Cotton Ginning Control and Development (Repeal) Ordinance, 1977

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THE COTTON GINNING CONTROL AND DEVELOPMENT 
(REPEAL) ORDINANCE, 1977 
              
 
           CONTENTS 
 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Return of establishments 
4.  Continuance in service of the employees 
5.  Prohibition of the operation of an establishment 
6.  Compensation 
7.  Debtor 
8.  General effect of return of establishment 
9.  Ordinance to override other laws 
10.   Bar of jurisdiction 
11.  Penalties 
12.  Power to make rules 
13.  Removal of difficulties 
14.  Repeal 
 
 

 
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THE COTTON GINNING CONTROL AND DEVELOPMENT (REPEAL) 
ORDINANCE, 1977 
 
ORDINANCE No. XXXI OF 1977 
 
         [12th September, 1977] 
 
An Ordinance to repeal the Cotton Ginning Control and Development Act, 1976 (LIX of 1976) 
  
 WHEREAS, it is expedient to repeal the Cotton Ginning Control and Development Act, 1976 
(LIX of 1976), and to provide for matters connected therewith or incidental thereto; 
 
 AND WHEREAS the President is satisfied that circumstances exist which render it 
necessary to take immediate action; 
 
 NOW, THEREFORE, in pursuance of the Proclamation of the fifth day of July, 1977 
(CMLA Order No. 1 of 1977), read with the Laws (Continuance in Force), Order, 1977 and in 
exercise of all powers enabling him in that behalf, the President is pleased to make and promulgate 
the following Ordinance:— 
 
 1. Short title, extent and commencement.—(1) This Ordinance may be called the Cotton 
Ginning Control and Development (Repeal) Ordinance, 1977.  
 
 (2) It extends to the whole of Pakistan. 
  
 (3) It shall come into force at once. 
 
 2. Definitions.  In    this    Ordinance,    unless    there    is    anything    repugnant    in the 
subject or context,— 
 
(a) “Present Value” means the Net Worth Value out of which shall be 
deducted the value of any Fixed Tangible Assets and Current Assets as shown 
in the Balance Sheet which are not handed over and to which shall be added 
(i) the v alue of the Fixed Tangible Ass ets and Current Assets which do not  
appear in the  Balance Sheet but the possession of which is handed over at 
cost and (ii) the decrease in the outstanding liabilities as shown in the Balance 
Sheet, out of which shall be deducted the v alue of any new liabilities handed 
over; 
 
(b) “repealed Act” means the Cotton Ginning Cont rol and Development Act, 
1976 (LIX of 1976.); and 
 
(c) other words and expressions shall have the same meaning as in the repealed 
Act. 
 
 3. Return of establishments.—(1) Within one month  of the  commencement of this 
Ordinance, or such longer period not exceeding twelve months as the Federal Government may by 
notification in the official Gazette specify in this behalf, the Corporation shall deliver possession of 
 
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an establishment the ownership and management of which has been acquired under section 5 of the 
repealed Act to the previous management thereof: 
 
 Provided that, in any case in which any amount is recoverable by the Corporation from 
the previous owner of the establishment under sub-section (3) or sub-section (4) of section 6, 
the Corporation may not so deliver possession of the establishment until such amount has been 
recovered. 
 
 (2) On the delivery of the possession of an establishment, in pursuance of sub-section (1),― 
(a) the Corporation shall stand divested of the ownership and management of the 
establishment; and 
 
(b) the ownership and management of the establishment, along with its assets and 
liabilities as on the day on which its possession is delivered, shall stand 
transferred to the persons in whom these vested immediately before the 
making of an o rder under s ection 5 of  repealed Act in respect of the 
establishment. 
 
 (3) No claim, suit, prosecution or other legal proceedings arising out of the acquisition or 
return of an establishment shall lie against the Federal Government or the Corporation or any officer 
or employee of the Federal Government or the Corporation. 
 
 (4) Where the Federal Government is satisfied that the previous management of an 
establishment has refused or wilfully failed to receive possession of the establishment, it may pass 
such order in respect of the establishment as it may deem fit. 
 
 (5) In the case of an establishment, for the purpose of computing the period of 
limitation prescribed in the Limitation Act, 1908 (IX of 1908) for the  institution of a suit  for the  
recovery of  money, the period commencing on the day on  which an order under section 5 of  the 
repealed Act was made in respect of the establishment and ending on the day on which possession 
thereof is delivered to its previous management shall be excluded. 
 
 (6) In the case of any dispute between the previous management of an establishment and the 
Corporation regarding the assets or liabilities of the establishment, the matter shall be referred to the 
Federal Government whose decision shall be final. 
 
 4. Continuance in service of the employees. Every whol e-time employee of an 
establishment on the date of making of an order under section 5 of the repealed Act in respect of the 
establishment, and every whole-time employee who has worked continuously in  an establishment 
since before the first day of July, 1977, shall continue in his office on the same terms and conditions 
as are applicable to his appointment: 
 
 Provided that this section shall not apply to employees who had resigned or been removed 
by the Corporation from its service. 
 
 5. Prohibition of the operation of an establishment. The Federal Government may, if it 
considers it necessary in the public interest to do so, by notification in the official Gazette, prohibit 
the cotton ginning and pressing operations of an establishment which has b een returned to the 
previous management thereof under section 3: 
 
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 Provided that such prohibition shall not extend beyond the thirty-first day of August, 1978.
  
 
 6. Compensation.—(1) The Corporation shall pay compensation in respect of an 
establishment at the rate of eleven per cent per annum of the amount determined as p ayable in 
accordance with paragraphs 1 and 2 of the Schedule to the repealed Act for the period the ownership 
and management of the establishment remained with the Corporation. 
 
 (2) In a case in which the Net Worth Value is higher than the Present Value, the Corporation 
shall pay t he difference between the Net Worth Value and the Present Value of the  assets and 
liabilities transferred to the previous owners, both such di fference and the Present Value to be  
determined by the Corporation. 
 
 (3) Where the Present Value is higher than the Net Worth Value, the Corporation may 
recover from the previous owners, in accordance with the provisions of section 7 or in any other 
manner it may deem fit, the amount representing the difference between the Net Worth Value and 
the Present Value. 
 
 (4) Where a previous owner has received payment of compensation assessed in accordance 
with paragraphs 1 and 2 of the Schedule to the repealed Act, such compensation shall be recovered 
from him in the same manner as is provided in subsection (3): 
 
 Provided that any interest which has accrued on any compensation bonds given to such 
previous owner shall not be withheld or, as the case may be, recovered and shall be deemed to be the 
compensation payable under sub-section (1). 
 
  7. Debtor. —(1) The Corporation may, by notice in writing, call upon a debtor to pay to the 
Corporation the amount of money due from him to the Corporation within a period of thirty days 
commencing from the date of receipt of such notice by the debtor. 
 
 (2) Where the debtor fails to pay the amount due from him within the period specified in the 
notice under sub-section (1), the Corporation shall have the same power of effecting recovery as the 
Industrial Development Bank of Pakistan has under sections 39, 40 and 41 of the  Industrial 
Development Bank of Pakistan Ordinance, 1961 (XXXI of 1961). 
 
 8. General effect of return of establishment.—(1) Where the management of an 
establishment has been transferred to the previous management under s ection 3, all contracts, 
agreements and other instruments of whatever nature subsisting or having effect immediately before 
the date of transfer, to which such establishment was a party or which were in respect of su ch 
establishment, shall be of as full force and effect against or in favour of t he previous management, 
and may be enforced or acted upon as fully and effectively as if, instead of the Corporation, the 
previous management had been a party thereto, or as if they had been entered into, or issued in 
respect of, the previous management. 
 
 (2) If, on the date of transfer of an establishment to the previous management, any suit, 
appeal or legal proceeding of whatever nature is pending by or against the Corporation in respect 
of such establishment, it shall not abate or be in any way prejudicially affected by reason of such 
 
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transfer or anything done under this Ordinance or the repealed Act, but the suit, appeal or other 
proceeding may be continued, prosecuted and enforced by or against the previous management- 
 
 9. Ordinance to override other laws. The p rovisions of this O rdinance shall have effect 
notwithstanding anything contained in any other law for the time being in force or any agreement, 
contract, memorandum or articles of association of a company. 
 
 10.  Bar  of  jurisdiction.—(1)  No  Court  shall  call  into  question  or  permit  to  be called 
in question any provision of this Ordinance or of any rule or order made, or anything done or any 
action taken thereunder. 
 
 (2)  No  Court  shall  give  any injunction  or  make  any order,  nor  shall  any Court 
entertain any proceedings, in relation to anything done or intended to be done under this Ordinance. 
 
 11. Penalties. Whoever— 
 
(a) obstructs or resists or hinders any person in the discharge of his duties under 
this Ordinance; or 
 
(b)       contravenes any notification under section 5; shall be punishable with rigorous 
imprisonment for a term which may extend to three years, or with fine, or with 
both: 
 
 Provided that no Court shall take cognizance of an offence under this Ordinance  unless  a  
complaint in this b ehalf is m ade by the Federal Government or the Corporation or a person 
authorised by the Federal Government or the Corporation for the purpose. 
 
 12. Power to make rules. The Federal Government may make rules for carrying out the 
purposes of this Ordinance. 
 
 13. Removal of difficulties. If any difficulty arises in giving effect to any provision of this 
Ordinance, the Federal Government may make such order, not inconsistent with the provisions of 
this Ordinance, as may appear to it to be necessary for the purpose of removing the difficulty. 
 
 14. Repeal. The Cotton Ginning Cont rol and Development Act, 1976 (LIX of 1976) is 
hereby repealed.