(1) In these rules, unless the context requires otherwise, –
(a) “Act” means the Warehousing (Development and Regulation) Act, 2007 (37 of 2007);
(b) “affiliate” means —
(i) applicant’s key managerial persons or any of their relatives who are key managerial persons;
(ii) a company in which the applicant or any of its key managerial persons is a member or director;
(iii) any person on whose advice, directions or instructions the applicant or any of its key managerial persons ¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 27 is authorised to act, except where the advice, directions or instructions are given in a professional capacity;
(iv) if the applicant is an individual, a relative of the applicant;
(v) if the applicant is a company, any company which is —
(1) a holding, subsidiary or an associate company of the applicant; or
(2) a subsidiary of a holding company to which the applicant is also a subsidiary;
(c) “applicant” means a person or a warehouseman who makes an application for registration or renewal or modification to the Authority under rule 4 or rule 13;
(d) “associate company” in relation to another company, means a company in which that other company has control of at least twenty per cent of total share capital, or of business decisions under an agreement, but which is not a subsidiary of the company having such influence and includes a joint venture company;
(e) “effective control” means the ability of an applicant or a warehouseman to demonstrate physical possession and complete operational control with respect to a warehouse concerned through document specified in the First Schedule;
(f) “external person” means a person, including an inspection agency, who is —
(i) independent of the Authority;
(ii) not an applicant or a warehouseman, or a relative or an affiliate of an applicant or a warehouseman; and
(iii) assigned, by the Authority, the responsibility of performing any functions under these rules, regulations, guidelines or circulars made under the Act;
(g) “holding company”, in relation to one or more other companies, means a company of which such companies are subsidiary companies;
(h) “key managerial person”, in relation to an applicant or a warehouseman, means, —
(i) if the applicant is a partnership firm, each of the partners mentioned in its registered partnership firm deed;
(ii) if the applicant is a trust, the settler of the trust and each member of the board of trustees;
(iii) if the applicant is a society, the president, secretary and treasurer of the society and each member of its governing body;
(iv) if the applicant is a company, – (A) the Chief Executive Officer or the Managing Director;
(B) the Company Secretary;
(C) a Director; and (D) the Chief Financial Officer;
(i) “net worth” means, –
(i) for a company, the aggregate value of the paid-up share capital and all reserves created out of the profits and securities premium account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation;
(ii) for a partnership firm, individual, society or sole proprietorship, the aggregate value of paid up capital and the free reserves;
(j) “noticee” means a person to whom a show cause notice or an order is issued;
(k) “registered warehouse” means a warehouse in respect of which a certificate of registration has been issued to the warehouseman by the Authority for carrying out the warehousing business;
(l) “relative” means a person who bears any of the following relationships with an individual, if, —
(i) he is a member of the same Hindu Undivided Family;
(ii) they are husband or wife;
(iii) related by affinity or consanguinity within the specified degree as determined under any law for the time 28 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] being in force, or individuals in a step or adoptive relationship within such specified degree;
(m) “show cause notice” means a written or electronic notice issued by the Authority which —
(i) states the action that the Authority proposes to take;
(ii) states the causes requiring the proposed action; and
(iii) provides the time limit within which such notice shall be replied to;
(n) “standard operating procedure” means information covering the processes, actions and responsibilities with regard to the aspects prescribed under rule 21;
(o) “subsidiary” in relation to any other company (that is to say the holding company), means a company in which the holding company directly or indirectly through another subsidiary —
(i) controls the composition of the board of directors, such control being implied in cases where the company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors;
or
(ii) exercises or controls more than one-half of the total share capital either on its own or together with one or more of its subsidiary companies;
(p) “warehouse concerned” means the warehouse in respect of which an application of registration is made by an applicant.
(2) The words and expressions used herein but not defined shall have the meaning assigned to them in the Act.
CHAPTER 2 COMMENCEMENT OF WAREHOUSING BUSINESS