(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.
Section 12 - Negotiability of warehouse receipts
(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.
Section 13 - Negotiation of warehouse receipt by delivery
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.
Section 14 - Transfer of negotiable warehouse receipts without endorsement
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.
Section 15 - Warranties on negotiation of warehouse receipt
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.
Section 16 - Non-liability of the endorser
The endorsement of a receipt does not make the endorser liable for any failure on the part of the warehouseman or previous endorsers of the receipt to fulfil their respective obligations.
Section 17 - Negotiation of warehouse receipt not impaired by fraud, mistake or duress
The validity of the negotiation of a receipt is not impaired by the fact that--
(a) the negotiation was a breach of duty on the part of the person making the negotiation; or
(b) the owner of the receipt was induced by fraud, mistake or duress to entrust the possession or custody of the receipt to that person, if the person to whom the receipt was negotiated or a person to whom the receipt was subsequently negotiated, paid value for it without knowing of the breach of duty, fraud, mistake or duress.
Section 18 - Subsequent negotiation of warehouse receipts
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.
Section 19 - Delivery of goods to be made after due charges are paid
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.
Section 20 - Transfer of non-negotiable receipts
(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.
Section 21 - Conclusiveness of negotiable warehouse receipt
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.
Section 22 - Presumption in certain cases
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.
Section 23 - Issue of duplicate receipt
(1) No warehouseman shall issue a warehouse receipt without actually receiving the goods of the quantity, quality or grade and other particulars as may be mentioned in the receipt.
(2) No warehouseman shall issue more than one receipt for the same goods deposited by any person:
Provided that in case of a loss or destruction, a duplicate receipt may be issued in such manner as may be specified by the Authority by regulations.
(3) If a warehouseman fails to comply with the provisions of sub-section (2), he would be liable for all such damages caused by the failure to any person who has transacted on such receipt for valuable consideration, believing it to be an original, even though the transaction is after the delivery of the goods by the warehouseman to the holder of the original receipt.
(4) A receipt on the face of which the word "duplicate" is plainly marked is a representation and warranty by the warehouseman that it is an accurate copy of a receipt properly issued and uncancelled on the date of issue of the duplicate warehouse receipt.