Chapter II LICENSING OF WAREHOUSES

No person shall carry on the business of warehousing except under licence granted under this Act and in accordance with such terms and conditions thereof as may, from time to time, be prescribed.

(1) Every application for a licence shall be made in the prescribed form to the prescribed authority. (2) Subject to the provisions of section 5, the prescribed authority may, on receiving such application and on payment of such fees as may be prescribed, grant a licence.

(1) Before granting a licence the prescribed authority shall satisfy itself,- (a) that the warehouse mentioned in the application is suitable for proper storage of the class or classes of goods in respect of which the licence has been applied for; (b) that the applicant is competent to conduct such a warehouse; (c) that the applicant fulfils any other condition notified by the State Government under sub-section (2); (d) that the applicant has paid the fee prescribed for the licence and has also furnished the prescribed security, if any: Provided that where the applicant is a corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, no security shall be required; (e) that there is no other cause or reason for which the applicant for the licence may, in the opinion of the prescribed authority, be deemed to be disqualified. (2) The State Government may, by notification add to or alter the conditions under which a licence is granted to a warehouseman under this section.

Every licence granted under section 4 shall be valid for the prescribed period, and may, on application and payment of the prescribed fee, be renewed from time to time by the prescribed authority, and for the prescribed period, provided the other conditions referred to in section 5 continue to be fulfilled.

If the prescribed authority refuses to grant or renew a licence under section 4 or 6, it shall record its reasons for such refusal in writing and communicate a copy of its order to the applicant.

(1) Every licence granted under section 4 or renewed under section 6 shall be liable to be suspended or cancelled either temporarily or permanently by the prescribed authority, for reasons to be recorded in writing if in its opinion the licensee,- (a) has applied to be adjudicated or been adjudicated an insolvent; or (b) has parted in whole or in part with his control over the warehouse; or (c) has ceased to conduct such warehouse; or (d) has made unreasonable charges for the services rendered by him; or (e) has in any other manner become incompetent to conduct such warehouse; or (f) has contravened or failed to comply with any of the terms of the licence or any of the provisions of this Act or of the rules. (2) If a licence is suspended or cancelled the prescribed authority shall make an entry to that effect in the licence.

(1) Before passing an order under section 8, the prescribed authority shall give notice to the warehouseman stating the grounds on which it is proposed to suspend or cancel his licence and give him a reasonable opportunity of showing cause against it. (2) After considering the explanations, if any, of the warehouseman, the prescribed authority may pass such orders as it deems just.

When a licence expires or is suspended or cancelled, the warehouseman shall cease to work as such 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.

(1) Where a licence granted to a warehouseman is lost, destroyed, torn, defaced or otherwise becomes illegible, the prescribed authority shall issue a duplicate licence on the application of the warehouseman and on payment of the prescribed fee. (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.