law: The Warehousing (Development and Regulation) Act, 2007
  10. Lien of
  
  warehouseman on goods. -
  1.  Every
  
  warehouseman has a lien on goods deposited with him for storage, whether
  
  deposited by the owner of the goods or by his authority, or by any person
  
  entrusted with the possession of the goods by the owner or by his agent.
  2.  The
  
  lien of the warehouseman is for the amount of the storage and maintenance
  
  charges including -
  a.   all lawful charges
  
  for storage and preservation of the goods;
  b.   all reasonable
  
  charges for-
   
  
   i.  
  
    any
  
  notice required to be given under the provisions of this Act;
   
  
   ii.  
  
    notice
  
  and advertisement of sale;
   
  
   iii.  
  
    sale
  
  of goods where default is made in satisfying the lien of the warehouseman; and
   
  
   iv.  
  
    compliance
  
  of statutory provisions.
  1.  
  2.  
  3.  In
  
  case of any endorsement on the face of a negotiable warehouse receipt, by a
  
  bank or the warehouseman, such endorsement shall be evidence of a pledge and
  
  the pledgee shall have priority over the interest of the holder of the receipt.
  4.    In
  
  case of any pledge referred to in sub-section (3), the warehouseman shall not
  
  deliver the goods unless the endorsement of the pledge has been duly got
  
  cancelled.
  5. In
  
  case the goods are not taken back within the declared period of storage, the
  
  warehouseman shall have the right to recover his charges, selling the goods by
  
  public auction, or in any other manner provided in this section any goods upon
  
  which he has a lien.
  6. 
  
    The
  
  warehouseman shall give a notice in writing of his intention to sell the goods
  
  to the person liable as debtor for the charges for which the lien exists or to
  
  the owner or person owning the right of property of the goods.
  7. 
  
    The
  
  notice under sub-section (6) shall-
  a.   contain all the
  
  details about the goods, the location of warehouse, date of deposit, the name
  
  of depositor and a statement of lien claimed by the warehouseman for the goods
  
  stored in the warehouse; and
  b.   state that unless the
  
  charges are paid within the stipulated time mentioned in the notice, the goods
  
  shall be advertised for sale and sold by public auction at a time and place as
  
  specified in the notice.
  1.  
  2.  
  3.  
  4.  
  5. 
  
  
  6. 
  
  
  7. 
  
  
  8. 
  
    If
  
  the charges are not paid on or before the day mentioned in the notice, then,
  
  unless any other mode of sale is specified by the Authority, by regulations, an
  
  advertisement of the sale shall be published in a leading newspaper having
  
  circulation in the locality where the sale is to be held as well as where the
  
  owner of the goods is located and the sale shall be held not less than fourteen
  
  days from the date of first publication of the advertisement.
  9. 
  
    The
  
  warehouseman shall, from the proceeds of the sale, satisfy his lien and shall
  
  pay over the surplus, if any, to the person entitled thereto.
  10. 
  
    If
  
  the surplus is not demanded by the person entitled thereto within ten days
  
  after the sale of goods or if there are different claims, the warehouseman
  
  shall seek instructions from the Authority and act as per the orders of the
  
  Authority.