LexThe warehousing Corporation Act,1962
Punjab · state statute
Open in Lexace · Ask the AI about this actGOVERNMENT OF INDIA
Ministry of Law
SEAL
THE WAREHOUSING CORPORATIONS ACT, 1962
(58 OF 1962)
(As modified upto the Ist April, 1969)
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SECTION
1.
2.
THE WAREHOUSING COPRORATIONS ACT, 1962
ARRANGEMENT OF SECTIONS
CHAPTER |
PRELIMINARY
Short title, extent and commencement.
Definitions.
CHAPTERII
THE CENTRAL WAREHOUSING CORPORATION
3. The Central Warehousing Corporation.
4. Share capital and shareholders.
5. Shares to be guaranteed by Cenfral Government and to be trust or
approved securities.
6. Management of Central Warehousing Corporation.
7. Directors.
8. Disqualification for office of director of the Central Warehousing
- Corporation.
9. Removal of directors from office.
10. Appointment of officers, etc., and their conditions of service.
11. Functions of Central Warehousing Corporation.
12. Executive Committee.
13. Meetings of the Corporation.
14. Grants and loans by the Central Government.
15. Corporation to maintain two funds.
16. Warehousing Fund.
17. General Fund.
CHAPTER Il
STATE WAREHOUSI NG CORPORATIONS
18.
19.
SECTIONS
20.
State Warehousing Corporations.
Share capital and shareholders.
z E3
Managerfient of a State Warehousing Corporation.
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21. Disqualification for office of director of the Corporation.
22. Removal of directors from office.
23. Appointment of officers, etc., and their conditions of services.
24. Functions ofthe State Warehousing Corporation.
25. Executive Committee.
CHAPTERIV
FINANCE, ACCOUNTS & AUDIT
26. Submission of programme of activities and financial estimates.
27. Borrowing power of Warehousing Corporation.
28. Deposit Account.
29. Investment of funds.
30. Disposal of profits.
31. Accounts and audit of Warehousing Corporation.
CHAPTERV
MISCELLANEOUS
32. Vacancies, etc., not to invalidate acts and proceedings of Warehousing
Corporations.
33. Delegation.
34. Voting right of shareholders.
35. Disputes between Central Warehousing Corporation and State
Warehousing Corporation.
36. Declaration of fidelity and secrecy.
37. Indemnity of directors.
38. Offences.
39. Provisions relating to income-tax and super-tax.
40. Winding up of Warehousing Corporations.
41. Power to make rules.
42. Power of Warehousing Corporations to make regulations.
43. Repeal and savings.
3 (38)
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THE SCHEDULL
THE WAREHOUSING COPRORATIONS ACT, 1962
No, 58 of 1962
(19th December, 1962)
An Act to provide tor the incorporation and tegulation of corporations for the purpose
of warehousing of agricultural produce and certain other commodities and for mattters
connected there with,
BE it enacted by Parliament in the thiteenth Year of the Republic of India as follows:
CHAPTERI
PRELIMINARY
Shart title extent I (1) This Act may be called the Warehousing corporations
and Act 1962, Commencement
) Itextends to the whole of India except the state of J&K.
(3) It shall come into force on such date? as the Central
Government may, by notification in the Official Gazette
appoint.
Refintion 2. Inthe Act, unless the context otherwise requires :-
(a) “agricultural produce” means any of the following classes
of commondities, namely :-
(i) foodstuffs, including edible oil-seeds;
(ii) cattle fodder, including oil-cakes and other
concentrates ;
(iii) raw cotton, whether ginned or unginned, and cotton
seed;
(iv) raw jute; and
(v) vegetable oils;
(b) “appropriate Government” means in relation to the
Central Warehosuing Corporation, the Central
Government and in relation to a State Warehousing
Corporation, the State Government;
(c) “Central Warehousing Corporation” means the Central
Warehousing Corporation established under
section 3 ;
1. This Act has been supplemented by the Warehousing Corporations
(Supplementary) Act, 1965 (20 of 1965).
- 18th March, 1963 : vide G.S.R. 463, dated 16-3-1963. See Gazette of India,
Extra-ordinary, Pt. Il, Sec. 2 (i). p. 155.
(39)
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20f 1912 (d) “Co-operative society” means a society registered or
deemed to be registered under the Cooperative
Societies Act, 1912, or under any other law with respect
to co-operative societies for the time being in force in
any State, which is engaged in the processing,
marketing, storage, export or import of agriculture
produce or any notified commodity or in insurance
business and includes a co-operative land mortgage
bank;
(e) “notified commodity” means any commodity (other than
agricultural produce) which the Central Government
may, by notification in the Official Gazette, declare to
be a notified commodity for the purposes of this Act,
being a commodity with respect to which Parliament has
power to make laws by virtue of entry 33 in List Il in the
Seventh Schedule to the Constitution;
(f) ‘“prescribed” means prescribed by rules made under this
Act;
74 of 1952 . (g) ‘“recognised association” means an association which
is for the time being recognised by the Central
Government under section 6 of the Forward Contracts
(Regulation) Act, 1952;
20f 1934 (h) “Reserve Bank” means the Reserve Bank of India
constituted under the Reserve Bank of India Act, 1934 20f1934 (i) ; “scheduled bank” means a bank for the time being B included in the Second Schedule to the Reserve Bank k of India Act, 1934 ;
23 of 1955 (j) “State Bank” means the State Bank of India constituted
under the State Bank of India Act, 1955 ;
(k) “State Warehousing Corporation” means a Warehousing
Corporation for a State established or deemed to be
established under this Act;
(I) “Warehousing Corporation” means a Warehousing
Corporation established or deemed to be established
under this Act ; and
(m) ‘year” means the financial year.
(40)
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CHAPTERII
THE CENTRAL WAREHOUSING CORPORATION
The Central 3. (1) With effect from such date as the Central Government
é“;f;ifii'fig may, by notification in the Official Gazettee, specify in
this behalf the Central Government shall establish a
Corporation by the name of the Central Warehousing
Corporation which shall be a body corporate having
perpetual succession and a common seal with power to
acquire, hold and dispose of property and to contract,
and may, by the said name, sue and be sued.
(2) The headoffice ofthe Central Warehousing Corporation
shall be at New Delhi (or at such other place as the
Central Government may, by notification in the Official
Gazette, specify).
Share Capital & 4. (1) The authorised share capital of the Central Warehousing
Share holders. Corporation shall be twenty crores of rupees divided
into two hundred thousand shares of the face value of
one thousand rupees each; any shares remaining to
be issued may be issued, with the sanction ofthe Central
Government from time to time, as and when the Central
Warehousing corporation may deem fit.
(2) TheCentral government shall subscribe for forty percent
ofthe share capital issued at any time and the remaining
sixty percent of the share capital may be subscribed
for, within such period and in such proportion as may
be specified by the Central Govt., by the following
institutions, namely :
(a) The State Bank;
(b) Other scheduled banks;
(c) Co-operative societies;
(d) Insurance companies, investment trusts and other
financial institutions; ’
(e) recognised associations and companies dealing
in agricultural produce or any notified commodity.
(3) if any portion of the sixty percent, of the share capital
referred to in sub-section (2) remains unallotted, it may
be subscribed for by the Central Govt. and the State
Bank in such proportion as may be agreed upon
between them and in default of such agreement, as may
be determined by the Central Government.
1 18th March, 1963 vide G S.R. 464, date 16.3.63, See Gazette )
of India extraordinary part-ll Section 3 (i) P. 155.
2. Inserted by Act 34 of 1963, s. 2.
(41)
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(4) The shares of the Central Warehousing Corporation
shall not be transferable except to the central Gout.,
the State Bank, any scheduled bank, any insurance
company any investment trust or other financial
institution or any cooperative society or any recognised
association or company dealing in agricultural produce
or any notified commodity, in accordance with the
regulation made by the Central Warehousing
Corporation under this Act.
§3:,'::(:;:1y 5. (1) The shares of the Central Warehousing Corporation
Central govt. & to shall be guaranteed by the Central Govt.. as to the
trust or approved repayment of the principle and the payment of the securities. annual dividend at such minimum rate as may be fixed
by the Central Govt., by notification published in the
Official Gazette, at the time of the issue of the shares.
2 of 1882 4 of 1938 (2) Notwithstanding anything contained in the Acts
10 of 1949 mentioned in this sub-section, the shares of the Central
Warehousing Corporation shall be deemed to be
included among the securities enumerated in section
20 of the Indian Trusts Act, 1882, and also to be
approved securities for the purpose of the Insurance
Act, 1938 and the Banking Companies Act, 1949.
Management of 6. (1) The general superintendence and management of
%z"{gf]'cusin affairs and business of the Central Warehousing
cQ,pora,icn'g Corporation shall vest in a board of directors who, with
the assistance of an Executive Committee and a
Managing Director, may exercise all the powers and
discharge all the functions which may be exercised or
discharged by the Central Warehousing Corporation
under this Act. s
(2) The board of directors shall act on business principles
having regard to public interest and shall be guided by
such instructions on questions of policy, as may be given
to them by the Central Government.
(3) If any doubt arises as to whether question is or is not a
question of policy, the decision of the Central
Government shall be final.
Directors 7. (1) The board of directors referred to in section 6 shall
consist of the following, namely :
(a) Six directors to be nominated by the Central
Government;
26 of 1962 (b) One director to be nominated by the National Co-
operative Development Corporation established
under the National Co-operative Development
Corporation Act, 1962,
(42)
a
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one di_rector to be nominated by the State Bank; one director to be elected by other scheduled banks;
one director to be elected by co-operative
societies; )
(f) one director to be elected by insurance companies, investment trusts and other financial
institutions, recognised associations and
companies dealing in agricultural produce or
notified commodities;
(9) a Managing Director, appointed by the Central
Government in consultation with the directors
referred to in clauses (a) to (f) :
Provided that the three directors to be elected under
clauses (d), (e) and (f) may, for the first constitution of
the board of directors, be nominated by the Central
Government in such manner as to give representation
to each class of institutions (whether they have become
shareholders of the Corporation or not) referred to in
those clauses, but a director so nominated shall hold
office only until he is replaced by a director elected as
provided in that clause, and the director so elected shall
hold office only for so long as the director replaced would
have held office had he not been replaced.
(2) The directors referred to in clauses (d), (e) and (f) of
sub-section (1) shall be elected in the prescribed
manner.
(3) If, within the period prescribed in this behalf, or within
such further ,period as the Central Government may
allow, the institutions referred to in clause (d) or clause
(e) or clause (f) or sub-section (i) fail to elect a director,
the Central Government may nominate a director to fill
the vacancy.
(4) The board of directors shall have a Chairman and a
: Vice-Chairman who shall be appointed by the Central
Government from among the directors.
(5) The Managing Director shall
(a) exercise such power and perform such duties as
the board of directors of the Central Warehousing
Corporation may entrust or delegate to him; and
(b) receive such salary and allowances as the Central
warehouses Corporation may, with the approval
of the Central Govt.
(d)
(e)
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Disqualification for
office of director of
the Central
Warehousing
corporation
1 of 1956
(6)
®)
0]
(i)
(iil)
(iv)
(v)
(vi)
The directors of the Central Warehousing Corporation
other than the Managing Director shall be entitled to
receive by way of remuneration such sums as the
Central Warehousing Corporation may, with the approval
of the Central Government, fix :
Provided that no official director shall be entitled to
receive any remuneration other than the allowances, if
any, admissible to him under the rules regulating his
conditions of services.
The term of office of, and the manner of filling casual
vacancies among, the directors shall be such as may
be prescribed.
A person shall be disqualified for being chosen as, and
for being, a director of the Central Warehousing
Corporation :
If he is found to be a lunatic or becomes of unsound
mind; or
if he is, or at any time has been, adjudicated insolvent
or has suspended payment of his debts or has
compounded with his creditors; or
if he is or has been convicted of any offence involving
moral turpitude and sentenced in respect thereof to
imprisonment for not less than six months, unless a
period of five years has elapsed from the date of expiry
of the sentence; or
if he has been removed or dismissed from the service
of Government or a Corporation owned and controlled
by the Government; or
except in the case of the Managing Director, if he is a
salaried official of the Central Warehousing Corporation
or any State Warehousing Corporation; or
If he is personally interested in any subsisting contract
made with, or in any work being done for the Central
Warehousing Corporation except as a shareholder
(other than director) in any public company as defined
in the Companies Act, 1956 :
Provided that where any such person is a shareholt.ie":
he shall disclose to the Central Warehousing
Corporation the nature and extent of shares held by
him in such company.
(44)
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Remova"" 9. (1) The Central Government may, at any time in consultation
Jrectors from with the Central Warehousing Corporation remove the
Jice Managing Director from office after giving him a
reasonable opportunity of showing cause against the
proposed removal.
(2) The board of directors may remove from office any
director who :
(a) is or has become subject to any of the
disqualifications mentioned in section 8, or
(b) is absent without leave of the board of directors
for more than three consecutive meetings of the
board without cause sufficient in the opinion of
the board, to exonerate his absence.
Appointment of 10. (1) The Central Warehousing Corporation may appoint such
ffieézne;;o:;‘dcf officers and other employees as it considers necessary
senice for the efficient performance of its functions.
(2) Every person employed by the Central Warehousing
Corporation under this Act shall be subject to such
conditions of service and shall be entitled to such
remuneration as may be determined by regulations
made by the Corporation under this Act.
Functions of Center 11. Subject to the provisions of this Act, the Central
‘éfi:;::z‘:g Warehousing Corporation may :
(a) acquire and build godowns and, warehouses at
such suitable places in India as its thinks fit;
(The phrase “or abroad” was inserted vide
Warehousing Corporation (Amendment) Act No.
23 of 2001).
(b) run warehouses for the storage of agricultural
produce, seeds, manures, fertilizer, agricultural
implements and notified commodities offered by
individuals, cooperative societies and other
institutions;
(c) arrange facilities for the trans-port of agricultural
produce, seeds, manure, fertilizers, agricultural
implements and notified commodities to and from
warehouses; -
(d) subscribe to the share capital of a State
Warehousing Corporation;
(e) actas agent of the Government for the purposes
of the purchase, sale, storage and distribution of
agricultural produce, seeds, manures, fertilizers,
agricultural implements and notified commodities;
(45)
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(The word “and” accruing at the end of this section
was deleted vide Warehousing Corporationg
amendment Act No. 23 of 2001)
(a) enter into, with the previous approval of the
Central Government joint ventures with any corporation established by or under any Central
Act or any State Act or with any company formed
" and registered under the Companies Act, 1956 including foreign company or through its subsidiary companies, for carrying out the purposes of this Act.
(b) establish subsidiary companies; and”
(These clauses (ea) and (eb) have been added vide Warehousing Corporations (amendment) Act
No. 23 of 2001)
(f) carry out such other functions as may be prescribed.
There shall be an Executive Committee of the Central Warehousing Corporation which shall consist of (a) the Chairman and the Vice-Chairman of the board of directors;
(b) the Managing Director; and
(¢) two other directors chosen by the Corporation in the prescribed manner. (2) The Chairman and the Vice-Chairman of the board of directors shall be the Chairman and Vice-Chairman respectively of the Executive Committee. (3) Subject to the general co
Executive . 2
Committee 2.
Corporation. Meetings of the 13. (1) The annugl general meeting of the Central Warehousing ’—Cmifion Corporation (hereinafter referred to as the annual
o
eld every year either at its ffice of the corporation within the financial year, and any ! be convened by the board of directors at any other time,
(46)
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[—
(3)
2
@ (4)
75 (5)
(6)
Grants and loans 14. (1)
by the Central
Government.
E 2)
rporation to 15.
intain two funds.
The board of directors of the Central Warehousing
Corporation shall, on the requisition of one-third of the
number of shareholders of the Corporation, call a
special meeting of the Corporation.
The requisition for a special meeting under sub-section
(3) shall state the object of the meeting, and shall be
signed by the requisitionists and deposited at the head
office of the Corporation, and may consist of several
documents in like form each signed by one or more
requisitionists.
If the Board of Directors of the Central Warehousing
Corporation do not proceed within twenty one days from
the date of the requisition being so deposited to cause
the special meeting to be called, be requisitionists, or a
majority of them, may, themselves call the meeting, but
in either case, the meeting so called shall be held within
three months from the date of the deposit of the
requisition.
The Central Warehousing Corporation shall observe
such rules of procedure in regard to the transaction of
business at its meetings (including the quorum at
meetings) as may be provided by regulations made by
the Central Warehousing Corporation under this Act.
The Central Government may, after due appropriation
made by Parliament by law in this behalf, pay to the
Central Warehousing Corporation for the purposes of
either fund maintained by the Corporation
(a) by way of grants, such sums of money as the
Central Government may consider necessary ;
and
(b) by way of loans, such sums of money on such
terms and conditions as the Central Government
may determine.
When making a payment under sub-section (1), the
Central Government shall specify the fund for the
purposes of which the payment is made.
The Central Warehousing Corporation shall maintain
two separate funds, namely :\—
(a) the Central Warehousing Fund (hereinafter
referred to as the Warehousing Fund); and
(b) the General Fund.
(47)
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Warehousing fund.
General fund.
16.
17.
(1)
(a)
(a)
(b)
(@]
(a)
(b)
(2)
(a)
(b)
(c)
To the Warehousing Fund shall be credited —
all moneys and other securities transferred to the Central
Warehousing corporation under clause of sub-section
(2) of section 43 ;
such grants and loans as the Central Government may
make for the purposes of the Warehousing Fund: and
such sums of money as may, from time to time, be
realised out of the loans made from the Warehousing
Fund or from interest on loans or dividends on
investments made from that fund.
The Warehousing Fund shall be applied:-
for advancing'loans to State governments on such terms
and conditions as the Central Warehousing Corporation
may deem fit for the purpose of enabling them to
subscribe to the share capital of State Warehousing
Corporations;
for advancing loans and granting subsidies to State
Warehousing Corporations or to State Governments on
such terms and conditions as the Central Warehousing
Corporation may deem fit for the purposes of promoting
the Warehousing and storage of agricultural produce
and notified commodities otherwise than through co-
operative societies.
To the General Fund shall be credited —
all sums received by the Central Warehousing
Corporations other than those referred to in subsection
(1) of section 16 ; and
such grants and loans as the Central Government may make for the purposes ofthe General Fund.
The General Fund shall be applied —
for meeting the salary, allowances and other remuneration of the officers and other employees
of the Central Warehousing Corporation:
for meeting the other administrative expenses of the
Corporation; and
for carrying out the purposes of this Act.
(48)
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CHAPTER Il
STATE WAREHOUSING CORPORATIONS i
State W?renhsflus'ng 18. (1) The State Government may, by notification in the Official
Corporalio Gazette and with the approval of the Central
Warehousing Corporation, establish a Warehousing
Corporation for the State under such name as may be
specified in the notification.
(2) A State Warehousing Corporation established under !
sub-section (1) shall be a body corporate by the name !
notified under that sub-section, having perpetual
succession and a common seal with power to acquire, i
hold and dispose of property and o contract and may, |
by the said name sue and be sued.
(3) The head office of a State Warehousing Corporation “
shall be at such place within the State as may be notified %
in the Official Gazette.
(4) Notwithstanding anything contained in sub-sections (1)
(2) and (3), it shall not be necessary for the State :
Government to establish a Corporation under sub- . i
section (1) where, under clause (g) of sub-section (2) f
of section 43, a Corporation is deemed to be established
for that State under this Act. (
Share capital and 19. (1) The authorised capital of a State Warehousing |
shareholders Corporation shall be such sum not exceeding two crores
of rupees as may be prescribed, divided into shares of 2
the face value of one hundred rupees each, of which
such number as may be determined by the Corporation
A in consultation with the State Government shall be |
issued in the first instance and the remaining shares ]
may be issued from time to time, as and when
the Corporation may deem fit after consultation with the
Central Warehousing Corporatidn and with the sanction
of the State Government. {
(2) Of the share capital issued in the first instance and of
any subsequent issue of such capital, the Central
Warehousing Corporation shall, in any case, where the
State Government has subscribed for fifty percent of
such capital, subscribe for the remaining fifty percent
of the capital.
;T:%?Ir:r::lc:f;ng 20. (1) The general superintendence and management of If}e )
orporation. - affairs of a St_ate Warehousing Corporation shall vest in
a Board of Directors which shall consist of the
(49)
| |
: T = ,-._.-.-—J
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following, namely :
V{g five directors nominated by the Central Warehousing
Ve Corporation, of whom one shall be nominated in
Consultation with the State Bank and one atleast shall
be a non-official;
’ ) five directors nominated by the State Government; and
/(: ) amanaging director, appointed by the State Government
in consultation with the directors referred to in clauses
(a) and (b) and under intimation to the Central
Warehousing Corporation. e
(“Under intimation to Central Warehousing Corporation”
was inserted in place of “with the previous approval of
Central Warehousing Corporation” vide Warehousing
Corporations (Amendment) Act No. 23 of 2001.)
(2) The Chairman of the Board of Directors shall be
appointed by the State Government from among the
directors of the State Warehousing Corporation under
intimation to the Central Warehousing Corporation.
- (3) “The Managing Director shall
(a) exercise such powers and perform such duties
as the Board of Directors or the State Warehousing Corporation may entrust or delegate
to him; and
(b) receive such salary and allowances as the State Warehousing Corporation may, in consultation with the Central Warehousing Corporation, and with the previous approval of the State Government, fix.
_/\ (4)] The board of directors shall act on business principles having regard to public interest and shall be guided by such instructions on questions of policy as may be given to them by the State Government or the Central Warehousing Corporation.
(5) If any doubt arises as to whether a question is or is not a question of policy, or, if the State Government and fhe Central Warehousing Corporation give conflicting instructions, the matter shall be referred to the Central Government whose decision there-on shall be final.
(50)
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(6) The directors of a State Warehousing Corporation, other
than the Managing Director, shall be entitied to receive
by way of remuneration such sums as may be
prescribed.
Provided that no official director shall be entitled to
receive any remuneration other than any allowances
admissible to him under the rules regulating his
conditions of service.
(7) The term of office of, and the manner of filling casual
vacancies among directors shall be such as may be
prescribed.
Disqualification for 21. (i) A person shall be disqualified for being chosen as, and
office of director of for being, a director of a State Warehousing Corporation
the Corporation. (i) if he is found to be a lunatic or becomes of unsound
mind; or
(i) if he is, or at any time has been, adjudicated insolvent
or has suspended payment of his debts or has
compounded with his creditors; or
(iii) if he is or has been convicted of any offence involving
moral turpitude and sentenced in respect thereof to
imprisonment for not less than six months, unless a
period of five years has elapsed from the date of expiry
of the sentence; or
(iv) if he has been removed or dismissed from service of
Government or a corporation owned and controlled by
the Government; or
(v) except in the case of the Managing Director if he is a
salaried official of State Warehousing Corporation; or
(The phrase “The Central Warehousing Corporation”
was deleted vide Central Warehousing Corporation
(Amendment) Act No. 23 of 2001).
1 of 1956. (vi) if he is personally interested in a subsisting contract
made with, or in any work being done for the State
Warehousing Corporation except as a shareholder
(other than a director) in any public company as defined
in the Companies Act, 1956 :
Provided that where any such person is a shareholder,
he shall disclose to the Warehousing Corporation the
nature and extent of the shares held by him in such
Company. -
(51)
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Removal of directors 22. (1) The State Government may, at any time, under intimzatsn from office. to the Central VWarehousing Corporation rerr,:/: the
Managing Director from the offlpe after gmr,} ,',,’:’A
reasonable opportunity of showing cause zgainst
proposed removal.
(2) The board of directors may remaove from office 2 n
rector who
~
S}
v
(a) is or has become subject to any of the disquzlifi
tions mentioned in section 21; or
more than three consecutive meetings of the b
without sufficient cause, in the opinion of the o
to exonerate his absence.
Appointment of - 23. (1) AState Warehousing Corporation may appoint su officers, etc., and their
cenditions of services
ch of-
ficers and other employees as it considers necessary
for the efficient performance of its functions.
(2) Every person employed by a State Warehousing Cor- poration under this Act shall be subject to such condi- tions of service and shall be entitled to such remunera- tion as may be determined b Yy regulations made by the o Corporation under this Act.
Fuctions of the State ' 24. Subject to the provisions of this Act, a State Warehcusing Warehousing # Corporation may Corporation
(a) _acquire and build godowns and warehouses at places within the State as it may, after consultatio the"Central Warehousing Corporation, d thg previous approval® was substituted with “in consul- tation with” vide Warehousing Corporation (Ameng- ment) Act No.23 of 2001),
etermine; ("With
(b) run warehouses in the State for the storage of agri tural produce, seeds, . u
ricu t S, manures, fertilizers. agricultural implements ang notified commodities:
ltural pro- '
ral imple- tified Commodities to and from ware- houses.
(d) act as an agent of the Central Warehousing Corpora- h::n or of the Government for the Purposes of the pur- Chase, sale, storage ang distribution, of
(52)
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agricultural produce, seeds, manures, fertilizers,
agricultural implements and notified commodities; "(The
word “and” occuring at the end of this section was
deleted vide Warehousing Corporation Act amendment
No.23 of 2001)
(e) carry out such other functions as may be prescribed.
Executive Committe 25.(1) There shall be an Executive Committee of a State
Warehousing Corporation which shall consist of -
(a) the Chairman of the board of directors ;
(b) the Managing Director; and
(c) three other directors chosen in the prescribed
manner, of whom one shall be a director referred to
in clause (a) of sub-section (1) of section 20.
(2) The Chairman of the Board of Directors shall be the
Chairman of the Executive Committee.
(3) Subject to any general or special directions as the Board
of Directors may, from time to time give, the Executive
Committee shall be competent to deal with any matter
within the competence of the State Warehousing
Corporation.
CHAPTER IV
FINANCE ACCOUNTS & AUDIT
Submission of B 26. (1) Every Warehousing Corporation shall prepare before the
e e oF aclivies commencement of each year a statement of programme
e of its activities during the forthcoming year as well as a
financial estimate in respect thereof.
(2) A statement prepared under sub-section (1) shall not
be later than three months before the commencement
of each year, be submitted for approval -
(a) in the case of the Central Warehousing Corporation,
to the Central Government,
(b) in the case of a State Warehousing Corporation, to
the Central Warehousing Corporation and the State
Government.
(3) The statement and the financial estimate of a
Warehousing Corporation referred to in sub-section (1)
may, with the approval of the Central Government
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in the case of the Central Warehousing Corporation ang the State Government in the case of a State
Warehousing Corporation, be revised by the Warehousing Corporation.
27. (1) A Warehousing Corporation may, in consultation with the e Reserve Bank and with the previous approval of the aporioy appropriate Government, issue and sell bonds and debentures carrying interest for the purpose of raising funds :
Provided that the total amount of bonds and debentures issued and outstanding and other borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up share capital and the reserve fund of the Corporation,
2) A Warehousing Corporation may, for the purpose of carrying out its functions under this Act, borrow money-
(i) from the Reserve Bank, or 23 f0 1955
(i) from the State Bank, for such
upon any of the securities against which, it is authorised to advance and lend moneys, under the provisions of the State Bank of India Act, 1955, (3) Subject to the Proviso to sub-section (1
periods for which, and
), the Central
money from the
Warehousing
om the State
Board of Directors
bonds or debentures are issued. Deposit Account 28. zt‘)\ll rehousing Corporation shall e Bank or the State Bank or, subject to any rules made under this Act, in any scheduled bank or Co-operative bank.
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nsvestment of Funds 29. A Warehousing Corporation may invest its funds in the
securities of the Central or any State Government or in
such ofher manner as may be prescribed by the
appropriate Government.
30. (1) Every Warehousing Corporation shall establish a reserve
fund out of its annual net profits.
1 of 1956 (2) After making provision for “bad” and doubtful debts,
depreciation on assets and all other matters which are
usually provided for by companies registered and
incorporated under the Companies Act, 1956, a
Warehousing Corporation may out of its net annual profits,
declare a dividend :
Provided that for so long as the reserve fund is less than
the paid-up share capital of the Central Warehousing
Corporation and until there has been repaid to the Central
Government such sum, if any, as that Government may
have paid under a guarantee given in pursuance of sub-
section (1) of section 5 or sub-section (4) of section 27
the rate of such dividend, in the case of the Central
Warehousing Corporation shall not exceed the rate
guaranteed by the Central Government under sub-section
(1) of section 5.
Accounts and audit of 31. (1) Every Warehousing Corporation shall maintain proper
pisposal of profits
g;f;‘rg:::‘g accounts and other relevant records and prepare an
annual statement of accounts including the profit and loss
account and the balance sheet in such form as may be
prescribed :
Provided that, in the case of the Central Warehousing
Corporation, the accounts relating to the Warehousing
Fund and the General Fund shall be maintained
separately.
1ol 1956 (2) The accounts of a Warehousing Corporation shall be
audited by an auditor duly qualified to act as an auditor
of companies under section 226 of the Companies Act,
1956
(3) The said auditor shall be appointed by the appropriate
Government on the advice of the Comptroller & Auditor
General of India:
(4) The auditor shall be supplied with a copy of the annual
balance sheet and the profit and loss account of the
Warehousing corporation and it shall be his duty to
examine them to-gether with accounts and
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vouchers relating thereto, and he shall have a |jst
delivered to him of all books kept by the Corporation )
and shall at all reasonable times have access to the books,
accounts and other documents of the Corporation anq
may require from any officer of the Corporation such
information and explanations as the audit may think
necessary for the performance of his duties as auditor.
(5) The auditor shall make a report to the shareholders on
the accounts examined by him and on the annual
balance sheet and the profit and loss account and in
every such report, he shall state whether in his opinion
the accounts give a true and fair view -
(a) in the case of the balance sheet, of the State of the
Corporation’s affairs at the end of its financial year,
and
(b) in the case of the profit and loss account, of the profit
or loss for its financial year, and in case he has called
for any explanation or information from the officers,
whether it has been given and whether it is
satisfactory.
(6) The appropriate Government may, after consultation
with the Comptroller and Auditor-General of India at any
time issue directions to the auditor requiring him to report to the appropriate Govt. Upon the adequacy of measures taken by a Warehousing Corporation for the protection of its shareholders and creditors or upon the sufficiency of his -procedure in auditing the accounts
of the Corporation and may enlarge or extend the scope of the audit or direct that a different procedure in audit may be adopted or direct that any other examination may be made by the auditor if in the opinion of the appropriate Government public interest so requires.
(7) A Warehousing Corporation shall send a copy of every report of the auditor to the Comptroller and Auditor General of India and to the Central Government atleast one month before it is placed before the Shareholders.
(8) Notwithstanding anything hereinbefore contained in this sectioq, the Comptroller and Auditor-General of India may, either of his own motion or on a request received
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Vacancies, etc,
notto invalidate
acts and
proceedings of
Warehousing
Corporations
Delegation
32.
33.
in this behalf from the appropriate Government,
undgnake in respect of a Warehousing Corporation such
audit and at such time as he may consider necessary;
Provided that where the Central Government is required
to make any payment on account of the guarantee given
by it under sub-section (1) of section 5, such audit shall
be undertaken by the Comptroller and Auditor General
of India or any person authorised by him in this behalf.
(9) The Comptroller and Auditor-General of India and any
person authorised by him in connection with the audit of
the accounts of a Warehousing Corporation shall have
the same rights, privileges and authority in connection
with such audit as the Comptroller and Auditor-General
has in connection with the audit of Government accounts
and in particular, shall have the right to demand the
production of books, accounts connected vouchers and
other documents and papers and to inspect the office
of the Corporation.
(10) The annual accounts of a Warehousing Corporation
together with the audit report thereon shall be placed
hefore the annual general meeting of the Corporation
within six months of the close of the financial year.
(11) Even audit report under this section shall be forwarded
to the appropriate Government within a month of its being
placed before the annual general meeting and that
Government shall as soon as thereafter as may be cause
the same to be laid before both Houses of Parliament or
the Legislature of the State, as the case may be.
CHAPTER V
MISCELLANEOUS
No act or proceeding of a Warehousing Corporation shall be
invalid by reason only of the existence of any vacancy among
its directors or any defect in the constitution thereof.
A Warehousing Corporation may, by general or special order
in writing, delegate to the Secretary or other officer of the
Corporation, subject to such conditions and limitations,
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Voling nghts of
shareholders
Disputes between
Central
Warehousing
Corporation and
State Warehousing
Corporation
Declaration of
fidelity & Secrecy.
Indemnity of
directors
Offences.
34.
36.
37.
38.
if any, as may be specified in the order, such of its powers
and functions under this Act as it may deem necessary for
the efficient performance of its functions.
In any meeting of the shareholders of a Warehousing
Corporation, every member shall have one vote in respect of
each share held by him in the Corporation.
. If there is any difference of opinion between the Central
Warehousing Corporation and a State Warehousing
Corporation regarding their respective functions and powers
under this Act, such difference shall be referred to the Central
Government whose decision thereon shall be final.
Every director, auditor, officer or other employee of a
Warehousing Corporation shall, before entering upon his
duties, make a declaration of fidelity and secrecy in the form
set out in the Schedule.
(1) Every director of a Warehousing Corporation shall be
indemnified by the Corporation concerned against all
losses and expenses incurred in the discharge of his
duties except such as are caused by his own wilful act
or default.
(2) A director of a Warehousing Corporation shall not be
responsible for any other director or for any officer or
other employee of the Corporation or for any loss or
expense resulting to the Corporation by the insufficiency
or deficiency of value of, or title to, any property or
security acquired or taken on behalf of the Corporation
in good faith, or by the wrongful act of any person under
obligation to the Corporation or by anything done in
good faith in the execution of the duties of his office or
in relation thereto.
(1) Whoever, without the consent in writing of a Warehousing
Corporation, uses the name of that Corporation in any prospectus or advertisement, shall be punishable with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
(2) No court shall take cognizance of any offence under sub-section (1) otherwise than on a complaint in writing by an officer authorised in this behalf by the Warehousing Corporation concerned.
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P
—
130 19681,
provisions refating
o income tax and
super tax
Winding up of
Warehousing
Corporations
Power to make
fules
39.
40.
41.
For the purposes of the Income Tax Act, 1961, a Warehousing
Corporation shall be deemed to be a company within the
meaning of that Act and shall be liable to income-tax and super-
tax accordingly in its income, profits and gains:
Provided that, in the case of the Central Warehousing
Corporation, any sum paid by the Central Government under
the guarantee given in pursuance of sub-section (1) of section
5 or, in the case of Warehousing Corporation, any sum paid
by the Central or a State Government under any guarantee
given in pursuance of sub-section (4) of section 27 shall not
be treated as income, profits and gains of a Warehousing
Corporation, and any interest on the debentures or bonds
issued by that Corporation out of such sums shall not be
treated as expenditure incurred by it;
Provided further that in the case of any shareholder or
debenture-holder such portion of a dividend or interest as
has been paid out of any such sum advanced by the Central
Govt. shall be deemed to be his income from interest on
securities declared to be income-tax free within the meaning
of section 86 of that Act.
No provision of law relating to the winding up of companies or
corporations shall apply to a Warehousing Corporation and
any such Corporation shall not be placed in liquidation save
by order of the appropriate Government and in such manner
as it may direct.
(1) The appropriate Government may, by notification in the
official Gazette, make rules fo carry out the purposes of
this Act.
(2) Without prejudice to the generality of the foregoing
power, such rules may provide for
(a) the additional functions which a Warehousing
Corporation may perform;
(b) the manner of nomination and election of the
directors of the Central Warehousing Corporation
and the period within which such directors shall
be nominated or elected;
(c) the term of office of, and the manner of filling
casual vacancies among, and the remuneration
payable to the directors of a Warehousing
Corporation;
(d) the manner of choosing directors on the Executive
Committee of Warehousing Corporation;
(€) the authorised capital of a State Warehousing
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Corporation within the limit specified in subsection
(I) of section 19;
(f) the form of the annual statement of accounts and
the balance sheet to be prepared by a
Warehousing Corporation.
(9) the deposit of moneys of a Warehousing
Corporation in a scheduled bank or a cooperative
bank;
(h) the manner of issuing shares of a Warehousing
Corporation, the calls to be made in respect
thereof, and all other matters incidental to the
issue of shares;
(i) any other matter which has to be or may be
prescribed.
(3) Every rule made by the Central Government under this section
shall be laid as soon as may be after it is made, before each
House of Parliament while it is in session for a total period of
thirty days which may be Comprised in one session or in two
Or more successive sessions, and if, before the expiry of the session in which it is so laid or the successive session
aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modiExcerpt shown. Open the full act in Lexace.