The Madhya Pradesh Agricultural Warehouse Act, 1947

Preamble. Preamble WHEREAS it is expedient to encourage the establishment of warehouses for storing agricultural produce and to make provision for their proper supervision and control; It is hereby enacted as follows:—

1. (1) This Act may be cited as the [Madhya Pradesh] Agricultural Warehouse Act, 1947.
2. (2) It extends to the whole of [Madhya Pradesh] [(3.) It shall be in force in the Mahakoshal region and shall come into force in any other regions of the State on such date as the State Government may, by notification, in the Official Gazette, appoint]

In this Act, unless there is anything repugnant in the subject or context,—

1. (a) “depositor” means a person who tenders agricultural produce to a warehouseman to be stored in his warehouse and includes any person who lawfully holds the receipt issued by the warehouseman in respect of such produce and derives title thereto by a proper endorsement or transfer thereof to him by the depositor or the depositor's lawful transferee;
2. (b) “prescribed” means prescribed by rules made under this Act;
3. (c) "prescribed authority" means such authority as the State Government may, by rules, prescribe to carry out the duties under this Act;
4. (d) "warehouse" means a building or protected enclosure which is used or may be used for the purpose of storing agricultural produce;
5. (e) "warehouseman" means a person licensed as such under this Act to conduct a warehouse.

1. (1) For every warehouse there shall be a warehouseman.
2. (2) No person shall carry on the business of a warehouse man except under a licence granted under this Act and in accordance with such terms and conditions thereof as may, from time to time, be prescribed under this Act.
3. (3) A licence shall be valid for such period as may be prescribed.

1. (1) Application for a licence shall be made in the prescribed form to the prescribed authority.
2. (2) The prescribed authority may, on receiving such application and on payment of such fees as may be prescribed, grant or renew a licence.

Before granting a licence the prescribed authority shall satisfy himself:—

1. (i) that the warehouse is suitable for the proper storage of the agricultural produce in respect of which a licence has been applied for,
2. (ii) that the applicant is competent to conduct such warehouse.
3. (iii) that no cause exists by reason of which in the opinion of the prescribed authority the applicant should be deemed to be disqualified for holding a licence, and
4. (iv) that the applicant has furnished such security as may be prescribed.

1. (1) Every licence may be suspended or cancelled as hereinafter provided by the prescribed authority for reasons to be recorded in writing and in particular if the warehouseman —
   • (a) has been adjudicated as insolvent or bankrupt,
   • (b) has parted in whole or part with his control over the warehouse,
   • (c) has ceased to conduct such warehouse,
   • (d) has made exorbitant or unreasonable charges for the services rendered by him as warehouseman,
   • (e) has in any other manner become incompetent to conduct the business of warehouseman, or
   • (f) has violated any term of his licence or any provision of this Act and the rules thereunder.
2. (2) The State Government may prescribe any other cause for which a licence may be suspended or cancelled.
3. (3) If a licence is suspended or cancelled the prescribed authority shall make an entry to that effect in the licence.

1. (1) Before cancelling a licence the prescribed authority shall give notice to the warehouseman stating the grounds on which it is proposed to cancel his licence and calling on him to show cause within fifteen days why it should not be cancelled.
2. (2) After considering the explanation, if any, of the warehouseman, the prescribed authority may pass such orders as it deems just.
3. (3) At any time for reasons to be recorded in writing the prescribed authority may suspend a licence.
4. (4) If the licence of a warehouseman is suspended or cancelled the authority suspending or cancelling the licence shall have power to take over the warehouse for such period and on such terms and conditions as may be prescribed.

1. (1) Where a licence granted to a warehouseman is lost, destroyed, torn, defaced or otherwise becomes illegible, the prescribed authority shall, on payment of such fees as may be prescribed, issue a duplicate licence.
2. (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 licence issuing office.

Every warehouseman shall take such care of the produce store in his warehouse as a man of ordinary prudence would take of his own produce under similar circumstances.

Every warehouseman shall exercise such care in keeping distinct the produce of each depositor as will enable him at all times to identify it and to deliver it without undue delay on demand by the depositor: Provided that where standardised and graded produce is stored in a warehouse, subject to any agreement between the warehouseman and a depositor, there may be pooling of the same grade and kind of produce belonging to several depositors and each depositor shall be entitled only to his portion of the produce according to weight or quantity, as the case may be, as shown in his receipt.

1. (1) Whenever produce stored in a warehouse is found to be deteriorating from causes beyond the control of the warehouseman, he shall as soon as possible give notice of such deterioration to the depositor requiring him to surrender his receipt and take delivery of the produce on payment of the warehouseman’s dues.
2. (2) In the event of the depositor failing to comply with the notice within a reasoable time, the warehouseman may cause such produce to be removed from his warehouse and sold by public auction at the cost and risk of the depositor.
3. (3) A copy of the notice provided for in sub-clasue
4. (1) shall be given by the warehouseman to the bank on whose behalf the depositor's produce is stored in his warehouse.

Every warehouseman in the absence of any reasonable or lawful excuse shall without unnecessary delay deliver the produce stored in his warehouse to the depositor on a lawful demand made by him and on surrender of the warehouse receipt duly discharged and on payment of the charges due to the warehouseman, and subject to any agreement between the warehouseman and the depositor, the latter may take partial delivery of his produce stored in the warehouse.

Every warehouseman shall insure the produce stored in his warehouse against such risk and to such extent and in such manner as may be prescribed.

No warehouseman shall in the conduct of his business show undue preference to any person, but may make such charges for the storing of produce in his warehouse as may be agreed upon between him and the depositor, not exceeding the limits imposed by the conditions of his licence.

No warehouseman shall either on his own account or that of others deal in or lend money on the produce which he receives in his warehouse: Provided that this section shall not apply to Co-operative Societies [or to warehousing corporations established under the Agricultural Produce (Development and warehousing) Corporations Act, 1956 (XXVIII of 1956), in relation to warehouses owned and run by such societies and corporations.]

A warehouseman shall issue a receipt in the prescribed form containing full particulars in respect of the produce stored in his warehouse by each depositor.

Such receipt or a duplicate receipt issued under section 18 shall unless specified otherwise, be transferable by endorsement and shall entitle its lawful holder to receive the goods specified in it on the same terms and conditions on which the depositor who originally deposited the produce would have been entitled to receive it.

1. (1) Where a receipt issued by a warehouseman is lost, destroyed, torn, defaced or otherwise becomes illegible the prescribed authority shall, subject to rules made in this behalf, issue a duplicate receipt.
2. (2) When a duplicate receipt 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 available from the office of issue.

The prescribed authority may at any time during business hours inspect or examine or depute any person to inspect or examine a warehouse licensed under this Act, its equipment, the produce stored, the account books and records for the purpose of satisfying itself that the requirements of the Act and the rules are being complied with.

1. (1) The prescribed authority may issue licences to qualified and competent persons entitling them to act as weighers, samplers and graders of any produce stored or to be stored in a warehouse and to issue certificates as to weight, quality or grade of the produce which they have examined and the certificates so issued shall be binding on the warehouseman and the depositor as to the weight, quality or grade of the produce so certified.
2. (2) The warehouseman shall not be responsible for any shortage caused to produce stored in his warehouse by driage or other causes beyond his control.
3. (3) The warehouseman shall not be entitled to any excess caused to produce stored in his warehouse by absorption of moisture or other causes.
4. (4) In the event of a dispute arising as to whether the shortage or excess is due to driage or absorption of moisture or is due to other causes beyond the warehouseman's control or in the event of a dispute arising over the action of weighers, samplers and graders and all other disputes of whatsoever nature relating to quality, grading and weight shall be referred to the prescribed authority whose decision in the matter shall be final and binding.

1. (1) Subject to rules made in this behalf every licence granted to a sampler, weigher or grader shall be liable to be suspended or cancelled by the prescribed authority.
2. (2) If a licence is suspended or cancelled the prescribed authority shall make an entry to that effect in the licence.
3. (3) No person who does not hold a licence shall hold himself out or work as licenced weigher, sampler or grader.

1. (1) Where a licence granted to a sampler, weigher or classifier, is lost, destroyed, torn, defaced or otherwise become illegible the prescribed authority shall, on payment of such fee as may be prescribed, issue a duplicate licence.
2. (2) When a duplicate licence is issued, it shall be clearly stamped "Duplicate" and shall be marked with the date of issue of duplicate and that of the original from the record of the licence issuing office.

Any person who knowingly and wilfully infringes any of the provisions or requirements of this Act or the rules made thereunder shall, on conviction by a Magistrate, be liable to be punished with imprisonment for a term which may extend to three years or with fine or with both:

Rules

1. (1) The State Government may, after previous publication, make rules for carrying out the provisions of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :—
   • (a) regarding all matters to be prescribed or for which rules are to be made under this Act;
   • (b) the authority to carry out the duties under this Act ;
   • (c) the form of application for the grant of licence to a warehouseman, the period and conditions of the licence and its renewal;
   • (d) the form of receipt to be issued by a warehouseman, the particulars to be specified therein and the conditions for the issue of a duplicate receipt;
   • (e) the nature of accounts, books and records to be maintained by a warehouseman;
   • (f) the manner of giving notice under this Act ;
   • (g) the manner conducting a public auction for the sale of produce deteriorating in a warehouse and accounting for the proceeds of such sales;
   • (h) the qualifications for, and grant of licences to, weighers, samplers, and graders, the conditions and period of their licences, form of certificates to be issued by them, renewal of their licences, the conditions under which the licences may be suspended or cancelled;
     • (i) the amount of fees for the grant of licences under this Act and their renewal and for the issue of duplicate licences;
   • (J) the standard weights, measures, classification, gradations, and methods of storage of produce to be used in warehouses under this Act;
   • (k) the publication of the grant, suspension or cancellation of licences and the list of licensed warehouses; and
   • (l) gererally for the efficient conduct of the business of warehouseman.