The Warehousing Corporations (Supplementary) Act, 1965

Warehousing Corporations (Supplementary) Act, 1965
The Warehousing Corporations (Supplementary) Act, 1965 was enacted to provide supplementary provisions relating to the functioning and management of warehousing corporations established under the Warehousing Corporations Act, 1962. The Act primarily addressed matters concerning the transfer of employees, assets, liabilities, and other consequential issues arising from the reorganization of warehousing corporations. It ensured continuity in the operations of warehousing corporations and facilitated efficient storage and handling of agricultural produce and other notified commodities.
Objective
The main objectives of the Act are:
• To supplement the provisions of the Warehousing Corporations Act, 1962.
• To ensure the smooth reorganization and functioning of warehousing corporations.
• To provide for the transfer of employees, assets, rights, liabilities, and obligations.
• To safeguard the service conditions and rights of employees affected by such transfers.
• To promote efficient warehousing facilities for agricultural produce and other commodities.
Key Provisions
1. Transfer of Assets and Liabilities
o Provides for the transfer and vesting of assets, properties, rights, liabilities, and obligations between warehousing corporations as specified under the Act.
2. Transfer of Employees
o Ensures that employees transferred to another warehousing corporation continue in service without interruption and retain their existing terms and conditions unless lawfully altered.
3. Continuity of Contracts and Proceedings
o Existing contracts, agreements, legal proceedings, and obligations continue to remain valid and enforceable despite the transfer or reorganization.
4. Protection of Employee Rights
o Safeguards the salaries, allowances, pension, provident fund, and other service benefits of transferred employees.
5. Supplementary and Transitional Provisions
o Provides for transitional arrangements necessary for the effective implementation of the transfer and reorganization process.
6. Removal of Difficulties
o Empowers the Central Government to issue orders for removing any difficulties arising in implementing the provisions of the Act.

Legislative History:

The Warehousing Corporations (Supplementary) Act, 1965

● Act Title - The Warehousing Corporations (Supplementary) Act, 1965

● Act Number / Year - 20 of 1965

● Act ID (India Code) - 196520

● Presidential Assent Date - September 22, 1965

● Enforcement Date - November 27, 1965

● Nodal Ministry - Ministry of Consumer Affairs, Food and Public Distribution

Precedent & Historical Rationale

● Extension of Central Warehousing Legislation to State Subjects - Enacted pursuant to resolutions passed by various State Legislatures under Article 252(1) of the Constitution, empowering Parliament to legislate on matters with respect to which it otherwise had no power to make laws for the States (specifically regarding commodities other than those covered by Entry 33 of List III).

● Application of Warehousing Framework Across Participating States - Formulated to supplement the Warehousing Corporations Act, 1962, ensuring that the powers, operations, and asset-creation capabilities of the Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs) extended uniformly across participating states for a wider range of goods and agricultural produce.

Parliamentary Trajectory & Enactment

● Formulation - Introduced by the Central Government following requests and resolutions adopted by state legislative assemblies seeking a unified statutory framework for warehousing development.

● Parliamentary Passage - Debated and passed by both Houses of Parliament (Third Lok Sabha and Rajya Sabha) during the August–September 1965 session.

● Presidential Assent - Received Presidential Assent on September 22, 1965.

● Enforcement - Enforced on November 27, 1965.

Source - Official Record of Parliament, India Code, and Ministry of Consumer Affairs, Food and Public Distribution.