Section 260 Investments and Securities Act

Section 260 of the Investments and Securities Act 2025 is about Liability for wrongful delivery of commodities. It is under Part XV (Commodities Exchange and Warehouse Receipts) of the Act. It provides as follows:

(1) A warehouse operator shall not deliver the commodities if, prior to delivery, he receives information or otherwise becomes aware that a person to whom delivery is about to be made is not legally entitled to the delivery.

(2) A warehouse operator who proceeds to deliver the commodities in its custody in violation of subsection (1), shall be liable to all persons having proprietary rights to or in the possession of the commodities in the exact market value of the commodities wrongfully delivered.