Section 10 in The Warehousing (Development and Regulation) Act, 2007

Title: Lien of warehouseman on goods.

Description: (1) Every warehouseman has a lien on goods deposited with him for storage, whether deposited by the owner of the goods or by his authority, or by any person entrusted with the possession of the goods by the owner or by his agent. (2) The lien of the warehouseman is for the amount of the storage and maintenance charges including— (a) all lawful charges for storage and preservation of the goods; (b) all reasonable charges for— (i) any notice required to be given under the provisions of this Act; (ii) notice and advertisement of sale; (iii) sale of goods where default is made in satisfying the lien of the warehouseman; and (iv) compliance of statutory provisions. (3) In case of any endorsement on the face of a negotiable warehouse receipt, by a bank or the warehouseman, such endorsement shall be evidence of a pledge and the pledgee shall have priority over the interest of the holder of the receipt. (4) In case of any pledge referred to in sub-section (3), the warehouseman shall not deliver the goods unless the endorsement of the pledge has been duly got cancelled. (5) In case the goods are not taken back within the declared period of storage, the warehouseman shall have the right to recover his charges, selling the goods by public auction, or in any other manner provided in this section any goods upon which he has a lien. (6) The warehouseman shall give a notice in writing of his intention to sell the goods to the person liable as debtor for the charges for which the lien exists or to the owner or person owning the right of property of the goods. (7) The notice under sub-section (6) shall- (a) contain all the details about the goods, the location of warehouse, date of deposit, the name of depositor and a statement of lien claimed by the warehouseman for the goods stored in the warehouse; and (b) state that unless the charges are paid within the stipulated time mentioned in the notice, the goods shall be advertised for sale and sold by public auction at a time and place as specified in the notice. (8) If the charges are not paid on or before the day mentioned in the notice, then, unless any other mode of sale is specified by the Authority, by regulations, an advertisement of the sale shall be published in a leading newspaper having circulation in the locality where the sale is to be held as well as where the owner of the goods is located and the sale shall be held not less than fourteen days from the date of first publication of the advertisement. (9) The warehouseman shall, from the proceeds of the sale, satisfy his lien and shall pay over the surplus, if any, to the person entitled thereto. (10) If the surplus is not demanded by the person entitled thereto within ten days after the sale of goods or if there are different claims, the warehouseman shall seek instructions from the Authority and act as per the orders of the Authority.

Title: Warehouse receipts

Description: (1) A warehouse receipt, which may be either in writing or in electronic form, shall be a document of title to goods in writing if it contains all the following particulars, namely:-- (a) receipt number; (b) warehouse registration number and date up to which it is valid; (c) name of the warehouse and its complete postal address; (d) name and address of the person by whom or on whose behalf the goods are deposited; (e) date of issue of the warehouse receipt; (f) statement that the goods received shall be delivered to the holder thereof, or that the goods shall be delivered to the order of a named person; (g) rates of storage charges and handling charges; (h) description of the goods or of the packages containing them with particulars of quantity and quality or grade; (i) market value of the goods at the time of deposit; (j) private marks of depositor on the goods or packages, if any, except in the case of fungible goods; (k) name of the insurance company indemnifying for fire, flood, theft, burglary, misappropriation, riots, strikes or terrorism; (l) whether the warehouse receipt is negotiable or non-negotiable; (m) statement of the amount of any advance made and of any liability incurred for which the warehouseman claims his lien; (n) date and signature of the warehouseman or his authorised agent; (o) declared shelf-life of goods; (p) the fact that the warehouseman holds the lien on the goods deposited for his storage and handling charges; and (q) that the receipt would be valid only till the date of expiry of declared shelf- life of the goods for which it is issued. (2) In case a warehouseman wilfully omits from a negotiable warehouse receipt any of the particulars set out in sub-section (1), he shall be liable for damages caused by such omission. (3) No warehouse receipt shall, by reason of the omission only of any of the particulars set-forth in sub-section (1), be deemed to be invalid for the purpose of settlement of disputes or claims. (4) Authority may, with the prior approval of the Central Government, add, delete or modify any particulars as specified in sub-clause (1) for all or any commodity or class of commodities or for any class of warehouses.

Title: Negotiability of warehouse receipts.

Description: (1) The words in a negotiable warehouse receipt limiting its negotiability shall be void. (2) A warehouseman who issues a non-negotiable warehouse receipt shall cause to be plainly marked upon its face the words "non-negotiable" or "not negotiable" in English or in the language in which it is issued. (3) In case of non-compliance of sub-section (2), a holder of the warehouse receipt who purchases it for valuable consideration believing it to be a negotiable warehouse receipt may, at his option, treat the receipt as vesting in him all rights attaching to a negotiable warehouse receipt and imposing upon the warehouseman the same liabilities which he would have incurred had the receipt been a negotiable warehouse receipt and the warehouseman shall be liable accordingly. (4) A negotiable warehouse receipt shall be valid for delivery till the date of expiry of the declared shelf-life of the goods for which it is issued.

Title: Negotiation of warehouse receipt by delivery

Description: A negotiable warehouse receipt may be negotiated by its delivery if, by the terms of the receipt, the warehouseman undertakes to deliver the goods to the order of a named person, and that person or a subsequent endorsee has endorsed it.

Title: Transfer of negotiable warehouse receipts without endorsement

Description: Where a negotiable receipt is transferred for valuable consideration by delivery, and the endorsement of the transferor is essential for negotiation, the transferee acquires a right against the transferor to compel him to endorse the receipt, unless a contrary intention appears, and the negotiation takes effect as of the time when endorsement is made.