NORTH-WEST FORONTIER PROVINCE WAREHOUSES ACT, 1946. (ACT II OF 1947).

THE NORTH-WEST FRONTIER 1[PROVINCE] WAREHOUSES ACT, 1946.
ACT II OF 1947
(Received the assent of the Governor, North-West Frontier Province, on the 8th February, 1947).
An Act for the Regulation of Licensed Warehouses in North-West Frontier 1[Province].

CHAPTER – I
PRELIMINARY

Preamble.	WHEREAS it is expedient to encourage the establishment of licensed warehouses and make provision for their proper supervision and control, it is hereby enacted as follows:-
Title, extent and commencement.	1.  (i)  This Act may be called the North-West Frontier 1[Province] Warehouses Act, 1946.
	(ii)  It extends to the whole of the 2North-West Frontier 1[Province].
	(iii)   The Act shall come into force on 3[such date as shall be notified by the Provincial Government in the official Gazette].
Definitions.	2.  In this Act unless there is anything repugnant in the subject or context.

1.    “Act” wherever used in this Act unless otherwise mentioned means the North-West Frontier 1[Province] Warehouses Act, 1946.

2.    “Co-operative Society” means a society established under the Co-operative Societies Act (NO. II) of 1912.

1.     After the words “North-West Frontier” Wherever occurring the word “Province” inserted by N.W.F.P., Adaptation of Laws Order 1975 s. 2 (1). Which was earlier ornitted by W.P.L.A., Order 1964.

2.     Now to be construed as referring to the districts of Bannu, Dera Ismail Khan, Hazara, Kohat, Mardan and Peshawar by Adaptation of laws order XVI of 1975 s. (2) (1) Sch. –1.
3.     Ins. vide Notification No. 1/312-48/LD. Date 15-2-1947.

WAREHOUSE  ACT,  1946

1.    “Depositor” means a person who tenders his produce to the warehouse man for storing in his warehouse and shall include any person who lawfully holds the receipt issued by the warehouse man in respect of the goods and derives title to it by proper endorsement or transfer from the depositor or his lawful transferee.

2.    “Government” means the Provincial Government.

3.    “Prescribed” means prescribed by rules under the Act.

4.    “Prescribed Authority” means the authority empowered by Government to carry out the duties under the Act.

5.    “Receipt” means a means a warehouse receipt drawn in conformity with the rules in this behalf under this Act and issued by a warehouseman to a depositor showing that certain goods described therein have been deposited in his warehouse.

6.    “Rules” mean Rules framed by the Provincial Government.

7.    “Warehouse” means a building, structure or other protected enclosure which is used or may be used for the purpose of storing any agricultural produce or its byproducts in accordance with the provisions of the Act.

8.    “Warehouse man” means a person who carries on the business of storing produce on behalf of depositors and issues receipts for the goods so stored in his warehouse in accordance with the provisions of the Act.

CHAPTER  -  II
LICENSING  OF  WAREHOUSES

            3.  Every warehouse-man shall take out a license for the conduct of his warehouse business by making an application in writing to the prescribed authority.

            4.  The prescribed authority may grant a license to a Ware-house-man for the conduct of his business in accordance with the terms of the licence and the Act and the rules there under.

WAREHOUSE ACT, 1946.

Conditions for License.

5.  (i)  Before granting a licnense the Prescribed authority shall satisfy itself.

(a)   that the were house is suitable for proper storage of the particular produce for which a licence has been applied;

(b)   that the applicant is competent to conduct such a warehouse; and

(c)   that there is no other cause or reason for which the applicant for the license may in the opinion of the prescribed authority be deemed to be disqualified.

(ii)        The Government may by notification in the Official Gazette Prescribe or from time to time alter the conditions under which a license is granted to a the conditions under which a license is granted to a warehouseman.

Terms and Renewal of License.

6.  Every license granted under Section 5 shall be valid for the prescribed period, and may on the expiry of the prescribed period, and may on the expiry of the prescribed period be renewed by the prescribed authority on an application in writing by the warehouseman.

Suspension and Cancellation of License.

7.  (i)  Every License issued under Section 5 or renewed under Section 6 shall be liable to be suspended, cancelled or revoked either temporarily or permanently by the prescribed authority for valid reasons stated in writing and in particular If the warehouseman-

(a)        has been adjudicated an insolvent or bankrupt,

(b)        has parted in whole or in part with his control over the licensed warehouse,

(c)        has ceased to conduct  such licensed warehouse,

(d)        has made exorbitant or unreasonable charges for the services rendered by him,

(e)        has in any other manner become incompetent to conduct the business of            warehousing, or.

(f)         has violated any of the terms of the license or of the provisions of the Act

(ii) The Government may by notification in the official gazette prescribed any
other conditions under which a license may be suspended or revoked.

WAREHOUSE ACT, 1946.

(iii)       Any person aggrieved from the order passed under clause 7 (1) shall be entitled to prefer an appeal to the provincial Government or to such authority as the Provincial Government may appoint in this behalf 1[and the Provincial Government or the authority so appointed, after giving the appellant an opportunity of being heard, pass such order as it may deem appropriate].

8.  (i)  Before suspending, canceling or revoking a license the prescribed authority shall give notice to the warehouseman specifying the charges against him and asking him to show cause why such action should not be taken against him.

(ii)        After considering the explanation, if offered, by the warehouseman, the prescribed authority may pass such orders as it deems fit.
(iii)       The prescribed authority may suspend the license of a warehouseman pending the decision of the enquiry mentioned in the previous two sub-sections.

9.   When a license expires or is suspended, cancelled or revoked, the warehouseman shall cease to work as such and shall return the license to the prescribed authority.	Return of license.
10.  Where a license granted to a warehouseman is lost or destroyed, the prescribed authority shall issue a duplicate license on an application in writing.	Duplicates.
11.  No person shall without a license carry on the business of a warehouseman or hold himself out as a licensed warehouseman.	Prohibition of carrying on Business as a Warehouseman with out a license.

CHAPTER – III.
DUTIES OF WAREHOUSE-MAN.

12.  Every warehouseman shall take such care of the goods stored in his custody as a reasonably careful owner would take of his own goods under similar circumstances and conditions.	Reasonable care of the Product Stored.
13.  (i)  Every warehouseman shall keep his warehouse clean and in a sanitary condition; and take all necessary precautions against rats and other pests which are likely to cause damage or injury to any of the goods stored in the warehouse.	Precautions against rates, pests and infected goods.

(ii)  No warehouseman shall accept for storing in his war-chouse goods which are contaminated or infected by worms and pests, and which are likely to cause damage to other goods stored in the warehouse.

1.             Inserted by N.W.F.P. No. II of 1985.

WAREHOUSE ACT, 1946.

14. Every warehouseman shall exercise such care to keep in his warehouse the goods of different depositors separate from each other so as to permit at all times the identification of the ownership and quality of goods deposited and to facilitate easy delivery of such goods:

Provided that where standardized and graded goods are stored in warehouse, subject to any agreement between the ware­houseman and a depositor, there may be pooling of the same variety of produce belonging to several depositors and each de­positor will be entitled only to his portion of the produce accord­ing to weight or quantity as the case may be as shown in his receipt.

15. Whenever goods stored in a warehouse lost weight by •r shrinkage or dryage, or gain weight by absorption of moisture or deteriorate from causes beyond the control of the ware­houseman, he shall give a notice by registered post of such deterioration to the depositor asking him to take delivery of the goods immediately after surrendering the receipt duly discharged and paying the warehouseman his charges. If the depositor-does not comply with the notice within a reasonable time the warehouseman cause such goods to be removed from his ware­house and sold by public auction at the cost and risk of the de­positor.

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

Provided that the loss of weight by dryage and  shrinkage or its gain by   on   absorption  of  moisture   shall be  accounted  for when   agricultural produce is delivered wholly or in   part   under the provisions of this clause or when disposed of as  provided   in  clause 15.

17. No warehouseman   shall in the conduct of his business show any discrimination between persons desiring to avail   them- • selves of the facilities of his warehouse so as to prejudicially affect their interests:

WAREHOUSE ACT,  1946.
Provided that the Provincial Government shall have power to issue instructions from time to time for preference to be given to   the   Co-operative    Societies  in  the    'North-West   Frontier ^[Province] to store their goods in the warehouses at confessional rates to be fixed by the Government.

18. No Warehouseman shall deal in or lend money on goods which are deposited in any warehouse either on his own account or that of others.	Warehouseman not to lend against the products in his warehouse.
19. A Warehouse man shall issue a receipt in the prescribed form containing full particulars in respect of the products stored in his warehouse by each depositor.	Issue of receipt.
20.    A receipt issued by a warehouseman shall unless specified otherwise, be transferable by  endorsement  and shall entitle its lawful holder to receive the products specified in it on  the same terms and conditions on which the person who originally lodged the products would have been entitled to receive them.	Receipt transferable by endorsement.
21. In the case of a receipt lost or destroyed a warehouseman shall issue a duplicate receipt to the depositor on application in writing.	Duplicate receipt.

CHAPTER—IV.
INSPECTION AND CLASSIFICATION OF PRODUCTS

22. The prescribed authority may inspect or examine a ware­house licensed under the Act, its machinery, equipment, products stored, the account books and records at any time during business hours for the purpose of satisfying itself that the requirements of the Act and the rules are being complied with.

Inspection.

23. (i) The prescribed authority may issue licenses to qualified and competent persons entitling them to act as weighers, samplers and graders of any products stored or to be stored in a ware­house and to issue certificates as to wieght quality or grade of the products which they have examined. The certificate so issued shall be binding on the warehouseman and the depositor as to weight, quality or grade of the products stored in the warehouse.

Licensed weighters and garders.

(ii) The produce stored in the warehouse may be graded and the  warehouseman shall provide facilities for   weighing  and grading.
24. Every licence granted to sampler, weigher or grader may be suspended or revoked by the prescribed authority according to rules framed by the Government:

1.       Now to be construed as referring to the districts of Barmu,Dera Tsmail Khan, Hazara Kohat, Mardan and Peshawar :vide W P." Act, XVI of 1957 s. 3 (1), Sch.—I

2.       The word "Province" inserted by N.-W. F. P.,  Adaptation of laws Order, 1975, s. 2 (1), read with schedule.   Which was  earlier omitted by W. P. L. A., Order, 1964.
WAREHOUSE ACT, 1946.

1[Provided  that no licenses shall be suspended or  revoked without giving the  person concerned   an  opportunity  of being

Return of license.

25. Whenever a license granted to a sampler, weigher or grader expires, or is suspended or revoked, he shall return it to the prescribed authority.

Prohibition of un-licensed weighers, graders, etc.

26. No person who is not licensed shall act or hold him­self out as a licensed weigher, sampler, or grader.

CHAPTER    V.
MISCELLANEOUS.

Settlement of disputes.

27. In the case of dispute about the action of weighers, samplers and graders, the matter shall be referred to the Provin­cial Government or to such authority as may be appointed by that Government in this behalf whose decision shall be final.

Penalty.

28. Any person who intentionally infringes any of the provisions of the Act or the rules shall on conviction by a Magis­trate be liable to imprisonment of either description for a period not exceeding one year or with fine or with both. Notwithstand­ing anything contained in the Code of Criminal Procedure, an offence under this Act shall be cognizable and triable by a Magistrate of the First Class.

Rules.

29. (i) The Government may by previous notification in the official gazette prescribe rules for carrying out the purposes of the Act.

(ii) In particular and without prejudice to the generality of the fore-going power, such rules may provide for all or any of the following matters, namely:—

(a)   the authority empowered to carry out the duties under the Act;

(b)   the form of application for the grant of license Lo a warehouseman., period and conditions of license, its renewal, conditions for the issue of a duplicate license:

(c)   the form of receipt to be issued by a warehouseman and the particular;; to be specified therein and the conditions for the issue of a duplicate receipt;

1.             Insert by N.W.F.P Act No. II of 1985.

WAREHOUSE ACT, 1946.

(d)  the nature of accounts, books and records, to  be maintained by a  warehouseman;

(e)   the manner of giving notice under the Act;

(f)  the manner of conducting a public auction for the ,   sale of goods deteriorating in warehouse and account­ing for the proceeds of such sales;

(g)   the qualifications for grant of licenses to weighers, samplers, and graders, the conditions and period of their licenses, form of certificates to be issued by them, renewal of their licenses, the conditions under which the licenses may be suspended or revoked and the conditions for issue of duplicate licenses;

(h)  the amount of fees payable for the grant of licenses under the Act and their renewal and for the issue of duplicate licenses;

(i)    the standard weight, measures and gradations of products to be used in warehouse under the Act;

(j)  the publication of the grant, suspension or revocation of licenses and the list of licensed warehouse;

(k)  generally for the efficient conduct of the business of a warehouseman;

(1)  the keeping of the warehouse in clean and sanitary conditions;

(m) the taking out of policies of insurance by a warehouse­man in respect of products in his warehouse against loss or damage by fire, floods, theft, riot or civil commotions;

(n)  the conditions under which a duplicate receipt may be issued by a warehouseman; and

(o)   to regulate the charges to be received by the ware­houseman for his services in keeping the ware­house in proper condition, receiving the produce, storing it and doing all the incidental work involved.