The Warehousing (Development and Regulation) Act, 2007
Parliament enacted the Warehousing (Development and Regulation) Act, 2007, Act Number 37 of 2007, dated 19 September 2007, to regulate warehouses that issue negotiable warehouse receipts, define the rights and duties connected with those receipts, and establish the Warehousing Development and Regulatory Authority. It applies in Tamil Nadu and directly affects warehouse operators, depositors, receipt holders and accreditation agencies.
What the Act governs
The Warehousing (Development and Regulation) Act, 2007 regulates the business of storing goods and issuing negotiable warehouse receipts. A warehouse receipt is a written or electronic acknowledgement that a warehouseman has received for storage goods that the warehouseman does not own.
The Act covers tangible movable goods, excluding actionable claims, money and securities. It is therefore concerned with warehouses and stored goods, rather than the ownership or transfer of land on which a warehouse stands.
Who is affected
The Warehousing (Development and Regulation) Act, 2007 affects:
- People who own or occupy warehouses and wish to issue negotiable warehouse receipts.
- Registered warehousemen who take custody of deposited goods.
- Depositors who place goods in storage.
- Holders and endorsees of warehouse receipts.
- Accreditation agencies registered with the Warehousing Development and Regulatory Authority.
A warehouse that does not propose to issue negotiable warehouse receipts does not require registration under the registration requirement described in the Act. A registered warehouse may issue both negotiable and non-negotiable warehouse receipts.
Registration and oversight
The Warehousing Development and Regulatory Authority may register one or more warehouses owned or occupied by an applicant. Registration may be granted after enquiry and subject to conditions.
Before granting registration, the Warehousing Development and Regulatory Authority must be satisfied that the warehouse has adequate facilities and safeguards for the proposed goods. The applicant must also meet the prescribed financial, managerial and other eligibility and competence requirements. Registration cannot be refused without giving the applicant an opportunity to be heard.
Duties and liabilities of warehousemen
The Warehousing (Development and Regulation) Act, 2007 provides that a warehouseman must:
- Exercise the care and diligence expected from a careful and vigilant owner of similar goods.
- Deliver goods to the holder when the warehouse lien is satisfied, the required receipt is surrendered, and receipt of the goods is acknowledged in writing.
- Keep complete and accurate records and accounts of goods, receipts and warehouse transactions.
- Make warehouse records and accounts available for inspection by the Warehousing Development and Regulatory Authority.
Compensation rules differ depending on whether goods were lost or damaged despite precautions or because of negligence. The warehouseman is not responsible for loss or deterioration attributable to circumstances such as force majeure, war or acts of public enemies.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this Act regulate ownership of warehouse land in Tamil Nadu?
The supplied text regulates warehousing business, stored goods and warehouse receipts. It does not set out rules for ownership or transfer of the land on which a warehouse is located.
Must every warehouse in Tamil Nadu register under this Act?
No. Registration is required for carrying on warehousing business that issues negotiable warehouse receipts, while warehouses that do not propose to issue such receipts are exempt from this registration requirement.
Can a registered warehouse issue a non-negotiable receipt?
Yes. The Warehousing (Development and Regulation) Act, 2007 expressly clarifies that a warehouse registered under it may also issue non-negotiable warehouse receipts.
What happens if stored goods are lost or damaged?
The warehouseman may be required to pay compensation equal to the value of the goods at deposit if loss or damage occurs despite precautions. If negligence caused the loss or damage, compensation includes the value of the goods plus the receipt holder's loss of profit, subject to the stated exclusions for circumstances such as force majeure or war.
