Section 4 in The Bombay Cotton Contracts Act, 1932
4. Recognition.
(1)A cotton association, desirous of being recognised for the purposes of this Act, shall make an application in writing to the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Laws Order in Council.] 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 [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Laws Order in Council.] may from time to time require.(2)The [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Laws Order in Council.] may give or refuse such recognition.(3)The [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Laws Order in Council.] 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 by-laws and approved by the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Laws Order in Council.]; and(b)the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Laws Order in Council.] 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 [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Order in Council.] shall also refuse recognition unless the bye-laws Submitted by the cotton association under sub-section (1) shall have been published in the [Official Gazette] [The words Official Gazette were substituted for the words 'Bombay Government Gazette' by the Adaptation of Indian Order in Council.] at least one month before the date of such recognition:Provided that when, in the opinion of the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Order in Council.], 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 subsection (1) and the bye-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 bye-laws of a recognised cotton association the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Order in Council.] may dispense with the publication, required under this sub-section of the bye-laws of the cotton association applying for recognition and may give recognition to such association and the bye-laws of such association shall then be deemed to be bye-laws published under the provisions of this sub-section.(5)When the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Order in Council.] 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 bye-laws shall be published in the [Official Gazette] [The words Official Gazette were substituted for the words 'Bombay Government Gazette' by the Adaptation of Indian Order in Council.] next following the giving of recognition to such association.(6)The [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Order in Council.] 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.(7)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 bye-laws of the said Association shall, so far as they relate to matters for which bye-laws may be made under the provisions of sections 5 and 6, be deemed to be bye-laws of a recognised cotton association:Provided that, if, within such time after the coming into operation of this Act as the [Provincial Government] [The words 'Provincial Government' were substituted for the words 'Governor in Council' by the Adaptation of Indian Order in Council.] 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 bye-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.
