TaxTMI 
TaxTMI 
1954 (1) TMI 37
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.... business of hedge contracts; the discrimination lies in the fact that whereas the petitioner has been prevented from carrying on this trade, the East India Cotton Association Limited, Bombay, has been allowed to do so and has been given a virtual monopoly in India. 2. The action of which complaint is made was taken under the Cotton Control Order of 1950. Clause 4 of this Order banned all cotton contracts and options in cotton except those permitted by the Textile Commissioner by a general order made under Clause 6. The Textile Commissioner was also authorised to place such restrictions and conditions as he thought fit on the contracts and options which he permitted. 3. Acting under this authority the Textile Commissioner made the fol....
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...., innocent persons may have to suffer for the reckless gambling and speculation of handful of persons anxious to get rich quickly. Further, cotton being a commodity essential to the life of the community, it is reasonable to have restrictions which may, in certain circumstances, extend to total prohibition for a time, of all normal trading in the commodity. Accordingly, we are of opinion that Clause 4 of the Cotton Control Order of 1950 does not offend Article 19(1)(g) of the Constitution because Sub-clause (5) validates it. 4. Turning now to Article 14. It is not disputed that the East India Cotton Association of Bombay is a well organised association which has been dealing in hedge contracts for some twenty years and the fitne....
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....lings in hedge contracts in the area, or part of it, that now embraces Madhya Bharat, from as far back as 1913. We find that Regulations were passed in the years 1913, 1936, 1940 and 1941. But that, in itself, is not of much use because we are concerned with the history of the New Ujjain Society and the effect of its continuity, if any. The petitioner relies on the following. In the year 1933 an Association called the Ujjain Cotton Merchants' Association was formed. This is not the New Ujjain Sauda Forward Delivery Society which the petitioner relies on. It is merely an association of certain cotton merchants in Ujjain. There is nothing to indicate that the Society was incorporated, and hedge contracts are not mentioned either in its Me....
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....e Cotton Merchants' Association, Ujjain. There is therefore doubt whether the meeting was of the Association itself or only of certain of its members who decided to meet and pass such a resolution. 10. On 26-12-1948 the Sauda Forward Delivery Associations at Indore and Ujjain were permitted by a Gwalior Notification to carry on the business of Hedge Contracts. 11. The next document on which reliance is placed is a resolution of 4-10-1951 of the Managing Board of the New Ujjain Sauda Forward Delivery for handling hedge con tracts in the newly formed State of Madhya Bharat. The resolution stressed the need of a new body to be organised "on modern lines" and suggests that it should be called either the Madhya Bharat Cotton Exchange o....