{ "schema_version": "qanun-law-text/1", "id": "pk-code-975ed34736b2e273", "title": "Cotton Act, 1957", "source_collection": "Federal", "content_kind": "stored_law_text", "content_extent": null, "source_url": "https://pakistancode.gov.pk/alpha/UY2FqaJw1-apaUY2Fqa-ap%2BdZA%3D%3D-sg-jjjjjjjjjjjjj", "version": null, "source_snapshot": null, "legal_status": "not independently verified", "text_quality": "Complete stored UTF-8 TXT file recovered byte-for-byte from owned Drive. Source transcription retained verbatim; legal completeness, OCR accuracy and current consolidation unverified.", "text_sha256": "4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be", "source_sha256": "4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be", "text_version_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be", "quality_flags": [], "encoding": "UTF-8", "text": "Page 1 of 6 \r\n \r\n \r\n \r\nTHE COTTON ACT, 1957 \r\n \r\n \r\n \r\nCONTENTS \r\n1. Short title, extent and commencement \r\n2. Definitions \r\n3. Constitution of the Cotton Board \r\n4. Functions of the Board \r\n5. Control of the Board \r\n6. Requisition of factories etc. \r\n7. Power to secure fulfillment of contracts \r\n8. Power to call for information \r\n9. Registration of contracts \r\n10. Control of contracts through recognised associations \r\n11. Delegation of powers \r\n12. Penalty, etc. \r\n13. False statements \r\n14. Power to make rules \r\n15. Cognizance of offences \r\n16. Special provision regarding fines \r\n17. Presumption as to orders \r\n18. Repealed \r\n \r\n \r\n \r\n\r\n \r\nPage 2 of 6 \r\n \r\nTHE COTTON ACT, 1957 \r\nACT No. XXXVIII OF 1957 \r\n[10th September, 1957] \r\nAn Act to provide for measures for the promotion of international trade in cotton. \r\n WHEREAS it is expedient to provide for measures for the promotion o f international trade in \r\ncotton; \r\n It is hereby enacted as follows:___ \r\n 1. Short title extent and commencement.___(1) This Act may be called the Cotton Act, 1957. \r\n (2) It extends to the 1[Karachi Division], and with the exception of section 6, to the rest of \r\nPakistan. \r\n (3) It shall come into force at once. \r\n 2. Definitions. In this Act, unless there is anything repugnant in the subject or context,___ \r\n(a) “contract” means a contract for the purchase or sale of cotton, and includ es a \r\nfactory selection contract; \r\n(b) “cotton” means unginned cotton (kapas) or ginned cotton ( rui) or pressed and \r\nbaled cotton but does not include wool cotton or silk cotton; \r\n(c) “factory selection contract” means a contract for the sale of cotton entered into \r\nin Pakistan and providing for selection by the buyer at the factory and for \r\ndelivery of the cotton selected in full pressed bales at Karachi within the period \r\nand at the price specified in the contract; \r\n(d) “notified order” means an order published in the official Gazette; \r\n(e) “pressing factory” means a place wherein steam, water or other mechanical \r\npower or electric power is used and where cotton is pressed into bales. \r\n 3. Constitution of the Cotton Board. The 2[Federal Government] may, for the promotion of \r\ninternational trade in cotton, constitute, by notification in the official Gazette, a Cotton Board with a \r\nChairman and su ch other members, of whom one 3[each may be nominated by the Governments of \r\nBaluchistan, the North -West Frontier Province, the Punjab and Sind], as may be specified in the \r\nnotification. \r\n \r\n1Subs. by the Central Adaptation of Laws Order, 1964 (P. O. No. 1 of 1964), Art. 2 and Sch. \r\n2Subs. by the Federal Adaption of Laws Order, 1975 (P. O. No. 4 of 1975), Art. 2 and Table. \r\n3Subs. by Ordinance No. XXIV of 1970, s. 4. \r\n \r\n \r\n \r\nPage 3 of 6 \r\n \r\n 4. Functions of the Board. The Board shall have power to supervise and regulate all dealings \r\nin cotton, in so far as they are connected with the promotion of international trade therein, and shall \r\nperform such functions as the 1[Federal Government] may, from time to time, direct for the purposes \r\nof this Act. \r\n 5. Control of the Board. The Board shall be subject to the superintendence and control of the \r\n1[Federal Government], and in the discharge of its functions shall be guided by such general or special \r\ninstructions as may, from time to time, be given to it by the 1[Federal Government]. \r\n 6. Requisition of factories etc.___(1) The 1[Federal Government] may, by general or special \r\norder, requisition any pressing factory or any place, whether open or enclosed, and use the same f or \r\npressing or storing cotton belonging to Government, and for purposes incidental thereto. \r\n (2) If any such factory or place is requisitioned under this section, there shall be paid \r\ncompensation which shall be determined either with the agreement of the p arties concerned, or by an \r\narbitrator chosen with their consent, and in the absence of such consent, by an arbitrator to be appointed \r\nin accordance with the provisions of section 8 of the Arbitration Act, 1940 (X of 1940). \r\n (3) The arbitrator in determinin g the compensation under sub -section (2) shall have regard to \r\nthe provisions of sub-section (1) of section 23 of the Land Acquisition Act, 1894 (I of 1894), so far as \r\nthe same can be made applicable to acquisition of a temporary nature. \r\n 7. Power to secure fulfillment of contracts. If in the opinion of the 1[Federal Government] it \r\nis expedient or necessary so to do for the purpose of securing the fulfilment of any contract relating to \r\nexport of cotton on which the exporter has defaulted, it may buy co tton elsewhere and appropriate it \r\nto the contract, and the defaulter shall be liable for any loss which the 1[Federal Government] may \r\nsustain on that account, but the defaulter shall not be entitled to any gain on the purchase made against \r\ndefault. \r\n Explanation.___ In this section “exporter” means a seller of cotton to a foreign buyer or to his \r\nagent in Pakistan. \r\n 8. Power to call for information .___(1) The 1[Federal Government] may, at any time, by an \r\norder in writing, direct such person or class of persons as may be specified in the order to furnish such \r\nparticulars relating to the fulfillment of any contract relating to export of cotton, in such manner and \r\nto such person, as may be specified in the order. \r\n (2) The 1[Federal Government] may, by order in writing, require any person to furnish to it, or \r\nto such person as may be specified in this order, any information in his possession, being information \r\nwhich the 1[Federal Government] may require for the purposes of this Act. \r\n 9. Registration of contracts. The 1[Federal Government] may, by general or special order in \r\nwriting, require any contract relating to export of cotton to be registered with such organisation and in \r\nsuch manner as may be specified in the order. \r\n \r\n \r\n1Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Art. 2 and Table. \r\n \r\nPage 4 of 6 \r\n \r\n 10. Control of contracts through recognised associations.___ (1) The 1[Federal Government] \r\nif satisfied that it could be in the interests of the trade and also of the public to do so, may, by a notified \r\norder and subject to such conditions, if any, as may be specified in the order, prohibit any specified \r\nkind or class of contracts, such as forward contracts or hedge contracts, unless such contracts are made \r\nthrough and under the control of, and in the manner prescribed by, an association recognised by the \r\n1[Federal Government] under sub-section (2). \r\n (2) For the purposes of t his section, the 1[Federal Government] may, by a notified order, \r\nrecognize any association, constituted for the purpose of regulating and controlling contracts, which \r\napplies for such recognition. \r\n (3) A recognition under sub -section (2) may be granted su bject to the condition that the \r\nassociation shall by such amendments of its articles of association, rules or bye -laws as may be \r\nnecessary provide for the appointment by the 1[Federal Government] of not more than four persons, \r\nrepresenting interests not directly represented through membership of the association, as members of \r\nthe governing body of the association. \r\n (4) Every association, which is recognised under sub-section (2), shall furnish to the 1[Federal \r\nGovernment] such information and such periodical returns relating to the affairs of the association as \r\nthe 1[Federal Government] may by order in writing require. \r\n (5) The 1[Federal Government] may, by order in writing, give such directions, as it considers \r\nnecessary in the interests of the trade and the public, to an association recognised under sub -section \r\n(2) in respect of contracts to which this section applies. \r\n (6) No articles, rules or bye -laws of an association recognised under sub -section (2) shall be \r\naltered save with the previous approval of the 1[Federal Government]. \r\n (7) Whenever the 1[Federal Government] considers it expedient to do so, it may by order in \r\nwriting direct any association recognised under sub-section (2) to make, repeal or amend any articles, \r\nrules or bye-laws of the assoc iation in the manner and within a period specified in the order ; and if \r\nthe recognised association refuses, fails or negl ects to comply with the direction wit hin the specified \r\nperiod, the 1[Federal Government] may, by a notified order, make, repeal or amend the articles, rules \r\nor bye-laws in the manner specified in the order giving the direction or with such modifications as the \r\n1[Federal Government] may think fit, and the making, repeal or amendment of the articles, rules or \r\nbye-laws shall be deemed to have been duly effected by the association. \r\n (8) If the 1[Federal Government] is of the opinion that the interests of the trade and the public \r\nrequire that the recognition accorded to an association under sub-section (2) should be terminated, the \r\n1[Federal Government] may, after giving the association a reasonab le opportunity of being heard in \r\nthe matter, by a notified order, terminate the recognition on and from the date of such order or any \r\nspecified date subsequent thereto, and the association shall cease to be an association recognised under \r\nsub-section (2) from the date of such termination: \r\n Provided that such termination shall not affect the validity of any contract entered into or made \r\nbefore the date of such termination. \r\n_________________________________________________________________________________ \r\n1Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Art. 2 and Table. \r\n \r\nPage 5 of 6 \r\n \r\n 11. Delegation of powers.___1[(1)] The 2[Federal Government] may, by a notified order, direct \r\nthat any power conferred upon it by or under this Act shall, in relation to such matters and subject to \r\nsuch conditions, if any, as may be specified in the order, be exercisable by the Cotton Board. \r\n 2[(2) The Cotton Board may, by general or special order in writing, direct that such of its \r\npowers, including powers which have been directed under sub-section (1) to be exercised by the Cotton \r\nBoard, shall, in relation to such matters and subject to such conditions, if any, as may be specified in \r\nthe order, be exercisable also by the Chairman of the Board or such member th ereof as may be so \r\nspecified: \r\n Provided that orders passed under the powers thus delegated shall be laid before the Board at \r\nits next meeting.] \r\n 12. Penalty, etc.___ (1) Any person who contravenes or fails to comply with an order made or \r\ndirection given under this Act shall be punishable as if he had contravened a provision of this Act. \r\n (2) Any person who contravenes any provision of this Act shall be punishable with \r\nimprisonment for a term which may extend to three years or with fine or with both. \r\n (3) Where any person as aforesaid is a company or a body corporate, every director, manager, \r\nsecretary or other officer, and every agent and servant thereof, and in the case of an unlimited company \r\nor a company limited by guarantee, also any of its members, shall, subject to the provisions of the next \r\nsucceeding sub-section, be punishable as if he had contravened the provisions of this Act. \r\n (4) No such director, manager, secretary or other officer and no such agent, servant or member \r\nas is referred to in sub -section (3) shall be prosecuted under this Act unless he has bee n given an \r\nopportunity by the 2[Federal Government] to show c ause, within such time as the 2[Federal \r\nGovernment] may specify, why he should not be prosecuted, and if it is made to appe ar to th e \r\nsatisfaction of the 2[Federal Government] at any time before the institution of the prosecution that he \r\nhas used due diligence to enforce the observance of the provisions of this Act and the orders and \r\ndirections issued thereunder and that the offence has been committed without his knowledge or against \r\nhis consent, the 2[Federal Government] may forbear further proceedings against him: \r\n \r\n Provided that nothing in this sub-section shall prevent the 2[Federal Government] from \r\nproceeding against him further if it sees reason to do so. \r\n \r\n 13. False statements. If any person___ \r\n \r\n(i) when required by an order under this Act to make any statement or furnish any \r\ninformation, makes any statement or furnishes any information which is false \r\nin any material particular and which he knows or has reasonable cause to believe \r\nto be false, or does not believe to be true, or \r\n \r\n(ii) makes any such statement as aforesaid in any book, account, record, declaration, \r\nreturn or other documents which he is required by any such order to maintain or \r\nfurnish, \r\nhe shall be punishable with imprisonment for a term which may extend to three years or with fine or \r\nwith both. \r\n \r\n1Re-numbered and added by Act No. V of 1973, s. 2. \r\n2Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Art. 2 and Table. \r\n \r\n \r\nPage 6 of 6 \r\n \r\n 14. Power to make rules.___(1) The 1[Federal Government] may, by notification in the official \r\nGazette, makes rules for carrying out the purposes of this Act. \r\n (2) Without prejudice to the generality of the foregoing power, such rules may prescribe the \r\nprocedure for determining, whether by means of arbitration or otherwise, the loss that may be sustained \r\nby Government in securing the fulfilment of any contract on which an exporter has defaulted, and the \r\nmanner in which the liability of the defaulter for such loss may be discharged by him. \r\n (3) Rules made under this section shall be laid before the National Assembly at its meeting \r\nheld next after the publication of the notification under sub-section (1). \r\n 15. Cognizance of offences. No court shall take cognizance of any offence punishable under \r\nthis Act except on a report in writing of the facts constituting such offence made by a person who is a \r\npublic servant as defined in section 21 of the Pakistan Penal Code (Act XLV of 1860). \r\n 16. Special provision regarding fines . Notwithstanding anything contained in section 32 of \r\nthe Code of Criminal Procedure, 1898 (Act V of 1898), it shall be lawful for any Magistrate of the \r\nFirst Class specially empowered by the Provincial Government in this behalf to pass a sentence of fine \r\nexceeding one thousand rupees on any person convicted under this Act. \r\n 17. Presumption as to orders. Where an order purports to have been made and signed by an \r\nauthority in exercise of any power conferred by or under this Act, a court shall, within the meaning of \r\nthe Evidence Act, 1872 (I of 1872), presume that such order was so made by that authority. \r\n 18. 2[* * * * * * *] \r\n \r\n____________ \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n62403 Date: 13-01-2025 \r\n1Subs. by the Federal Adaptation of Laws Order, 1975 (P. O. No. 4 of 1975), Art. 2 and Table, for “Central Government”. \r\n2Rep By the Repealing and Amending Ordinance 1965 (10 of 1965), s.2 and 1st Sch.", "passage_offset_convention": "zero-based Unicode code points and UTF8 bytes; end exclusive", "passages": [ { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-0-1765:e5c13280524bfbea521be32390f85ab111adf772db30c8193a23025ce9aa12f8", "character_start": 0, "character_end": 1765, "utf8_byte_start": 0, "utf8_byte_end": 1777, "passage_sha256": "e5c13280524bfbea521be32390f85ab111adf772db30c8193a23025ce9aa12f8", "reader_fragment": "p-0-1765-e5c13280524bfbea" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-1765-3503:8c82d6906d396f14c309c94710e9795ebc90a6a2d5ef201b42bf09b0db156f68", "character_start": 1765, "character_end": 3503, "utf8_byte_start": 1777, "utf8_byte_end": 3523, "passage_sha256": "8c82d6906d396f14c309c94710e9795ebc90a6a2d5ef201b42bf09b0db156f68", "reader_fragment": "p-1765-3503-8c82d6906d396f14" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-3503-5226:6700bde6edbe4ec5ac91f6d63b19b1e39f63acbdc9d85f1347618ed2a2eb94cb", "character_start": 3503, "character_end": 5226, "utf8_byte_start": 3523, "utf8_byte_end": 5250, "passage_sha256": "6700bde6edbe4ec5ac91f6d63b19b1e39f63acbdc9d85f1347618ed2a2eb94cb", "reader_fragment": "p-3503-5226-6700bde6edbe4ec5" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-5226-6932:e5804b12e3ebad6996d70138be229edf012b236d1164bcbded5ee50cfd20233b", "character_start": 5226, "character_end": 6932, "utf8_byte_start": 5250, "utf8_byte_end": 6956, "passage_sha256": "e5804b12e3ebad6996d70138be229edf012b236d1164bcbded5ee50cfd20233b", "reader_fragment": "p-5226-6932-e5804b12e3ebad69" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-6932-8707:f88dced2c9f598171285485754dd7f66dec9d43d8e9707bbe1114aafd7dca2d4", "character_start": 6932, "character_end": 8707, "utf8_byte_start": 6956, "utf8_byte_end": 8731, "passage_sha256": "f88dced2c9f598171285485754dd7f66dec9d43d8e9707bbe1114aafd7dca2d4", "reader_fragment": "p-6932-8707-f88dced2c9f59817" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-8707-10411:81f30c74eb87be4afc37e1ac66af225ccb05c38ca245a9924be7c4f3134048e5", "character_start": 8707, "character_end": 10411, "utf8_byte_start": 8731, "utf8_byte_end": 10435, "passage_sha256": "81f30c74eb87be4afc37e1ac66af225ccb05c38ca245a9924be7c4f3134048e5", "reader_fragment": "p-8707-10411-81f30c74eb87be4a" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-10411-12182:b8e70a2ad0669f23568cc614e2f0437ea89735d35b972b895a17d1acc78df896", "character_start": 10411, "character_end": 12182, "utf8_byte_start": 10435, "utf8_byte_end": 12206, "passage_sha256": "b8e70a2ad0669f23568cc614e2f0437ea89735d35b972b895a17d1acc78df896", "reader_fragment": "p-10411-12182-b8e70a2ad0669f23" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-12182-13888:4655c80f562bac0e4ac9747c41aef8e7953c61d0d582e5a0ad031458b1fd5f90", "character_start": 12182, "character_end": 13888, "utf8_byte_start": 12206, "utf8_byte_end": 13912, "passage_sha256": "4655c80f562bac0e4ac9747c41aef8e7953c61d0d582e5a0ad031458b1fd5f90", "reader_fragment": "p-12182-13888-4655c80f562bac0e" }, { "passage_id": "law:pk-code-975ed34736b2e273:sha256:4ec9b1dca3718f8d7aa8bd8d151b1486eda8f8d8aeb4d9e354df160565b2f8be:chars-13888-15048:bf67780746165c405d7e0b06215edffc28ced74aeac3d091cba637cf98692207", "character_start": 13888, "character_end": 15048, "utf8_byte_start": 13912, "utf8_byte_end": 15076, "passage_sha256": "bf67780746165c405d7e0b06215edffc28ced74aeac3d091cba637cf98692207", "reader_fragment": "p-13888-15048-bf67780746165c40" } ] }