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. (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 in this behalf.
2. (2) No warehouseman shall accept for deposit in his warehouse, goods which are contaminated or infected by worms and pests, and which are likely to cause damage to other goods which are or which may be deposited in the warehouse.

In order to permit at all times the identification of the goods deposited in a warehouse, and easy delivery therefrom, every warehouseman shall keep in his warehouse the goods of one depositor separate from the goods of other depositors, and also the goods of the same depositor separate from his other goods for which a separate receipt has been issued: Provided that where standardised and graded goods are stored in warehouse, subject to any agreement between the warehouseman and depositor the same variety of goods belonging to different depositors may be mingled together by the warehouseman, and each depositor will 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. (1) Whenever from causes beyond the control of the warehouseman, goods stored in a warehouse deteriorate or are about to deteriorate, the warehouseman shall forthwith give notice thereof to the depositor asking him to take delivery of the goods immediately on surrendering the receipt duly discharged and on payment of all dues. If the depositor does not comply with the notice within a reasonable time, the warehouseman may cause such goods to be removed from his warehouse and sold by public auction at the cost and risk of the depositor.
2. (2) Any person interested in any goods or the receipt covering such goods, stored in warehouse may, in writing, inform the warehouseman of the fact and the nature of his interest, and the warehouseman shall keep a record thereof. If such person request 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](3) At the time of taking delivery of the goods stored in a warehouse, if a depositor on examination finds that the goods are lost or damaged, he shall give notice in writing to the warehouseman within 72 hours of such examination and before taking delivery of the goods from the warehouse. The notice shall state the particulars of the goods stored in the warehouse, whether the depositor was given notice under sub-section (1), if any, asking him to take delivery of the goods immediately, whether the depositor took delivery of the goods and the time within which delivery of the goods was taken in pursuance of such notice, the time and date on which the goods were examined and the particulars of the loss or damage to the goods. No claim against the corporation or warehouseman shall be valid if notice of loss or damage to the goods has not been given by the depositor in time as provided in this section.]

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

1. (1) If there be any excess in the goods stored in warehouse by absorption of moisture or on account of other causes, the warehouseman shall not be entitled to the same.
2. (2) If for any cause beyond the control of the warehouseman, there be any shortage in such goods by driage or other causes, the warehouseman shall not be responsible for the same.
3. (3) In the event of any dispute arising as to whether such excess or shortage is due to absorption of moisture or driage, or is due to other causes, beyond the control of the warehouseman, the matter shall be referred to the Registrar of Co-operative Societies or any other officer appointed by the State Government in this behalf, and the decision of the Registrar or other officer shall be final.

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

1. (1) Every warehouseman shall insure, in such manner as may be prescribed the goods in his warehouse against loss or damage by fire or burglary. On a written request goods in from a depositor and on his agreeing to pay the requisite charge, for additional insurance, the warehouseman may insure such goods also against loss or damage by flood, riot, civil commotion or any other contingency.
2. (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.

Every warehouseman shall receive for storage in his warehouse, so far as its capacity permits, any goods of the kind customarily stored by him therein, which may be tendered to him in a suitable condition for storing in the usual manner in the ordinary and usual course of business, without making any discrimination between persons desiring to avail themselves of the facilities of his warehouse: Provided that a warehouseman may grant such concessions to a co-operative society as may be prescribed.

Notwithstanding anything contained in any law, no warehouseman other than a co-operative society or a corporation established under the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 (28 of 1956), shall, either on his own account or that of others, deal in, or lend money on, goods which he receives for storage in his warehouse.