Chapter II Licensing of Warehouses

No person shall carry on the business of a warehouseman 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.

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

1. (1) Before granting a licence the prescribed authority shall satisfy itself, (a) That the warehouse 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 has paid the fee prescribed for the licence and has also paid the presciribed security, if any; and (d) 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 in the Official Gazette add to or alter the conditions under which a licence is granted to a warehouseman under this section.

Every licence granted under section 5 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 the foregoing provisions, it shall record its reasons for such refusal in writing and furnish a copy of the order to the applicant.

1. (1) Every licence granted under Section 5 or renewed under Section 6 shall be liable to be suspended or cancelled by the prescribed authority if in its opinion the warehouseman-- (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, (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 and the rules. (2) If a licence is suspended or cancelled, the prescribed authority shall make an entry to that effect in the licence.

1. (1) Before passing an order for cancellation or suspension under Section 8, the prescribed authority shall give notice to the warehouseman stating the grounds on which it is proposed to cancel or suspend his licence and calling upon him to show cause why it should not be cancelled or suspended, as the case may be. (2) After considering the explanation, 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. (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 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 office issuing the licence.