The ORISSA WAREHOUSE ACT, 1956

Odisha · state statute
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EXTRAOR DI NA RY 
PUBLISHED BY AUT HO RITY 
· ·· ·.• OIU88A· ACT ·4 OF 1957 , ~· 
THE ORISSA WAREHOUSE ACT, 1956 
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Received the assent of the PreBident on the 
22nd January · 1957, first published in an 
extraordinary issue of th~ Orif)sa Gazette, 
dated the 9th February 1957 ] 
AN .A.OT TO PROVIDE FOR THF.l ESTABLISHMENT AND 
REGULATION OF WAREHOUSES IN THE 
BT.A.Tl!l OF ORJ.SSA 
WHEREAS it}is expedient to encourage the 
establishmen t of licensed warehouses and make 
provision for thflir proper supervision and control ; 
It is hereby enacted by the Legislature of the 
State of Orissa in tho Seventh Year of the Republic 
of India as follows :-
CHAPTER I 
PRELIMINARY 
Short title * 1. (1 , This A{;t may be ca1led the Orissa Ware-
n.~n.t. and house Act, l 9f!6~. 
eommence. 
IQ.ant. , ....... ;, . {.2)J~-. ~;x/: ends to the w~ole of the State of 
unssa. · 
Definitions 
HO It shall come into force on such date as the 
State · GoV-einment niay, by notifieation, appoint in 
this behalf. 
2. In thh Act, unless there is anything 
repugnant in t~e subject or cootext,-
(a) ••Co-operativ e Society •• means a. society , 
registered or doomed to be r(;"lgistered under the Orissa Ori!HO Act 
. Co-operative Societies Act, 1951 ; .. XJ of 1951.. 
( b) ".depositor " me~ns a. person who tenders . 
his goods ·to the warehouseman for storing in his 
warehouse and includes any person who lawfully 
bolds the receipt issued by the warehouseman in 
respect of such goods 'and derives title thereto by 
a p-roper ~n<J:?.~seme~t or. tra,nsfer thereof to him by 
t.he <le r' o_~ito;r or the depositors lawful transferee ; 
• 1, For ate.tement. ~f o~jects ~nd . reasons s~ Orissa Gazette extra:ordinB.l'y, dated the 5th ' 
September 1956 and for S, C. Report see Ortssa Gazetu extroordmary, da.ted. the 25 th 
S~Ptelllber 1956. · 
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Warehotlfl9o 
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(c) '' goods " means any of the articles speoi .. ~ 
fiod in the Schedule to this Act : · 
Provid11d that the State Government may, by 
notification add, to or 01ni~ any ar(icle from the 
Schedule; 
(d) '' Governme11t " means the State Govern­
ment; 
(e} ''licensed warehouse ''means a warehouse 
licensed under this Act ; 
(f) '' P.eraoll '' shall include any company or 
a.ssocia tion or body corporate ; 
(g) ''prescribed '' means prescribed by rules 
made under this Act ; 
(h) ''receipt'' means a warehouse receipt in 
tl1e prescribed form issued by a warehouseman to 
a person depositi11g goods in the warehouse; 
' (i) ''warehouse'' means any b~ilding, 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 aaITiers and the like ; 
(j) '' warehouseman '' means a person, who 
has obtained licence under this Act in reapeot of his 
warehouse. 
CHAPTER II 
LIOENSING OF WA.REHOUSES 
3. No person sba.ll carry on the business of a 
warehouseman e~cept. under licenoe granted under 
this Act and in ae-oordanbe with such terms and 
conditions thereof as may, from time, to time, be 
prescribed unde1 this Act . 
4. (l) Application for a licence shall be made in 
nnm11 of the presoribr.d form to the prescribed authority. 
lino nee. 
(2) The prescribed authority may, on reoeiving 
such application and on payment of sqcll f~ ·~ in•y 
be pNsoribed, graJ!t a licence, 
[ Il J.-~w-6] 
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6, (!) Before granting a licence, the prescribed 
authority shall satisfy itself-
( a.) that the warehouse is suitable for proper 
storage of the class or classes of goods in respect of 
whioh the licence has been applied for ; 
(b) that the applicant is competent to conduct 
such a warehouse ; 
(c) that the applicant has paid the fee presorihsd 
for the licence and has also paid the prescribed 
seourity, if any ; and 
( d) that there is no other valid reason for which 
the applicant for the licence may, in the opinion of 
thepresoribedauthoritJ', be deemed to be disqualified. 
(2) The Government may, by notification, add to 
or alter the terms and conditions under which a 
licence is granted to a warehousema.n under section 4. 
6. Every licence granted under section 4 shall b0 
valid for such period as may be prescribed and may, 
on ap])lication and payment of the prescribed fee, be 
renewed from time to time by the prescribed 
autho1 ity and for such period as may be prescribed, 
provided the other conditions'referred to in section 6 
continue to be fulfilled. 
7. If the prescribed authority refuses to gr&nt or 
renew a licence under the foregoing provisions, it shall 
record its reasons for such refusal in writing and 
communicate the order to the applicant by forward-
ing a copy thereof. 
::r;:naioo a. Every licence granted under section 4 or 
tbl 0 't8Ua-renewed under section 6 shall be liable to be 
~. suspended or cancelled by the prescribed authority, if 
in.:i.its .. opinion-
(a) the licensee has applied to be adjudicated, 
or boon adjudicated, an jnsolvant ; or 
· (b) bas parted, in whole or in part, with bis 
control over the warehouse ; or 
(c) has ceased to conduct such warehouse ; or 
. (!l) has made unreMonable charges for the 
services rendered by him ; or 
. (e} has in any other manner become incompe. 
tent to conduct such warehouse ; or • 
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(j) has contravened or failed to comply with 
any of the terms and conditions of the licence or any 
of the provisions of this Act and the Rules ; or 
(g) has contravened any other prescribed 
ground. 
Notice '?f 9. (1) Before making an order of suspension or 
::t::!i ... cancellation of licence under section 8, the prescribed 
t~on of authority shall give notice to the licensee stating the 
licenoe. grounds on w hi oh it is proposed to take action to show 
cause as to why his licence shall not be suspended or 
cancelled within such date as may be specified in the 
said notice . 
Ret1ll'l:l. of 
Duplioat& 
lioeu.oe. 
(2) After considering the explanation, if any, 
offered under sub-section (1), the prescribed authority 
may pass such final order as it deems fit. 
(3) If any licence is suspended or cancelled ; the 
preBcribed authority shall make an entry to that 
effect in the licence. 
10. When a licence expires, or is suspended or 
cancelled the warehouseman shall cease to carry on 
the business of a warel1ouseman and shall return the 
licence to the prescribed authority, who shall give 
reasonable time to the warehouseman to enable him 
to wind up the business. 
11. (I) Where a licer1ce granted to a wa.rehouse 
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 f%. 
(2) When a duplicate licence 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 the record of the office issuing the 
licence . 
CHAPTER III 
DVTIES OF A. W A.RJ!IHOUSEMA.:N 
Bewmable 12. Every warehouseman shall take such oare of 
~~!1;:,. the goods deposit.ed with him as a man of ordinary 
81tt!d. prudence would take of his own goods under similar 
circumstance~ and conditions. 
Preeau\i®& 
agains~ ._...., 
in.jury to 
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13. (1) Every warehouseman shall keep his ware­
house clean and free from damp, take all necessary 
preca.utions against rats and other pests, and fulfill 
such other conc;litions as may be prescribed, 
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Preaerve.0 
tio11 of, 
identity of 
goods. 
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(2) No warehouseman shall accept goods for 
deposit which are likely to cause damage to other 
goods which are, or may be deposited in the 
warehouse. 
14. Every warehouseman shall keep the goods of 
one depositor separate from the goods of other depo· 
sitors and from other goods of the same depositor for 
which a separate receipt has been issued, in such a 
manner as to permit at all times of the identification 
and delivery of the goods deposited : 
Provided that where standardised and graded 
goods are stored in a. warehouse then subject -to any 
agreement between the warehouseman 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 according to weight or quantity, as the case 
IIJ&Y be, as shown in his receipt. 
Goods 15. (I) Whenever goods deposited in a warehouse 
~eteriora.ting deteriorate or are about to deteriorate from causes 
:_;:~touse beyond the control of the warehouseman, he sha]l 
cliap08e.L forthwith give notice of such deterioration to the 
depositor, requiring him to take delivery of the goods 
immediately, after surrendering the receipt duly 
discharged 2nd paying all charges due to the 
warehoui>eman. 
Explanation-Loss of weight or bulk by 
shrinkage or dryage or gain in weight or bulk by 
absorption of moisture sba11 be deemed to amount 
to deterioration within the meaning of this sub­
section, if the loss or gain exceeds such limits as 
may be prescribed. 
(2) If the depositor does not, within a reasonable 
time, comp:y with a notice given to him under 
sub-section (1), the warehouseman may cause the 
goods to be removed from the warehouse and sold 
by public auction at the cost and risk of the 
depositor. 
· (3) Any person having an intere$t in any goods 
deposited in a warehouse or in the receipt for such 
goods roay inform the warehouseman in writing of 
the fact and nature of his interest and the ware­
houseman shall keep a record thereof and if such 
person requests in writing that intimation be given 
to him regarding the condition of the goods and 
agree to pay the charges for giving such intimation, 
the warehouseman shall give him - intimation 
accordingly. · 
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l>eli'<ery of 
goods. 
Liability of 
wareholl&l­
man for 
shortage or 
0%08118 in 
goods 
BtOred, 
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16. (l) Every warehouseman, in the absence of 
reasonable excuse shall, without unnecessary delay, 
deliver the goods deposited in his warehouse to the 
depositor on demand made by him and surrender of 
the receipt duly discharged and payment of all 
charges due to thE't warehouseman. 
(2) Subject to any agre&ment between the' ware· 
houseman and the depositor, the dep<'.>S.itor may 
take partial delivery of the goods deposited in a 
warehouse . 
17. (I) For the purposes of sub-sections (l) and 
(2) of the foregoing section and sub-section (l) of 
section 15, loss of weight or bulk by dryage or 
shrinkage within the prescribed limits and gain in 
weight by absorption of moi@ture '"·ithin such limits 
shall not be deemed to amount to deterioration. 
(2) If there is any excess in the goods stored in 
a warehouse by absorption of moisture or other 
ca.uses, the warehouseman s4all not be entitled 
thereto. 
(3) If there is any shortage in the goods siored 
in a warehouse by dryage or other causes the ware~ 
houseman shall not be responsible therefor. 
(4} In the event of a. dispute arising a.s t.o 
whether such shortage or excess is due to dryage 
or absorption of moisture or is due to other ca.uses 
beyond the control of the warehouseman, the matter 
shall be referred to the appellate authority referred 
to in section 29 whose decision thereon shall he final 
and binding. 
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ImQl'Bll~ of 18. Goods in warehouses shall be insured against 
!:e~~i':se. loss or damage by fire, rain, floods, theft, rjot or 
civil commotion, or any other prescribed event, in 
such manner as may be prescribed. 
Disuriwina.. 
.... prohi· 
bited. 
19. No warehOuseruan s~iall, iu the conduct of 
his business, discriminate between persons desiring 
to avail themselves of the facilities of his wal"e· . 
house: 
Provided that the warehouseman shall show 
such preference to agricultural producers or Co-opera­
tive Societies of agricultura.l producers in the State 
a.nd a.llow them such concessions as may be prescribed. 
Explanation-A '' Co~opera.tive Society of agri .. 
cultural producers " shall mean a socjety in which 
the majority of members are agricultural producers 
or the predominant interest is held by agricultural 
producers. In case of doubt whether .the Society ia 
one of agricultural producers or not within the mean .. 
ing of the proviso of this section, the matter shall be 
referred to the Registrar of Co-operative Societies and 
his decisions shall be final. 
WIU't'h0118tl- 20. Notwithstanding anything contained in any 
man :11ot to other. aw for the time being in force no warehouse. 
~":J !.°~t man other than a Go-operative Society or the Central 
goods in or any State \Varehousing Corporation set up under 
wll.l'6hon11e. the Agricultural Produce (Development and Ware-
housing ) Corporation Act, 1956, shall, either on his t'tie2sof 
own account or that of others, deal in, or lend money · 
on, goods received ·by him for deposit in its 
warehouse. 
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Accounts, 21. A warehouseman 
'"'°"!to .be books and records in such 
ma.1nWned. b "b d 
shall maintain accounts, 
form and ma.nner as may 
e prescn e . 
CHAPTER IV 
lNSPEOTION A.ND GRADING OF GOODS 
Iiispeotion 22. The prescribed authority may, at any time 
during business hours, inspect or e.x:amine or cause to 
be inspected or examined, any licensed warehouse, its 
machinery and equipment, goods deposited therein, 
and the account books and :records relating thereto, 
for the purpose of satisfying itself that the require­
ments of this Act and the rules are being complied 
with. 
Weighers 23. (1) The prescribed authority may, on applica­
samptera ~ud tion made in the prescribed manner and on payment 
~b't!·ers to of the prescribed fee, issue licences to persons posses· 
1icen'!s. sing the prescribed qualifications, entitling them to 
act as weighers, samplers, and grade1s of any goods 
deposited or to be deposited in a licensed warehouse 
a.nd to issue oortifica.tes a.& to the weight, bulk, quality 
or grade of the goods which they have examined. 
Provieions 
regarding .. ,. 
"'""'"" 
(2) Any certificate so issued shall, subject to 
the provisions of section 24 be binding on the ware­
houseman and the depositor as to the weight, bulk, 
quality or grade of the goods so certified. 
(3) No person who is not licensed under this 
section shall act, or hold himself out, as a weigher, 
sampler or grader. 
24. (l) Every lioenoe granted to a weigher, sam· 
pier, or grader under section 23 shall be valid for such 
period as may be presc.ribed and may, on application 
and payment of the prescribed fee, be renewed from 
me to time for the prescribed period by the presori, 
bed authority. 
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(2) The prescribed authority may cancel any 
such licence, after communicating to the licensee the 
grounds on which it is proposed to take action and 
giving him a reasonable opportunity of showing ca.use 
against it, 
(3) The prescribed authority may, however, 
suspend a.ny such licence pending any action under 
sub-section (2). 
(4) The holder of any such licence shall, on the 
expiry thereof or the receipt of an order suspendin~ 
or cancelling it, return the licence to the prescribed 
authority. 
Fooilitiea 25. Every warehouseman, shall provide facilities 
!0 be g~vhine~ for weighing, sampling and grading any goods dflpo-.or we1g g . . • h gooda, etc. srted m his ware ouse . 
Renaipt kl 
be issued, 
. CHAPTERV 
WAREHOUSE REOEIPTS 
26. For the goods deposited in the warehonse by 
ea.ch depositor, the warehouseman shall issue a receipt 
which shall contain full particulars of the goods and 
be in the prescribed form. , 
Re<ieipts for 27. The receipt issued by a warehouseman shall, 
deposit.s in nJ , b . fi warebouseq, u ess it is ot erw1se speci ed thereon, be transfera-
Duplicate 
reaeip.t, 
Appeal• 
-"""'"' orders of 
preeonbed 
autbonty. 
ble hy endorsement and shall entitle the lawful holder 
thereof to receive the goods specified in.on the same 
terms and conditioi.13 as the original depositor. 
' Explanation-The provisions of this sub· 
section shall not apply to any receipt issued by a 
person who has not obtained a licence under this Act. 
28. If a receipt is lo3t, destroyed or damaged, the 
warehouseman shall, on application by the. depositor 
and i-ayment by him of the prescribed fee, .is8u0 a 
duplicate receipt on such conditions as he may think 
fit to impose, being conditions included in rules pres­
cribed for the purpose . 
CHAPTER VI 
MISOELLANEOUS 
29. ( 1) An appeal against any order of the 
prescribed authority refusing to grant or renew a 
licence or suspending or cancelling any such licence 
in respect of a wa.rehousem an shall be made to such 
authority and within such time as may be pres.,;ribed. 
(2) The decision of such appellate authority shall 
be final. 
No oompen· 30. Where any licence is suspended or cancelled 
:=:: under this Act, the licensee shall not be entitled to any 
~ eanoella- compensation therefor, nor shall he be entitled to the 
.... of 
i;_ refund of anV fee paid 1y hiw for the licence. M.VNIOfl• \l 
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Contracts 
and agree. 
men.ts in­
eonsieten.t 
with Aot to 
be void. 
Penalty and 
proeedure, 
31. Every contract or agreement which is in~ 
consistent with the provisions of this Act or the rules 
made thereunder, shall, to the extent of such inconsiH­
tenoy, be void. 
32. ( l) Whoever-
(a) acts, or holds himself out, as a licensed 
warehouseman without having obtained a licence 
under this Act ; or 
(b) knowingly contravenes or fails to comply 
with any of the provisions or requirements of this 
Act or the rules ; 
shall be punishable with imprisonment for a term 
which may exWnd to one year or with fine which may 
exte11d to one thousand rupees or with both. 
(2} Where a person committing an offence under 
sub-section ( l) is a company or an association or a 
body of perl!lons, whether incorporated or not, the 
Manager, Secretary, Agf;lnt or otlier principal officer, 
managing the affairs of such company, association or 
body, shall be deemed to be guilty of such offence. 
B""' * 33. (J) The State Government may, subject to 
the condition of previous publication, make rules to 
carry out the purposes of this .Act. 
(2) In particular and without prejudice to the 
generality of the foregoing power, such ru1es may 
add any article to, or omit any article from the 
Schedule or provide for-
(a) the matters expressly required or allowed 
by this .Act to be prescribed ; 
(b) the conditions to be inserted in licences to 
be granted to warehouseman and the form of such 
licences; 
(c) the publication of the gra.nt, suspension 
or cancellation of licences to warehousemen and of 
consolidated lists of warehousemen and licensed 
warehouses ; 
•For rules sea OriH~a (Jaietw flztr&Ol'<linary dated the 11th Marob, 1958 
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{ d) the charges to be levied by warehousemen 
for their services; 
(e) the books, accollnts and reoorda to be 
maintained by wa.rehousema11 ; 
(fl the conduct of public a11ctions for the. aa.Jo 
of good.B deteriorating or about to deteriorate in 
licensed warehouses and the ma.oner in which the 
proceeds of such sales shall be accounted for ; 
(g\ the scalea of losses and gains of weight or 
bulk which ma.y be sustained by goods owing to 
shrinkage or dryage in the one case and owing to 
absorption of moisture in the other ; 
(h) the disinfection of licensed warehouseaand 
the disinfesta.tion of goods stored .therein ; · 
(i) the circumstances in which any security 
or bond furnished by a warehouseman may be 
forfeited, a.nd the manner in which any sum falling 
due as a ·result of such forfeiture may be recovered ; 
(j) the efficient conduct generally of the 
business of wMehousemen ; 
(k) the qualifications to be possessed by persons 
applying for the grant of licences as weighers, 
samplers or graders, the conditions to. be inserted 
in their licences, tho form of the certificates to be 
issued by them and the grounds for which the 
licences may be suspended or cancelled ; 
(!)the standard weights, measures and grado· 
tioilS of goods to be used in licensed warehouses ; 
(m) the authority to which and the time 
wi,t.hin which an appeal under section 29 should ba 
maid~; 
(1') the manner of giving notices u11der thisAQt 
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SCHEDULE 
[See section 2 (e) ] 
GooM to which the Act applie. 
Foodgra;ns Oil-seeds Misaellanoona 
I. Rice l. Groundnut l. Gur 
2. Paddy 2. Mustard 2. Tobacco 
3. Wheat 3. Seas&mum 3. Potato 
.J.. Re.gi 4. Cocoanut 4. Cashew-nut 
5. Gram 5. Linseed 5. Pepper 
6. Barad (whole) 6. Castor 6. Onion 
7. Harad (Dal) 7.&pe 7. Chillies 
8. Mot.ng (whole) 
9. Moong (Dal) Fibres 
10. Urad (whole) 1. Jute 
U. Urad (Dal) 2. Cotton 
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