The Warehousing (Development and Regulation) Act, 2007
Administered Ministry: Ministry of Consumer Affairs, Food and Public Distribution / Department of Food and Public Distribution
Section
Section 21 Conclusiveness of negotiable warehouse receipt.
In the hands of a holder who has purchased a negotiable warehouse receipt for valuable consideration, it shall be conclusive evidence of the goods described in it as against the warehouseman or any person claiming through him.
Section 22 Presumption in certain cases.
In a dispute between an endorser of a negotiable warehouse receipt and his endorsee unless it is proved otherwise, it shall be presumed that--
(a) the endorsement has been made voluntarily;
(b) the endorsement has been made for full consideration;
(c) the endorser had full legal title in the goods represented by the receipt; and
(d) the endorsement has extinguished all the rights, title and interest of the endorser in the goods.
(a) the endorsement has been made voluntarily;
(b) the endorsement has been made for full consideration;
(c) the endorser had full legal title in the goods represented by the receipt; and
(d) the endorsement has extinguished all the rights, title and interest of the endorser in the goods.
Section 23 Issue of duplicate receipt.
(1) No warehouseman shall issue a warehouse receipt without actually receiving the goods of the quantity, quality or grade and other particulars as may be mentioned in the receipt.
(2) No warehouseman shall issue more than one receipt for the same goods deposited by any person: Provided that in case of a loss or destruction, a duplicate receipt may be issued in such manner as may be specified by the Authority by regulations.
(3) If a warehouseman fails to comply with the provisions of sub-section (2), he would be liable for all such damages caused by the failure to any person who has transacted on such receipt for valuable consideration, believing it to be an original, even though the transaction is after the delivery of the goods by the warehouseman to the holder of the original receipt.
(4) A receipt on the face of which the word "duplicate" is plainly marked is a representation and warranty by the warehouseman that it is an accurate copy of a receipt properly issued and uncancelled on the date of issue of the duplicate warehouse receipt.
(2) No warehouseman shall issue more than one receipt for the same goods deposited by any person: Provided that in case of a loss or destruction, a duplicate receipt may be issued in such manner as may be specified by the Authority by regulations.
(3) If a warehouseman fails to comply with the provisions of sub-section (2), he would be liable for all such damages caused by the failure to any person who has transacted on such receipt for valuable consideration, believing it to be an original, even though the transaction is after the delivery of the goods by the warehouseman to the holder of the original receipt.
(4) A receipt on the face of which the word "duplicate" is plainly marked is a representation and warranty by the warehouseman that it is an accurate copy of a receipt properly issued and uncancelled on the date of issue of the duplicate warehouse receipt.
Section 24 Establishment and incorporation of Authority.
(1) With effect from such date as the Central Government may, by notification, specify in this behalf, there shall be constituted an authority to be called the Warehousing Development and Regulatory Authority to exercise the powers conferred on, and to perform the functions assigned to it by or under this Act.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
(3) The head office of the Authority shall be at New Delhi and the Authority may, with the previous approval of the Central Government, establish offices at other places in India.
(2) The Authority shall be a body corporate by the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue or be sued.
(3) The head office of the Authority shall be at New Delhi and the Authority may, with the previous approval of the Central Government, establish offices at other places in India.
Section 25 Composition of Authority.
The Authority shall consist of--
(a) a Chairperson; and
(b) not more than two other members,
to be appointed by the Central Government from amongst persons of ability, integrity and standing who have wide knowledge and experience in inventory management, insurance, preservation, quality control, agriculture banking, finance, economics, law or administration.
(a) a Chairperson; and
(b) not more than two other members,
to be appointed by the Central Government from amongst persons of ability, integrity and standing who have wide knowledge and experience in inventory management, insurance, preservation, quality control, agriculture banking, finance, economics, law or administration.
Section 26 Tenure of office of Chairperson and other members.
(1) The Chairperson and every other member shall hold office for a term not exceeding five years from the date on which he enters upon his office and shall be eligible for reappointment:
Provided that no person shall hold office as the Chairperson or other member after he has attained the age of sixty-five years.
(2) Notwithstanding anything contained in sub-section (1), a member may--
(a) relinquish his office by giving in writing to the Central Government notice of not less than three months; or
(b) be removed from his office in accordance with the provisions of section 27.
Provided that no person shall hold office as the Chairperson or other member after he has attained the age of sixty-five years.
(2) Notwithstanding anything contained in sub-section (1), a member may--
(a) relinquish his office by giving in writing to the Central Government notice of not less than three months; or
(b) be removed from his office in accordance with the provisions of section 27.
Section 27 Removal from office.
(1) The Central Government may remove from office any member who--
(a) is, or at any time has been, adjudged as an insolvent; or
(b) has become physically or mentally incapable of acting as a member; or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or
(e) has so abused his position as to render his continuation in office detrimental to the public interest.
(2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.
(a) is, or at any time has been, adjudged as an insolvent; or
(b) has become physically or mentally incapable of acting as a member; or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or
(e) has so abused his position as to render his continuation in office detrimental to the public interest.
(2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.
Section 28 Salary, allowances and other terms and conditions of Chairperson and other members.
Subject to the rules as may be made in this behalf, the salaries and allowances payable to, and other terms and conditions of service of--
(a) the Chairperson shall be the same as that of a Secretary to the Government of India;
(b) the other members of the Authority shall be the same as that of Joint Secretaries to the Government of India.
(a) the Chairperson shall be the same as that of a Secretary to the Government of India;
(b) the other members of the Authority shall be the same as that of Joint Secretaries to the Government of India.
Section 29 Bar on future employment of members.
The Chairperson and the other members shall not, for a period of two years from the date on which they cease to hold office as such, except with the previous approval of the Central Government, accept any employment in any concern in the warehousing sector.
Section 30 Chairperson to be the chief executive of Authority.
The Chairperson shall be the chief executive of the Authority.
Section 31 Meetings of Authority.
(1) The Authority shall meet at such times and places and shall observe such rules of procedure in regard to transaction of business at its meetings (including the quorum at such meetings) as may be determined by regulations.
(2) The Chairperson, or if, for any reason he is unable to attend a meeting of the Authority, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting.
(3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the Chairperson, or the person presiding shall have a second or casting vote.
(2) The Chairperson, or if, for any reason he is unable to attend a meeting of the Authority, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting.
(3) All questions which come up before any meeting of the Authority shall be decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the Chairperson, or the person presiding shall have a second or casting vote.
Section 32 Vacancies, etc., not to invalidate proceedings of Authority.
No act or proceeding of the Authority shall be invalid merely by reason of--
(a) any vacancy in, or any defect in the constitution of, the Authority; or
(b) any defect in the appointment of a person acting as a member of the Authority; or
(c) any irregularity in the procedure of the Authority not affecting the merits of the case.
(a) any vacancy in, or any defect in the constitution of, the Authority; or
(b) any defect in the appointment of a person acting as a member of the Authority; or
(c) any irregularity in the procedure of the Authority not affecting the merits of the case.
Section 33 Officers and employees of Authority.
(1) The Authority may appoint officers and such other employees as it considers necessary for the efficient discharge of its function under this Act.
(2) The terms and conditions of service of officers and other employees of the Authority appointed under sub-section (1) shall be governed by regulations made under this Act.
(2) The terms and conditions of service of officers and other employees of the Authority appointed under sub-section (1) shall be governed by regulations made under this Act.
Section 34 Warehousing Advisory Committee.
(1) The Authority may, by notification, constitute a Committee to be known as the Warehousing Advisory Committee to advise the Authority on matters relating to the making of regulations under section 51 and make recommendations for effective implementation of the provisions of this Act.
(2) The Warehousing Advisory Committee shall consist of not more than fifteen members excluding the members of the Authority to represent the interests of commerce, industry, engineering, agriculture, consumers, organisations engaged in warehousing, quality control, preservation and research bodies.
(3) Without prejudice to the provisions of sub-section (1), the Warehousing Advisory Committee may advise the Authority on such other matters as may be referred to it by the Authority.
(2) The Warehousing Advisory Committee shall consist of not more than fifteen members excluding the members of the Authority to represent the interests of commerce, industry, engineering, agriculture, consumers, organisations engaged in warehousing, quality control, preservation and research bodies.
(3) Without prejudice to the provisions of sub-section (1), the Warehousing Advisory Committee may advise the Authority on such other matters as may be referred to it by the Authority.
Section 35 Powers and functions of Authority.
(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate and ensure implementation of the provisions of this Act and promote orderly growth of the warehousing business.
(2) Without prejudice to the generality of the foregoing provisions, the powers and functions of the Authority shall include the following, namely:--
(a) to issue to the applicants fulfilling the requirements for warehousemen a certificate of registration in respect of warehouses, or renew, modify, withdraw, suspend or cancel such registration;
(b) to regulate the registration and functioning of accreditation agency, renew, modify, withdraw, suspend or cancel such registration, and specify the code of conduct for officials of accreditation agencies for accreditation of the warehouses;
(c) to specify the qualifications, code of conduct and practical training for warehousemen and staff engaged in warehousing business;
(d) to regulate the process of pledge, creation of charges and enforcement thereof in respect of goods deposited with the warehouse;
(e) to promote efficiency in conduct of warehouse business;
(f) to make regulations laying down the standards for approval of certifying agencies for grading of goods;
(g) to promote professional organisations connected with the warehousing business;
(h) to determine the rate of, and levy, the fees and other charges for carrying out the provisions of this Act;
(i) to call for information from, undertaking inspection of, conducting enquiries and investigation including audit of the warehouses, accreditation agencies and other organisations connected with the warehousing business;
(j) to regulate the rates, advantages, terms and conditions that may be offered by warehousemen in respect of warehousing business;
(k) to specify, by regulations, the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by warehousemen;
(l) to maintain a panel of arbitrators and to nominate arbitrators from such panel in disputes between warehouses and warehouse receipt holders;
(m) to regulate and develop electronic system of holding and transfer of credit balances of fungible goods deposited in the warehouses;
(n) to determine the minimum percentage of space to be kept reserved for storage of agricultural commodities in a registered warehouse;
(o) to specify the duties and responsibilities of the warehouseman;
(p) to exercise such other powers and perform such other functions as may be prescribed.
(2) Without prejudice to the generality of the foregoing provisions, the powers and functions of the Authority shall include the following, namely:--
(a) to issue to the applicants fulfilling the requirements for warehousemen a certificate of registration in respect of warehouses, or renew, modify, withdraw, suspend or cancel such registration;
(b) to regulate the registration and functioning of accreditation agency, renew, modify, withdraw, suspend or cancel such registration, and specify the code of conduct for officials of accreditation agencies for accreditation of the warehouses;
(c) to specify the qualifications, code of conduct and practical training for warehousemen and staff engaged in warehousing business;
(d) to regulate the process of pledge, creation of charges and enforcement thereof in respect of goods deposited with the warehouse;
(e) to promote efficiency in conduct of warehouse business;
(f) to make regulations laying down the standards for approval of certifying agencies for grading of goods;
(g) to promote professional organisations connected with the warehousing business;
(h) to determine the rate of, and levy, the fees and other charges for carrying out the provisions of this Act;
(i) to call for information from, undertaking inspection of, conducting enquiries and investigation including audit of the warehouses, accreditation agencies and other organisations connected with the warehousing business;
(j) to regulate the rates, advantages, terms and conditions that may be offered by warehousemen in respect of warehousing business;
(k) to specify, by regulations, the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by warehousemen;
(l) to maintain a panel of arbitrators and to nominate arbitrators from such panel in disputes between warehouses and warehouse receipt holders;
(m) to regulate and develop electronic system of holding and transfer of credit balances of fungible goods deposited in the warehouses;
(n) to determine the minimum percentage of space to be kept reserved for storage of agricultural commodities in a registered warehouse;
(o) to specify the duties and responsibilities of the warehouseman;
(p) to exercise such other powers and perform such other functions as may be prescribed.
Section 36 Grants by Central Government.
The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Authority grants of such sums of money as the Government may think fit for being utilised for the purposes of this Act.
Section 37 Constitution of fund.
(1) There shall be constituted a fund to be called the Warehousing Development and Regulatory Authority Fund and there shall be credited thereto--
(a) all Central Government grants, fees and charges received by the Authority;
(b) all sums received by the Authority from such other source as may be decided upon by the Central Government;
(c) all sums realised by way of penalties under this Act.
(2) The fund shall be applied for meeting--
(a) the salaries, allowances and other remuneration of the members, officers and other employees of the Authority;
(b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act.
(a) all Central Government grants, fees and charges received by the Authority;
(b) all sums received by the Authority from such other source as may be decided upon by the Central Government;
(c) all sums realised by way of penalties under this Act.
(2) The fund shall be applied for meeting--
(a) the salaries, allowances and other remuneration of the members, officers and other employees of the Authority;
(b) the other expenses of the Authority in connection with the discharge of its functions and for the purposes of this Act.
Section 38 Accounts and audit.
(1) The Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form and manner as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books of account, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.
(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
(2) The accounts of the Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit of the accounts of the Authority shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts and, in particular, shall have the right to demand the production of books of account, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.
(4) The accounts of the Authority as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
Section 39 Furnishing of returns, Annual Report, etc., to Central Government.
(1) The Authority shall furnish to the Central Government at such time and in such form and manner as may be prescribed, or as the Central Government may direct to furnish such returns, statements and other particulars in regard to any proposed or existing programme for the promotion and development of the warehousing industry as the Central Government may, from time to time, require.
(2) Without prejudice to the provisions of sub-section (1), the Authority shall, within nine months after the close of each financial year, submit to the Central Government an Annual Report giving a true and full account of its activities including the activities for promotion and development of the warehousing business during the previous financial year.
(3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be after they are received, before each House of Parliament.
(2) Without prejudice to the provisions of sub-section (1), the Authority shall, within nine months after the close of each financial year, submit to the Central Government an Annual Report giving a true and full account of its activities including the activities for promotion and development of the warehousing business during the previous financial year.
(3) Copies of the reports received under sub-section (2) shall be laid, as soon as may be after they are received, before each House of Parliament.
Section 40 Powers of Central Government to issue directions.
(1) Without prejudice to the foregoing provisions of this Act, the Authority shall, in exercise of its powers and performance of its functions under this Act, be bound by such directions on questions of policy, other than those relating to technical and administrative matters, as the Central Government may give in writing to it from time to time:
Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.
(2) The decision of the Central Government, whether a question is one of policy or not, shall be final.
Provided that the Authority shall, as far as practicable, be given an opportunity to express its views before any direction is given under this sub-section.
(2) The decision of the Central Government, whether a question is one of policy or not, shall be final.