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.