Section 11 in The Warehousing (Development and Regulation) Act, 2007

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.

Title: Warranties on negotiation of warehouse receipts

Description: A person who, for valuable consideration, negotiates a negotiable warehouse receipt by endorsement and delivery, including one who assigns for valuable consideration, a claim secured by a receipt, unless a contrary intention appears, warrants the following:-- (a) that the receipt is genuine; (b) that the person has a legal right to negotiate or transfer it; (c) that the person has no knowledge of any fact that would impair the validity of the receipt; (d) that the person has a right to transfer the title to the goods; and (e) that the goods are merchantable or fit for a particular purpose when those warranties would have been implied, if the contract of the parties had been to transfer without a receipt the goods represented by it.

CHAPTER 4 WAREHOUSE RECEIPTS