Section 18 in The Warehousing (Development and Regulation) Act, 2007

Title: Subsequent negotiation of warehouse receipts

Description: If a person having sold, mortgaged or pledged goods that are in the custody of a warehouseman and for which a negotiable receipt has been issued, continues in possession of the negotiable receipt, the subsequent negotiation of it by that person under any sale or other disposition of the goods to any person receiving the receipt in good faith, for valuable consideration and without notice of the previous sale, mortgage or pledge, has the same effect as if a previous purchaser, mortgagee or pledgee of the goods, as the case may be, had expressly authorised the subsequent negotiation.

Title: Delivery of goods to be made after due charges are paid

Description: When a negotiable warehouse receipt has been issued in respect of any goods, the warehouseman shall not deliver the goods to the depositor or endorsee, until the due charges are paid to the custodian from the date of initial deposit till delivery is made and the warehouse receipt is surrendered for cancellation.

Title: Transfer of non-negotiable receipts

Description: (1) A non-negotiable warehouse receipt may be transferred by the holder by delivery to a purchaser or donee of the goods in writing executed by the holder. (2) A person to whom the goods covered by a non-negotiable warehouse receipt is transferred acquires— (a) the title of the transferor to the goods; and (b) the right to deposit with the warehouseman the receipt or duplicate thereof or to give notice in writing to the warehouseman of the transfer. (3) The transferee shall acquire the benefit of the obligation of the warehouseman to hold goods in storage for him according to the terms of the receipt upon deposit of the transfer of the goods and on giving notice in writing of the transfer and upon the warehouseman having a reasonable opportunity of verifying the transfer.

Title: Conclusiveness of negotiable warehouse receipt

Description: In the hands of a holder who has purchased a negotiable warehouse receipt for valuable consideration, it shall be conclusive evidence of the goods described in it as against the warehouseman or any person claiming through him.

Title: Presumption in certain cases

Description: In a dispute between an endorser of a negotiable warehouse receipt and his endorsee unless it is proved otherwise, it shall be presumed that— (a) the endorsement has been made voluntarily; (b) the endorsement has been made for full consideration; (c) the endorser had full legal title in the goods represented by the receipt; and (d) the endorsement has extinguished all the rights, title and interest of the endorser in the goods.

CHAPTER 4 WAREHOUSE RECEIPTS