Chapter III DUTIES OF A WAREHOUSEMAN

Every warehouseman shall take such care of the goods deposited with him as a man of ordinary prudence would take of his own goods under similar circumstances and conditions.

(1) Every warehouseman shall keep his warehouse clean and free from damp, take all necessary precautions against rats and other pests and fulfil such other conditions as may be prescribed. (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.

Every warehouseman shall keep the goods of one depositor separate from the goods of other depositors 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 may be, as shown in his receipt.

(1) Whenever goods deposited in a warehouse deteriorate from causes beyond the control of the warehouseman, he shall forthwith give notice of such deterioration to the depositor, requiring him to take delivery of the goods immediately, after surrendering the receipt duly discharged and paying all charges due to the warehouseman. (2) If the depositor does not, within a reasonable time, comply 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 interest in any goods deposited in a warehouse or in the receipt of such goods may inform the warehouseman in writing of the fact and nature of his interest and the warehouseman 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 agrees to pay the charges for giving such intimation the warehouseman shall give him intimation accordingly.

(1) Every warehouseman, in the absence of reasonable excuse, shall, without unnecessary delay, deliver the goods deposited in his warehouse without deterioration to the depositor on demand made by him and surrender of the receipt duly discharged and payment of all charges due to the warehouseman. Explanation.—For the purposes of this sub-section, deterioration from causes beyond the control of the warehouseman, shall not be deemed to amount to deterioration. (2) Subject to any agreement between the warehouseman and the depositor, the depositor may take partial delivery of the goods deposited in a warehouse.

(1) If there is any excess in the goods stored in a warehouse by absorption of moisture or other causes beyond the control of the warehouseman, the warehouseman shall not be entitled thereto. (2) If there is any shortage in the goods stored in a warehouse by dryage or other causes beyond the control of the warehouseman, the warehouseman shall not be responsible therefor. (3) In the event of a dispute arising as to whether such shortage or excess is due to dryage or absorption of moisture or is due to other causes beyond the control of the warehouseman, the matter shall be referred in such manner and within such time as may be prescribed, to the appellate authority referred to in section 29 whose decision thereon shall be final and binding.

(1) Every warehouseman shall insure the goods stored in his warehouse against such events and in such manner as may be prescribed by rules, and such rules may provide that insurance against certain events shall be optional: Provided that nothing in this section shall apply to goods deposited in a warehouse belonging to a Corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956 (Central Act 28 of 1956), where such corporation has agreed, in the prescribed manner, to compensate the depositor against loss or damage arising from the prescribed events. (2) Every warehouseman shall be entitled to recover from the depositor, at the rate prescribed if the insurance is obligatory, or at the rate agreed to if the insurance is optional, the charges for insurance in respect of the depositor’s goods before delivery thereof and the warehouseman shall have a lien on the said goods in respect of such charges.

No warehouseman shall, in the conduct of his business, discriminate between persons desiring to avail themselves of the facilities of his warehouse: Provided that a warehouseman shall show such preference to co-operative societies in the State and allow them such concessional rates as may be prescribed.

Notwithstanding anything contained in any other law, no warehouseman other than a co-operative society shall either on his own account or that of others, deal in, or lend money on goods received by him for deposit in his warehouse.

A warehouseman shall maintain accounts, books and records in such form and manner as may be prescribed.