory.
(6) The appropriate Government may, after consultation with the Comptroller and AuditorGeneral of India at any time issue directions to the auditor requiring him to report to the appropriate Government upon the adequacy of measures taken by a Warehousing Corporation for the protection of its shareholders and creditors or upon the sufficiency of his procedure in auditing the accounts of the Corporation and may enlarge or extend the scope of the audit or direct that a different procedure in audit may be adopted or direct that any other examination may be made by the auditor if in the opinion of the appropriate Government public interest so requires.
(7) A Warehousing Corporation shall send a copy of every report of the auditor to the Comptroller and Auditor-General of India and to the Central Government at least one month before it is placed before the shareholders.
(8) Notwithstanding anything hereinbefore contained in this section, the Comptroller and AuditorGeneral of India may, either of his own motion or on a request received in this behalf from the appropriate Government, undertake in respect of a Warehousing Corporation such audit and at such time as he may consider necessary:
Provided that where the Central Government is required to make any payment on account of the guarantee given by it under sub-section (1) of section 5, such audit shall be undertaken by the Comptroller and Auditor-General of India or any person authorised by him in this behalf.
(9) The Comptroller and Auditor-General of India and any person authorised by him in connection with the audit of the accounts of a Warehousing Corporation shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the office of the Corporation.
(10) The annual accounts of a Warehousing Corporation together with the audit report thereon shall be placed before the annual general meeting of the Corporation within six months of the close of the financial year.
(11) Every audit report under this section shall be forwarded to the appropriate Government within a month of its being placed before the annual general meeting and that Government shall as soon thereafter as may be cause the same to be laid before both Houses of Parliament or the Legislature of the State, as the case may be.
Provided that, in the case of the Central Warehousing Corporation, the accounts relating to the Warehousing Fund and the General Fund shall be maintained separately.
(2) The accounts of a Warehousing Corporation shall be audited by an auditor duly qualified to act as an auditor of companies under section 226 of the Companies Act, 1956 (1 of 1956).
(3) The said auditor shall be appointed by the appropriate Government on the advice of the Comptroller and Auditor-General of India.
(4) The auditor shall be supplied with a copy of the annual balance sheet and the profit and loss account of the Warehousing Corporation and it shall be his duty to examine them together with the accounts and vouchers relating thereto, and he shall have a list delivered to him of all books kept by the Corporation and shall at all reasonable times have access to the books, accounts and other documents of the Corporation and may require from any officer of the Corporation such information and explanations as the auditor may think necessary for the performance of his duties as auditor.
(5) The auditor shall make a report to the shareholders on the accounts examined by him and on the annual balance sheet and the profit and loss account and in every such report, he shall state whether in his opinion the accounts give a true and fair view--
(a) in the case of the balance sheet, of the state of the Corporation's affairs at the end of its financial year, and
(b) in the case of the profit and loss account, of the profit or loss for its financial year,
and in case he has called for any explanation or information from the officers, whether it has been given and whether it is satisfactory.
(6) The appropriate Government may, after consultation with the Comptroller and AuditorGeneral of India at any time issue directions to the auditor requiring him to report to the appropriate Government upon the adequacy of measures taken by a Warehousing Corporation for the protection of its shareholders and creditors or upon the sufficiency of his procedure in auditing the accounts of the Corporation and may enlarge or extend the scope of the audit or direct that a different procedure in audit may be adopted or direct that any other examination may be made by the auditor if in the opinion of the appropriate Government public interest so requires.
(7) A Warehousing Corporation shall send a copy of every report of the auditor to the Comptroller and Auditor-General of India and to the Central Government at least one month before it is placed before the shareholders.
(8) Notwithstanding anything hereinbefore contained in this section, the Comptroller and AuditorGeneral of India may, either of his own motion or on a request received in this behalf from the appropriate Government, undertake in respect of a Warehousing Corporation such audit and at such time as he may consider necessary:
Provided that where the Central Government is required to make any payment on account of the guarantee given by it under sub-section (1) of section 5, such audit shall be undertaken by the Comptroller and Auditor-General of India or any person authorised by him in this behalf.
(9) The Comptroller and Auditor-General of India and any person authorised by him in connection with the audit of the accounts of a Warehousing Corporation shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the office of the Corporation.
(10) The annual accounts of a Warehousing Corporation together with the audit report thereon shall be placed before the annual general meeting of the Corporation within six months of the close of the financial year.
(11) Every audit report under this section shall be forwarded to the appropriate Government within a month of its being placed before the annual general meeting and that Government shall as soon thereafter as may be cause the same to be laid before both Houses of Parliament or the Legislature of the State, as the case may be.
Section 31A Returns and reports.
1[31A. Returns and reports.-- A Warehousing Corporation shall furnish to the appropriate Government such returns, statistics, accounts and other information with respect to its property or activities as that Government may, from time to time, require.]
1. ns. by Act 42 of 1976, s. 9 (w.e.f. 24-3-1976).
Section 32 Vacancies, etc., not to invalidate acts and proceedings of Warehousing Corporations.
No act or proceeding of a Warehousing Corporation shall be invalid by reason only of the existence of any vacancy among its directors or any defect in the constitution thereof.
Section 33 Delegation.
A Warehousing Corporation may, by general or special order in writing, delegate to the Secretary or other officer of the Corporation, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act as it may deem necessary for the efficient performance of its functions.
Section 34 Voting rights of shareholders.
In any meeting of the shareholders of a Warehousing Corporation, every member shall have one vote in respect of each share held by him in the Corporation.
Section 35 Disputes between Central Warehousing Corporation and State Warehousing Corporation.
If there is any difference of opinion between the Central Warehousing Corporation and a State Warehousing Corporation regarding their respective functions and powers under this Act, such difference shall be referred to the Central Government whose decision thereon shall be final.
Section 36 Declaration of fidelity and secrecy.
Every director, auditor, officer or other employee of a Warehousing Corporation shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule.
Section 37 Indemnity of directors.
(1) Every director of a Warehousing Corporation shall be indemnified by the Corporation concerned against all losses and expenses incurred in the discharge of his duties except such as are caused by his own wilful act or default.
(2) A director of a Warehousing Corporation shall not be responsible for any other director or for any officer or other employee of the Corporation or for any loss or expense resulting to the Corporation by the insufficiency or deficiency of value of, or title to, any property or security acquired or taken on behalf of the Corporation in good faith, or by the wrongful act of any person under obligation to the Corporation or by anything done in good faith in the execution of the duties of his office or in relation thereto.
(2) A director of a Warehousing Corporation shall not be responsible for any other director or for any officer or other employee of the Corporation or for any loss or expense resulting to the Corporation by the insufficiency or deficiency of value of, or title to, any property or security acquired or taken on behalf of the Corporation in good faith, or by the wrongful act of any person under obligation to the Corporation or by anything done in good faith in the execution of the duties of his office or in relation thereto.
Section 38 Omitted.
(1) Whoever, without the consent in writing of a Warehousing Corporation, uses the name of that Corporation in any prospectus or advertisement, shall be punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
(2) No court shall take cognizance of any offence under sub-section (1) otherwise than on a complaint in writing by an officer authorised in this behalf by the Warehousing Corporation concerned.
(2) No court shall take cognizance of any offence under sub-section (1) otherwise than on a complaint in writing by an officer authorised in this behalf by the Warehousing Corporation concerned.