The Author, J K Mukhil Malar is a student 1st Year, National University of Advanced Legal Studies, Kochi and us currently interning with LatestLaws.com.
- What is the main objective of the Warehousing (Development and Regulation) Act 2007?
The main objectives of the Warehousing (Development and Regulation) Act, 2007 are to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, prevention of unfair activities in the warehousing sector, the establishment of a Warehousing Development and Regulatory Authority (WDRA) for an efficient dispute resolution mechanism and related matters.
- What is the Warehousing Development and Regulatory Authority (WDRA)?
The Warehousing Development and Regulatory Authority is a statutory body established under the Warehousing (Development and Regulation) Act 2007 and the primary purpose of this body is to regulate and oversee the functioning of the warehousing sector in the country. Its key responsibilities are registration of warehouses, accreditation of warehouses, regulation of warehouse receipts and dispute resolution.
- What is the Negotiable Warehouse Receipt system?
The Negotiable Receipt system under the Warehousing (Development and Regulation) Act 2007 allows for the transfer and trading of warehouse receipts, providing a secure and convenient mechanism for ownership, financing, and trade of goods stored in registered warehouses. It also enables the farmers to store their produce warehouses near their farms and to seek pledge loans from banks against the NWRs issued against the deposit of their stock.
- Are eNWRs mandatory?
Electronic Negotiable Warehouse Receipts were provided as an alternative to physical receipts under the Warehousing (Development and Regulation) Act. Rule 27 of the Warehousing (Development and Regulation) Registration of Warehouses Rules, 2017, provided that with effect from such date as may be specified by the Authority, no negotiable receipt is issued in physical form by the warehouseman, and he shall register with one or more repositories registered with the Authority for issuing negotiable warehouse receipts in electronic form. WDRA has since specified the date as 1st August, 2019.
- What is the process for the registration of a Warehouse under the Warehousing (Development and Regulation) Act 2007?
The process for the registration of a warehouse under the Warehousing (Development and Regulation) Act 2007 involves a few steps, First of all, the elgibility criteria is to be fulfilled. It may include factors such as the type of goods to be stored, compliance with storage norms, and infrastructure requirements. Then, an application should be submitted for registration to the WDRA or the designated authority responsible for registrations. The application form typically requires information about the warehouse, including its location, capacity, facilities, and contact details. Then, the WDRA or its authorized representatives will conduct an inspection of the warehouse premises to verify compliance with the prescribed standards and regulations. This would be followed by necessary document submissions like ownership documents, proof of compliance with safety regulations, fire safety clearance, etc. Then, following the registration fee payment, the registration certificate is issued by the WDRA.
- What are the liabilities that could be imposed on warehouse men?
Warehousemen can be made liable for loss of, or injury to, goods caused by his failure to exercise reasonable care and diligence. However, if the damage caused can be attributed to circumstances like force majeure, act of war, etc., the warehousemen are no longer held responsible. The liabilities of warehousemen are discussed in section 6 of the Act.
- How are perishable and hazardous goods dealt with by warehousemen?
If the goods are of perishable or hazardous nature, and keeping them for a long time could deteriorate other property, the warehouseman gives notice to the receipt holder, and if the receipt holder in not known, then to the depositor, requiring the person to remove the goods. If the person fails to remove the goods within the specified time in the notice, the warehouseman may sell goods at public or private sale without advertising.
- Can a warehouseman issue a negotiable warehouse receipt without taking the delivery of the goods?
A warehouseman cannot issue a negotiable warehouse receipt without taking delivery of the goods. In order to issue a negotiable warehouse receipt, the warehouseman must physically receive the goods in the warehouse and have possession or control over them. The receipt is issued as evidence of the deposit of goods in the warehouse and serves as proof of ownership or possession for the depositor.
- What is the liability on warehousemen for issuing duplicate negotiable receipts?
A warehouseman will be, made liable for all damages caused by issuing the duplicate negotiable receipt to any person who has transacted on such receipt for valuable consideration, believing it to be an original.
- If the provisions of the Warehousing (Development and Regulation) Act conflict with any other Act, which Act prevails?
If the provisions of this Act come in conflict with any other act, only the provisions of this Act would have effect and the same is elucidated in section 53 of the Act.
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