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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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Tenn.and ....,....,
Jiotioe of
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gn.ni OS'
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Jiotmoe.
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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 .. ,.
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(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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