Section 5C in The Cotton Ginning and Pressing Factories Act, 1925
5C. Power to receive capacity of ginning and pressing.
(1)If the State Government is of the opinion that it is necessary so to do in public interest for the purpose of regulating the trade and business of ginning and pressing of cotton in any local area, it may, by an order, direct any owner or person in-charge of any cotton ginning or cotton pressing factory in such local area to reserve his factory's specified percentage of capacity, which shall not exceed 50% of its total capacity, for any specified person or persons.(2)Such order under sub-section (1) shall be made only on the written application of the person or persons, who want such reservation to be made for him or them and shall be made after giving the owner or person in-charge of the cotton ginning or cotton pressing factory concerned an opportunity of being heard in the matter.(3)If any owner or person in-charge of any cotton ginning or cotton pressing factory refuses to keep reserved his factory's specified capacity or does not gin or press in time the required quantity of cotton of the person or persons, for whom the reservation is made, as per order under sub-section (1), or contravenes the provisions of any order made under the said sub-section, he shall, on conviction, be punishable with fine which may extend to two thousand rupees, or, if he has previously been convicted of any such offence, with fine which may extend to five thousand rupees.(4)If the person or persons, for whom the reservation is made, fails to offer required quantity of cotton in time to the owner or person in-charge of the cotton ginning or cotton pressing factory, who is directed to reserve his factory's capacity for him or them under sub-section (1), and due to this failure the capacity of such factory or any part of it remains idle, he or they shall be liable to pay such owner or person in-charge compensation for it, which shall be equivalent to the loss suffered by such owner or person in-charge directly on account of such failure.(5)The compensation under sub-section (4) shall be determined in the prescribed manner by the District Judge of the area, where the cotton ginning or cotton pressing factory is situate on a reference made to him by the State Government on an application of the owner or person in-charge of the factory concerned, whose decision thereon shall be final and binding on all the parties.]
