Section 17
Negotiation of warehouse receipt not impaired by fraud, mistake or duress.
The Warehousing (Development and Regulation) Act, 2007
About this Act
An Act to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority and for matters connected therewith or incidental thereto.
The validity of
the negotiation of a receipt is not impaired by the fact that--
(a) the negotiation was a breach of duty on the part of the person making the negotiation; or
(b) the owner of the receipt was induced by fraud, mistake or duress to entrust the possession or custody of the receipt to that person, if the person to whom the receipt was negotiated or a person to whom the receipt was subsequently negotiated, paid value for it without knowing of the breach of duty, fraud, mistake or duress.
(a) the negotiation was a breach of duty on the part of the person making the negotiation; or
(b) the owner of the receipt was induced by fraud, mistake or duress to entrust the possession or custody of the receipt to that person, if the person to whom the receipt was negotiated or a person to whom the receipt was subsequently negotiated, paid value for it without knowing of the breach of duty, fraud, mistake or duress.