Act Info:
(1) A cotton association, desirous of being recognised for the purposes of this Act, shall make an application in writing to the 1[Provincial Government] for such recognition and shall submit by-laws for the regulation and control of transactions in cotton and furnish such information in regard to such recognition as the 1[Provincial Government] may from time to time require.
(2) The 1[Provincial Government] may give or refuse such recognition.
(3) The 1[Provincial Government] shall refuse recognition unless -
(a) it is provided in the by-laws submitted by the cotton association under sub-section (1) that not less than one-fourth of the total number of the Board of Directors of the cotton association applying for recognition shall be growers of cotton to be appointed in the manner prescribed in the said bye-laws and approved by the 1[Provincial Government]; and
(b) the 1[Provincial Government] is satisfied that the sole possession and effective management, control and regulation of the markets of the cotton association applying for recognition and of the market places of the said cotton association are vested in the said cotton association.
(4) The 1[Provincial Government] shall also refuse recognition unless the by-laws submitted by the cotton association under sub-section (1) shall have been published in the 2[Official Gazette] at least one month before the date of such recognition :
Provided that when, in the opinion of the 1[Provincial Government], the conditions precedent to recognition specified in sub-clauses (a) and (b) of sub-section (3) are satisfied in the case of a cotton association applying for recognition under sub-section (1) and the by-laws of the said cotton association are similar in all other material respects to the articles and by-laws of the East India Cotton Association Limited, deemed or which have been deemed under the provisions of sub-section (7) to be by-laws of a recognised cotton association the 1[Provincial Government] may dispense with the publication, required under this sub-section of the by-laws of the cotton association applying for recognition and may give recognition to such association and the by-laws of such association shall then be deemed to be by-laws published under the provisions of this sub-section.
(5) When the 1[Provincial Government] has dispensed with the publication of the by-laws of a cotton association and has given recognition to such association under the provisions of the proviso to sub-section (4), such by-laws shall be published in the 2[Official Gazette] next following the giving of recognition to such association.
(6) The 1[Provincial Government] may, at any time after having given to a cotton association an opportunity to explain why recognition should not be withdrawn, withdraw the recognition given to the said cotton association and such cotton association shall thereupon cease to be a recognised cotton association.
(6) It is hereby declared that the East India Cotton Association Limited, is a recognised cotton association for the purposes and subject to the provisions of this Act and the articles and by-laws of the said Association shall, so far as they relate to matters for which by-laws may be made under the provisions of sections 5 and 6, be deemed to be by-laws of a recognised cotton association :
Provided that, if, within such time after the coming into operation of this Act as the 1[Provincial Government] shall by order in writing specify, the said Association shall not have complied with the conditions precedent to recognition specified in clauses (a) and (b) of sub-section (3), the said association shall cease to be a recognised cotton association and the said articles and by-laws of the said association shall cease to be by-laws of a recognised cotton association :
Explanation. - A grower of cotton shall not include a person who deals in forward contracts.
NOTES
Statutory by-law.-- The Bye-laws framed under the Cotton Contracts Act by virtue of section 4(7) r/w. sections 5 and 6 are statutory by-laws and within the meaning of section 46 of the Arbitration Act 1940 (See now Arbitration and Conciliation Act, 1996) and they are operative inspite of the provisions of the Arbitration Act. -AIR 1943 Bombay 197 :I. L. R. 1943 Bombay 280 : 45 Bombay L. R. 392.
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1. The words "Provincial Government" were substituted for the words "Governor in Council" by the Adaptation of Indian Laws Order in Council.
2. The words "Official Gazette" were substituted for the words "Bombay Government Gazette", ibid.