Chapter II LICENSING OF BUSINESS OF WAREHOUSING

Subject to the provisions of section 11, no person shall carry on the business of warehousing, or represent or hold himself out as carrying on the business of warehousing, except under and in accordance with the terms and conditions of a licence granted under this Act.

1. (1) An application for a licence shall be made in the prescribed form, to the Prescribed Authority.
2. (2) On receipt of such application, the Prescribed Authority may, on payment of the prescribed fee, grant a licence to such person for the conduct of his business in accordance with the terms and conditions of the licence, and the provisions of this Act and the rules made thereunder.

Before granting a licence the Prescribed Authority shall satisfy itself-

1. (a) that the warehouses in which it is proposed to store goods are suitable for storing the particular goods, or the class or classes of goods which it is intended to store therein;
2. (b) that the applicant is competent to conduct such warehouses;
3. (c) that the applicant furnishes to the Prescribed Authority such security, in such manner, as may be prescribed: Provided that where the applicant is a corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956 (28 of 1956) no such security shall he required;
4. (d) that the applicant fulfils other conditions which the State Government may, by notification in the Official Gazette, specify in this behalf; and
5. (e) that there is no other cause or reason for which the applicant may, in the opinion of the Prescribed Authority, be deemed to be disqualified for a licence.

Every licence granted under section 4 shall be valid for the prescribed period, and may on the expiry of such period be renewed by the Prescribed Authority on an application made by the warehouseman in that behalf on payment of the prescribed fee, provided the conditions referred to in section 5 continue to be fulfilled.

If the Prescribed Authority refuses to grant or renew a licence under the foregoing provisions, it shall record its reasons therefore, in writing and communicate a copy of its order to the applicant.

Every licence shall be liable to be revoked by the Prescribed Authority for reasons to be recorded in writing in the order of revocation; and in particular, a licence shall be liable to be revoked if the warehouseman-

1. (a) has applied to be adjudicated, or has been adjudicated an insolvent; or
2. (b) has parted in whole or in part with his control over the warehouses in respect of which he is licensed; or
3. (c) has ceased to conduct such warehouses; or
4. (d) has made unreasonable charges for services rendered by him; or
5. (e) has in any manner become incompetent to conduct the business of a warehouseman; or
6. (f) has contravened any of the terms or conditions of the licence or any of the provisions of this Act or the rules made thereunder, or any other conditions which the State Government has, by notification in the Official Gazette, specified under section 5.

1. (1) Before revoking a licence, the Prescribed Authority shall give notice to the warehouseman specifying the charges against him and calling upon him to show cause why the licence should not be revoked.
2. (2) After considering the explanation, if any, offered by the warehouseman, the Prescribed Authority may revoke the licence, or pass such orders as it deems just.
3. (3) The Prescribed Authority may suspend the licence of a warehouseman pending decision on the enquiry referred to in sub-sections (1) and (2).
4. (4) If a licence is suspended or revoked, the Prescribed Authority shall make an entry to that effect in the licence.

1. (1) An appeal against any order of the Prescribed Authority refusing to grant or renew a licence, or suspending or revoking any licence of a warehouseman shall be made to the Registrar of Co-operative Societies within sixty days from the date of such order.
2. (2) On receipt of an appeal under sub-section (1), the Registrar shall, after giving the warehouseman and the Prescribed Authority an opportunity of being heard, pass such order thereon as he thinks fit.
3. (3) The State Government may at any time call for and examine the record of any proceedings before the Prescribed Authority or the Registrar relating to the suspension or revocation of, or the refusal to renew, a licence, for the purpose of satisfying itself as to the correctness, legality or propriety of any order passed therein, and as to the regularity of such proceedings, and may either annul, reverse, modify or confirm such order, or pass such other order as it may deem just.
4. (4) Every order passed by the Prescribed Authority under section 9, subject to appeal or revision as provided in this section, and every order passed by the Registrar in appeal, subject to such revision, and every order passed by the State Government in revision, shall be final and shall not be questioned in any Court of law.

1. (1) During the period a licence is suspended a warehouseman shall not carry on the business of warehousing; and when a licence expires and is not renewed, or is revoked, a warehouseman shall cease to carry on his business of warehousing, and shall return the licence to the Prescribed Authority.
2. (2) Where a licence expires and is not renewed, or where it is revoked, the Prescribed Authority shall give to the warehouseman such reasonable time thereafter, as it thinks fit to wind up his business, and notwithstanding anything contained in section 3, the warehouseman may carry on his business of warehousing during the said period, and may do all things necessary for winding up such business.

Where a licence granted to a warehouseman is lost, destroyed, torn, defaced or otherwise becomes illegible, the Prescribed Authority shall, on an application made in that behalf by the warehouseman and on payment of the prescribed fee, issue a duplicate thereof.