The Warehousing (Development and Regulation) Act, 2007
15. Warranties on negotiation of warehouse receipt. -
A person who, for valuable consideration, negotiates a negotiable warehouse receipt by endorsement and delivery, including one who assigns for valuable consideration, a claim secured by a receipt, unless a contrary intention appears, warrants the following:-
a. that the receipt is genuine;
b. that the person has a legal right to negotiate or transfer it;
c. that the person has no knowledge of any fact that would impair the validity of the receipt;
d. that the person has a right to transfer the title to the goods; and
e. that the goods are merchantable or fit for a particular purpose when those warranties would have been implied, if the contract of the parties had been to transfer without a receipt the goods represented by it.