law: The Warehousing (Development and Regulation) Act, 2007
  18. Subsequent
  
  negotiation of warehouse receipts. -
  If a person having
  
  sold, mortgaged or pledged goods that are in the custody of a warehouseman and
  
  for which a negotiable receipt has been issued, continues in possession of the
  
  negotiable receipt, the subsequent negotiation of it by that person under any
  
  sale or other disposition of the goods to any person receiving the receipt in
  
  good faith, for valuable consideration and without notice of the previous sale,
  
  mortgage or pledge, has the same effect as if a previous purchaser, mortgagee
  
  or pledgee of the goods, as the case may be, had expressly authorised the
  
  subsequent negotiation.