The Punjab Warehouses Act, 1957

il 1958 : Pb. Act 1I] PuNIAB WaARBHOUSES THE PUNJAB WAREHOUSES ACT, 1957 TABLE OF CONTENTS Sections — 1. R R N U T R 10. 11. 12 13. 14. 15. 16. 17. 18. 19. 20 21. 22, 23. Short title, extent and commencement Defimtions ‘Warehouseman Application for grant of licence Conditions of licer.ce Term and renewal of licence Notice of refusal to grant or renew licence Suspznston and cancellation of ticence Notice of suspension and cancellation of licence Return of licence Duplicate licencz Reasonable cate of the goods deposited Precautions against damage or injuryto goods Preservation of identity of goods Goods deteriorating in warehouses and their disposal Delivery of goods Liability of warchouseman for shortage or excess in goods stored Insurance of goods in warehouses Discrimination prohibited Warehouseman not to deal in or lend against goods in warchouse Accounts, etc., to be maintained Inspection Weighers, Samplers and Graders to obtain licenses 495 ! ""'lfl PuniAB - WAREHOUSES (1958 : py, A‘ct 1 Provisions regarding such licenses Facilitics to be given for weighing goods, cte, Reoeipt to be issued Reccipt for deposits in warchouses Duplicate receipt Appeals against certain orders of prescribed authority No compensation for suspension or cancellation of licence Contracts and agreemsnts inconsistent with Act to be void d Penalty and procedure Power to make rules 958 :,Pb. Act II] PuNIAB WAREHOUSES 497 sTHE PUNJAB WAREHOUSES ACT, 1957, PUNJAB ACT NO. 11 OF 1958, Received the assent of the President of India on the 30th [ _(];nnuaryl;,l 1(958,6 and“flrst (Eublished in the P‘:lnjah QBRI et xtraordin, February, 1958.] ary) of 6th pEpe—— 1 2 3 4 Year No. Short title Whether repealed or otherwise affected ! by legislation 1958 11 | The Punjab Ware- Amended by Punjab Act No. 1 of 1961.* houses Act, 1957 Amended by Punjab Act No. 30 of 19623, Amended by Punjab Act No. 18 of 1965.¢ Amended by the Punjab Reorganisation (Chandigarh) (Adaptation of Laws on f;astse and Concurrent Subjects) Order, AN Act to provide for the regulation and licensing of warehouses in the State of Punjab. BE it enacted by the Legislature of the State of }’unjab in the Eighth Year of the Republic of India as ollows :— s —_— — e e 1For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1957, page 1633-34, 3For Statement of Objects and Reasons, se¢ Punjab Government Gazette (Extraordinary), 1960, page 1965. For Statement of Objects and Reasons, see Punjab Government Gazette (Extraordinary), 1962, page 1648. ¢For Statement of Objects and Reasons, (Extraordinary), 1965, page 360, see Punjab Government Gazette - Ty 498 PuNnjAB WAREHOUSES [1958 . Ph, A CHAPTER | PRELIMINARY ety o b e L () This Act may be called the Punjay, Ware, e ™ houses Act, 1957, ‘ (2) It extends to the whole of the 1 Union TermOry of Chandigarh]. (3) 1t shall come into force on such date g ; the Goyey,. ment may, by notification in the official ; Gazette, appoint, Definitions. 2. Inthis Act, unless the context otherwise Tequires, __ (@) “Co-operative Society” means a societ or deemed to;be_re_glstered under-the Punjap Co-operative Societies Act, 1954, or the Co. operative Societies Act, 1912, 3¢ in force jp the territorjes which, immediately before the Ist November, 1956, were Comprised in the State of Patiala and East Punjab States Union ; Y Tegistereq ng, and includes any person who Jawfully holgds the (©) “goods” means - any of € articles specified In the Schedy]e to this Act : ; fication jp the officia] Gazette, add t fom the Schedy]e any article ; (@) “Go:/j:rnment” means the 2[Central Govers: ment] ; . mt— — ‘—.—1‘; “Substituted f, “ iab" i organisd (Chan digarh) (Adgpor ;e Words “Stage of Punjab” by the punjab Re 68 " 1968, ation of [ gyg St Subjects) Order, 'SUbltlluted or the wor da ‘_G(:)n ate and Concurrent Sy ) ) vernment of Punjab” by ;bid, "’-l P e 1958 : Pb. Act 11] PUNJIAB WARENOUSES 499 - () “licensed warchouse™ means a warchouse licensed under this Act ; (f) “person™ includes any company or association or body corporate ; (g) “prescribed” means prescribed by rules made under this Act : (k) “‘receipt” means a warchouse reccipt in the prescribed form issued by a warchouseman to a person depositing goods in the warehouse ; (i) “warehouse” means any building, structure or other protected enclosure which is or may be used for the purpose of storing goods on behalf of depositors but does not include cloak rooms attached to hotels, railway stations, the premises of other public carriers, and ' the like ; +(j) “warehouseman’ " means a_person who - has obtained licence under this Act in' respect of his warehouse. ! CHAPTER 1I LICENSING OF WAREHOUSES 3. No person shall carry on the business of a_ware- houseman exce.t under licence granted under this 'Act and in accordance with such terms and conditions thereof as may, from time to time, be prescribed. 4. (I) Every application for a licence under section 3 shall bg madliey inptl;]e prescribed form to the prescribed authority. (2) The prescribed authority may, on receiving such applica)tioa an% on payment of such feesas may be prescrib- ed, grant a licence. 5 () Béfore granting a licence the prescribed authority shall satisfy itself— " (a) that the warehouse is suitable for proper storage - TR AR NN IRRSTSN GRERINeS ywen vy vy " Warehouseman. Application for grant of licence. Conditions of licence. . 7 <00 PUNIAR WAREHOUSES (1958 Pbh, Act | ’ 1 of the class or classes of Boods % . in of which the licence has been applied (. osPect for ; (A) that the applicant is financially sound ; ©) that the applicant has paid the feq N v for the licence and has also paid orpgric::r‘;'*‘lcd prescribed security, if any. he (2) The Government may, by notificatiop N the official Gazette, add to or alter (he conditions under tpjg section. Tem and wacwal 6, Every licence granted under section 4 shall of hecace. valid for theIy pl'escl'ibcdg period, and may; on ap fL e and payment of the prescribed fee, be renewed to time by the prescribed authority and for period, provided the other conditions referred to in section 5 continue to be fulfilled. Notice of refusa 7. If 1 cate the order to the applican thereof, : Suspension and 8. (/) Every licence granted under section 4 or canceliation of . renewed under section 6 shal] be liable to be suspended cancelled or revoked either temporari by the prescribed authority for walid reasons stated in (@) has applied for being declared or been adjudi- cated an insolvent, or (8) has parted, in whole or in part, with his control over the warehouse, or (€) has ceased to condyct the business of such 2 warehouse, o) ices (@) has made unreasonable charges for the servicé rendered, by him, or ; ; ent (€) has in any other manger become mcomP“o - to conduct the business of such warehouse, J 1958 : Pb. Act I} Punian Warnousss 501 (f) has contravened, or failed to comply wi bt with a?);hor the qondmrm}s of the llccncg {)r nny' of the provisions of this Act or the rules mad thereunder. i (2) If a licence is suspended , revoked or cancelled the prescribed authority shall make an entry (o that effect in the licence. 9. (I) Before passing an order for suspension, revocation- or cancellation under section 8, the prescribed authority shall give notice to the warehouseman stating the grounds on which it is proposed to suspend, revoke or cancel his licence and call upon him to show cause why the proposed action should not be taken. (2) After considering the explanation, if any, of the warehouseman, the prescribed authority. may pass such orders as it deems just. 10. When a licence expires or is suspended, re- voked or cancelled, the warehouseman shall cease to work as such and shall return the licence to the pre- scribed authority, who shall give reasonable time to the warehouseman to enable him to wind up the business, or, who may acquire the business in the manner as prescribed. 11. (I) Where a license granted to a warehouse- man is lost, destroyed, torn, defaced or otherwise becomes . illegible, the prescribed authority shall issue a duplicate licence on the application of the ware- houseman and on payment of the prescribed fee. (2) Whena duplica.te license is issued, it shall be clearly stamped ‘‘Duplicate” and shall be marked with the date of issue of the duplicate and that of the original from therecord of the office issuing the license. CHAPTER III Duties of a Warehouseman 12. Every warehouseman shall take such care of: the goods deposited” with him as a man of ordinary prudence would take of his own goods under similar circumstances and conditions Notice of suspen- sion and cancel- lation of licence. Return of licence Duplicate licence. Reasonable care of the goods deposited. 502 punias WargHousss [1958 : Pb, Aét I Aoyt warchouseman shall — keep ; 10 goods. warchouse clean and frec from damp, take all ncco: sary precautions against rats and other pests and full:il such conditions as may be prescribed. (2) No warchouseman shall accept such googg for deposit as are likely to cause damage (o oher goods which are, or may be deposited, in the ware. house. Precautions against . 13, (/) Every Preservation of 14. Every warchouseman shall keep the 0 identity of goods. o one deposi{or separate. from the goods of got?lg: depositors and {rom other goods of the same depositor, for which a separate receipt has been issued, in such a it. at all times the identification manner as to permi } ds deposited : and delivery of the goo Provided that where standardised and graded goods' are stored in a warehouse, then subject to any agree- ment. between the warehouseman and 2 depositor, the same variety of goods belonging to different depositors may be stored together and each depositor shall be entitled only to his portion of the goods according to weight ‘or quantity, as {he case may be, as shown in his receipt. Goods deteriorating 15. (1) ‘Whenever goods deposited in a ware- in warehouse and house begin to deteriorate from causes beyond the posil. control of the warehouseman, he shall forthwith give notice of such fact to the depositor, requiring him to 1ake delivery of the goods immediately, after and paying all surrendering the recéipt duly discharged charges due to the warehouseman. Explanation,—Loss of weight or bulk by shrinkagg or dryage or gain in weight or bulk by absorption ,Of moisture shall be deemed to amount {0 deterioration within the meaning of this sub-section, if the 1055 gain exceeds such limits as may be prescribed. _ (2) Ifhe depositor does not, within a reasonable, time as prescribed , comply with a notice given {0 hum under sub-section (I), the warehouseman may causg the goods to be removed from the warehouse ml;e sold by public auction on such conditions as may prescribed at the cost and risk of the depositor. 1958°: Pb. Act II]'- PuniaB WargHpusES | 503 (3) Any person having an interest in any goods - deposited in a warehouse or in the recei i goods may inform lh? warehouseman in g’rtmn{fro? l:hche fact and nature of his interest and he ‘warehouseman shall keep a record thercof :andif such, person re- quests_in writing that intimation be given to hi regarding the condition of the goods and agrees to pay the .charges _for giving such_intimation, the warchouse- man shall give him intimation accordingly. o gl - 16. (I) Every warehouseman, in the .absence of any reqsonable excuse, shall, without unnecessary: delay, deliver the goods deposited in. his warehouse to the depositor on demand made by him and . sur- render of the receipt duly discharged and payment of all charges due to the warehouseman.”. . (2) Subject to any'agregement between the ware- houseman and the depositor, the depositor may- take partial delivery of the goods' deposited in an . ware- house. Ce " el 17. (I) For the purposes of sub=section (I) of section 13 and of section 16, loss of weight or . bulk by dryage or shrinkage within prescribed limits and ‘gain in"weight by absorption of moisture withi such limits shall not be deemed to amount to . deterioration. . (2 If there is any excess inthe goods stored in a warehouse by absorption of moisiure; or other causes, the warehouseman shall not be gutlt]ed there- to. ' (3) If there is any shortage in the goods stored 1n a: warehouse by dryage or other causes beyond his con- trol the warehouseman shall not be resporsible 'there- for. i (4 In the event of a dispute arising 1 such shortage or excess is due to dryafiz or absorption of moisture or is due to other causes Db yond the con- trol of warehouseman, the matter shall be referred to the appellate authority referred to in _section 29 whose decision thereon shall be final and binding. as to 'vyhe\her' Delivery of goods Liability of warehouseman for shortage or excess in goods stored. R 504 PUNJAB WAREHOUSES [1958 : pp, At " Insurance of good: : in warehouses, (18. (1) Every warchouseman shall insure 20 stom& in his warchouse against such risks and ip ::"'I: Stigy manner as may be prescribed : Provided that a depositor may at his own cos( insur e his goods against other risks : Provided further that nothing contained in this section shall apply 10 the goods deposited in a warehoys, /archousing Corporation established Undc: belonging to a the Warehousing Corporations Act, 1962 (Parliamep, Act S8 of 1962), where such warchousing corporation pyg agreed, in the rescribed manner, (0 compensale the de. positor against loss or damage arising from the prescribeg risks (3) Every warchouseman shall be enlitled (o recover from the depositor ai the rate prescribed the charges for insurance in respect of the depositor’s — goods before delivery thereof, and where a Warehousing Corporation established under the Warehousing Corporations Act, 1962 (Parliament Act 58 of 1962), has agreed to compensate the depositor under the second_proviso to sub-section (/), such corporation shall be entitled to recover [rom the depositor such additional chargesas it may decide, not exceeding the tariff rate of the insurance premia, for the risk which it has agreed 1o compansate.] 19. No warehouseman shall, in the conduct of bis desiring 10 probibiiel. business, discriminale belween persons avail themselves of the facilities of his warchouse Provided thal the warehouseman shall show S.Ug{l‘ preference to co-operalive societies in the State dcs_ allow them such concessional reles as may be Pr cribed " " i . z any Warehouseman 20. Notwithsianding anylhing contained 11 'M’I no warehousem not 1o deal in or : 2 H . asainet other law for the time being in force, li‘-f'wmhm-sc‘fmd‘ollm' than a Co-operalive Sgociety or Lhe Cenlrflll ;,)a any State Warehousing Corporation set up under Agricultural Produce (Development and W‘d"’hmf’,u Corporations Act, 1956, shall, either on his own acee ing n 1Substituted by Punjab Act No. 18 of 1965. ,’ 1958 : Pb. Act 1] PuNJAB WARFHOUSES 505 of others, deal in, or lend money on goods received or that S gL for deposit in his warchouse by him 21. A warehouseman shall maintain accounts, books, and records in such form and manner as may be prescribcd v CHAPTER 1V Inspection and Grading of Goods 22. The prescribed authority may, al any time dJuring business hours, inspect or examine or cause 10 be inspected or examined any licensed warehouse, ifs machinery and equipment, goods deposited therein and the account books and records relating thereto, for the purpose of satisfying itself (hatthe requirements of this Act and the rules made thereunder are being complied with. 23. (I) The prescribed authority may, on applica- tion made in the- prescribed manner and on payment of the prescribed fee, issue licences (0 persons possSessS- ing the prescribed qualifications entit'ing them fo act as weighers, samplers and graders of any goods de- posited or to be deposited in a licensed warehouse and {o issue certificates as to the weight, bulk, quality or grade of the goods which they have examined. (2) The prescribed authorily —may appoint a Board of Arbitrators whose decisions on any com- plaint against weighers, samplers and classifiers or warehouseman relating to weight, qualily or grade ouse shall be final. of the goods stored in the wareh The certificates issued by weighers, samplers and classi- fiers asto weight, qualily or grade of the goods stored in the warehouse shall be binding on the warehouse- man and the deposilor subject ioany order in appeal preferred by them (o the Board of Arbitrato1s. licensed under this (3) No person who is nol ) as a weigher, section shall act, or hold himself out sampler or grader. Accounts etc. to be maintained, Inspection. Weighers, Samplers and Graders to obtain licences. 506 PUNJAB WARE HOUSES [1958 : py, Act 1 Provisions regarding 24, (1) Every license granted to a e suchlicenses. gampler or grader under section 23 shall be va?i'(&i'hfi:' ! T . the preseribed period and may, on application anq pa ment of the prescribed fee, be renewed from (0" to time for the prescribed period by the P'CSCriLcs authority. (2) The prescribed authority may cancel an such licence after communicating to the licensee lhg grounds on which it is prorosed to take action and giving him a reasonable opportunily of showing cays, why the proposed action should not be taken. © (3) The prescribed au(horily' may suspend any such licence without such notice after recording ip writing its reasons therefor. (4) The holder of any such licence shall, on the expiry thereof or ‘the receipt of an order suspending or cancelling it, return the licence to the prescribed authority. Facilities _to_be 25. Every warehouseman shall provide facilities oo e, " for weighing, sampling and grading any goods deposited or to be deposited in his warehouse. CHAPTER V Warehouse Receipts Receipt to be 26. For the goods deposited in his warehouse by fawcdl. each depositor, the warehouseman shall issue a reccllzit which shall contain full particulars' of the goods 2n be in the prescribed form. < . 27. The receipt issued by a warehouseman shall ‘%.‘i“‘.»‘.’li‘éfii‘fi""“ unless it is olherwrl?se specified thereon, be transfembtlg by endorsement and shall entitle its Jawful holder ;i receive the goods specified in it on the same terms an conditions as the original depsitor. Explanation.—The provisions of this section 51}"‘;2 not apply to any receipt issued by a person who ¥ not obtained a licence under this Act, o i 1958 : Pb. Act I1] - PUNJIAB WAREHOUSES 507 28. If a receipt ,is lost, des {he warchouseman shall, on upi)lici}li:)%y.cb(; ?hrc ((llacmag_cd, and payment by him-of the prescribed fee, issue "p((l)zlt?r cate receipt on such conditions as he m:;y ‘lhhinlé fi ptl‘ jmpose, being conditions included in -the rules mtadg under this Act. ; CHAPTER V| Miscellaneous 29. (I) Anappealagainst any order prescribed authority r_el‘us:sng to gran)l, or renew gf“cc:llg: or suspending, revoking or cancelling any such licence in respect of a_wa;ehouseman shall be made to such authority and within such time as may be prescribed. (2) The decision of such’appellaic authorit such appeal shall be final. =~ e e 30. Where any licence is suspended, revoked or cancelled under this Act, thelicensee shall not be cn- titled to any compensation therefor, nor shall he be entitled to refund - of any. fee paid by. him for the licence. § 31. Every contract or agréement which is in- consistent with the provisions of this Act or rules made thereunder shall, to the extent of .such- inconsistency, be void. 32. (I) Whoever—. = o ) (a) acts or holds himself out, as a !ic'ensed ‘ware- houseman without having obtamgd a licence under this Act, or 37 (b) knowingly. contravenes ' Or fails -to comply with any of the provisions or requirements of this Actor the rules made thereunder shall be punishable with imprisonment for a term which may_extend to ~one year Orf with fine which ma})]/ extend fo one ‘thousand rupees or with both. (2) Where a person committing an offence under sub-section (/) is a company or an. - assocjation or a body of persons whether incorporated or not, _the manager, secretary, agent ~Or other - principa] officer, managinfi t he affairs of such company, assoglation or sha body 1l be deemed to be guilty of such offence. Duplicate receipt. Appeals against certain orders of prescribed authority. No compeasation for suspention or cancellation of licence, " Contracts and agreements in- consistent with Act to be void. Penal ¥ and procedure. 508 PUNIAB WARFHOUSES 1958 ¢ Ph, Act " 33. The prescribed authority woulg be en(i 10 forfeit the security of the warehousemap, initleq the warchouseman fails to refurn the goods dep 35 ed within fhe reasonable (ime as F"OVidcd 1% sections 10 and16 of the Act and (he forfeieq “c“qcr may be used in full or part payment of the damar"y or losses incurred by the depositor on account of sflgcs failure of the warchouseman. . ch Poives 6 hule redes 34. () The Government may, by notif; ication make rules fo carry out the purposes of (his Act, ’ (2) In particular and without prejudice 10 (he generality of the foregoing power, stch rules may pro. vide for — (@) the matters expressly required or afjoy, by this Act to be prescribed; «d (8) the form of licenses granted to warehouseman (c) the publication of (he grant, suspension, revocation or cancellation of licenses to warehousemen and of consolidated lists of warehousemeén and licénsed warehouses ; (@) 1hé charges (o be levied by warehousemen for their services ; (¢) the books, accounts and records to be main- tained by warehousemen ; () the conduct of public auctions for the sale of goods deteriorating or about to deterio- rate in licensed warehouses and the manflelfl in which the proceeds of such sales sha accounted E)r : (g) the scales of losses and gains of weight Of bulk which may be 8sustained_ by goog; owing to shrinkage or dryage in the (‘:“e case and owing to absorption of mois in the other ; d (%) the disinfection of licensed warehouste}fer‘e‘i"n; the disinfection of goods stored Vr | 1958 ": Pb. Act 1] Puniap WareHouses 309 (i) the circumstances in which any security of bond furnished by a warehouseman = ma be forfeited, and "the manner in whic any sum falling due as a result of such forfeiture may be recovered (/) the cfficient conduct generally of the busi- ness of warchousemen ; (k) the qualifications to be possessed by persons applying for the grant of licences as weighers, samplers or graders ; the conditions (o be inserted in their licenses ; the form of the certificates to be issued by them and the grounds for whick the licenses may be suspended or cancelled ; (/) the standard weights, measures and grada- tions of goods to be used in licensed ware- houses : (m) the authority to which and the (ime within which an appeal under section 29 should be made : (n) the manner of giving notices under (his Act. (3) The power to make rules under this section shall be subject to the condition of previous publication and the rules shall be laid before both Houses of the State of the Legislature as soon as may be after ‘they are made. THE SCHEDULE (See section 2 (c¢)] Goods to which the Act applies Foodgrains— Wheat. Maize. Gram Barley. Oats. Rice Bajra. 510 Puniab' ' WAREHOUSES [1958°: pp; g r l ‘ Pu[se&——_ ’ Mung. Mash. Moth. Masur. . Kulth. Peas. Beans. ’ Oflséeds—- Sarson: - Toria. - Groundnuts. Till. Linseed. . Bidag Cotlon. Cotton-seed Fodder— Senjee. Metha. Barseem. Chattala, Chari. ~ .- . Guwara. . . Qats, " Bhussa. - Vegetables— HLU e 04 Potatoes. Tomatoes, !* /' - Onion.,, . Chillies. " Others— LS '. , Gur, S Shakkar