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MADHYA PRADESH AGRICULTURAL WAREHOUSE RULES, 1961

MADHYA PRADESH AGRICULTURAL WAREHOUSE RULES, 1961

MADHYA PRADESH AGRICULTURAL WAREHOUSE RULES, 1961

MADHYA PRADESH AGRICULTURAL WAREHOUSE RULES, 1961[1]

PREAMBLE

In exercise of the powers conferred by Section 24 of the Madhya Pradesh Agricultural Warehouse Act, 1947 (I of 1948), the State Government hereby makes the following rules, the same having been previously published as required by sub-section (1) of the said section, namely :

Rule - 1. Short title.

These rules may be called The Madhya Pradesh Agricultural Warehouse Rules, 1961.

Rule - 2. Definitions.

In these rules, unless there is anything repugnant in the subject or context,

(i)       "Act" means the Madhya Pradesh Agricultural Warehouse Act, 1947 (I of 1948);

(ii)      "Co-operative Society" means a society registered as Co-operative Society under any law relating to the registration of Co-operative Societies in force in any region of the State ;

(iii)     "Form" means a form appended to these rules;

(iv)    "Grader" means a person licensed under the Act to classify the goods according to grade or otherwise and issue a certificate ;

(v)      "Licence" means a licence issued under the Act by the prescribed authority;

(vi)    "Negotiable receipt" means a receipt in which it is stated that the goods therein specified will be delivered to bearer or to the order of a named person;

(vii)   "Non-negotiable receipt" means a receipt in which it is stated that the goods therein specified will be delivered to the depositor thereof;

(viii)  "Rules" means rules made under the Act;

(ix)    "Sampler" means a person licensed under the Act to sample the goods and issue a certificate thereof;

(x)      "Warehouseman's bond" means the bond required under the Act to be given by warehouseman;

(xi)    "Warehouse receipt" means a receipt drawn up in conformity with the rules (made under the Act) and issued by a warehouseman to a depositor showing that certain goods described therein have been deposited in his warehouse;

(xii)   "Weigher" means a person licensed under the Act to weigh goods and issue a certificate of the weight.

Rule - 3. Appointment of prescribed authority for administration of the Act and Rules.

(1)     Save as otherwise provided in sub-rule (2) or (3) the [2][Managing Director, Madhya Pradesh State Warehousing Corporation (hereinafter referred to as Managing Director)], shall be the prescribed authority within the meaning of clause (c) of Section 2 of the Act and the rules.

(2)     For the purpose of sub-section (1) of Section 18 of the Act, the prescribed authority shall be the warehouseman.

(3)     The [3][Managing Director] may authorise any officer in writing to exercise within a specified area subject to such conditions, if any, as may be specified by the [4][Managing Director], all or any of the powers conferred upon him as prescribed authority under sub-rule (i) and thereupon such officer shall be deemed to be the prescribed authority to the extent of the authority conferred upon such officer by the [5][Managing Director].

Rule - 4. Application for licence.

(1)     A warehouseman, desiring to carry on the business for warehousing in any area, shall make an application in Form No. 1 to the prescribed authority.

(2)     Such application shall be delivered at the office of the prescribed authority during office hours personally by the applicant or his agent or sent by registered post addressed to the prescribed authority.

(3)     An application for the first time may be made on any date, but an application for renewal of a licence shall be made not less than thirty days before its expiry.

Rule - 5. The period and form of licence.

The licence shall be in Form II and shall be valid upto 30th June next following.

Rule - 6. Licence fee.

There shall be charged an annual fee of Rs. 20 for issuing a licence to a warehouseman.

Rule - 7. Warehouse charges.

A warehouseman shall not make any charge in excess of that authorised by his licence for services rendered. Before a licence to conduct a warehouse is granted under the Act, the warehouseman shall file with the prescribed authority for approval a copy of his rules and a schedule of the maximum charges to be made by him, if licensed. Any change in such rules or schedule of charges shall be subject to the previous approval of the prescribed authority. Each warehouseman shall exhibit conspicuously a copy of his current rules and schedule of charges as approved by the prescribed authority. He shall also exhibit a translation of it in Hindi.

Rule - 8. Grant of Licence.

(1)     On receipt of the application for a licence the prescribed authority shall make the enquiry required under Section 5 of the Act. It may, if satisfied that the security called for by it has been furnished and is sufficient and that conditions prescribed by that section have been complied with, grant the licence in Form No. II.

(2)     The licences granted to warehouses shall be numbered consecutively, and a register of such licences shall be kept by the prescribed authority.

Rule - 9. Reasons for refusing to grant licence to be communicated to applicant.

If the prescribed authority refuses to grant a licence, it shall in writing, communicate to the applicant the fact of such refusal, together with the reasons therefor.

Rule - 10. Warehouse bonds.

A warehouseman applying for a licence shall file a bond with the prescribed authority to cover all obligations arising thereunder during the period of the licence for such amount as may be determined by it after taking into account the storage capacity of the warehouse, the nature of goods to be stored therein, and any other matter connected therewith:

[6][Provided that no such bond need be filed by a Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 (28 of 1956).

Rule - 11. Net assets.

The warehouseman shall have and maintain above all exemptions and liabilities, net assets liable for the payment of any indebtedness arising from the conduct of the warehouse to such extent as may be prescribed by the prescribed authority after taking into account the storage capacity of the warehouse and the nature of goods to be stored therein, etc. In case of buildings, machinery or merchandise are included among such assets, the warehouseman shall keep them insured against loss or damage by fire with a company or companies approved by the prescribed authority :

[7][Provided that no such assets need be maintained by a Warehousing Corporation established under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956 (28 of 1956)].

Rule - 12. Appeal against the order of the prescribed authority.

[8][(1) Whereas application for a licence to conduct a warehouse is rejected by an authority other than the State Government, the person aggrieved by such order by rejection may prefer an appeal to the State Government within thirty days from the date of the communication of the order of rejection to such person.]

(2)   The appellate authority shall decide the appeal after giving the appellant or his pleader a reasonable opportunity to be heard. The decision of the appellate authority shall be final.

Rule - 13. Licence lost, destroyed, torn, defaced or other Wise rendered illegible.

Upon satisfactory proof of the loss or destruction of a licence issued to a warehouseman or on the production of such a licence torn, defaced or otherwise rendered illegible, a duplicate thereof may, at the discretion of the prescribed authority, be issued under the same number as the original on payment of a fee of Rs. 5 and it shall be marked "DUPLICATE". A licence which is torn, defaced or rendered illegible, shall be surrendered by the warehouseman.

Rule - 14. Warehouse receipt.

For goods stored by a depositor in a warehouse licensed under the Act, the warehouseman shall issue a receipt to the depositor for such goods in Form No. III.

Rule - 15. Stamp on receipt.

Every receipt for the goods so issued by the warehouseman shall bear stamp of the value prescribed in the Indian Stamp Act, 1899 (II of 1899), as in force in the State.

Rule - 16. Form of warehouse receipts.

A receipt shall contain the following particulars :

(a)      the location of the warehouse where the goods are stored;

(b)      the name of the person by whom or on whose behalf the goods are deposited;

(c)      the date of issue of receipt;

(d)      a statement either

(i)       that the goods shall be delivered to the holder thereof; or

(ii)      that the goods will be delivered to bearer or to the order of a named person;

(e)      the rate of storage charges;

(f)       a description of the goods or of the packages containing them in the form laid down by the prescribed authority for the purpose;

(g)      the signature of the warehouseman or his authorised agents; and

(h)     a statement of the amount of any advance made and of any liability incurred for which the warehouseman claims a lien where the warehouseman is a Co-operative Society.

Rule - 17. Liability of warehouseman for omission.

Where a warehouseman omits from a negotiable receipt any of the particulars set forth in Rule 16, he shall be liable for damage caused by the omission.

Rule - 18. Omission not to affect validity of receipts.

No receipt shall, by reason of the omission of any of the particulars set forth in Rule 16, be deemed not to be a warehouse receipt.

Rule - 19. Negotiable receipts.

Words in a negotiable receipts limiting its negotiability shall be void.

Rule - 20. Marking of non-negotiable receipts.

A warehouseman who issued a non-negotiable receipt shall cause to be plainly marked upon its face the words "NOT NEGOTIABLE".

Rule - 21. Maintenance of a warehouse in proper conditions.

A warehouseman shall maintain his warehouse in good and proper condition, and shall comply with the detailed rules, if any, laid down in this behalf by the prescribed authority.

Rule - 22. Duty to deliver.

A warehouseman in the absence of lawful excuse shall deliver the goods referred to in the warehouse receipt

(a)      in the case of a negotiable receipt, to the bearer thereof, upon demand made by the bearer and during business hours after

(i)       the warehouseman's lien is satisfied;

(ii)      the receipt is surrendered with such endorsement as are necessary, for the negotiation of the receipt; and

(iii)     the delivery of the goods is acknowledged in writing;

(b)      in the case of non-negotiable receipt, to the depositor thereof upon the depositor

(i)       satisfying warehouseman's lien, and

(ii)      acknowledging in writing the delivery of the goods.

Rule - 23. The depositor to examine the contents and give notice of loss or damage, if any.

The depositor of goods shall examine the contents of goods at the time of taking delivery, and shall give notice to the warehouseman in writing with full particulars of the loss or damage if any, caused to the goods within 72 hours of delivery. A copy of the notice shall also be sent to the prescribed authority. Similar notice of claim for damage shall be given to the warehouseman by the depositor in case he (depositor) comes to know of the loss or damage while the goods are in the warehouse.

Rule - 24. Negotiable receipt must be cancelled on delivery of goods.

(1)     Except as provided in Rule 28, a warehouseman who delivers goods for which he has issued a negotiable receipt shall take up and cancel that receipt of the goods so delivered.

(2)     Neg'otiable receipt to be marked on delivery of part of goods.

Except as laid down in Rule 29, every warehouseman who delivers part of the goods for which he has issued a negotiable receipt, shall place plainly upon it a statement of what goods or packages have been delivered.

Rule - 25. Receipt lost, destroyed, torn, defaced or otherwise rendered illegible.

Where a negotiable receipt has been lost, destroyed, torn, defaced or otherwise becomes illegible the warehouseman upon application by the person lawfully entitled to the possession of the goods, shall, upon satisfactory proof of such loss or destruction or on the production of such a receipt torn, defaced or otherwise rendered illegible, issue a duplicate receipt to the depositor after examination and certification, and it shall be marked "DUPLICATE". The receipt torn, defaced or rendered illegible shall have to be surrendered by the depositor. The warehouseman may require such a person to indemnify the warehouseman against any liability, cost or expense he may be under or be put to by the original receipt remaining outstanding.

Rule - 26. Co-mingled goods and warehouseman's liability therefor.

Where authorised by agreement, warehouseman may mingle fiunible goods with other goods of the same kind and grade. In that case the holder of the receipt for the mingled goods shall own the entire mass in common, and each holder shall be entitled to such proportion thereof as the quantity shown by his receipt to have been deposited, bears to the whole.

Rule - 27. Negotiable receipt must state charges for which lien is claimed.

Where a negotiable receipt is issued for goods, the warehouseman shall have no lien on the goods except for charges of storage of those goods to the date of the receipt unless the receipt expressly enumerates other charges for which a lien is claimed.

Rule - 28. Perishable and hazardous goods.

(1)     Where goods are of a perishable nature or by their storage will deteriorate greatly in value or injure other goods stored, the warehouseman shall give such notice as is reasonable and possible under the circumstances to the depositor requiring him to satisfy the lien upon the goods from the warehouse. On failure of such person to satisfy the lien and remove the goods within the time specified in the notice, the warehouseman may sell the goods at a public auction. A copy of the notice shall also be sent to the person on whose behalf the depositor's produce is stored in the warehouse, if the name and address of such person is known to the warehouseman.

(2)     Method of giving notice.

The notice referred to in sub-rule (1) may be given by sending it by registered post addressed to the person to whom it is to be given at the person's last known place of address.

(3)     Disposal of goods.

If the warehouseman, after a reasonable effort, is unable to sell the goods at public auction, he may dispose them off in any manner he may think fit and shall incur no liability by reason thereof.

(4)     Proceeds of sale.

The warehouseman shall, from the proceeds of any sale made pursuant to this rule, satisfy his lien, and shall hold the balance in trust for the holder of the receipt.

Rule - 29. Effect of sale.

Where goods have been lawfully sold to satisfy a warehouseman's lien or have been lawfully sold, or disposed of pursuant to the provisions of Rule 28, the warehouseman shall not be liable for failure to deliver the goods to the holder of the receipt.

Rule - 30. Transfer receipt.

The goods covered by a non-negotiable receipt may be transferred by the depositor to a purchaser or donee of the goods by a transfer in writing executed by the depositor but the transfer shall not affect or bind the warehouseman until he is notified in writing thereof.

Rule - 31. Insurance.

The warehouseman shall fully insure the warehouse against fire and also against other risk when so directed by the prescribed authority. He shall also insure the goods deposited in the warehouse against risks of fire etc., and shall be deemed to be an agent of the depositor for this purpose.

Rule - 32. Fire-loss to be reported immediately.

If at any time a fire should occur at or within any warehouse, it shall be the duty of the warehouseman to report immediately within 24 hours to the prescribed authority and the insurance company, the occurrence of such fire and extent of damage.

Rule - 33. System of accounts.

(1)     Each warehouseman shall have and maintain a system of accounts approved for the purpose by the prescribed authority.

This shall include the following :

(i)       a store record, showing the specification and other particulars of goods received for storage, its location, the date received for and delivered out of stage;

(ii)      the receipts issued and cancelled;

(iii)     a separate record for each depositor of goods which shall include a detailed record of all moneys received and disbursed of all insurance policies taken out and cancelled.

(iv)    a register for noting the subsequent holders of warehouse receipts for giving notice under Rule 28;

(v)      a general insurance account showing policy number, issuing company, amount binding and expiration, date of fire and other risks, insurance policies taken out by him and the property covered by such policies.

(2)     All records, books and papers pertaining to the warehouse shall be kept in a place of safety.

(3)     A warehouseman shall allow the persons authorized by the prescribed authority to inspect or examine his warehouse and also all books, records and papers maintained by him.

(4)     A warehouseman shall submit to the prescribed authority from time to time such reports as are required by him regarding conditions, contents, operation and business of the warehouse, etc.

Rule - 34. Application to act as weigher, sampler or grader.

Application to act as weigher, sampler or grader shall be made in Form No. IV to the prescribed authority. The application shall be signed by the applicant. The prescribed authority may issue a licence to the weigher, sampler or grader on payment of the annual licence fee of Rs. 5 if it is satisfied that the applicant can correctly weigh, sample or grade, as the case may be, in accordance with the standard laid down by the State Government or in the absence of such standards in accordance with any standards approved by the prescribed authority. The applicant shall supply any further information that may be required in connection to his application to the prescribed authority.

Rule - 35. Combined application.

A single application may be made by any person for a licence to act as a weigher, sampler or grader.

Rule - 36. Duties of weigher, sampler and grader.

(1)     Each weigher, sampler or grader shall without discrimination, as soon as practicable, weigh, sample or classify, as the case may be, and certify the weight, grade, etc., of agricultural produce stored or to be stored in a warehouse.

(2)     Each weigher, sampler or grader shall issue certificate in Form No. V and shall embody within its written or printed terms.

(i)       the caption The Madhya Pradesh Agricultural Warehouse Act, 1947-Weight/Sample/Grade Certificate.

(ii)      the name and location of the warehouse in which the grain or produce is to be stored;

(iii)     the date of the certificate;

(iv)    the consecutive number of certificate;

(v)      the weight of grain or produce covered by the certificate;

(vi)    the kind of grain or produce covered by the certificate;

(vii)   the grade and or weight of grain or produce as determined by a licensed weigher or sampler or grader;

(viii)  that the certificate is issued under.............Warehouse Act and the Rules made thereunder.

(ix)    the signature of the licensed weigher, sampler or grader.

Rule - 37. Grain appeals.

The disputes referred to in sub-section (2) of Section 20 shall be referred to the prescribed authority within 72 hours of the cause of the dispute.

Rule - 38. Contents of the application referring a dispute.

The application referring a dispute to the prescribed authority shall state

(i)       the names and post office of the party referring the dispute;

(ii)      the names and post office addresses of other parties involved;

(iii)     the name and location of licensed warehouse in which grain or produce is or was to be stored;

(iv)    the identification and location of the grain at the time of submitting the dispute;

(v)      if samples have been agreed upon and are submitted;

(vi)    name of the sampler, grader or weigher; and

(vii)   such other information as may be required by the office in which such application is filed. Such application shall be signed by the party and may be signed by any one or more or all of the parties interested in such dispute.

Rule - 39. When application may be rejected.

The prescribed authority with whom the application is filed may reject such application without the decision

(i)       upon request of the party referring the dispute;

(ii)      if it be found that the application was not submitted in good faith;

(iii)     for non-compliance with the rules; or

(iv)    because sufficient evidence is not available to decide the dispute.

Rule - 40. Samples to be examined and grade certificate to be issued

The sample or samples of the grain involved in the dispute shall be examined as soon as possible. Such tests shall be applied as are necessary. A grade or weight certificate shall be issued by the prescribed authority hearing the dispute showing the grade or weight assigned by it to such grain. Such grade or weight certificate shall supersede the grade or weight certificate previously issued. Copies of the new certificate shall be forwarded to the warehouseman and the parties referring the dispute.

Rule - 41. The fees and charges.

The fees payable in respect of disputes and other charges shall be on a scale to be fixed by the prescribed authority in that behalf, and shall be recovered from the complainants.

Rule - 42. No person shall prevent any party from referring a dispute to the prescribed authority.

No person licensed under the Act shall, directly or indirectly by any means, whatsoever, deter or prevent or attempt to deter or prevent any party from referring the dispute to the prescribed authority.

Rule - 43. Suspension or cancellation of licence.

The prescribed authority may, either on receiving a dispute or on his own initiative, suspend or cancel the licence of a weigher, sampler or grader for reasons to be recorded in writing.

Rule - 44. Unlicensed persons not to represent themselves as licensed.

A licensed warehouseman shall display prominently by a suitable signboard for each warehouse that the warehouse has been licensed.

Rule - 45. Inspection.

The prescribed authority shall get the licensed warehouse including its equipment, etc., examined and inspected at least [9][once in a year], and receive a report in writing thereof;

and shall give such direction, as it may deem fit, to the warehouseman. No warehouseman shall accept for storing in his warehouse goods which are contaminated or infected by worms and pests and which are likely to cause damage to other goods stored in the warehouse. If the warehouseman neglects or fails to carry out such directions the prescribed authority may, after hearing the warehouseman, cancel or suspend his licence.

Rule - 46. Information of violation of Act and Rules.

Every person licensed under the Act shall immediately furnish to the prescribed authority any information which comes to his knowledge tending to show that any of the provisions of the Act or the Rules has been violated.

Rule - 47. Offences under Act.

A warehouseman shall not

(i)       issue a warehouse receipt without actually receiving the goods;

(ii)      make false statements in the warehouse receipt;

(iii)     issue a duplicate receipt without marking on the receipt the word "Duplicate";

(iv)    issue a receipt for goods of which he is the owner and not clearly stating the fact.

Rule - 48. Publication of grant of licences, etc.

Grant of licences to warehouseman, weighers, samplers and graders as well as suspension or cancellation of licences shall be published in the Gazette. List of licensed warehouses together with the location of the warehouses as well as the list of licensed weighers, samplers or graders, shall also be published periodically in the Gazette.

Rule - 49. Taking over a warehouse.

If, on suspending or cancelling the licence of a warehouseman the prescribed authority is of the opinion that the warehouse should be taken, it may take over the warehouse and appoint a suitable person of a registered Co-operative Society to conduct the business of the warehouseman for a period to be specified in the order not exceeding four years in the aggregate. The person or persons so appointed shall get such remuneration as the prescribed authority may fix and such remuneration shall be a first charge on the income of the warehouse and on the amount of security furnished by the warehouseman.

Rule - 50. Restoring or issuing fresh licence.

On the expiration of the period specified in the order, the prescribed authority may restore the licence or issue a fresh licence, as the case may be, if it finds that no cause exists for the suspension or cancellation of the licence; but if the prescribed authority is of the opinion that no such restoration or fresh grant should be made in the name of the original warehouseman, it may issue a fresh licence in the name of a Co-operative Society, if any, is available on terms and conditions to be determined by the prescribed authority provided the original warehouseman is agreeable to the proposal, failing which the licence, if not already cancelled, shall be cancelled and the possession of the warehouse delivered to the person entitled thereto.

Rule - 51. Notice under the Act.

Every notice, order or document by or under the Act required or authorised to be sent or given to any person may be served or delivered, either personally or by registered post or left at the last known place of residence or business of the person concerned.

Rule - 52. Prescribed authority to maintain register of licences.

The prescribed authority shall maintain a register of licences issued by it showing the number, nature of the licence, the name of the licencee, the date of issue of the licence, the date of suspension or cancellation, and each entry shall be attested by the signature of the prescribed authority. A register shall be maintained in like manner for duplicates of licences issued by the prescribed authority. Any person may inspect these registers on payment of a fee of annas eight for each inspection.

Rule - 53. Repeal and saving.

The Madhya Pradesh Agricultural Warehouse Rules, 1951, and all other rules corresponding thereto in force in any region of the State of Madhya Pradesh immediately before the commencement of these rules are hereby repealed :

Provided that anything done or any action taken under any of the rules so repealed shall, unless such thing or action is inconsistent with any of the provisions of these rules, be deemed to have been done or taken under the corresponding provisions of these rules.



[1] Notification No. 4046-4623-XV, published in M.P. Rajapatra (Asadharan) dated 25-8-61, Part IV-G, p. 593.

[2] Substituted by Notification No. F. 11-14-2001-XXIX-2, dated the 10th December, 2001.

[3] Substituted by Notification No. F. 11-14-2001-XXIX-2, dated the 10th December, 2001.

[4] Substituted by Notification No. F. 11-14-2001-XXIX-2, dated the 10th December, 2001.

[5] Substituted by Ibid.

[6] Inserted by MP Govt. Co-operative Deptt. Notification No. 1222-XV-62, dated 22-3-62 published in M.P. Rajpatra dated 20-4-62, Part IV-G, p. 2-38.

[7] Inserted by MP Govt. Co-operative Deptt. Notification No. 1222-XV-62, dated 22-3-62 published in M.P. Rajpatra dated 20-4-62, Part IV-G, p. 2-38.

[8] Substituted by Notification No. F. 11-14-2001-XXIX-2, dated 10th December, 2001, Published in M.P. Rajpatra Part IV (Ga) dated 21-12-2001 page 218.

[9] Substituted by MP. Gaz., Part I, dated 7-5-1972, p. 90.