THE BOMBAY COTTON CONTRACTS ACT, 1932 [1 Act No. 4 of 19322] [28th October, 1937] PREAMBLE An Act to provide for the better regulation and control of transactions in cotton in Bombay. WHEREAS it is expedient to provide for the better regulation and control of transactions in cotton and whereas the previous sanction of the Governor General required by subsection (3) of section 80-A of the Government of India Act has been obtained for the passing of this Act; It is hereby enacted as follows :- ________________________ 1. On the date on which an association is recognised under section 3 of the Bombay Forward Contracts Control Act, 1947 in the City of Bombay and the Island of Salsette in respect of cotton this Act shall cease to have force in each area. [Vide Bombay 64 of 1947, section 14 (1)]. 2. For Statement of Objects and Reasons, see Bombay Government Gazette, 1932, Pt. V, pp. 139-140; for Proceedings in Council, see Bombay Legislative Council Debates, 1932, Vol. XXXV.
View Complete Act List Judgments citing this sectionThis Act may be called the Bombay Cotton Contracts Act, 1932.
View Complete Act List Judgments citing this section(1) This Act shall apply to the City of Bombay and the Island of Salsette. (2) It shall come into operation on such date as the 1[Provincial Government] may, by notification in the 2[Official Gazette], direct. 3[(3) * * *] __________________________ 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. 3. Sub-section (3) was deleted by Bombay 17 of 1938, section 2 and First Schedule
View Complete Act List Judgments citing this section.....the Island of Salsette; 1[(b) * * *] (c) "Board of Directors" means a board of directors of a recognised cotton association constituted under section 5 and acting through atleast a quorum of their members at a meeting of that board duly called and constituted; (d) "Certified godown" means a godown maintained by a cotton association for storing cotton certified under the by-laws of the association; (e) "Contract" means a contract made or to be performed in whole or in part in Bombay relating to the sale or purchase of cotton and includes options in cotton, but does not include such contracts as the 2[Provincial Government] may, by notification in the 3[0fficial Gazette,] declare to be excluded from the provisions of this Act; (f) "Cotton Association" means any association, organisation or a body of individuals, whether incorporated or not, established or formed for the purpose of Regulating and controlling business in the sale, purchase or other transactions in cotton; (g) "Forward contract" means a contract for the delivery of cotton at some future date; (h) "Option in cotton" means a contract made or to be performed in whole or in part in Bombay for the purchase.....
View Complete Act List Judgments citing this 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. ____________________ 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.
View Complete Act List Judgments citing this section.....Provincial Legislature] at the session 4[thereof] next following and shall be liable to be modified or rescinded by a resolution 5[in which both Chambers concur]. If any by-law is so modified or rescinded, the 2[Provincial Government] may sanction such modified by-law and re-publish the same accordingly or may sanction such rescission. _______________________ 1. The words 'subject to the provisions of section 9" were deleted Bombay 17 of 1938, section 2 and First Schedule. 2. The words "Provincial Government" were substituted for the words "Governor in Council" by the Adaptation of Indian Laws Order in Council. 3. These words were substituted for the words "upon the table of the Bombay Legislative Council" by Bombay 17 of 1938, section 2 and First Schedule 4. The word "thereof was substituted for the words "of the said Council", ibid. 5. These words were substituted for the words "of the said Council", ibid.
View Complete Act List Judgments citing this section.....and incidents of contracts and the forms of such contracts as are in writing; (h) Regulating the making performance and cancellation of contracts, including contracts between a commission agent and his constituent, or between a broker and his constituent, or between a jethawala or muccadum and his constituent, or between a member and a non-member of a recognised cotton association, and the consequences of insolvency on the part of a seller or buyer or intermediary, the consequences of a breach or omission by a seller or buyer and the responsibility of commission agents, muccadum and brokers not parties to such contracts; (i) the prohibition of specified classes or types of dealings in cotton by a member of a recognised cotton association; (j) the settlement of claims and disputes by arbitration and appeals against awards; (k) the levy and recovery of subscriptions, fees, fines and penalties; (l) disciplinary measures against members of a recognised cotton association, including suspension, expulsion, fines and non-monetary penalties, for breach of any bylaw made by the Board of Directors; (m) Regulating the course of business between parties to contracts in any.....
View Complete Act List Judgments citing this sectionBye-laws made under section 5 or 6 shall be subject to the condition of previous publication and, when sanctioned by the 1[Provincial Government] shall be published in the 2[Official Gazette]. ___________________________ 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.
View Complete Act List Judgments citing this section(1) Save as hereinafter provided in this Act, any contract (whether either party thereto is a member of a recognised cotton association or not) which is entered into after the date on which this Act comes into operation and which is not in accordance with the by-laws of any recognised cotton association shall be void. (2) No claim shall be allowed in any Court for the recovery of any commission, brokerage, fee or reward in respect of any such contract. NOTES Contract not void.-- Contract notes not mentioning the difference of rupees above or below the settlement rate of hedge contract for the purpose of periodical settlement as required by by-laws and no provision made with respect to measurement of bales as required by by-law. It was held that the contracts were not void. - AIR 1958 SC 713 : 1959 S. C. R. 346.
View Complete Act List Judgments citing this section[Supersession of Board of Directors and appointment of Board of Control, its powers and duties] Rep. by Bombay 17 of 1938, section 2 and First Schedule.
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