The Warehouse Receipts Act, 2005

This provision gives the Act its short title and says it starts on a date the Minister appoints by Gazette notice.

AI-assisted research synopsis — verify against the official legal text below.

Jurisdiction: Tanzania
Instrument: Act or statute
Citation: The Warehouse Receipts Act, 2005
Version: Undated source snapshot
Language: en
Official source: View official record ↗

accounts and records agricultural commodities allowances alteration annual statements appeals appointment of executives appointments board decision-making board duties board finances board governance board management board meetings board proceedings bond requirements bonding budgeting cargo/commodity insurance charges and expenses charges and fees commercial liability commodity handling commodity storage +96 more

Publicly available, excluded from search-engine indexing

This page remains available for direct access and API use, but this release emits noindex,follow for the following reasons:

The record does not meet this release's canonical indexing criteria. (market-indexing-disabled)
The record does not meet this release's canonical indexing criteria. (emergency-noindex)

Statute overview

About this statute

This provision gives the Act its short title and says it starts on a date the Minister appoints by Gazette notice. This section says the Act applies in Mainland Tanzania to all agricultural commodities and can be extended to other goods by the Minister through a Gazette order. This section defines key terms used in the Act, including Board, depositor, holder, warehouse operator, warehouse receipt, and related concepts. The Tanzania Warehouse Licensing Board is established as a body corporate and has powers to sue and be sued, borrow money, and deal with property. The Board may license warehouses, warehouse operators, and warehouse inspectors, approve negotiable warehouse receipts books, and carry out other functions given by the Act or the Minister.

Read the provisions Ask with citations

Search within this statute

Search all stored provisions in this version.

Legal text

Provisions of The Warehouse Receipts Act, 2005

Showing 86 of 86

1
2. Application
Verify source ↗

AI-assisted research summary: This provision gives the Act its short title and says it starts on a date the Minister appoints by Gazette notice.

1. This Act may be cited as the Warehouse Receipts Act, 2005 and shall come into operation on such a date as the Minister may, by notice published in the Gazette, appoint.
2
Application
Verify source ↗

AI-assisted research summary: This section says the Act applies in Mainland Tanzania to all agricultural commodities and can be extended to other goods by the Minister through a Gazette order.

2. This Act shall apply to Mainland Tanzania in respect of all agricultural commodities and to such other goods as the Minister may declare by order published in the Gazette.
3
Interpretation
Verify source ↗

AI-assisted research summary: This section defines key terms used in the Act, including Board, depositor, holder, warehouse operator, warehouse receipt, and related concepts.

3. In this Act, unless the context requires othervvise- “Act” means die Warehouse Receipts Act, 2005; “Board” means the Tanzania Warehouse Licensing Board established under section 4 of the Act; Short title and com mence ment Applica tion Interpre tation 517 No. 10 Warehouse Receipts 2005 “commingle” means the binning and storage of commodities by class, under circumstances other than identity preserved; “conditioning” means, but not limited to, the drying or cleaning of commodities; “depositor'1 means any person who deposits a commodity in a warehouse for storage, handling, or shipment, or who is the owner or legal holder of an outstanding warehouse receipt, or who is lawfully entitled to possession of the commodity; “failure” with regards to warehousing receipt; means- (a) inability of the warehouse operator to cover the storage obligations; (b) public declaration of insolvency; (c) revocation of a license and the leaving of an outstanding obligation to a depositor; (d) failure to redeliver any commodity to a depositor in the ordinary course of business and where a bona fide dispute does not exist between the warehouse operator and the depositor; (e) failure to make application for license renewal within sixty days after the annual license renewal date; or (f) a denial of the application for a license renewal; “delivery” means voluntary transfer of possession from one person to another; “fungible goods” means goods of which any unit is, from its nature or by mercantile custom, treated as equivalent of any other unit; “goods” for the purposes of this Act includes agricultural commodities; “holder” means a person who is in possession of a warehouse receipt, whether negotiable or non-negotiable, and who has proprietary right therein; “identity preserved” means the handling of a commodity in such a manner that guarantees the return of the actual quantity aud qualu ; of the commodity to the depositor; “license” means a license issued under this Act and includes any renewals and amendments thereof except where the context requires otherwise; “licensed warehouse” means any warehouse for whic/i the Board, subject to other terms and requirements of iiic Act, lias issued a license; “Minister ’ means, the Minister for the time being responsible for marketing of agricultural commodities; 518 Warehouse Receipts 2005 "oider” moans, an order by endorsement on the warehouse receipt; ‘'person" means, any individual, corporation, two or more persons having 'i joint or common in;crest, or other legal or commercial entity; ‘‘prescribe" means prescribe in tne regulations; “revocation” means the permanent remova. of a warehouse operator's license following a hearing on violations of the Act; “shortage” means that a warehouse operator does not have a sufficient amount of commodities by kind, class and quality, to cover his outstanding obligations for that commodity; “station” means a warehouse located not more than three kilometres from the central office of ti * warehouse, for which a warehouse license may be issued listing two or more stations on the same license; however, a fee shall be charged and collected for each station; “suspension” means the temporary removal of a license actuated by any action or measure taken pursuant to the provisions of this Act; “warehouse” means any building, structure or other protected enclosure approved by the Board to be used or useable, for the storage or conditioning of commodities or buildings used in relation thereof or including operation of the warehouse; “warehouse operator” means any person engaged in the business of operating a warehouse for receiving, storing, shipping or handling of commodities for compensation and includes the agent or employee the scope o.' whose actual or apparent authority renders such person to exercise rights or become liable under the Act; “warehouse receipt” means a receipt issued by a warehouse operator in respect of stc rage, handling or shipment of the commodity. PART II E s t a b l is h m e n t o f thf. W a r e h o u s e L ic e n s in g B o a r d

Part

PART II

4
5
Verify source ↗

AI-assisted research summary: The Tanzania Warehouse Licensing Board is established as a body corporate and has powers to sue and be sued, borrow money, and deal with property.

4.-(l) There is established a Board to be known as the Tanzania Warehouse Licensing Board. (2) The Board shall be a body coiporate, with perpetual succession and common seal, and in its corporate name: (a) be cap \ble of suing and being sued : 519 Establish ment o f i he Board No. 10 Warehouse Receipts 2005 (b) subject to this Act, may borrow money, acquire and dispose of property; and (c) do all such things as a body corporate may lawfully do. (3) The composition, procedures at the meeting and tenure of office of members of the Board shall be as stipulated in the Schedule to this Act. Functions o f the Board
5
6
Verify source ↗

AI-assisted research summary: The Board may license warehouses, warehouse operators, and warehouse inspectors, approve negotiable warehouse receipts books, and carry out other functions given by the Act or the Minister.

5. The functions of the Board shall be to: (a) license warehouses; (b) license warehouse operators; (c) license warehouse inspectors; (d) approve negotiable warehouse receipts books; and (e) carry out or perform such other functions as are conferred or imposed on it by this Act; (f) perform any other function as may be assigned or directed by the Minister. Powers o f the Board
6
7. Managing Director
Verify source ↗

AI-assisted research summary: The Board has power to investigate, inspect, require reports, suspend or revoke licenses, and delegate most of its functions to the Managing Director or other staff.

6.-(l) For the purpose of carrying out its functions, the Board shall have power to- (a) investigate the receiving, storing, conditioning, shipping and handling of commodities and complaints with respect including the inspection of any warehouse, thereto, commodities stored and all property and records pertaining thereto; (b) determine whether the warehouses for which licences are applied for or have been issued, are suitable for the receiving, storage, conditioning, shipping, and handling of the commodity stored or expected to be received, stored, conditioned, shipped, or handled; (c) require such reports as it may deem necessary in the administration of this Act; (d) require licensed warehouse operators terminate receiving, storage, conditioning, shipping, and handling agreements upon revocation of their license; to 520 No. 10 Warehouse Receipts 2005 (e) administer oaths and issue summons to compel attendance and testimony of witnesses and/or the production of records in connection with any investigation or hearing; (f) prescribe all forms, within the limitations set forth in this Act, including the forms of receipts and applications for licenses; (g) propose to the Minister all necessary rules and regulations for proper carrying out the provisions of the Act; (h) investigate according certification of goods; the storage, warehousing classification to grades and otherwise, weighing, and (i) at any time, with or without application, inspect or cause to be inspected all warehouses licensed under this Act; (j) classify warehouses licensed or applying for a licence in accordance with their ownership, location, surroundings, capacity, conditions, and other qualities, and as to the kinds of licenses issued or to be issued for them; (k) prescribe, within the limitations of the Act, the duties of warehouse operators conducting warehouses licensed with respect to their care of and responsibility for the goods stored; (1) provide guidelines and standards for the suitability for the proper storage of the goods for which a license is applied; (m) suspend or revoke any license issued to any warehouse operator conducting a licensed warehouse for any contravention of or failure to comply with any provision of regulations and other legislative instruments the Act or made under the Act; (n) chaige, assess and collect fee for every examination or inspection of a warehouse and the issuance of licences; (o) examine all books, records, papers, and accounts of warehouse operators licensed under this Act and of the warehouse operators conducting the warehousing business relating to them; 521 No. 10 Warehouse Receipts 2005 ip) retain ie charged fee for the purposes o f improving the services provided mder this Act; (q) borrow for the purposes o f envying out :1s functions under this Act ■:) approve negotiable warehouse receipt books to be used under this Act; and (s) carry out any other activity incidental or conducivc to the earn ing out of its functions under section 5 o f this Act. (2) The Board may delegate to the Managing Director, Cfacer or any other employee of the Board, performance of and function or the exercise of any of it:; powers except for powers with regards to approval of budget and approval o f the balance sheet, audited accounts and statement of account. Managing Director
7
Managing Director
Verify source ↗

AI-assisted research summary: The Minister appoints the Board’s Managing Director from three names recommended by the Board. The Managing Director also serves as the Board’s chief executive and secretary and must handle day-to-day operations, management, reporting, and certain record-keeping tasks.

7.- (1) There snail be a Managing Director of the Board who shall be appointed by the Minister from among three names recommended by the Board. (2) The Managing Director shall be the Chief Executive Officer of the Board and shall be responsible for the day-to-day operations of the Board. (3) Subject to the provisions of this Act, die Managing Director shall be responsible for the management of the funds, propen) and business of the Board and the administration, organization and co ntri; of the staff of the Board for (4) The Managing Director shall be a Secretary to the Board. (5) .lie Managing Director shall, from time to time, in writing, keep the Board informed of the progress o f the business of the Board. (6) hi addition x> any other functions that may be conferre 1 upon him by the Board, the Secretary shall- (a) keep the custody of the seal of the Board; (b) take minutes of die meetings of the '"‘oard; and 522 No. 10 Warehouse Receipts 2095 (c) keep records of aii activities of the Board.
8
Other Staff
Verify source ↗

AI-assisted research summary: The Board may hire staff, set their pay and retirement benefits, and delegate employment powers to the Managing Director.

8.-(I) The Board may employ such number o f employees and su -U other officer- as it may determine to be necessary for tfie effick t performance of the functions and the exercise of the powers of the Board. Otlwr staff (2) The Board may, on the terms and conditions as it may deems fit, fix remuneration, grant pension, gratuities or other benefits on retirement or termination of services of the officers and employees of the Board. (3) The Beard may delegate any of its powers of employment under this section to the Managing Director, subject to such terms and conditions as the Board may determine. PART ill F in a n c ia l P r o v is io n s

Part

PART ill

9
10. Duty of the Board to operate on prudential principles
Verify source ↗

AI-assisted research summary: The Board’s funds come from parliamentary appropriations, warehouse inspection and supervision fees, borrowed money, income from approving warehouse receipt books, and other money given or made available for its functions.

9. The fluids of the Board shall consist of- S o u rces o f funds (a) such si' ns of money as may be appropriated by Parliament; (b) all moneys received by the Board from inspecting and supervising warehouses; (c) all moneys borrowed by the Board; (d) all moneys derived from approving warehouse receipt books; (e) any other moneys received by or donated or made available to the Board for the purpose of performing its functions.
10
Duty of the Board to operate on prudential principles
Verify source ↗

AI-assisted research summary: The Board must carry out its functions in line with prudential financial principles.

10. The Board shall perform its functions in accordance with prudential financial principles. Duty o f the Board to operate on pru dential princi ples 523 No. 10 Estimates Warehouse Receipts 2005
11
Estimates
Verify source ↗

AI-assisted research summary: The Managing Director must prepare and submit annual income and expenditure estimates to the Board at least three months before the end of each financial year, and may submit supplementary estimates before year-end.

11.-(l) The Managing Director shall, not later than three months before the end of each financial year, prepare and submit to the Board for its approval, estimates of income and expenditure of the Board for the next following financial year and may, at any time before the end of each financial year, prepare and submit to the Board for approval any estimates supplementary to the estimates of the current year. (2) No expenditure shall be made out of the funds of the Board unless that expenditure is part of the expenditure approved by the Board under the estimates for the financial year in which that expenditure is to be made or supplementary estimates. Accounts
12
Section 12
Verify source ↗

AI-assisted research summary: The Board must keep proper accounts and records, properly account for receipts and payments, maintain control over property and liabilities, and prepare an annual statement of accounts within three months after the financial year ends.

12.- (1) The Board shall ensure that the management keeps proper accounts and records of its transactions and affairs and shall ensure that all moneys received are properly accounted for, all payments of its moneys are correctly made and properly authorized and that adequate control is maintained over its property and over the incurring of liabilities by the Board. (2) The Board shall cause to be prepared in respect of each financial year, and not later than three months after the close of the financial year, a statement of accounts which shall include a report on the performance of the functions of the Board during that financial year; comprising of- (a) a balance sheet and a statement of income and expenditure of the Board in respect of that financial year; and (b) any other information in respect of the financial affairs of the Board as the Minister may in writing, require. Audit
13
(1) The accounts of the Board shall, in respect of each
Verify source ↗

AI-assisted research summary: The Board’s accounts must be audited each financial year, and the audited accounts must be passed to the Board and Minister as set out here.

13.-(1) The accounts of the Board shall, in respect of each financial year, be audited by the Controller and'Auditor-General or by an auditor appointed by the Controller and Auditor-General. (2) Within six months after the close of each financial year, the accounts including the balance sheet o f the Board in respect of that financial year shall be audited and the balance sheet be placed before the Board for approval. V 524 No. 10 Warehouse Receipts 2005 (3) The Controller and Auditor-General and any auditor appointed by the Controller and Auditor-General shall access aJJ books of accounts, vouchers and other financial records of the Board and is entitled to have any information and explanations required in relation thereof. (4) The Controller and Auditor-General shall, within two months after receipt of the statement of accounts under subsection (2) of this section, audit the accounts and deliver to the Board a copy of the audited accounts together with a statement on matters which in his opinion should be brought to the attention of the Minister. (5) The Board, shall as soon as possible upon receiving report of the Controller and Auditor General, deliver to the Minister a copy of the audited accounts together with the auditor's report.
14
Financial year
Verify source ↗

AI-assisted research summary: The Board’s financial year runs from 1 July to 30 June, and its first financial year may be shorter if the Board is newly established.

14.-(1) The financial year of the Board shall be the period of twelve months beginning from the 1" day of July and ending on the 30th day of June in the year following. Financial year (2) Without prejudice to subsection (1) the first financial year of the Board may be a shorter period commencing on the date on which the Board is established and ending with the next following 30th day of June. PART IV L ic e n s in g P r o c e d u r e

Part

PART IV

15
Conditions for operating under the Act
Verify source ↗

AI-assisted research summary: The Board may issue a warehouse license on application, and multiple warehouses making up a station may be licensed under one licence.

15.-(1) The Board may, upon application, issue a warehouse license for the conduct of warehouse business. (2) Two or more warehouses which constitute a station may be licensed under a single licence. (3) All warehouses licensed under a single licence shall be treated as a single warehouse for all the purposes of this Act, including issuance of receipts, and delivery of commodities. Condi tions for opera ting a ware house under the Act
16
Licensing Procedures
Verify source ↗

AI-assisted research summary: People who need a warehousing licence must apply to the Board; the Board must inspect the warehouse before granting the licence; and the applicant must pay the Board’s prescribed fee once licensed.

16.-(1) Any person who requires a licence to conduct warehousing operations or business shall apply to the Board in the manner prescribed by regulations. Licensi ng pro cedure 525 Warehouse Receipts 2Cf03 (2) The Board shall, before granting a warehouse licence, either by itself or any other authorized person, inspect any warehouse in respect o f which a license is applied, to determine whether the warehouse is suitable for the storage, of the particular goods for which xhe license is applied. (3) The Board shall, upon being satisfied that a warehouse is suitable for the storage of the goods in question, grant a warehouse license to the applicant. (4) The applicant shall, upon b cin j granted a licence pay a fee prescribed by the Board.
17
Validity of licence
Verify source ↗

AI-assisted research summary: The license is valid for 12 months and can be renewed subject to this Act.

17. The validity of the license shall be twelve months and shall be renewable subject to the provisions of this Act
18
Conditions for granting licence
Verify source ↗

AI-assisted research summary: The Board may grant a warehouse licence only if the applicant meets all required conditions.

18.-(i) The Board shall not grant any license, unless the applicant has satisfied all the conditions prescribed by the Act. (2) Before the B .ird giants a license to any person to operate a warehouse it shall satisfy itself of tht following: (a) that the applicant is in possession of a Warehouse whether as a tenant or owner; (b) that upon inspection the warehouse is suitable for Warehousing o f respective goods in accordance with the regulations made under this Act; (c) that the applicant’s Director or Manager is of good business and management records and has not been involved in any riminal proceedings involving business and dishonesty or impropriety; (d) that the warehouse and the goods which are or may be kept therein are fully insured in respect of fire, theft and burglary or any other damage; and (e) that die applicant is financially capable of conducting the business o f warehousing.
19
Applicant to execute bond
Verify source ↗

AI-assisted research summary: Warehouse operators applying for a licence must file a bond with the Board, and the Board can demand an additional bond if the first bond is insufficient.

19.-(1) Each warehouse operator applying for a license under this Act shall, execute and file with the Board a bond sufficient to secure the faithful performance by him of the obligations as a warehouse 526 Validity v'i licence Condi tions for grand ng a lieensc Appli cant to execute bond Action on bond No. 10 Warehouse Receipts 2MJ5 operator under this Act and regulations and other statutory i «stru- ments made under this Act. (2) Where the Board determines that a previously approved bond is, or for cause has become insufficient, it may require an addition,;! bond or bonds to be given by the warehouse operator concerned, conforming with the requirements of this section, and, unless die additional bond is given within the time fixed by a written demand made by the Board, the license of the warehouse operator may be suspended or revoked by the Board.
20
Action bond by a person injured
Verify source ↗

AI-assisted research summary: An injured person may sue on the bond in their own name to recover damages caused by breach of the bonded obligation.

20. Any person injure . by reason of the breach o f any obligation for which a bond is give.i, shall be entitled to sue on the bond in his or her own name in any court, not lower than the Court of a Resident Magistrate to recover the damages for injury sustained because of the breach. Action bond bv person injured
21
Designation as a licensed and bonded warehouse
Verify source ↗

AI-assisted research summary: The Board may designate a warehouse as licensed and bonded after a bond has been executed.

21.-(1) Upon execution of a bond, the Board may designate the warehouse in respect of which a bond was executed as both licensed and bonded. (2) Notwithstanding anything in this Act, no warehouse shall be designated as licensed and bonded under this Act and no name or description conveying the impression that any of such warehouse is licensed and bonded, shall be used- (a) until a licence has been issued and a bond has been filed and approved by the Board; or (b) unless the licence issued under this Act remains unsuspended and not revoked. Designa tion as a licensed and bonded ware house
22
Casualty insurance recovery of loss
Verify source ↗

AI-assisted research summary: Warehouse license applicants must file insurance proof, and warehouse operators must settle covered losses with depositors, including within 10 days after settling with the insurer.

22.-(l) Each applicant for a license 10 operate a warehouse in accordance with this Act shall, as a condition to the granting, file or cause to be filed with the Board a certificate o f insurance evidencing effective policy of insurance issued by an insurance company authorized to do business in Tanzania in the name of the applicant insuring all commodities which are or may be in such warehouse for their full market value for loss by fire, theft, bulgaraiy, arson or any other risk which the Board may direct to be included under this category. Casualty insur ance; recovery for loss 527 t No. 10 Warehouse Receipts 2005 (2) In the case of outbreak of fire, bulgaraly, arson or any other risk categorized under sub-section (1) destroys or damages any commodities in any licensed warehouse, the warehouse operator shall, upon demand by the depositor, and upon being presented with the receipt or other evidence of ownership and after deducting the warehouse operators charges and advances at the market value of the commodity, make the settlement. (3) The warehouse operator shall make complete settlement to all depositors having commodities stored in any warehouse, damaged or destroyed, within ten days' after settlement with the insurance company. (4) Failure by the warehouse operator to make settlement shall be the grounds for suspension or revocation of the warehouse operator’s license. Addi tional insur ance
23
Additional insurance
Verify source ↗

AI-assisted research summary: If the Board finds the existing insurance is insufficient, it must require the warehouse operator to provide additional insurance. The warehouse operator must also keep the insurance policy sufficient and cover any shortfall not settled by insurance.

23.-( 1) Where the Board shall determine that a previously approved insurance is insufficient, it shall require additional insurance to be given by the warehouse operator, conforming to the requirements of this Act. (2) Without prejudice to subsection (1), the warehouse operator shall be required to upgrade the insurance policy with a view to maintain sufficient policy all the time arising from settlement of loss through insurance, the warehouse operator shall meet the amount that falls short of the value of the loss unabled to be settled through insurance.
24
Cancellation of insurance, suspension of license
Verify source ↗

AI-assisted research summary: A licensed warehouse operator cannot cancel, suspend, or substitute approved insurance without the Board’s prior written approval. The insurance company may cancel required insurance only after 30 days’ notice to the Board, and it must copy the warehouse operator. If the warehouse operator does not provide new proof of insurance within 15 days after the Board gets the cancellation notice, the warehouse license may be suspended or revoked.

24.-(l) A licensed warehouse operator shall not cancel or suspend an approved insurance policy or arrange for substitution of insurance policy without prior written approval of the Board. (2) The insurance company may cancel insurance required by this Act only after the expiration of thirty days period from the date of mailing, by registered or certified mail, of the notice to the Board of the intention to cancel or suspend the insurance policy. (3) The insurance company shall, at the time of giving notice to the Board send a copy of the notice to the warehouse operator. Cance llation o f insur ance or suspend- sion and revoca tion o f licence 528 No. 10 Warehouse Receipts 2005 (4) Notwithstanding any other provision of this Act, failure by the warehouse operator to provide new evidence of insurance within fifteen days after the Board receives the notice of cancellation shall cause trie warehouse license to be suspended or revoked.
25
Schedule of charges
Verify source ↗

AI-assisted research summary: Warehouse licence applicants must submit the proposed commodities and the operator’s charge schedule to the Board, and licensed operators cannot change charges without filing notice and reasons and getting Board approval.

25.-(l) Every applicant for a licence to operate a warehouse under this Act shall, as a condition to the granting, file or cause to be filed with the Board the commodities from among the notified list proposed to be warehoused and a copy of the schedule of charges as a warehouse operator. Schedule o f charges (2) A licensed warehouse operator shall not make a change in the charges unless a notice of such change and the reasons thereof have been filed with and the Board approves the change. (3) The Board shall refuse to approve any change, which it finds to be unjust, unreasonable, or discriminatory. (4) Where the Board receives a proposal for changes of charges it shall afford opportunity to the warehouse operator to substantiate reasons for changes. (5) Any person aggrieved by the decision of the Board, may appeal to the Minister.

Part

Schedule

26
Revocation, suspension and denial of license
Verify source ↗

AI-assisted research summary: The Board may revoke, suspend, or deny a license after a hearing opportunity if it finds a violation or failure to comply with the Act. A person aggrieved by suspension or revocation may appeal to the Minister.

26.-(l) The Board may revoke, suspend, or deny a license in any case, in which it determines, after providing opportunity for a hearing, to the warehouse operator that there has been violation of or failure to comply with the requirements of this Act. (2) Any person aggrieved by the suspension or revocation of a license by the Board, may appeal to the Minister.
27
Operation after revocation, suspension, or expiration of Licenses
Verify source ↗

AI-assisted research summary: When a warehouse license is revoked, suspended, or expired, the warehouse operator must stop the covered handling arrangements, may deliver commodities already received under Board supervision, and may operate during suspension only under Board supervision while not receiving new commodities.

27.-(l) Where a license is revoked, suspended or has expired, the warehouse operator shall terminate, in the manner prescribed by the Board, all arrangements covering the receiving, storing, shipping, conditioning, or handling o f commodities in the warehouse stations covered by such license, but shall be permitted, under direction or supervision of the Board to deliver commodities previously received. 529 Revoca tion, sus pension, and denial o f licenses Opera tion after revoca tion, sus pen sion,or expira tion o f licenses Ho. aO _ ___ _____Warehouse Receipts 2005 (2) During any suspension of a license, the warehouse operator may. under direction or supervision of the Board, operate the warehouse, station, but shaft not receive any com m odities for storage, eondjitioaittg, shipping, or handling during the term of such suspension.
2S
( i ) The Board may appoint or otherwise authorise persons or a
Verify source ↗

AI-assisted research summary: The Board may appoint or authorise persons to be warehouse inspectors, and the Minister must set the qualifications for an inspector in the regulations.

2S.-( i ) The Board may appoint or otherwise authorise persons or a group o f persons to be warehouse inspectors. (2) The Minister shall prescribe in ihe ret*, lations qualifications of a person to be appointed as an inspector.
29
Functions of inspectors
Verify source ↗

AI-assisted research summary: Inspectors appointed under the Act may inspect warehouses, premises, and goods kept to check whether the warehouse operator complies with the Act, regulations, and the issued license.

29. The inspectors appointed pursuant to the provisions of this Act shal nave power to inspect warehouses premises and goods kept to ensure that the warehouse operator observes the conditions in this Act, regulations and those appearing on the issued license.
30
Power of entry, inspection, etc
Verify source ↗

AI-assisted research summary: A warehouse inspector, or another person authorized in writing, may enter warehouse premises during reasonable daytime hours to check compliance with the Act.

30. A warehouse inspector or any other person duly authorized in writing in that behalf may, at any reasonable time d u rin g the day, enter a warehouse premises for the purposes of ensuring chat the provisions of this Act, are observed. PART V W a r e h o u s e R e c e ip t s 3L A warehouse receipt shall only be issued by a warehouse operator duly authorized and licensed to do so under the provisions oi this Act.

Part

PART V

32
Warehouse receipt as evidence of proprietary' rights
Verify source ↗

AI-assisted research summary: A warehouse receipt issued under the Act is proof that the holder has proprietary rights in the goods.

32.-( 1) Subject to the provisions of this Act, any warehouse receipt drawn and issued by a warehouse operator in accordance with the provisions of sections 5 and 31 shall be a proof of the holder having proprietary rights in the goods same as of that person in respect of which such warehouse reccipt was issued. (2) In relation to warehouse receipts a person acquires proprietary rights in the goods if that person is entitled to the ownership of the goods: 530 . 01. V* 10 appoint idSfe- efc*s Functions otMnspc- otors Power o f entry, inspe ction, etc. Who may issue a ware house receipt Ware house receipt as evi dence o f propri etary rights No. 10 Warehouse Receipts : (a) iii return for a biudinjg commitment to extend cfcdit or for extension of an immediately aviaiafoie credit, b l i t h e r o f sag* drawn; (b) as security for or m totsi or pariid s*ii itactio:i o f a pre-existing claim; (c) by accepting delivery under a pre-oxi^ j c o n sist for purchase; or (d) in reUvm for any consideration sufficient Lo support a pre-existing eomraet.
33
Contents of the warehouse receipt
Verify source ↗

AI-assisted research summary: A warehouse receipt must include specified information, and a warehouse operator can add other terms if they do not conflict with the Act or impair delivery and care obligations.

33.-(i) The warehouse receipt skill conuun the follov/iag Cm.te^is information and terms: (a) the location > ? the warehouse where goods are stored; ojr’fhe vsrat®- to&iss recoipt (b) tlie date of issue of the receipt; (c) the serial number of the receipt; (d) a statement whether the goods rece; id will be delivered to the bearer , to a specified person or that specified person's order; (e) a short description of the goods or o f the packages containing them; (f) the registered signature of the authorized warehouse operator; (g) the nature and fact of ownership of the goods, whether solely or jointly or commonly owned with others; and (h) a statement as to the amount of advances made and of liabilities incurred. (2) A warehouse operator shall be liable to the person injured thereby, for damages cau; ed by the omission of any such term required to be included in the warehouse receipt under this Act. (3) A warehouse operator may insert in a receipt any other terms and conditions which are not contrary to the provisions o f this Act and which do not impair obligations of delivery or duty of care. 531 No. 10 Warehouse Receipts 2005 (4) Any provision appearing in a warehouse receipt, purporting to contain any condition which is contrary to this Act, shall not be capable of enforcement by the court.
34
Negotiable warehouse receipt
Verify source ↗

AI-assisted research summary: A warehouse receipt is negotiable if it says the goods will be delivered to the named person or that person’s order; words cannot be added to make it non-negotiable; and the Minister may make regulations on negotiation procedure and limits.

34.-(l) A warehouse receipt in which it is stated that the goods received will be delivered to the person named in the receipt or his order shall be known as a negotiable warehouse receipt. (2) No words shall be inserted in a negotiable receipt with the effect of rendering that receipt non-negotiable. (3) The Minister may prescribe in the regulations the procedure and limits of negotiation of negotiable warehouse receipts.
35
Non-negotiable warehouse receipts
Verify source ↗

AI-assisted research summary: A warehouse receipt stating that the goods will be delivered to the bearer is treated as a non-negotiable receipt.

35. A warehouse receipt on which it is stated that the goods received will be delivered to the bearer shall be treated as a non-negotiable receipt.
36
Altered warehouse receipts
Verify source ↗

AI-assisted research summary: This section classifies alterations to warehouse receipts as immaterial, authorized, or unauthorized depending on their effect on the holder’s rights, the warehouse operator’s permission, and whether there was fraudulent intent.

36. An alteration to a warehouse receipt shall be regarded as- (a) immaterial if the alteration does not affect ex-ante proprietary rights of the holder; (b) authorized when made with an implied or direct permission or connivance of the Warehouse operator and which render a warehouse operator and the perpetrator liable under the provisions of this Act; or (c) unauthorized but made without fraudulent intent, when made without an implied or direct permission or connivance of the warehouse operator and which render the warehouse operator liable according to the terms o f the receipt, as they were before alteration.
37
Rights of purchasers of altered receipts against warehouse
Verify source ↗

AI-assisted research summary: A purchaser of a warehouse receipt bought for value without notice of alteration gets the same rights against the warehouse operator as if the receipt had not been altered.

37.-( 1) A purchaser of a warehouse receipt for value without notice of alteration shall acquire the same proprietary' rights against the warehouse operator which the purchaser would have acquired if the receipt had not been altered at the time of purchase. (2) A purchaser of a warehouse receipt shall be regarded to have had notice of alteration, if before the purchase of the warehouse receipt, he 532 Negoti able ware house receipts Non- nego tiable ware house receipts Altered ware house receipts Rights o f pur chasers o f altered receipt against ware house operator No. 10 Warehouse Receipts 2005 or his agent took part in or influenced the alteration of the said warehouse receipt. (3) A purchaser of an altered warehouse receipt who has been found or who could be reasonably imputed with possession of notice of alteration commits an offence and shall be proceeded against under section 74 in the same footing with the operator.
38
Lost or missing warehouse receipts
Verify source ↗

AI-assisted research summary: If a warehouse receipt is lost, stolen, or destroyed, the warehouse operator must report it to the Board, and may issue a duplicate if the holder provides the required supporting documents. Using the original receipt after a duplicate has been issued is an offence.

38.-(l) Any loss, theft or destruction of the warehouse receipt, shall be reported by the warehouse operator to the Board. (2) If a warehouse receipt has been lost, stolen or destroyed, a duplicate may be issued by the warehouse operator provided that the request of the holder is accompanied by> Lost or missing ware house receipts (a) a police report of the loss , theft, or destruction of the receipt (b) a bank guarantee covering the current market value of the goods; and (c) an affidavit sworn before a commissioner for oaths; and (d) a copy of a notice of loss, theft, or destruction published in a newspaper of nationwide circulation. (3) The Minister may, by order published in the Qqz&U&o jffiSftrihe some o f the requirements under subsection (2) whidt shall not Bfppty to a certain class or category of warehouses. (4) An appeal regarding the issuance or otherwise of a duplicate receipt shall be made to the Board. (5) Any person dealing in warehouse operation using the o^igijjal receipt after a duplicate receipt has been issued commits an off&rce for issuing false information.
39
Duplicate warehouse receipts
Verify source ↗

AI-assisted research summary: A duplicate warehouse receipt marked “duplicate” counts as an accurate copy of the original and carries the same rights and standing.

39.-(l) A warehouse receipt upon the face of which the word “duplicate” is plainly placed shall be a representation and warranty by the warehouse operator that such warehouse receipt:- 533 Dupli cate ware house receipts No, Ad Warehouse Receipts 2005 (a) is an accurate copy of the original receipt; and (b) has the same rights as the original receipt properly issued uud outstanding at the date of issue of the duplicate. (2) A duplicate receipt issued shall have the same standing as the original and shall not impose upon the warehouse operator any additional liability. PAP' f.'i R ig h t s a n d O b l ig a t io n s Wa r e h o u s e O p e r a t o r s Ofriigait- ju o f a ware house operator- to deliv er Gul'ga- tion to deliver t (i accor dance to the demand o f the mO! Jv:i
46
Liability for failure to cancel or mark warehouse receipt when
Verify source ↗

AI-assisted research summary: A warehouse operator must deliver goods on demand by the warehouse receipt holder or depositor, subject to the Act and certain conditions.

46. Lxcept ai provided in this Act. a warehouse operator shall deliver the goods upon demand made by tiie holder of the warehouse receipt or depositor, if the holder or depositor: (a) offers to ef'ect paymems hu . le warehouse operator's lien on the goods; (b) offers to sign relevant documents proving the delivery of the goods. •*!.-{ 1) Subject to section 40, the warehouse operator shall have obligation to deliver the goods in accordance with the demand by the warehouse receipt holder or, as the case may be, the depositor. (2) Where the warehouse operator refuses to deliver the goods as demanded by the warehouse receipt holder or depositor, the burden shall be upon the warehouse operator to establish the existence of any lawful excuse for the refusal. (3) Where the warehouse operator refuses to deliver the goods as demanded by the depositor or holder of warehouse recei - because of the reason that the warehouse receipt was altered, the holder or depositor who had notice of alteration shall be estopped from demanding more or less proprietary rights in the warehouse receipt than those provided on the altered warehouse receipt. Justifies- 42. Subject to provisions of sections 40 and 41, a warehouse lion for delivery o f goods operator snail deliver goods only after being satisfied that: (a) the person receiving the goods is lawfully entitled to the possession of the goods; 534 No. 10 Warehouse Receipts 2005 (b) by the terms indicated in the warehouse receipt issued for the particular goods, that person is entitled to delivery, either by himself or on his written authorization, 10 another person.
43
Liability for misdeliver}'
Verify source ↗

AI-assisted research summary: A warehouse operator must not deliver goods to someone known, or found out, to be not legally entitled to receive them.

43.-(l) A warehouse operator shall not deliver the goods if, prior :> delivery, he receives information or otherwise becomes aware tha;.: person to whom delivery is about to be made is not legally entitled to the delively. Liability for mis deliver}' (2) A warehouse operator who: (a) comes to know that the person who claim delivery of rue goods is not in fact lawfully entitled to the possession thereof; (b) ignores the request no; o make delivery of the goods, made under paragraph (a); (c) />ao information or knowledge that the delivery about to be made was to one not lawfully entitled to the- possession of the goods, and continues to deliver the goods shall be liable for conversion to aii person* having proprietary rights in or possession of the goods.
44
Exception to obligation to deliver
Verify source ↗

AI-assisted research summary: A warehouse operator is not liable for failing to deliver goods in certain cases.

44. The warehouse operator shall not be liable for failure io deliver ± : goods to the depositor, or owner oi the goods, or to a holder of\: eccipt given for the goods when they deposited, even it' such receipt is negotiable, in a .situation where goods have been lawfully sold or disposed of- E xce ption to obli gation to deliver (a) because o f their perishable or hazardous nature; or, (b) to satisfy the warehouse operators lien.
45
Liability for failure to cancel warehouse receipt after delivering
Verify source ↗

AI-assisted research summary: A warehouse operator who delivers goods for which a negotiable receipt was issued must take up and cancel the receipt.

45.-(l) Except as provided for under this Act. where a warehouse operator »!«)•• vs r.« goods for hich he had issued a negotiable recoi].-t .•ha!! take ->> and >•*» 1 he leceipt. (2; van&ousc opuaior who delivers go as for which he had i receipt and tails to take up and cancel the receipl anegoti 535 Liability for fail ure to cancel ware house receipt .after deliver ing ^oods No. 10 Warehouse Receipts 2005 he shall be liable for failure to deliver goods to depositor or to any one who purchases such receipt for value and in good taith. (3) If the receipt is not taken up or cancelled as provided for under subsection (1) o f this section, the fact that the purchaser acquired title to the receipt before or after the deliveiy of die goods by a Warehouse Operator shall not exonerate the warehouse operator from liability.
46
Liability for failure to cancel or mark warehouse receipt when
Verify source ↗

AI-assisted research summary: If a warehouse operator delivers part of the goods covered by a negotiable warehouse receipt, the operator must cancel the old receipt and issue a new one for the remainder, or mark the receipt with what was delivered.

46.“(1) Except as provided under this Act, where a warehouse operator delivers part of the goods for which he had issued a negotiable warehouse receipt, he shali- (a) take up and cancel that receipt and issue a new receipt for the remaining goods; or (b) place conspicuously upon it a statement of what goods and packages have been delivered. (2) A warehouse operator who fails to comply with the provisions of subsection (1) shall be liable for failure to deliver all the goods speci fied in the receipt to any person who purchases such receipt for value and in good faith. (3) If the receipt is not taken up or cancelled as provided for under subsection (1), the fact that the purchaser acquired title to die receipt before or after the delivery of any portion of the goods by a warehouse operator shall not exonerate the warehouse operator from liability.
47
Liability after a warehouse receipt has been lost, stolen or
Verify source ↗

AI-assisted research summary: A warehouse operator is liable if it fails to deliver goods in the situation described, subject to section 38.

47. Subject to the provisions of section 38, a warehouse operator shall be liable for failure to deliver goods to a person to whom the lost, stolen or destroyed warehouse receipt has been or shall be negotiated for value in good faith and without notice of the fact that a duplicate receipt has been issued or goods have already been delivered.
48
Delivering goods to persons with valid titles or right
Verify source ↗

AI-assisted research summary: A warehouse operator must take precautions to deliver goods only to a person who lawfully obtained the warehouse receipt.

48.-(l) The warehouse operator shall take all necessary precautions to ensure that the deliveiy of goods are made to a person who has lawfully obtained a warehouse receipt. (2) The warehouse operator's title or right to the possession of goods shall only be derived directly or indirectly from - 536 Liability for fail ure to cancel or mark ware house receipt when pait o f the goods have been delivered Liability after a ware house receipt has been lost, stolen or destroyed Delive ring goods to persons with valid titles or right No, 10 Warehouse Receipts 2005 (a) a transfer made by a depositor at the time of or subsequent to deposit of goods; or (b) lien. (3) Unless the tide or right to possession of the goods by a warehouse operator is obtained in accordance with the provisions of subsection (2) no title or right to possession of goods shall exonerate the Warehouse Operator from liability for refusing to deliver the goods according to the terms indicated on the warehouse receipt.
49
Ascertaining valid titles to goods
Verify source ↗

AI-assisted research summary: If multiple people claim the same goods, the warehouse operator must require them to interplead before delivery.

49.-(l) In cases where more than one person are claiming title or possession of the goods, the warehouse operator shall, before making delivery of those goods to either of them, require all known claimants to goods to interplead in accordance w'ith the Civil Procedure Code Act, 1966. (2) The suit for which the warehouse operator shall request claimants to interplead referred to under subsection (1), may be filed as an action against the warehouse operator for non-delivery of the goods, or as an original suit. Ascerta ining valid titles to goods Act No. 49 o f 1966 (3) The warehouse operator shall not be liable for non-delivery if he has evidence to believe that someone other than the depositor or person claiming under him, has a claim to the title or possession of the goods, and that because of that evidence the warehouse operator is taking reasonable steps to ascertain the validity of the adverse claim or to initiate legal proceedings to compel all claimants to interplead. (4) The ascertainment of the right claimant of the goods by interpleading or any other manner shall be initiated within twenty four hours of initial notice to the warehouse operator and the procedure shall be completed within seven days. (5) Except as is allowed under this section the fact that a third person has right or title to goods shall not be a defense to an action brought by the holder of the warehouse receipt or person claiming under him against the warehouse operator for failure to deliver the goods according to the terms indicated on the warehouse receipt. 537 No. 10 Liability for mis des cribed goods Warehouse Receipts 2005
50
Liability for misdescribed goods
Verify source ↗

AI-assisted research summary: A warehouse operator is liable to the warehouse receipt holder for damages if the goods do not exist or do not match the receipt description at deposit, except where the goods are being conditioned or processed and that is noted on the receipt.

50.-(l) Subject to subsection (2), the warehouse operator shall be liable to the holder of the warehouse receipt for damages caused by non-existence of the goods or by failure of the goods being delivered to correspond with the description thereof in the receipt at the time of deposit. (2) The warehouse operator shall not be liable for goods which are being conditioned or processed and such conditioning or processing is noted on the warehouse, receipt. (3) A mere description in the warehouse receipt by a statement of marks or label, oi upon packages, or by a depositor's statement that the goods do contain goods of a certain kind, or by words of like purport, though found to be true, shall not render the warehouse operator liable.
51
Warehouse operator's duty of care
Verify source ↗

AI-assisted research summary: A warehouse operator must take reasonable care of goods kept in the warehouse.

51.-(l) A warehouse operator shall exercise such care in regard to the goods kept by him as reasonably, and as carefully as a reasonable and careful owner of similar goods would exercise. (2) In addition to other conditions that may be imposed to the warehouse operator's license, the waichouse operator shall be liable for breach of duty of care if he acts contrary to subsection (1) of This section in keeping safe custody of the goods.
52
Duty to keep goods separately
Verify source ↗

AI-assisted research summary: A warehouse operator must keep each depositor’s goods separate, including goods covered by separate receipts, so they can be identified and redelivered.

52. Except as provided in this Act a warehouse operator shall keep goods of each depositor separate from goods e f other depositors and from other goods of the same depositor for which a separate receipt has been issued as to permit the identification and re-delivery of the goods deposited.
53
Co-mingling of fungible goods
Verify source ↗

AI-assisted research summary: A warehouse operator may mix fungible goods with similar goods only if the warehouse receipt holder or depositor approves.

53.-(l) A warehouse operator may, with the approval of the holder of warehouse receipt or the depositor, mingle fungible goods with other goods of" same kind and grade. (2) In case the warehouse operator has mingled the goods in accordance with subsection (1) o f this section, various depositors of the mingled goods, shall own the entire mass in common and e<:ch depositor shall be entitled to such portion thereof as the amount deposited by him bears to the whole. Ware house opera tor's duty o f care Duty to keep goods separa tely Co rn ing- ling o f fungible Goods 538 No. 10 Warehouse Receipts 2005 (3) The warehouse operator shall be severally liable to each depositor for the care and delivery of his share of the mass to the same extent and under the same circumstances as if the goods had been kept separate. Ware house opeja- tor’s right ro lien
54
Warehouse operator's right to lien
Verify source ↗

AI-assisted research summary: A warehouse operator’s lien comes from specified lawful charges and expenses, and the lien means the operator may recoup necessary expenses for services provided under subsection (1).

54.-(l) A warehouse operator's lien on goods deposited or the proceeds thereof shall derive from- (a) all lawful charges for storage and preservation of the goods; (b) law'ful claims for money advanced, interest, insurance, transportation, labour, weighing, coopering and other charges and expenses in relation to such goods; (c) all reasonable charges and expenses incurred for notice and advertisements of sale; and (d) sale of the goods where default has been made in satisfying the warehouse operator’s lien. (2) The term “warehouse operator’s lien " as used in subsection (1) and subsequent provisions of this Part means the right c f a warehouse operator to recoup expenses necessarily incurred for services rendered or supplied in accordance w ith the provisions of subsection (1) and the term “right of lien” shall be construed accordingly.
55
Enforcement of lien
Verify source ↗

AI-assisted research summary: A warehouse operator may enforce a lien on goods, but only as allowed by section 56 and only for the goods described in the section.

55. A warehouse operator's lien may be enforced subject to the provisions of section 56 - Enforce ment o f lien (a) against all goods, whenever deposited, belonging to the person who is liable as debtor for the claims in regard to which the lien is asserted; and (b) against all goods belonging to others, which have been deposited by the person who is liable as a debtor for the claims to which the lien is asserted if such person has been entrusted with goods at the time of deposit just as person who takes the goods in good faith and for value.
56
Loss of lien
Verify source ↗

AI-assisted research summary: A warehouse operator loses the lien on goods if they give up possession or refuse to deliver the goods when required to comply with this Act.

56. A warehouse operator shall lose right of his lien upon the good® by - Loss o f lien 539 No. 10 Warehouse Receipts 2005 (a) surrendering possession thereof; or (b) refusing to deliver the goods when a demand is made with which he is bound to comply under the provisions of this Act.
57
Statement of charges under lien
Verify source ↗

AI-assisted research summary: A warehouse operator generally has no lien on goods covered by a negotiable receipt, except for storage charges after the receipt date and, if the receipt lists other lien charges, for those listed charges within section 54.

57. Where a negotiable receipt is issued for goods, the warehouse operator shall have no lien thereon, except for charges of storage of those goods, subsequent to the date of the receipt, unless the receipt expressly enumerates other charges for which a lien is claimed in which case there shall be a lien for the charges enumerated so far as they are w'ithin the terms of section 54, although the amount of the charges so enumerated is not stated in the receipt.
58
Refusal to deliver goods until lien is satisfied
Verify source ↗

AI-assisted research summary: A warehouse operator with a valid lien may refuse to hand over the goods until the lien is paid or otherwise satisfied.

58. A warehouse operator having a lien valid against the person demanding the goods may refuse to deliver the goods to him until the lien is satisfied.
59
Warehouse operator's lien loss does not preclude other remedies
Verify source ↗

AI-assisted research summary: A warehouse operator’s lien, or lack of one, does not change a creditor’s legal remedies to collect charges and advances from the depositor.

59. The fact that a warehouse operator has or has not a lien upon the goods, shall not affect entitlement to all remedies allowed by law to a creditor against his debtor, for the collection from the depositor of all charges and advances which the depositor has expressly or impliedly contracted with the warehouse operator.
60
Methods of enforcing the lien
Verify source ↗

AI-assisted research summary: A warehouse operator’s lien may be satisfied by selling the goods, using other legal remedies for enforcing a lien against personal property, or taking other action to recover the warehouse operator’s claim.

60.-(l) A warehouse operator's lien may be satisfied by- (a) sale of goods; (b) other remedies allowed by the law for the enforcement of a lien against personal property; or . (c) any other action for recovery o f the warehouse operator's claim. Statement o f charges under lien Refusal to deli ver goods until lien is satis fied Ware house opera tor's lien does not preclude other remedies Methods o f enforc ing the lien Perisha ble and hazar dous goods
61
Perishable and hazardous goods
Verify source ↗

AI-assisted research summary: A warehouse operator may notify the owner or stored-name holder of perishable or dangerous goods, and may sell or otherwise dispose of them if the lien is not satisfied and the goods are not removed.

61.-(1) Where the goods are of a perishable nature and likely to deteriorate greatly in value, or by their odor, leakage, inflammability, or explosive nature, are likely to injure other property or endanger the life of persons legally likely to come into contact with the goods, the 540 NOo 10 Warehouse Receipts 2005 warehouse operator may give such notice to the owner, or to the person in whose name the goods are stored, as is reasonable and possible under the circumstances, to satisfy the lien upon such goods, and to remove them from the warehouse, and in the event of failure of such person to satisfy the lien and to remove such goods within the time so specified, the warehouse operator may sell the goods at public or private sale with or without advertising. (2) If after reasonable efforts have been made the warehouse opera tor is unable to sell such goods, he may dispose of them in any lawful manner, and shall incur no liability by reason thereof. (3) The proceeds of any sale made under die terms o f this section shall be disposed of in the same way as the proceeds of sales made under this Act. PART VII N e g o t ia t io n a n d T r a n s f e r o f W a r e h o u s e R e c e ip t s person mav be negotiated by endorsement and delivery-

Part

PART VII

62
Different ways of negotiating a warehouse receipt
Verify source ↗

AI-assisted research summary: A warehouse receipt made to the order of a named person can be negotiated by endorsement in blank or to the bearer, or by endorsement to a specific person.

62. A negotiable warehouse receipt to the order of a name of Different ways ot negotia ting a ware. house (a) after endorsement in blank or to the bearer; or ( b ) after endorsement to a specific person. receipt
63
Negotiation by endorsement
Verify source ↗

AI-assisted research summary: A negotiable warehouse receipt endorsed to a specified person can only be negotiated again by endorsement of the endorsee and delivery.

63.-(l) Negotiation of a negotiable warehouse receipt after it has Negotia- been endorsed to a specified person shall require endorsement of the endorsee as well as delivery. n r 1 tlo‘1 by endorse- ment (2) An endorsement made pursuant to subsection (1) shall be made to a specified person and may be again negotiated to another specified person and subsequent negotiations shall be done in the like manner. (3) For the purposes of this section, a negotiable warehouse receipt shall be regarded as "duly negotiated" when it is negotiated in the manner stated under this section to a person who purchases it in good faith, without notice of any defect or claim to it on the part of any person, and for value. 541 No, jO Effect o f endorse ment u- non- negc able receipt Persons capable o f nego tiating a ware house receij Rights acquired ,:fier due i<egotia- lion o f w;i re house receipt Warehouse Receipts 2005
64
Effect of endorsement to non-negotiable receipt
Verify source ↗

AI-assisted research summary: Endorsing a non-negotiable warehouse receipt does not make it negotiable.

64. Endorsement of a non-negotiable warehouse receipt shall not render it negotiable.
65
Persons capable of negotiating a warehouse receipt
Verify source ↗

AI-assisted research summary: A person in possession of a negotiable warehouse receipt may negotiate it.

65. A negotiable warehouse receipt may be negotiated by any person in possession pf the same irrespective o f die manner the warehouse receipt was acquired, if. by die terms o f the receipt, the warehouse operator undertakes to deliver the goods to the order of such person or if at the time of negotiation the receipt is in such a form that it may be negotiated by delivery.
66
Rights acquired after due negotiation of a warehouse receipt
Verify source ↗

AI-assisted research summary: A person who receives a warehouse receipt through due negotiation acquires title to the goods and related rights, and the warehouse operator must hold the goods for that person under the receipt’s terms.

66.-(l). Subject to the provisions o f this section, a person to whom the receipt has been duly negotiated, shall acquire- (a) such title to goods as the person negotiating the receipt to him had ability to convey to a purchaser in good faith for value and also such title to the goods as the depositor or person to whose order the goods were to be delivered by the terms of the receipt had or had ability to convey to a purchase in good faith and for value; (b) the direct obligation o f the warehouse operator to hold possession o f the goods for him according to the terms o f the receipt as fully as if the warehouse operator had contracted direct with him; and (c) ail rights accruing under the law o f agency, estoppel, including righ'i; to good iMivered to ihe warehouse operator after die warehouse receipt was delivered. (2) The negotiation o f a warehouse receipt in good faith and the acquisition rf title by a person to whom 2 warehouse receipt has been negotiated, shall oroaic a direct obligation to the warehouse operator to hold possession o f the goods for him according to the terms of the roecip: as fully as »f (lie warehouse operator had contracted directly with him. 542 2005 Rights acquired in the absence o f due negotia tion o f a ware house receipt Rights o f a trans feree o f a ware house receipt No. 10 Warehouse Receipts
67
Rights acquired in the absence of due negotiation of a warehouse
Verify source ↗

AI-assisted research summary: A warehouse receipt may be transferred without negotiation in the circumstances stated in the section.

67. A warehouse receipt may be transferred without negotiation if it has thus been transferred by- (a) the holder to another person under a separate arrangement or agreement; or (b) order of the court.
68
Rights of a transferee of a warehouse receipt
Verify source ↗

AI-assisted research summary: A transferee of a warehouse receipt can acquire title to the goods, but must notify the warehouse operator in some cases.

68.-(l) A transferee of a warehouse receipt, which is not duly negotiated shall acquire thereby against the transferor, the title of the goods. (2) The title acquired by the transferee shall be subject to the terms of the agreement with the transferor. (3) The court may order a warehouse receipt to be transferred where it is proved that there was an agreement to that effect between the transferor and the transferee. (4) Where a warehouse receipt that has been transferred becomes non-negotiable, in order to acquire title to the goods, the transferee shall notify the warehouse operator of the transfer to him of such warehouse receipt. (5) Proceedings instituted for the purpose of enforcing rights of a transferee of a warehouse receipt shall be made by way of summary procedure provided for under Order XXXV of the Civil Procedure Code Act, 1966. Act No. 49 o f 1966 (6) Where a warehouse receipt that has been transferred is not negotiated before the transferee notifies the warehouse operator of the transfer to him, the transferee’s claim of title to the goods may be defeated by- (a) an attachment order or execution upon the goods by a creditor of tile transferor to the extent of such order or execution, or (b) a subsequent purchaser in good faith from the transferor or a subsequent sale of the goods by the transferor. 543 No. 10 Rights und oblige- lions o f transfer rors and transfer- rces o f nego tiable ware house receipts. Warra nties on negoti ation o f the ware house receipt Warehouse Receipts 2005
69
Rights and obligations of transferors and transferees of
Verify source ↗

AI-assisted research summary: A transferee of a negotiable warehouse receipt for value and in good faith may compel the transferor to endorse it when endorsement is needed for negotiation.

69.-(l) The transferee 01 a negotiable warehouse receipt for value and in good faith shall have the right to compel the transferor of such receipt to endorse the receipt in a ca^e where endorsement is essential for negotiation. (2) In a case where it is essential that the warehouse receipt should be endorsed before it is transfeired, that warehouse receipt shall not be regarded as negotiated until the transferor endorses it. (3) The endorsement o f a warehouse receipt in good faith shall not make the transferee liable for any default or fraudulent acts on the receipt occasioned by the warehouse operator or previous endorsers.
70
Warranties on negotiation of the warehouse receipt
Verify source ↗

AI-assisted research summary: Transferring or endorsing a warehouse receipt for value works as a warranty that the receipt is genuine, the transferor has the right to deal with it, and the transferor knows of no fact that would reduce its validity or value.

70.-(l) The negotiation or transfer by endorsement or delivery, or assignment of a warehouse receipt for value shall be an adequate proof or warranty that the person who negotiates, transfers or assigns that warehouse receipt, does so because: (a) the receipt is genuine; (b) has a legal right to negotiate, transfer or assign it; (c) knows no fact which would impair the validity or worth of the receipt; and (d) has the right to transfer the title to the goods. (2) If the contract of the parties is in respect of the transfer of goods to which such warehouse receipt is involved, the fact that goods are merchantable or fit for that particular purpose, would have been implied. (3) Warranty shall not be implied in eases where a creditor of the transferor demands in good taith or receives payment of the debt for which such receipt is security. PART VIII O f f e n c e s a n d P e n a l t ie s Issue of receipts for goods not received

Part

PART VIII

71
Issue of receipts for goods not received
Verify source ↗

AI-assisted research summary: A warehouse operator, or its officer, agent, or servant, must not knowingly issue or help issue a receipt for goods that have not been received or are not under the operator’s actual control.

71. A warehouse operator, or any officer, agent, or servant of a ware house operator, who issues or aids in issuing a receipt knowing that the goods for which such receipt is issued have not been actually received by such warehouse operator, or are not under his actual 544 No. 10 Warehouse Receipts 2005 control at the time o f issuing such receipt, commits an offence and upon conviction shall be liable for a term of imprisonment for a term not exceeding five years, or to a fine not exceeding five million shillings or to both.
72
Issue of receipt containing false statement
Verify source ↗

AI-assisted research summary: A warehouse operator, officer, agent, or servant must not fraudulently issue a receipt for goods with a known false statement.

72. A warehouse operator, officer or agent or servant of a warehouse operator, who fraudulently issues or aids in fraudulently issuing a receipt for goods knowing that it contains any false statement, commits an offence and shall be liable on conviction to imprisonment for a term not exceeding one year, or to a fine not exceeding one million shillings or to both.
73
Issue of duplicate receipts not so marked
Verify source ↗

AI-assisted research summary: A warehouse operator, or related staff, must not issue or help issue a duplicate or extra negotiable receipt for the same goods without marking it “Duplicate,” unless section 38 applies.

73.-(l) A warehouse operator, or any officer, agent, or servant of a Warehouse Operator, who issues or aids in issuing a duplicate or additional negotiable receipt for the same goods or any part of them is outstanding and uncancelled, without plainly placing upon which the face thereof the word "Duplicate" commits an offence and shall be liable on conviction to imprisonment for a term not exceeding five years or to a fine not exceeding five million shillings or to both. Issue of receipt contain ing false state ment Issue o f duplicate receipts not so marked (2) The provision of this section shall not apply where a duplicate of a warehouse receipt is issued in accordance with the provisions of sec tion 38.
74
Issue for warehouse operator's goods of receipts, which do not
Verify source ↗

AI-assisted research summary: A warehouse operator, or the operator’s agents or servants who know the operator owns the goods, commits an offence if they issue or help issue a negotiable receipt for those goods and leave out a fact about ownership.

74. Where there are deposited with or held by a warehouse operator goods of which he is owner, either solely or jointly or in common with others, then such warehouse operator or his agents or servants who knowing this ownership, issues or aids in issuing a negotiable receipt for such goods and omits to state any fact with respect to ownership, commits an offence and upon conviction shall be liable for imprisonment for a term not exceeding one year or to a fine not exceeding one million shillings or both.
75
Delivery of goods without obtaining negotiable receipt
Verify source ↗

AI-assisted research summary: A warehouse operator, or their officer, agent, or servant, must not deliver goods if a related negotiable receipt is still outstanding and uncancelled unless they have the receipt before delivery.

75. A warehouse opeiator, or any officer, agent, or servant of a Warehouse Operator who delivers goods out of the possession of such warehouse operator, knowing that a negotiable receipt the negotiation of which would transfer the light to the possession of such icceipt is outstanding and uncancelled, without obtaining possession of that warehouse receipt, at or before the time of such delivery, shall be liable for imprisonment fora term not exceeding one year, com mits an offence and upon conviction a fine not exceeding one million shillings or to both. Issue for ware house opera tor's goods o f receipts, which do not state that fact Delivery o f goods without obtaining nego tiable receipt 545 No. 10 Negotia tion o f receipt for mort gaged goifds Obstruc ting a ware house inspector General penalty Warehouse Receipts 2005
76
Negotiation of receipt for mortgaged goods
Verify source ↗

AI-assisted research summary: A person commits an offence if they deposit goods without title or with a lien or mortgage, or if they take and later negotiate a negotiable receipt for those goods while hiding that lack of title or lien/mortgage and intending to deceive.

76. Any person who- (a) deposits goods to which he has no title, or upon which there is a lien or mortgage; (b) takes for such goods a negotiable receipt which he afterwards negotiates for value with intent to deceive and without disclosing his want of title or the existence of lien or mortgage, commits an offence and shall on conviction be to imprisonment for a term not exceeding seven year or to a fine not exceeding ten million shillings. liable
77
Obstructing a Warehouse Inspector
Verify source ↗

AI-assisted research summary: A person must not obstruct a warehouse inspector or other authorized person, or refuse to produce requested books, records, information, or other items for inspection.

77. Any person who obstructs the warehouse inspector or any other authorized person in the exercise of the power conferred upon him by this Act or who neglects or refuses to produce to the warehouse inspector or any authorized person any books, records, information or anything which the inspector or any other authorized person may request to be produced for inspection, commits an offence and shal; b? liable on conviction to imprisonment for three months or to a fine net exceeding one million shillings or to both.
78
General penalty
Verify source ↗

AI-assisted research summary: A person who commits an offence under this Act with no specific penalty can be punished by up to 3 months’ imprisonment, a fine of up to 500,000 shillings, or both.

78. Any person who commits any offence against any of the provisions of this Act, to which no specific penalty is provided shall be liable on conviction for every such offence to imprisonment for a term not exceeding three months or to a fine not exceeding five hundred thousand shillings or to.both- PART IX M is c e l l a n e o u s P r o v is io n s Powers to make Regula tions

Part

PART IX

79
Powers to make Regulations
Verify source ↗

AI-assisted research summary: The Minister may make regulations to carry out this Act, including rules on warehouse receipts, warehouse registration and licensing, employee qualifications, and related fees.

79.-(l) The Minister may make regulations for the better carrying out of the provisions and purposes of this Act and may, in particular make regulations- (a) prescribing the procedures and limits of negotiation o f a negotiable warehouse rcceipt; (b) prescribing a standard format of a warehouse receipt; 546 No. 10 Warehouse Receipts . » ■ i ■— ■■■ ■ ■ ■ ■ «-■■■ ■ ■■ »» ..................................... - ■ • 2005 (c) determining the standards pr requirements for allowing a warehouse operator to sell or dispose of goods, which are perishable or hazardous; ' (d) determining the manner of keeping depositors goods in a r warehouse; (e) prescribing the classification of warehouses; (f) determining goods which may be commingled in the ware house receipt; (g) ways of recovering the warehouse operator's lien by sale of goods; (h) prescribing conditions for the registration o f the warehouse; (i) prescribing conditions that may be inscribed on the ware house license; • • (j) prescribing warehouse registration and license application procedure; (k) prescribing warehouse registration and license application appeal procedure; (1) prescribing the qualifications of the employees that may be employed by a warehouse operator; (m) prescribing fees that may be paid for warehouse registratipn and licensing; (n) prescribing for anything which may be prescribed under this Act. (2) Regulations made pursuant to subsection (1) shall be published in the Gazette. 547 No. 10 Warehouse Receipts 2005 SCHEDULE (Under Section 4(3)) ----- r COMPOSITION, TENURE A ND PROCEDURE AT MEETINGS OF THE BOARD Compo sition o f the Board

Part

SCHEDULE

1
2. Application
Verify source ↗

AI-assisted research summary: The Minister appoints the Board’s chairman and seven other members. A person may serve only if they are of high moral character and proven integrity.

1.-(l) The Board shall comprise o f - (a) the Chairman; and (b) other seven members, all o f whom shall be appointed by the Minister. (2) The persons to be appointed as members o f the Board shall comprise o f the fol- lowing- (a) one member marketing; representing the Ministry responsible for crop (b) two representatives o f the cooperative societies as recommended by the Umbrella Co-operative Society at least one o f whom shall be a women; (c) a representative o f the organization o f Tanzania private farmers; (d) a representative o f the Tanzania Bankers Association recommended by the Association; (e) a representative o f the Tanzania Insurers Association, recommended by the Association; and (f) a representative o f farmers; and (g) one member representing warehouse operator’s association or organisation. (3) A person shall not be qualified to be a member o f the Board unless he is o f high moral character and proven integrity. Tenure o f Office
2
Application
Verify source ↗

AI-assisted research summary: Board members serve three-year terms, may be re-appointed, but cannot serve more than two consecutive terms; the Minister may remove the Chairman for incompetence or abuse of office.

2 .-(l) A member o f the Board shall hold office for a term o f three years and shall be eligible for re-appointment but shall not hold office for more than two consecutive terms. (2) A member o f the Board shall vacate office- (a) by resignation; (b) on written recommendation o f the body which he represents to revoke his nomination; (c) upon removal by the Minister on the ground of: 548 No. 30 Warehouse Receipts 2005 (i) misconduct, misbehavior or abuse o f office; (ii) failure to attend three consecutive meetings without reasonable excuse as certified by the Board; (iii) inability to perform the functions o f that office arising from infirmi ty o f body or mind; and (d) on affluxion o f term o f office. (3) The Chairman shall hold office for three years but shall be eligible for re appointment. (4) The Minister may remove the Chairman from that office on ground o f incom petence or abuse o f office. (5) Where a vacancy occurs in the office o f a member o f the Board, the Minister shall consult the body which recommended that member for the purpose o f appointing an alternate member o f the member who vacated office. (6) An alternate member shall assume responsibilities o f the outgoing member and enjoy all the privileges until the expiration o f the term o f office o f the member who vacated the office.
3
Interpretation
Verify source ↗

AI-assisted research summary: The Board may determine sitting and other allowances, but only with the Minister’s approval.

3. Members o f the Board shall be paid such sitting and other allowances as the Board may, with approval o f the Minister, determine.
4
5
Verify source ↗

AI-assisted research summary: The Chairman must call the Board’s first meeting and preside at Board meetings; the Board must meet at least once every four months.

4.- (1) The Chairman shall convene the first meeting o f the Board as soon as is practicable after the appointment o f the Board and thereafter the Board shall meet for the transaction o f business at times and places that may be decided upon by the Board but the Board shall meet at least once in every four months. (2) The Chairman or, in the absence o f the Chairman, a member o f the Board appointed by the Board to act as Chairperson may at any time call a special meeting o f the Board, or shall call a special meeting upon a written request by a majority o f the members o f the Board. (3) The Chairman shall preside at all meetings o f the Board and in his or her absence the members present may appoint a member from among themselves to preside at that meeting.
5
6
Verify source ↗

AI-assisted research summary: A meeting of the Board has a quorum when five members are present.

5. The quorum at a meeting o f the Board shall be five members
6
7. Managing Director
Verify source ↗

AI-assisted research summary: Board meeting questions are decided by a majority of the votes of members present, and the presiding person gets a casting vote if votes are equal.

6. Questions proposed at a meeting o f the Board shall be decided by a majority of the votes o f the members present and if there is equality o f votes the person presiding shall have a casting vote in addition to his deliberative vote. 549 Remune ration o f members o f the Board Conve ning meetings Quorum Making decisions No. 10 1> solo- sure o f interest Co option o f persons to meet ings o f Board Minutes o f pro ceedings Board to regulate its own proce dure Warehouse Receipts 2005
7
Managing Director
Verify source ↗

AI-assisted research summary: A Board member with a pecuniary interest must disclose it to the Board and then stay out of the related deliberation and decision-making.

7 .-(l) A member o f the-Board who has any pecuniary interest in a matter being considered or about to be considered by the Board shall, as soon as possible after the relevant facts have comc to his knowledge, disclose the nature o f his interest to the Board. (2) A disclosure o f interest under sub-paragraph (1) shall be recorded in the minutes o f the meeting o f the Board and the member making the disclosure shall not in respect o f that matter- (a) be present during any deliberation on the matter by the Board; and (b) take part in the decision-making o f the Board on the matter
8
Other Staff
Verify source ↗

AI-assisted research summary: The Board may co-opt a person to help at a meeting if their qualifications and experience are likely to help with a decision. A co-opted person may take part in that meeting’s proceedings on the relevant matter, but may not vote or join other proceedings.

8.-( 1) The Board may co-opt any person to any meeting o f the Board to assist it on any matter if the Board is satisfied such person's qualifications and experience are likely to benefit the Board in making a decision on any particular matter. (2) A person co-opted to assist the Board under subparagraph (1) is entitled to take part in the proceedings o f the Board at the meeting concerning the matter in connection with which he is co-opted, but shall not be entitled to vote or take part in any other proceedings o f the Board.

Part

part in the proceedings o f the Board at the meeting concerning the matter in

9
10. Duty of the Board to operate on prudential principles
Verify source ↗

AI-assisted research summary: The Board must have meeting minutes recorded and kept, confirm each meeting’s minutes at the next meeting, and have the Chairman sign the minutes.

9. The Board shall cause the minutes o f its meeting to be recorded kept and the minutes o f each meeting shall be confirmed by the Board at the next meeting and signed by the Chairman o f the meeting.
10
Duty of the Board to operate on prudential principles
Verify source ↗

AI-assisted research summary: The Board must regulate its own proceedings, subject to this Schedule.

10. Subject to the provisions of this Schedule, the Board shall regulate its proceedings. Passed in the National Assembly on the 2Qjh April, 2005. D a m i a n S. F o k a , Clerk o f the National Assembly 550

Provision text is displayed from LexChat’s stored statute record. Use the official source links to verify amendments, commencement, and current legal force.

About this LexChat collection

Publisher and coverage

LexChat is published by Esheria. Coverage reflects the legislation currently mapped from identified source collections; it may be incomplete, delayed, or later corrected. The official source controls where it differs from this research page.

AI and research method

AI-generated material is explicitly labelled and published only through LexChat's quality controls. It is a research aid, not the source document.

Corrections and reporting

Report a source mismatch, factual issue, personal-data concern, or licensing question to support@esheria.co.ke. Include this page's URL and the supporting official source so the record can be reviewed, corrected, restricted, or withdrawn.

Legal-information disclaimer

LexChat provides legal information and research tools, not legal advice. Verify currency, status, citations, and jurisdiction with authoritative sources and a qualified professional where appropriate.

The Warehouse Receipts Act, 2005

Publicly available, excluded from search-engine indexing

About this statute

Search within this statute

Provisions of The Warehouse Receipts Act, 2005

PART II

PART ill

PART IV

Schedule

PART V

PART VII

PART VIII

PART IX

SCHEDULE

part in the proceedings o f the Board at the meeting concerning the matter in

Ask AI about this statute

Sign in to ask AI about this statute