LexThe Kerala Warehouses Act, 1960 (President's Act No.2 of 1960)
Kerala · state statute
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THE KERALA WAREHOUSES ACf. 19M
(PRESIDEMT's AcT 2 roF 1960)
CONTENTS
Chapter I.
Preliminary.·
;:
- 1. Short title, extent and commencement.
2. Defim t1ons.
Chapter II.
Ltcen.sing of Warehouses.
3 Warehouseman.
4. Grant of licence.
5. Condttions for licence.
6. Term and renewal of hcence.
7. Notice of refusal to grant or renew hcence.
8. Suspension or cancellatiOn of hce-nce.
9. Nouce before suspension 01· cancellatiOn of licence.
10. Return of hcence.
11. Duphcate licence.
Cliapter Ill.
Duttes of a ·wa-rehouseman.
12. Reasonable care of the goods deposited.
13. Precautions against damage or mjury to goods.
14. PreservatiOn of identity of goods.'
15. Warehouseman to allow tacthties for the depositor to
mspcct. .
16. Goods deterior:}tmg in warehouse and their disposal.
17. Debvery of goods. .
18. Liability ot warehouseman for shortage or excess m
goods stored.
19. Insurance of goods in warehouses ..
20. Discnmmation prohibited.
21. Ware houseman not to deal in or lend agatn~t goods 10
warehouse.
22. Accounts, etc .• to be maintamed.
Chapt~r IV.
Inspection and Gradmg o/ Goods.
23. Inspection.
24. Weighers, samplers 1md graders to obtain her ncPs.
25. Provisions regarding such licences.
26. Facilities to.be given {or weighing goods. etc.
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Chapter V.
Warehouse R~ceipts.
Sections.
27.
28.
29.
Receipt to be lsfued.
Rece1pts for deposits m warehouses.
Duphcate receipt.
Chapter VI.
Miscellaneous.
30. Appeals against certain orders of prescribed author1ty.
31. Arbitration.
32. No compensation for suspension or cancellation o{
licence.
33. Government may help to start warehouses.
:>4. Contracts and agreements inconsistent W1th Act to be
VOid
35. Penalty and procedure.
36. Offences by companies.
37. Power to arr.end Schedule.
38. Rules.
39. Power to exempt.
40. Act not to apply to certain warehouses.
41. Repeals
The Schedule.
*THE KERALA WAREHOUSES ACT, 1960.
(President's Act 2 of 1960)
Eilacted by the President in the Tenth Year of the
Republic of India.
An Act to prot,ide /or the 'J'egulation a11.d licensing of ware
houses in the State of Kerala.
In exercise of the powers conferred by section 3 of the
Kerala State Legislature (Delegation of Powers) Act, 1959 (50
of 1959) , the President is pleased to enact as follows :-
CHAPTER I.
Preliminary.
1. Short Litle extent and commencement -(1) This Act may
be ca~led the Kt•rc~la Warehou~es Act, 1960.
, *Published in the Kerala Gazelte Extraordinary dated 29th
January, 1960.
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(2) It extends to the whole of the State of Kerala.
(3) 1t shall come into force on such date as the Government
may, by notificatiOn m the Gazette, appomt.
2. Definitions.-In this Act, unkss the context otherwise
requires,-
{a) "co-operative society'' means a society registered or
deemed to be registered under the Travancore-Cochin Co-opera
tive Societies Act, 1951, or the Madras Co-operative Societies
Act, 1932, which is engaged m any of the achvibes specified in
sub-section (1) of section 9 of the Agr .. cultural Pro-iuce (Deve
lopment and Warehousing) CorporatiOns Act, 1956 (28 of 1956);
(b) "depositor" means a person who tenders his goods to
the warehouc;eman forst ·rmg m his warehouse, and includes
any person who lawfully holds the rece1pt issued by the ware
housem;:m in respect of such ·goods and de6ve~ title thereto by
a proper endorsement or transfer thereof to h1m by the deposi
tor or the depositor•s lawful transferee;
(e) '•goods'' means any of the articles specified in the
c;chedule;
(d) "licensed warehouse" means a warehouse licensed
under this Act ;
(e) "prescnbed" means prescribed by rules made under
this Act;
{f) "prescribed authority•• means, in relation to any pro
vision of this Act, the authonty prescnbed to carry out such
proviswn;
(g) "receipt'' means a receipt m the prescribed form
issued by a warehouseman to a person depoMtmg goods in the
warehouse;
(h) "rules" means rules made by the Government under
this Act;
(i) ''warehouse" means any building, structure or other
protected enclosure which IS or may be nsed for the purpose of
storing goods on behalf of depositors, but does not mclude cloak
rooms attached to hotels railway stations, the premises of other
pubhc earners, and the like;
(j) '·war houseman" means a person who has obtained a
licence under this Act xn respect of his warehouse.
CHAPTER II.
Licensing of warehouaeo
3. Warehouseman.-No person shall carry on the business of
a warehouseman exce}.Jt under a hcence granted under this Act
and in accordance ~·ith such terms and conditions as may, from
time to time, be pre~cr1bed.
4. Grant of ltcence. {1) Apphcation for a hcence shall be
made m the prescribed form to the prescribed authority.
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(2) The prescribed authority may, on receiving such appli
cation and on payment of such fees as may be prescribed; grant
a licence.
5. Conditions for licence.-Before granting a licence, the
pr,scribed authority shall ~atisfy itself.-
(a) that the warehouse is suitable for proper storage of
the class or classes of goods m respect of wh1ch the licence has
been applied for;
(b) that the apphcant is competent to conduct such a
warehouse;
(c> that the appli.~ant has paid the fee prescribed for the
licence and has also furnished the prescnbed security, if any,
provided that where the applicant is a corporatiOn established
under the Agricultural Produce (Development and Ware
housmg) Corporations Act, 1956 i.28 of 1956), no security need
be furmshed; and
(d) that there is no other cause or reason for which the·
applicant 1s, in the opinion of the prescribed authority, dis
qualified.
6. Term and renewal of licence. Every hcence granter! under
section 4 shall be valld for the prescribed penod, and may, on
apphcatwn and payment of the prescnbed fee, be renewed from
time w time by the prescribed authonty and for the prescribed
penod, provided the other conditions referred to m section 5
continue to be fulfilled.
7. Nat ice of refUBal to grant or renew licence.- If the pres·
cribed authority refuses to grant or renew a licence under the
foregomg prov1sions, it shall record it~:! reasons for such refusal
in writing and forward a copy ot its order to the apphcant.
8. Suc;pension or cancellation of licence.-(l)Every licence
granted under section 4 or renewed under section G may be sus
pended or cancelled by the prescribed authority.-
(i) if in its opinion.~he licensee--
(a) has applied to be adjudicated, or been adjudicated, a•1
insolvent; or
(b) has parted, in whole or in part, with his control over
the warehouse; or
(c) has ceased to conduct such warehouse; or
(d) has made unreasonable charges for the services ren
dered by him; or
(e) has in any other manner become incompetent to con
duct such warehouse; or
(f) has contravened or failed to comply with, any of the
terms and conditions of the licence or any of the provisiOns of
this Act or the rule!>; or
(ii) on any other pre!>cribed ground.
(2) If a licence is suspended or cancelled lhe prescnbed
authority shall make an entry to that effect in the licence.
2'.) •J
(3) Whenever a licence is su!>pended or cancelled under this
oection, it shall be competent for the prescnbed authority to
otdcr also a forfeiture of the :ecurity, if any, furnished by the
wart::hou::.eman.
9. Notice before suspension or canceUatton of Zicence.-(1)
Before Issumg an order of suspension, cancellation or forfeiLure
of security under section 8, the prescnbed authority shall give
notice to the warehouseman statmg the grounds on which it is
proposed to do so and callmg upon him to sho.v cause why such
action should noL be taken·
(2) After considering the explanation, if any of the ware
houseman, the prescribed authonty may pass such orders as it
deems just.
(3l Notwlthstandmg anythmg contained in sub-sections (1)
and (2), the prescr;.bed authority may, if it is satiSfied that It is
necessary in the public mtere~t to take immed,ate action, with·
out giving the notice referred to in sub-section (1) and con~i
dermg the explanation of the warehouseman, suspend a licence
pendmg dec1s1on as to the act10n to be taken under sub-sections
(1), and (2) .
10. Return of hcence.-When a lxcence expires, or is suspen
ded or cancelled, the warehouseman shall cease to work as such
and shall return the licence to the prescribed authority, who
shall giVe reasonable time to the warehouseman to enable him
to wind up the busine~s.
11. Dupltcate licence.- (1) Where a licence granted to a
warehouseman is lost, destroyed or torn or defaced or other
wise becomes illegible, the prescribed authority shall Issue a
du}.Jhcate licence in lhe manner prescnbed on the apphcation
of the warehouseman and on payment of the prescribed fee.
(2) When a duplicate licence is issued, it ~hall be clearly
stam9ed "Duplicate" and shall be marked with the date of Issue
of the duphcate and that of the or1ginal from the record of the
officer issumg the licence.
CHAPTBR III
Duties of o warehctut~eman
12. Reasonable · caTe of the goods dep?a,ted.-Every ware
houseman shal take such care of the goods deposited with him
as a man of ordinary prudence would take of his own .goods
under similar Circums:ances and conditions,
13. Precautions against damage or in;u.,·y 'Lo 'g,ods,_.(l)
Every warehouseman shall keep his ·warehouse clean and
free {rom damp. 'take all necessary precautions .agamst rats
and other pests, and fulfil such other conditiOns as may be
prescribed ...
(2) No warehouseman· shall accept.goods for depos1t which
are likdy to cause damage to otner.)goods.whlch are, or may be,
deposited in the warehouse.
14· PTeservation of idlmtity of goods.-Every wuehouseman
shall kce11 the goods of one depositor separate from the goods
of other depos1tors and from other goods of the same depO!:.ltor
for which a separate receipt has been issued, in such a manner
as to perm1L at aJ.l times of the 1dentl1icat10n and delivery of the
goods deposited:
Provided that where standardised and graded goods a~e
stored in a warehouse, then subject to any agreement between
the warehow;eman and a depositor, the same variety of goods
belonging to different depositors may be pooled together and
each depositor shall be entitled only to his portion of the goods
accordmg to weight or quantity, as the case may be, as shown
in his rece1pt. '
15. Wanhou-;eman to e~Uow "faciUties for the ·depositor to
,nspect.-Every warehouseman shaH allow necessary facihties
for the depositor to mspect and satisfy h1mself that h1s goods
are properly cared for.
16. Goods deteriorating tn warehouse and their disposal-(1)
Whenever goods depos1ted m a warehouse detenorate, or are
about to deteriorate from causes beyond the control of the ware
houseman, he shall forthwith, give nouce of such deterioration
by reg1stercd posf. to the depos1tor, requiring h1m to take deli
very of the goo :is immediately, after surrendering' the receipt
duly d1scharged and paymg all charges due to the warehouse
man.
E:rplanation -Loss of weight or bulk by shrinkage or dryage
or gam of weight or bulk by absor .tion of moisture shall be
deemed to 11mount to detenoration w1thin the meanmg of this
sub-sectlon lf the loss or ga1n exceeds such limits as may be
prescnbed.
(2) If the depositor does not, withm a reasonable time,
comply with a notice given to him under sub-section (1), the
warehouseman may cause the goods to be removed from tha
warehouse and sold by pubhc auction at the cost and risk of the
depositor.
(3) Any person having an Interest in any goods depos1ted
in a warehouse or 1n the rece1pt for such goods may mform the
warehouseman in wrilmg of the fact and nature· of his interest
and the warehouseman shall keep a record thereof; and if such
person requests in writmg that mtlmation be gtven to him
regarding the condition of the goods and agrees to pay the
charges for g1ving such int1mat1on, the warehouseman shall give
him intimation accordmgly.
17. Delivery of goods.-(1) Every warehouse-nan, in the
absence of reasonable excuse, ~hall, without unnecessary delay,
deliver the goods depos1ted m his warehouse to the depositor on
demand made by him and on surrender of the receipt nuly dis
charged and on payment ot all charges due to the warehouse
man.
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(2) Subject to any agreement between the warehouseman
and the depos1tor, the depos1tor may take partial delivery of the ,
goods deposited in a warehouse.
18. Liability of warehouseman for shortage or excess in goods
stored.- (1) If there is any excess in the goods stored in a
warehouse by absorption of moisture or other causes, the Wclre
hou~eman shall not be entitled thereto.
(2) If there 1s any shortage in the goods stor.ed in a ware•
house by dryage or ot er causes, beyond the control oi the
warehouseman, the warehouseman shall not be responsible
therefor.
(3) In the event of a dispute arising as to whether such
shortage or excess is due to dryage or absorption of moisture
or 1s due to other causes beyond the control of the warehouse
man, the matter shall be determined by arbitration.
19. Insurance of goods in warehouses.-(!) Every ware
houseman shall insure the guods stored in his warehouse
against such risks and in such manner as may be prescribed:
Provided that a depositor may at his own cost insure his
goods against other risks.
(2) Every warehouseman shall be entitled to recover
from the depositor, at the rate prescribed, the charges for
insurance in respect of the depos1tor's goods before delivery
thereof.
20. Discrimination prohibited.-No warehouseman shall, in
the conduct of hb busmess, discri ninate between oersons desir
ing to avail themselves of the facilities of h1s wareh,>use:
Provided that the warehouseman shall show such preference
to co-operative societies in the State of Kerala and allow them
such concessional rates as may be prescribed.
21. Warehouseman not to deal in or lend agai1~st good~ in
warehouse.-Notwithstanding anything contained in any other
law, no warehouseman other than a co-operative society, shall
either on its own account or that of others, deal m, or lend money
on, goods receiveJ by him for depo5it m his warehouse.
22. Accounts, etc., to be maintained.-A warehouseman shall
maintain accounts, books and records in such form and manner
as may be prescribed.
CHAPTER IV
lntp'!ction and grading of goods.
23. Inspection.-The prescribed authority may, at any time
durmg business hours, mspect or examine or cause to be
inspected or examined, any hcensed warehouse, its machinery
and equipment, goods deposited therein, and the accounts, books
and records relating thereto for the purpose of satisfymg it~elf
that the requirements of this Act and the rule::. are being comphed .
v.ith.
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24. Weighers, samplers and graders to obtain licences.-(1)
The lJrescrlbed author tty may, on application made in the pre•
scr1bed manner and on payment of the pre~cribed fee, issue
licences to persons possessing the prescr1beu qualifications,
entitling them to act as weighers, samplers, or graders of any
goods, deposited or to be deposited in a licensed warehouse, and
to issue certificates as to the weight, bulk, quality or grade of
the goods which they have examined·
(2) Any certificate so issued shall, subject to the provi
sions of sect10n 25 and to any order passed on a complaint pre
ferred by etther of them to the Board of Arbitrators, be bmding
on the warehouseman and the depositor, as to the weight, bulk,
quality or grade of the goods so certified.
(3l Any complaint against weighers, samplers, graders or
warehousemen relating to weight, quahty or grade of the goods
deposited tn the warehou:ie shall be deterauned by arbitration.
(4) No person who is not licensed under this section shall
act or hold himself out as a weigher, .!>ampler or grader.
25. Provisions regarding such licences.-(1) Every licence
granted to a weigher, sampler or grader under section 24 shall
be \'ahd for the prescr1bed pertod and may, on application, and
payment of the prescribed fee, be rene.ved from time to time
for the prescr1bed period by the prescribed authority.
(2) The prescribed authority may cancel any such licence,
after comm micating to the hcensee the grounds on which it is
proposed to take action and giving him a reasonable opportunity
of showing cause against 1t.
(3) Notwithstandmg anything contained in sub-section
(2), the prescribed authority may, at any tlme, suspend any
such licence without such notice pending any act1on under the
said sub-section.
(4) The holder of any such licence shall, on the expiry
thereof or the receipt of an order suspendmg or cancelling it,
return the licence to the prescribed authority.
26. Facilities to be given tor weighing goods. etc.-Every
warehouseman shall provide facthties for wetghmg, sampling
and grading any goods deposited in his warehouse.
CHAPTER V.
Warehouse receipts.
27. Receipt to be issued.-For the goods deposited in his
warehouse by each depositor, the warehouseman shall issue a
receipt which shall contain full particulars of the goods and
shall be 111 the prescr1bed fo1·m.
28. Receipts for deposits in warehouses.-The receipt issued
by a warehouseman shall, unless it is otherwise specified
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thereon, be transferable by endorsement and shall entitle the
lawful holder thereof to receive the goods specified in it on the
same terms and conditions as the original depositor.
29. Duplicate receipt.-!£ a receipt is lost, destroyed or
damaged, the warehouseman shall, on application by the de
positor and on payment by him of the prescribed fee, issue a
duplicate receipt on such conditions as he. may thmk fit to
impose, bemg conditions included in rules prescr. bed for the
purpose.
CHAP'l'ER VI.
Miscellaneous.
30. Appeals against certain orders of prescribed authority.
(1) An appeal against any order of the prescribed authority
refusing to grant or renew a hcence or suspending or cancell
ing any licence or forfeiting the security, if any, furmshed by a
warehouseman shall be made to such authority and w1thin such
bme as may be prescribed.
(2) The decision of such appellate authority shall be
final.
31. Arbitration.-Where under this Act any matter is re
quired to be deternnned by arbitration, the matter shall be
determined by a board of arbitrators consisting of three
members of \\-hom one each shall be nommated by the two
parties concerned and the th1rd by the Government or such
other authority as may be empowered in this behalf by the
Government. In all other respects, the arbitration shall be
subJect to the provisions of the Arbitration Act, 1940 (10 of
1940).
32. No compensation for suspension or cancellation of
licence.-Where any licence is suspended or cancelled under this
Act, the licensee shall not be entitled to any compeno;atJon there
for nor shall he be entitled to the refund of any fee pa1d by him
for the licence.
33. Government may help to start warehouses.-The Govern
ment may offer any aid to the establishment of warehouses uncler
this Act, by way of. grant or lease of land, or of subs1dy towards
the cost of construction 1•r by guarantee of a reasonable return
on the capital inve!.ted, or in any other manner, and on such
terms and conditions as may appear to the Government suitable
in the circumstances of any particular case.
34. Contracts and agreements inconsistent with Act to be
void.-Every contract or agreement which is inconsistent with
the provisions of this Act, or the rules shall, to the extent of such
inconsistency, be void.
35. Penalty and procedure.-Whoever-
(a) acts or holds himself out, as a licenced warehouseman
without having obtained a licence under this Act, or
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{b) krowingly contravenes or fails to comply with any
of the provi•ion-. or requirements of this Act or the rules,
shall be punishable with Imprisonment for a term which may
extend to one year, or with fine which may extend to one
thousand rupees, or with both.
36. Offences by companies.- (1) If the person committing an
offence under s ction 35 1s a company, every person who, at the
time the · ffence wa~ committed was in charge of, and was res
ponsible to the company for the conduct of the business of the
company as well as the company. shall be deemed to be guilty
of the offence and shall be liable to be proceeded against and
punished accordmgly:
Prov•ded that not!lin-. contained in this sub·!.ection shall
render any such person hable to any puni~hrnent if he proves
that the co •travention took place without his knowledge or that
he exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1),
where an offence under section 35 has been comm•tted by a com
pany and it 1s proved that the offence has been committed with
the consent or connivance of, or is attributable to any neglect
on the part of, any director, manager, secretary or other officer
of the company, ::-uch director·, manager, secretary or other
officer shall also be deemed to be guilty of that offence and shall
be liabie to be proceeded against and punished accordingly.
Explanation.-For the purpose.; of this section,-
( a) "company'' means any body corporate, and includes
a firm or other association of mdxvtd·Jals; and
(b) "director'', in relation to a firm, means a partner in
the firm.
37. Power to amend Schedule.-(1) The Government may
by noti 1cation in the Gazette, arne 1d the Schedule by a ddmg
any article to, or omitting any article from, the Schedule.
(2) All references in thts Act to the Schedule ~hall be cons
trued as rei erring to such Schedule as for the ttme being
amend<'d tn exercxse of the powers conf,3rred by sub-section (1).
38. RuLes.- (1) The Government may, by notification in the
Gazette, make rules to carry out the purposes of thts Act.
(2) In particular and w1ihoul prej udace to the generali ly of
the foregomg power, such rules may provide for-
(a) the matters express'y required or allowed by this Act
to be prescribed ;
(b) the condttions lo be inserted in licences to be granted
to warehousemen and the form of such licences ;
(c) the publication of the grant, suspension or cancellation
of licences to warehousemen and of consolidated lists of ware
housemen and licensed warehouses;
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(d) the charges to be levied by warehousemen for their
services;
(e) the books, accounts and records to be maintained by
warehousemel\ ;
(f) the conduct of 1public auctions for the sale of goods
deteriorating or about to deteriorate in lit'ensed warehouses and
the manner m which the proceeds of such sales shall be account
ed for;
(g) the scales of losses and gains of weight or bulk which
may be sustamed by goods owing to shrinkage or dryage 1n the
one case and owmg to absorption of moisture in the other;
(h) the disinfection of licensed warehouses and the disin
festation of goods stored therein;
(i) the manner in which any sum fallmg due as a result
of forfe1Lure of security may be recovered;
(j) the efficient conduct generally of the business of
warehousemen.
(k) the quahfications to be possessed by persons applying
for the grant of licences as weighers, samplers or graders; the
conditions to be inserted m their hcences ; the form of the
certificates to be issued by them and the grounds for which the
licences may be suspended or cancelled ;
(l) ·the establishment and conduct of warehouses by co
operative societies ;
(m) the standard weights, measures and gradations of
goods to be used in licensed warehouses ;
(n) the authority to which and the time within which an
appeal under section 30 should be made; and
(o) the manner of g1vrng notices under this Act.
(3) The power to make rules under this section shall be
subject to the condition of previous publication.
( 4) All rules made under this section shall be laid for not
less than seven days before the Legislative Assembly as soon as
possible after they are made and shall be subject to such modi·
fications as the Legislative Assembly may make durmg thE>
session in which they are so laid or the session immediately
following.
39. Power to ezempt.-The Government may, by notification
in the Gazette, for reasons to be recorded, exempt any person
or class of persons from all or any of the provisions of this
Act.
40. Act not to apply to certain warehouses.-Nothing con
tained m this Act shall apply to any warehouse established or
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