32. Vacancies, etc. not to invalidate acts and proceedings of Warehousing Corporations -
No act or proceedings of a Warehousing Corporation shall be invalid by reason only to the existence
of any vacancy among its directors or any defect in constitution thereof.
33. Delegation - A Warehousing Corporation may by general or special order in writing
delegate to the Secretary or other officer of the Corporation, subject to such conditions and
limitations, if any, as may be specified in the order, such of its powers and functions under this Act
as it may deem necessary for the efficient performance of its functions.
34. Voting rights of shareholders - In any meeting of the shareholders of a Warehousing
Corporation, every member shall have one vote in respect of each share held by him in the
Corporation.
35. Disputes between Central Warehousing Corporation and State Warehousing
Corporation - If there is any difference of opinion between the Central Warehousing Corporation
and a State Warehousing Corporation regarding their respective functions and powers under this Act,
such difference shall be referred to the Central Government whose decision thereon shall be final.
36. Declaration of fidelity secrecy - Every director, auditor, officer or other employee of a
Warehousing Corporation shall, before entering upon his duties, make a declaration of fidelity and
secrecy in the form set out in the Schedule.
37. Indemnity of Directors - (1) Every director of a Warehousing Corporation shall be
indemnified by the Corporation concerned against all losses and expenses incurred in the discharge
of his duties except such as are caused by his own wilful act or default.
(2) A director of a Warehousing Corporation shall not be responsible for any other director or for
any officer or other employee of the Corporation or for any loss or expense resulting to the
Corporation by the insufficiency or deficiency of value of or title to, any property or security
acquired or taken on behalf of the Corporation in good faith, or by the wrongful act of any person
under obligation to the Corporation or by anything done in good faith in the execution of the duties
of his office or in relation thereto.
38. Offences - (1) Whoever, without the consent in writing of a Warehousing
Corporation, uses the name of that Corporation in any prospectus or advertisement, shall be
punishable with imprisonment which may extend to six months or with fine which may extend to one
thousand rupees, or with both.
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(2) No court shall take cognizance of any offence under sub-section(1) otherwise than on a
complaint in writing by an officer authorised in this behalf by the Warehousing Corporation
concerned.
39. Provisions relating to Income tax and super tax - For the purposes of the Income tax Act,
1961, a Warehousing Corporation shall be deemed to be a company within the meaning of that Act
and shall be liable to Income tax and super tax accordingly on its income, profits and gains.
Provided that in the case of the Central Warehousing Corporation, any sum paid by the
Central Government under the guarantee given in pursuance of sub-section (1) of section 5 or in the
case of a Warehousing Corporation, any sum paid by the Central or a State Government under any
guarantee given in pursuance of sub-section(4) of section 27 shall not be treated as income, profits
and gains of a Warehousing Corporation, and any interest on the debentures or bonds issued by that
Corporation out of such sums shall not be treated as expenditure incurred by it.
Provided further that in the case of any shareholder or debenture holder, such portion of a
dividend or interest as has been paid out of any such sums advanced by the Central Government shall
be deemed to be his income from interest on securities declared to be income tax free within the
meaning of section 86 of that Act.
40. Winding up of Warehousing Corporations - No provisions of law relating to the winding
up of companies or Corporation shall apply to a Warehousing Corporation and any such Corporation
shall not be placed in liquidation save by order of the appropriate Government and in such manner as
it may direct.
In exercise of power conferred by Section 58(4) of M.P. Reorganization Act 2000 read with
Section 18(1) and 40 of the Warehousing Corporation Act, 1962 and with the consent of the Central
Warehousing Corporation (CWC), the State Government is pleased to hereby constitute the Madhya
Pradesh Warehousing & Logistics Corporation w.e.f. 31st March 2003. The Madhya Pradesh State
Warehousing Corporation (MPSWC) will cease to do business from the same date in terms of Govt.
of India, Ministry of Consumer Affairs, Food & Public Distribution, Department of Food & Public
Distribution Order No.7-1/2002-SG dated 27.9.2002.
[Notification No.F-12-1/2001/29-2 (1). dtd 26.3.2003]
41. Power to make rules -
(1) The appropriate Government may, by notification in the official Gazette, make rules to carry out
the purposes of this Act.
(2) Without prejudice to the generality of the foregoing power, such rules may provide for -
(a) the additional functions which a Warehousing Corporation may perform;
(b) the manner or nomination and election of the directors of the Central Warehousing
Corporation and the period within which such directors shall be nominated or elected;
(c) the term of office of, and the manner of filling casual vacancies among and the
remuneration payable to the directors of a Warehousing Corporation;
(d) the manner of choosing directors on the Executive Committee of a Warehousing
Corporation;
(e) the authorised capital of a State Warehousing Corporation (within the maximum limit
specified by or under sub-section(1) of section 19);
(f) the form of the annual statement of accounts and the balance sheet to be prepared by a
Warehousing Corporation.
(g) the deposit of moneys of a Warehousing Corporation in a scheduled bank or a Cooperative bank.
(h) the manner of issuing shares of a Warehousing Corporation, the calls to be made in
respect thereof, and all other matters incidental to the issue of shares;
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[(i)] the form and manner in which returns, statistics, accounts and other information are
to be furnished, under section 31A, by the Warehousing Corporation;)
[(i)] any other matter which has to be or may be prescribed.
(3) Every rule made by the Central Government under this section shall be laid as soon as may
be after it is made before each House of Parliament while it is in session for total period of thirty
days which may be comprised in one session or in two or more successive sessions, and (if before
the expiry of the session immediately following the session) or the successive sessions aforesaid,
both Houses agree in making any modification in the rules of both houses, agree that the rule should
not be made the rule shall thereafter have effect only in such modified from or be of no effect, as the
case may be; so however that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
(a) For Central Warehousing Corporation Rules, 1963, see Gaz. of Ind. 13-4-63, Pt.II, S.3(i),
P.671; for Andhra Pra. State Warehousing Corporation Rules, See A.P. Gaz: 9-12-65, Pt.II (R.S.),
P.465: for similar rules of 1964 in Gujarat see Guj.Gaz:1964, Pt.IV-A, P.1083 for such rules in
Haryana of 1969 see Harya.Gaz. 1969, Pt. III(L.S.), Ext: P.315: for Kerala S.W.C. Rules, 1968 see
Ker. Gaz.: 11-2-1968, Pt. 1. S.IV(c.2094): for M.P.S.W.C. Rules, 1971, see M.P. Gaz: 4-6-71, Pt. IV
(Ga), P.261: for Maha. S.W.C. Rules, 1965, see Maha Gaz. 1965, Pt. IV-A, p.776: for S.W.C.
(Mysore) Rules, 1967, see Mys. Gaz: 14-9-1967, Pt. IV S.2-C(i) p.1425: for Madras S.W.C. Rules,
1965, see Pt. St. Geo. Gaz. 22-9-1965, Pt. V.P.971.
(b) Substituted for the words "within the limits specified in sub-section (1) of section 10, by the
Warehousing Corporations (Amendment) Act, 1976 (42 of 1976), S.10 (24-3-1976)".
(c) Clause (i) re-lettered as CI(j) and CI.(j) inserted ibid.
(d) Substituted for the workers "if, before the expiry of the seasons in which it is so laid" ibid.
42. Power of Warehousing Corporations to make regulations -
(1) A Warehousing Corporation may, with the previous sanction of the appropriate Government by
notification in the official Gazette, make regulations not inconsistent with this Act and the rules
made there under to provide for all matters for which provisions is necessary or expedient for the
purposes of giving effect to the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations
may provide for -
(a) the conditions of service of and the remuneration payable to the officers and other
employees of a Warehousing Corporation.
(b) the matter in which, and the conditions subject to which, shares of the Central
Warehousing Corporation may be transferred;
(c) the manner in which meetings of a Warehousing Corporation and the Executive
Committee thereof shall be convened, the fees for attending such meetings and the procedure to be
followed there at;
(d) the duties and conduct of officers and employees of a Warehousing Corporation;
(e) the powers and duties which may be entrusted or delegated to the managing director
of a Warehousing Corporation.
(f) generally, the efficient conduct of the affairs of a Warehousing Corporation;
(3) The appropriate Government may by notification in the official Gazette rescind any
regulation which it has sanctioned and thereupon the regulation shall cease to have effect.
43. Repeal and savings -
(1) with effect from the date on which the Central Warehousing Corporation is established under
section 3, the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, in so
far as it has not been repealed by the National Co-operative Development Corporations Act, 1962,
shall stand repealed.
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(2) Notwithstanding such repeal -
(a) the shares allotted and the share certificates issued by the Central Warehousing
Corporation established under the repealed Act (hereinafter referred to as the said Corporation) shall
be deemed to have been allotted and issued by the Corporation established under section 3 of this
Act as if this Act had been in force on the day on which the shares were allotted and the share
certificates were issued.
(b) every shareholder of the said Corporation shall become the holder of as many shares
in the Corporation established under section 3 of the Act as are equivalent in number and value to the
shares held by him in the said Corporation.
(c) all moneys and other securities belonging to the National Warehousing Development
Fund which, immediately before the said date, was maintained by the said Corporation shall stand
transferred to and be maintained by the Corporation established under section 3 of this Act.
(d) anything done or any action taken (including any appointment, nomination,
delegation, rule or regulations made) under the repealed Act shall, in so far as it is not inconsistent
with the provisions of this Act, be deemed to have been done or taken under this Act.
(e) every share held by the said Corporation in a State Warehousing Corporation under
the repealed Act shall be deemed to be a share held by the Corporation established under section 3 of
this Act in the corresponding State Warehousing Corporation deemed to be established under this
Act .
(f) all rights, liabilities and obligations of the said Corporation, whether arising out of
any contract or otherwise, shall be the rights, liabilities and obligations respectively of the
Corporation established under section 3 of this Act.
(g) a State Warehousing Corporation established for a State under the repealed Act shall
be deemed to be the State Warehousing Corporation established for that State under this Act.