The term “Warehousing Receipt” has been defined in The State Warehouses Act. “Receipt” means a Warehouse Receipt in the prescribed form issued by a Warehouse Man to a person depositing goods in the warehouse. A licensed warehouseman is authorized to issue a negotiable or a non negotiable warehouse receipt. It evidences a contract for storage of goods. It is accepted by the commercial banks as collateral security for grant of loan against the goods stored in the warehouses. A warehouse receipt can be negotiated by endorsement and delivery. It is a document of title of goods as per the Sale of Goods Act, 1930. The goods covered by a negotiable warehouses receipt can be transferred by an endorsement on the Warehouse Receipt and its delivery to the endorsee. A person to whom warehouse receipt is negotiated acquires a title to the goods in respect of which such warehouse receipt has been issued. The endorsee gets a right to have the possession of goods covered by such warehouse receipt as per the terms and conditions contained in such receipt. The endorsee also gets a right to have such goods delivered to him or his authorized agent by the warehouseman.

1. Every warehouseman shall, at the time when goods are received by him for deposit in a warehouse, issue a receipt in the prescribed form, contained full particulars in respect of the goods stored in his warehouse by each depositor.
2. A receipt issued by a warehouseman shall, unless otherwise specified on the receipt, be transferable by endorsement, and shall entitle its lawful holder to receive the goods specified in it on the same terms and conditions on which the person who originally deposited the goods would have been entitled to receive them.