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TMI Blog2015 (1) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 23/1/09 also, recognition granted to the petitioner Company has been made subject to the condition that said exchange shall comply with such directions as may, from time to time be given by the Forward Markets Commission . Therefore, on the strength of the enabling provision contained in Section 6(1), while issuing Ext.R3(b) notification, the Central Government specified that the first petitioner shall comply with such directions as may be issued from time to time by the Commission. Similarly, Section 14A(1) obliges the association to carry on business relating to forward contracts only under a certificate of registration and in accordance with the conditions specified therein. In Ext.R3(c) certificate of registration, various condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Respondent. ORDER This writ petition is filed by a Company and its two Directors, challenging Ext.P15 order passed by the 2nd respondent directing that respondents 3, 4 and 5 be taken on the Board of Directors of the Company with immediate effect. When the interlocutory application to stay Ext.P15 order was heard, the main contention urged by the counsel for the petitioners was that the 2nd respondent did not have any power under the Forward Contracts (Regulation) Act, 1952 to issue such an order. 2. On the other hand, it was contended by the respondents in their counter affidavits that the order is perfectly within the statutory powers and that in pursuance to Ext.P15, respondents 3, 4 and 5 have already a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods or classes of goods with respect to which forward contracts may be entered into between members of such association or through or with any such member . 5. A reading of this provision shows that the grant of recognition to an association shall be subject to such conditions as may be prescribed or specified. In Ext.R3(b) notification dated 23/1/09 also, recognition granted to the petitioner Company has been made subject to the condition that said exchange shall comply with such directions as may, from time to time be given by the Forward Markets Commission . Therefore, on the strength of the enabling provision contained in Section 6(1), while issuing Ext.R3(b) notification, the Central Government specified that the first peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rwards Markets Commission to grant recognition, to withdraw recognition, to call for periodical returns or direct enquiries to be made, to furnish annual reports, to direct rules to be made or to make rules, to make or amend bye laws, to prohibit forward contracts in certain cases, to levy penalties, to supersede the governing body of association, to suspend members etc. These statutory provisions and the scheme of the Act thus show that pervasive control has been conferred on the Central Government and the Forward Markets Commission and there is nothing in the Act which suggests that the Central Government or the Commission cannot direct induction of members to the Director Board of the 1st petitioner Company in the circumstances as point ..... X X X X Extracts X X X X X X X X Extracts X X X X
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