Section 15 in The Warehousing (Development And Regulation) Act, 2007
15. Warranties on negotiation of warehouse receipt.—
A person who, for valuable consideration, negotiates a negotiable warehouse receipt by endorsement and delivery, including one who assigns for valuable consideration, a claim secured by a receipt, unless a contrary intention appears, warrants the following:—(a)that the receipt is genuine;(b)that the person has a legal right to negotiate or transfer it;(c)that the person has no knowledge of any fact that would impair the validity of the receipt;(d)that the person has a right to transfer the title to the goods; and(e)that the goods are merchantable or fit for a particular purpose when those warranties would have been implied, if the contract of the parties had been to transfer without a receipt the goods represented by it.
