(No. 1 of
1948) [30th, December 1948] Received
the assent of the Governor General on the 30th December, 1947 ; assent first
published in Central Provinces and Berar Gazette, Extraordinary on the 5th January,
1948. An Act to
encourage the establishment of warehouses for storing agricultural produce and
to make provision for their proper supervision and control. 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 : CHAPTER I Preliminary (1) ??This Act may be
cited as The [1][Madhya
Pradesh] Agricultural Warehouse Act, 1947. [2][(2)
It extends to the whole of Madhya Pradesh.] [3][(3)
It shall be in force in the Mahakoshal region and shall [4][come
into force] in any other regions of the
State on such date as the [5][State
Government may, by notification in the Official Gazette appoint].] In this
Act, unless there is anything repugnant in the subject or context,- (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 depositors lawful transferee; (b)
"prescribed", means prescribed by rules made under this Act; (c)
"prescribed
authority" means such authority as the
State Government may, by rules, prescribe to carry out the duties under this
Act; (d)
"warehouse" means a building or protected enclosure which is used or may
be used for the purpose of storing agricultural produce; (e)
"warehouseman" means a person licensed as such under this Act to conduct a
warehouse. CHAPTER II Licensing of
Warehouses (1)
For every warehouse there
shall be a warehouseman. (2)
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 under this Act. (3)
The licence shall be valid
for such period as may 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 or renew a licence. Before
granting a licence the prescribed authority shall satisfy himself- (i)
that the warehouse is suitable
for the proper storage of the agricultural produce in respect of which a
licence has been applied for, (ii)
that the applicant is competent
to conduct such a warehouse, (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 (iv)
that the applicant has furnished
such security as may be prescribed. (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 in 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 this
licence or any provision of this Act and the rules thereunder. (2)
The State Government may
prescribe any other cause for which a licence may be suspended or cancelled. (3)
If a licence is suspended or
cancelled the prescribed authority shall make an entry to that effect in the
licence. (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)
After considering the
explanation, if any of the warehouseman, the prescribed authority may pass such
orders as it deems just. (3)
At any time for reasons to
be recorded in writing the prescribed authority may suspend a licence. (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)
Where a licence granted to a
warehouseman is lost, destroyed, torn, defaced or otherwise becomes illegible,
the prescribed authority shall, on payment of such fee as may be prescribed,
issue a duplicate licence. (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. CHAPTER III Duties of
Warehouseman Every
warehouseman shall take such care of the produce stored 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 standardized 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 depositor 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)
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)
In the event of the
depositor failing to comply with the notice within a reasonable 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)
A copy of the notice provided
for in sub-clause (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 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 [6][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.] CHAPTER IV Warehouse Receipt 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)
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)
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. CHAPTER V Inspection and
Classification of Produce 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 the 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)
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)
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)
The warehouseman shall not
be entitled to any excess caused to produce stored in his warehouse by
absorption of moisture or other causes. (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 or
weight shall be referred to the prescribed authority whose decision in the
matter shall be final and binding. (1)
Subject to rule 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)
If a licence is suspended or
cancelled the prescribed authority shall make an entry to that effect in the
licence. (3)
No person who does not hold
a licence shall hold himself out or work as licenced weigher, sampler or
grader. (1)
Where a licence granted to a
sampler, weigher or classifier is lost, destroyed, torn, defaced or otherwise
becomes illegible, the prescribed authority shall, on payment of such fee as
may be prescribed, issue a duplicate receipt. (2)
When a duplicate receipt 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. CHAPTER VI Miscellaneous Any person
who knowingly and wilfully infringes any of the provisions of 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 : Provided
that an offence under this Act shall be compoundable with permission of the
Court. (1)
The State Government may,
after previous publication, make rules for carrying out the provisions of this
Act. (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 maimer of 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,
classifications, 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)
generally for the efficient
conduct of the business of a warehouseman. [1] Substituted by MP Extension of Laws Act
23 of 1958. [2] Substituted by MP Extension of Laws Act
23 of 1958. [3] Substituted by MP Extension of Laws Act
23 of 1958. [4] The Act came into force on 1st December,
1943 vide Co-operative and Rural Development Department Notification No.
1230-1393-XXVII, dated the 29th September, 1948, published in the Cential
Provinces and Berar Gazette, dated the 8th October, 1938, Part I, p. 623 [5] The State Government has appointed the
1st March, 1959 as the date on which the Act shall come into force in all the
regions of the State other than the Mahakoshal region vide MP Rajpatra, dated
27-2-59. [6] Substituted by MP Extension of Laws Act
23 of 1958Madhya
Pradesh Agricultural Warehouse Act, 1947