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EXTRAORDINARY
PUBLISHED BY AUTHO RITY
· ·· ·.• OIU88A· ACT ·4 OF 1957 , ~·
THE ORISSA WAREHOUSE ACT, 1956
--.-- Received the assent of the PreBident on the 22nd January · 1957, first published in an extraordinary issue of th~ Orif)sa Gazette, dated the 9th February 1957 ]
AN .A.OT TO PROVIDE FOR THF.l ESTABLISHMENT AND
REGULATION OF WAREHOUSES IN THE
BT.A.Tl!l OF ORJ.SSA
W HEREAS it}is expedient to encourage the establishment of licensed warehouses and make provision for thflir proper supervision and control ;
It is hereby enacted by the Legislature of the
State of Orissa in tho Seventh Year of the Republic
of India as follows :-
CHAPTER I
PRELIMINARY
Short title * 1. (1 , This A{;t may be ca1led the Orissa Ware- n.~n.t. and house Act, l 9f!6~.
eommence.
IQ.ant. , ....... ;, . {.2)J~-. ~;x/: ends to the w~ole of the State of unssa. ·
Definitions
HO It shall come into force on such date as the
State · GoV-einment niay, by notifieation, appoint in this behalf.
2. In thh Act, unless there is anything repugnant in t~e subject or cootext,-
(a) ••Co-operative Society •• means a. society , registered or doomed to be r(;"lgistered under the Orissa Ori!HO Act
. Co-operative Societies Act, 1951 ; .. XJ of 1951.. ( b) ".depositor " me~ns a. person who tenders . his goods ·to the warehouseman for storing in his warehouse and includes any person who lawfully bolds the receipt issued by the warehouseman in respect of such goods 'and derives title thereto by a p-roper ~n
• 1, For ate.tement. ~f o~jects ~nd . reasons s~ Orissa Gazette extra:ordinB.l'y, dated the 5th ' September 1956 and for S, C. Report see Ortssa Gazetu extroordmary, da.ted. the 25
th S~Ptelllber 1956. ·
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(c) '' goods " means any of the articles speoi .. ~ fiod in the Schedule to this Act : · Provid11d that the State Government may, by notification add, to or 01ni~ any ar(icle from the Schedule;
(d) '' Governme11t " means the State Govern- ment;
(e} ''licensed warehouse ''means a warehouse licensed under this Act ;
(f) '' P.eraoll '' shall include any company or a.ssocia tion or body corporate ;
(g) ''prescribed '' means prescribed by rules made under this Act ;
(h) ''receipt'' means a warehouse receipt in tl1e prescribed form issued by a warehouseman to a person depositi11g goods in the warehouse; '
(i) ''warehouse'' means any b~ilding, structure or other protected enclosure which is or may be used for the purpose of storing goods on behalf of depositors but does not include cloak rooms attached to hotels, railway stations, the premises of other public aaITiers and the like ;
(j) '' warehouseman '' means a person, who has obtained licence under this Act in reapeot of his warehouse.
CHAPTER II
LIOENSING OF WA.REHOUSES
3. No person sba.ll carry on the business of a warehouseman e~cept. under licenoe granted under this Act and in ae-oordanbe with such terms and conditions thereof as may, from time, to time, be prescribed unde1 this Act .
4. (l) Application for a licence shall be made in nnm11 of the presoribr.d form to the prescribed authority. lino nee.
(2) The prescribed authority may, on reoeiving such application and on payment of sqcll f~ ·~ in•y be pNsoribed, graJ!t a licence,
[ Il J.-~w-6]
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Tenn.and ....,...., Jiotioe of
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gn.ni OS' ...... Jiotmoe.
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6, (!) Before granting a licence, the prescribed authority shall satisfy itself-
( a.) that the warehouse is suitable for proper storage of the class or classes of goods in respect of whioh the licence has been applied for ;
(b) that the applicant is competent to conduct such a warehouse ;
(c) that the applicant has paid the fee presorihsd for the licence and has also paid the prescribed seourity, if any ; and
( d) that there is no other valid reason for which the applicant for the licence may, in the opinion of thepresoribedauthoritJ', be deemed to be disqualified.
(2) The Government may, by notification, add to or alter the terms and conditions under which a licence is granted to a warehousema.n under section 4.
6. Every licence granted under section 4 shall b0 valid for such period as may be prescribed and may, on ap])lication and payment of the prescribed fee, be renewed from time to time by the prescribed autho1 ity and for such period as may be prescribed, provided the other conditions'referred to in section 6 continue to be fulfilled.
7. If the prescribed authority refuses to gr&nt or renew a licence under the foregoing provisions, it shall record its reasons for such refusal in writing and communicate the order to the applicant by forward- ing a copy thereof.
::r;:naioo a. Every licence granted under section 4 or tbl0
't8Ua- renewed under section 6 shall be liable to be ~. suspended or cancelled by the prescribed authority, if in.:i.its .. opinion-
(a) the licensee has applied to be adjudicated, or boon adjudicated, an jnsolvant ; or · (b) bas parted, in whole or in part, with bis control over the warehouse ; or
(c) has ceased to conduct such warehouse ; or
. (!l) has made unreMonable charges for the services rendered by him ; or
. (e} has in any other manner become incompe. tent to conduct such warehouse ; or •
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(j) has contravened or failed to comply with any of the terms and conditions of the licence or any of the provisions of this Act and the Rules ; or
(g) has contravened any other prescribed ground.
Notice '?f 9. (1) Before making an order of suspension or ::t::!i ... cancellation of licence under section 8, the prescribed t~on of authority shall give notice to the licensee stating the licenoe. grounds on w hi oh it is proposed to take action to show cause as to why his licence shall not be suspended or cancelled within such date as may be specified in the said notice .
Ret1ll'l:l. of
Duplioat&
lioeu.oe.
(2) After considering the explanation, if any, offered under sub-section (1), the prescribed authority may pass such final order as it deems fit.
(3) If any licence is suspended or cancelled ; the preBcribed authority shall make an entry to that effect in the licence.
10. When a licence expires, or is suspended or cancelled the warehouseman shall cease to carry on the business of a warel1ouseman and shall return the licence to the prescribed authority, who shall give reasonable time to the warehouseman to enable him to wind up the business.
11. (I) Where a licer1ce granted to a wa.rehouse man is lost, destroyed, torn, defaced or otherwise becomes illegible, the prescribed authority shall issue a duplicate licence on the application of the ware. houseman and on payment of the prescribed f%.
(2) When a duplicate licence is issued, it shall be clearly stamped '' Duplicate " and shall be marked with the date of issue of the duplicate and that of the original from the record of the office issuing the licence .
CHAPTER III
DVTIES OF A. W A.RJ!IHOUSEMA.:N Bewmable 12. Every warehouseman shall take such oare of ~~!1;:,. the goods deposit.ed with him as a man of ordinary 81tt!d. prudence would take of his own goods under similar circumstance~ and conditions.
Preeau\i®&
agains~ ._....,
in.jury to .....
13. (1) Every warehouseman shall keep his ware- house clean and free from damp, take all necessary preca.utions against rats and other pests, and fulfill such other conc;litions as may be prescribed,
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Preaerve.0 tio11 of, identity of goods.
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(2) No warehouseman shall accept goods for deposit which are likely to cause damage to other goods which are, or may be deposited in the warehouse.
14. Every warehouseman shall keep the goods of one depositor separate from the goods of other depo· sitors and from other goods of the same depositor for which a separate receipt has been issued, in such a manner as to permit at all times of the identification and delivery of the goods deposited :
Provided that where standardised and graded goods are stored in a. warehouse then subject - to any agreement between the warehouseman and a. depositor, the same variety of goods belonging to different depositors may be pooled together and each depositor shall be entitled only to his portion of the goods according to weight or quantity, as the case IIJ&Y be, as shown in his receipt.
Goods 15. (I) Whenever goods deposited in a warehouse ~eteriora.ting deteriorate or are about to deteriorate from causes :_;:~touse beyond the control of the warehouseman, he sha]l cliap08e.L forthwith give notice of such deterioration to the depositor, requiring him to take delivery of the goods immediately, after surrendering the receipt duly discharged 2nd paying all charges due to the
warehoui>eman.
Explanation-Loss of weight or bulk by
shrinkage or dryage or gain in weight or bulk by absorption of moisture sba11 be deemed to amount to deterioration within the meaning of this sub- section, if the loss or gain exceeds such limits as may be prescribed.
(2) If the depositor does not, within a reasonable time, comp:y with a notice given to him under sub-section (1), the warehouseman may cause the goods to be removed from the warehouse and sold by public auction at the cost and risk of the depositor.
· (3) Any person having an intere$t in any goods deposited in a warehouse or in the receipt for such goods roay inform the warehouseman in writing of the fact and nature of his interest and the ware- houseman shall keep a record thereof and if such person requests in writing that intimation be given to him regarding the condition of the goods and agree to pay the charges for giving such intimation, the warehouseman shall give him - intimation accordingly. ·
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Liability of wareholl&l- man for
shortage or 0%08118 in goods
BtOred,
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16. (l) Every warehouseman, in the absence of reasonable excuse shall, without unnecessary delay, deliver the goods deposited in his warehouse to the depositor on demand made by him and surrender of the receipt duly discharged and payment of all charges due to thE't warehouseman.
(2) Subject to any agre&ment between the' ware· houseman and the depositor, the dep<'.>S.itor may take partial delivery of the goods deposited in a warehouse .
17. (I) For the purposes of sub-sections (l) and
(2) of the foregoing section and sub-section (l) of section 15, loss of weight or bulk by dryage or shrinkage within the prescribed limits and gain in weight by absorption of moi@ture '"·ithin such limits shall not be deemed to amount to deterioration.
(2) If there is any excess in the goods stored in a warehouse by absorption of moisture or other ca.uses, the warehouseman s4all not be entitled thereto.
(3) If there is any shortage in the goods siored in a warehouse by dryage or other causes the ware~ houseman shall not be responsible therefor. (4} In the event of a. dispute arising a.s t.o whether such shortage or excess is due to dryage or absorption of moisture or is due to other ca.uses beyond the control of the warehouseman, the matter shall be referred to the appellate authority referred to in section 29 whose decision thereon shall he final and binding.
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ImQl'Bll~ of 18. Goods in warehouses shall be insured against !:e~~i':se. loss or damage by fire, rain, floods, theft, rjot or civil commotion, or any other prescribed event, in such manner as may be prescribed.
Disuriwina..
.... prohi·
bited.
19. No warehOuseruan s~iall, iu the conduct of his business, discriminate between persons desiring to avail themselves of the facilities of his wal"e· . house:
Provided that the warehouseman shall show such preference to agricultural producers or Co-opera- tive Societies of agricultura.l producers in the State a.nd a.llow them such concessions as may be prescribed. Explanation-A '' Co~opera.tive Society of agri .. cultural producers " shall mean a socjety in which the majority of members are agricultural producers or the predominant interest is held by agricultural producers. In case of doubt whether .the Society ia
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one of agricultural producers or not within the mean .. ing of the proviso of this section, the matter shall be referred to the Registrar of Co-operative Societies and his decisions shall be final.
WIU't'h0118tl- 20. Notwithstanding anything contained in any man :11ot to other. aw for the time being in force no warehouse. ~":J !.°~t man other than a Go-operative Society or the Central goods in or any State \Varehousing Corporation set up under wll.l'6hon11e. the Agricultural Produce (Development and Ware- housing ) Corporation Act, 1956, shall, either on his t'tie2sof own account or that of others, deal in, or lend money · on, goods received ·by him for deposit in its warehouse. •
Accounts, 21. A warehouseman
'"'°"!to .be books and records in such
ma.1nWned. b "b d
shall maintain accounts,
form and ma.nner as may
e prescn e .
CHAPTER IV
lNSPEOTION A.ND GRADING OF GOODS Iiispeotion 22. The prescribed authority may, at any time during business hours, inspect or e.x:amine or cause to be inspected or examined, any licensed warehouse, its machinery and equipment, goods deposited therein, and the account books and :records relating thereto, for the purpose of satisfying itself that the require- ments of this Act and the rules are being complied with.
Weighers 23. (1) The prescribed authority may, on applica- samptera ~ud tion made in the prescribed manner and on payment ~b't!·ers to of the prescribed fee, issue licences to persons posses· 1icen'!s. sing the prescribed qualifications, entitling them to act as weighers, samplers, and grade1s of any goods deposited or to be deposited in a licensed warehouse a.nd to issue oortifica.tes a.& to the weight, bulk, quality or grade of the goods which they have examined.
Provieions
regarding .. ,.
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(2) Any certificate so issued shall, subject to the provisions of section 24 be binding on the ware- houseman and the depositor as to the weight, bulk, quality or grade of the goods so certified.
(3) No person who is not licensed under this section shall act, or hold himself out, as a weigher, sampler or grader.
24. (l) Every lioenoe granted to a weigher, sam· pier, or grader under section 23 shall be valid for such period as may be presc.ribed and may, on application and payment of the prescribed fee, be renewed from me to time for the prescribed period by the presori, bed authority.
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(2) The prescribed authority may cancel any such licence, after communicating to the licensee the grounds on which it is proposed to take action and giving him a reasonable opportunity of showing ca.use against it,
(3) The prescribed authority may, however, suspend a.ny such licence pending any action under sub-section (2).
(4) The holder of any such licence shall, on the expiry thereof or the receipt of an order suspendin~ or cancelling it, return the licence to the prescribed authority.
Fooilitiea 25. Every warehouseman, shall provide facilities !0be g~vhine~ for weighing, sampling and grading any goods dflpo- .or we1g g . . • h
gooda, etc. srted m his ware ouse .
Renaipt kl
be issued,
. CHAPTERV
WAREHOUSE REOEIPTS
26. For the goods deposited in the warehonse by ea.ch depositor, the warehouseman shall issue a receipt which shall contain full particulars of the goods and be in the prescribed form. ,
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warebouseq, u ess it is ot erw1se speci ed thereon, be transfera- Duplicate
reaeip.t,
Appeal• - """'"' orders of
preeonbed
autbonty.
ble hy endorsement and shall entitle the lawful holder thereof to receive the goods specified in.on the same terms and conditioi.13 as the original depositor. ' Explanation-The provisions of this sub·
section shall not apply to any receipt issued by a person who has not obtained a licence under this Act.
28. If a receipt is lo3t, destroyed or damaged, the warehouseman shall, on application by the. depositor and i-ayment by him of the prescribed fee, .is8u0 a duplicate receipt on such conditions as he may think fit to impose, being conditions included in rules pres- cribed for the purpose .
CHAPTER VI
MISOELLANEOUS
29. ( 1) An appeal against any order of the prescribed authority refusing to grant or renew a licence or suspending or cancelling any such licence in respect of a wa.rehousem an shall be made to such authority and within such time as may be pres.,;ribed.
(2) The decision of such appellate authority shall be final.
No oompen· 30. Where any licence is suspended or cancelled :=:: under this Act, the licensee shall not be entitled to any ~ eanoella- compensation therefor, nor shall he be entitled to the
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i;_ refund of anV fee paid 1y hiw for the licence. M.VNIOfl• \l
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~- Contracts and agree. men.ts in- eonsieten.t with Aot to be void. Penalty and proeedure,
31. Every contract or agreement which is in~ consistent with the provisions of this Act or the rules made thereunder, shall, to the extent of such inconsiH- tenoy, be void.
32. ( l) Whoever-
(a) acts, or holds himself out, as a licensed warehouseman without having obtained a licence under this Act ; or
(b) knowingly contravenes or fails to comply with any of the provisions or requirements of this Act or the rules ;
shall be punishable with imprisonment for a term which may exWnd to one year or with fine which may exte11d to one thousand rupees or with both. (2} Where a person committing an offence under sub-section ( l) is a company or an association or a body of perl!lons, whether incorporated or not, the Manager, Secretary, Agf;lnt or otlier principal officer, managing the affairs of such company, association or body, shall be deemed to be guilty of such offence. B""' * 33. (J) The State Government may, subject to the condition of previous publication, make rules to carry out the purposes of this .Act.
(2) In particular and without prejudice to the generality of the foregoing power, such ru1es may add any article to, or omit any article from the Schedule or provide for-
(a) the matters expressly required or allowed by this .Act to be prescribed ;
(b) the conditions to be inserted in licences to be granted to warehouseman and the form of such licences;
(c) the publication of the gra.nt, suspension or cancellation of licences to warehousemen and of
consolidated lists of warehousemen and licensed warehouses ;
•For rules sea OriH~a (Jaietw flztr&Ol'
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{ d) the charges to be levied by warehousemen for their services;
(e) the books, accollnts and reoorda to be maintained by wa.rehousema11 ; (fl the conduct of public a11ctions for the. aa.Jo of good.B deteriorating or about to deteriorate in licensed warehouses and the ma.oner in which the proceeds of such sales shall be accounted for ; (g\ the scalea of losses and gains of weight or bulk which ma.y be sustained by goods owing to shrinkage or dryage in the one case and owing to absorption of moisture in the other ;
(h) the disinfection of licensed warehouseaand the disinfesta.tion of goods stored .therein ; ·
(i) the circumstances in which any security or bond furnished by a warehouseman may be forfeited, a.nd the manner in which any sum falling due as a ·result of such forfeiture may be recovered ;
(j) the efficient conduct generally of the business of wMehousemen ;
(k) the qualifications to be possessed by persons applying for the grant of licences as weighers, samplers or graders, the conditions to. be inserted in their licences, tho form of the certificates to be issued by them and the grounds for which the licences may be suspended or cancelled ; (!)the standard weights, measures and grado· tioilS of goods to be used in licensed warehouses ;
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SCHEDULE
[See section 2 (e) ] GooM to which the Act applie. Foodgra;ns Oil-seeds Misaellanoona
I. Rice l. Groundnut l. Gur
2. Paddy 2. Mustard 2. Tobacco
3. Wheat 3. Seas&mum 3. Potato .J.. Re.gi 4. Cocoanut 4. Cashew-nut
5. Gram 5. Linseed 5. Pepper
6. Barad (whole) 6. Castor 6. Onion
7. Harad (Dal) 7.&pe 7. Chillies
8. Mot.ng (whole)
9. Moong (Dal) Fibres
10. Urad (whole) 1. Jute U. Urad (Dal) 2. Cotton
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