THE JUTE ORDINANCE, 1962

[Approved by the National Assembly of Pakistan on the 8th Decem ber, 1962, see Gaz. of P., 1962, Ext., p. 1547g-1547o.]

ORDINANCE NO. LXXIV OF 1962

[10th September, 1962]

An Ordinance to consolidate and amend the law relating to trade in Jute and jute manufactures.

WHEREAS it is expedient to consolidate and amend the law relating to trade in jute and jute manufactures in order to pro vide for measures for the regulation and promotion of internal and international trade therein, for the licensing of dealers in jute and occupiers of jute godowns and kutcha and pucca jute presses, for the collection of statistics in respect of the Jute trade and industry, and for the levying of a cess on jute;

AND WHEREAS the national interest of Pakistan in relation to the economic and financial stability of Pakistan so requires;

AND WHEREAS the National Assembly is not in session and the Speaker, acting as President under Article 16 of the Constitu tion, is satisfied that circumstances exist which render immediate legislation necessary;

NOW, THEREFORE, in pursuance of Article 16 of the Consti tution and in exercise of the powers conferred by Article 29 of the Constitution read with clause (2) of Article 131 thereof and of all other powers enabling him in that behalf, the Speaker, acting as President, makes and promulgates the following Ordi nance:-

1.Short title, extent and commencement. -(1) This Ordinance may be called the Jute Ordinance, 1962.

(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) "Board" means the Jute Board constituted under section 3;

(b) "contract" means a contract for the sale of jute or jute manufactures to any person in or outside Pakistan; (c) "dealer" means any person who purchases, or nego tiates for the purchase of, or stores, or sells, or under takes the grading or baling or spinning, or manufacturing of, jute or jute manufactures and includes all kinds of dealers in jute and jute manufactures com monly known as faria, bepari, paikar, arathdar, moha jan, broker, commission agent, kutcha baler, pucca baler, spinner, and exporter, but does not include a grower of jute storing or selling his own produce;

(d) "exporter" means a shipper or a person who exports jute or jute manufactures from Pakistan;

(e) "godown" means any building, shed or structure commercially or industrially used for the purpose of stocking jute, whether loose or packed in drums or bales, and includes what is commonly known as an assorting shed;

(f) "grower of jute" means any person who, either by himself or by members of his family or by hired labourers or by adhiars or borgadars grows jute in any year on any land in his possession;

(g) "jute" means the fibre of jute plant known botanically as belonging to the genus corchorus, including all the species of that genus, whether known as pat, kosta, nalia or by any other name, and also means the fibre of the plant known botanically as hibiscus cannabinus and commonly called mesta, and includes any jute fibre which has not been subjected to any process of spinning or weaving, and jute cuttings, whether loose or packed in drums or bales;

(h) "jute manufacture" means hessian, gunnies, twine, yarn, matting and any other article manufactured wholly or mainly from jute;

(i) "jute mill" means a machine by which jute goods of any description such as twine, sacking, hessian, ropes, gunny cloth and the like can be manufactured;

(j) "kutcha press" means a pressing machine, driven by manual labour or by power, by which jute is packed in bales known as "kutcha bales" generally weighind up to four maunds each and generally meant for consumption within Pakistan;

(k) "licensing" means the grant or renewal of a licence under this Ordinance;

(1) "notified order" means an order published in the official Gazette;

(m) "occupier of a godown" means the person who occu pies or uses a godown for dealing in jute;

(n) "occupier of a jute mill" means the person who has ultimate control over the affairs of the jute mill;

(o) "occupier of a press" means the person who has ultimate control over the affairs of a jute press, and includes a managing agent to whom the affairs of a jute press are entrusted;

(p) "prescribed" means prescribed by rules made under this Ordinance;

(q) "pucca press" means a pressing machine, driven by power by which jute is packed in bales generally weigh ing five maunds or four hundred pounds each and meant for export, and includes a pressing machine known as semi pucca press.

3.Constitution of the Board. - [Section 3 re-numbered as sub-section (1) of that section by the Laws Amendment Ordinance, 1965 (39 of 1965), s. 5.] [(1)] The Central Government may, for the purposes of this Ordinance, constitute[Constituted vide Notifn. No. S.R.O. 44(R)/65, dated the 31st May, 1965, see Gaz. of P., 1965, Ext., p. 309.], by notification in the official Gazette, a Jute Board with a Chairman [The words and comma "a Vice-Chairman," omitted by the Jute (Amdt.) Ordinance, 1965 (13 of 1965), s. 2.] a Finance Member and one or more other Members as may be specified in the noti fication:

Provided that if there be one Member, then that one, and if there be two or more Members, then one at least of such Members, shall be nominated by the Government of East Pak istan.

[Sub-section (2) added by Ord. 39 of 1965, s. 5.] [(2) The Board shall be a body corporate by the name of the Jute Board, having perpetual succession and a common seal, with power to acquire, own and dispose of any property and shall, by the said name sue and be sued.]

4.Functions of the Board. The functions of the Board shall be-

(a) to execute the policy laid down by the Central Govern ment in regard to internal and international trade in jute and jute manufactures;

(b) to supervise and regulate dealings in internal and inter national trade in jute and jute manufactures;

(c) to assist in making arrangements for the transport and shipment of jute and jute manufactures within the country and to foreign countries;

(d) to issue licences to dealers and to occupiers of godowns and of kutcha and pucca presses and to jute mills and to renew and, if necessary, suspend or cancel, such licences;

(e) to collect and publish statistics relating to the produc tion and export of jute and jute manufactures;

[Clause (ee) ins. ibid.] [(ee) to undertake such business or to acquire, take over or manage the business of such concern, as the Central Government may direct;]

(f) to make recommendations to the Central Govern ment in regard to-

(i) measures for the regulation and promotion of internal and international trade in jute and jute manufactures,

(ii) facilities for the movement of jute and jute manu factures within the country and for their export to foreign countries,

(iii) quality standards and the grading of jute and jute manufactures,

(iv) measures for any programme of price stabilisa tion, buffer stock operations or State trading which it may be necessary to adopt from time to time, and

(v) the settlement of claims of, or against, the Central Government arising out of any price stabilisation or support scheme, buffer stock operations or scheme of State trading in jute; and

(g) to perform such other functions as the Central Govern ment may, from time to time, direct.

5.Control of the Board. The Board shall be subject to the superintendence and control of the Central Government, and in the discharge of its functions shall be guided by such general or special instructions as may, from time to time, be given to it by the Central Govern ment.

6.Licensing.-(1) No person shall, after the commencement of this Ordinance, carry on business in jute in any manner or form, unless he is licensed under this Ordinance:

Provided that it shall not be necessary for any grower of jute to obtain any licence for selling jute grown by him:

Provided further that all licences issued under the East Bengal Jute Dealers Registration Act, 1949, shall be deemed to have been issued under this Ordinance and shall have effect until replaced by licences granted under this Ordinance or the expiry of the period of their validity, whichever is earlier.[E.B.Act XVIII of 1949.]

(2) All dealers and occupiers of [Ins. by the Jute (Amdt.) Ordinance, 1963 (7 of 1963), s. 2.] [jute mills,] godowns and kutcha or pucca presses shall be licensed within such period and by such authority as may be prescribed.

(3) Licences granted under this Ordinance may be for such type of business or for such area as may be specified therein.

(4) Licences granted under this Ordinance may be on such conditions as may be prescribed.

(5) Licences granted under this Ordinance shall be personal and non-transferable.

(6) Licences granted under this Ordinance shall be valid up to the end of the financial year to which they relate and be renew ed annually within such period as may be prescribed.

(7) There shall be paid to the Central Government a prescribed fee for every licence or renewal thereof.

(8) A licence granted or renewed under this section may be suspended or cancelled by the prescribed authority,-

(a) for any contravention of any of the provisions of this Ordinance or the rules made thereunder, or

(b) for breach of the conditions subject to which the licence was granted, or

(c) if the holder of the licence has ceased to carry on the business or has sold or otherwise transferred his in terest in the business in respect of which the licence was granted, or

(d) for contravening or failing to comply with any law relating to internal trade, export or foreign exchange control, or

(e) for obtaining or attempting to obtain any such licence by fraud, or

(f) for non-payment of any prescribed fees, or

(g) for committing any practice relating to trade, com merce and industry which, in the opinion of the Central Government, is detrimental to the public interest, or

(h) for committing breach of any order made under this Ordinance regarding quality, standard, prices, charges or commissions.

(9) The holder of a licence shall not be entitled to any com pensation for any loss or damage suffered by him as a result of the suspension or cancellation of his licence.

7.Appeal-(1) Any person aggrieved by an order under section 6 may appeal to the prescribed authority within thirty days from the date of issue of such order.

(2) An appeal under sub-section (1) shall be presented in such manner and shall be accompanied by such fee as may be prescribed.

8.Fixation of prices. -(1) The Central Government may, by notified order, fix minimum prices below which, and maximum prices above which, jute or jute manufactures of various grades shall not be sold or purchased [The words "for consumption within Pakistan or for export" omitted by the Jute (Amdt.) Ordinance, 1963 (7 of 1963), s. 3.], and such prices may be fixed generally in respect of all areas or persons or differentially in respect of particular areas or classes of persons.

(2) No person shall buy or sell or offer to buy or sell jute or jute manufactures at any price below the minimum or above the maximum fixed under sub-section (1).

9.Agents and brokers. The Central Government may appoint agents and brokers on such terms, if any, as it may think fit, to purchase, store or sell jute on behalf of the Central Government and may prescribe the powers and responsibilities of such agents and brokers.

10.Requisition of presses, godowns, etc.-(1) The Central Government, may, by order in writing, requisition any kutcha or pucca press, any godown or any place, open or enclosed, and use the same, or allot it to any person for baling, selling or storing jute or for any other purpose in cidental to the administration of this Ordinance whether such jute has been purchased by or on behalf of the Central Govern ment or not.

(2) If any such press, godown or place is requisitioned under this section, there shall be paid compensation which shall be determined either with the agreement of the parties concerned or by an arbitrator chosen with their consent, and in the absence of such consent, by an arbitrator to be appointed in accordance with the provisions of the Arbitration Act, 1940. (X of 1940.)

(3) In determining the compensation under sub-section (2) the arbitrator shall have regard to the provisions of sub-section (1) of section 23 of the Land Acquisition Act, 1894, so far as the same can be made applicable to acquisition of a temporary nature. (I of 1894.)

11.Levy of jute cess-(1) The Central Government may, by notified order, levy and collect, for the purpose of this Ordinance, a cess on all or any grades of jute produced in Pakistan, at such rate or rates as may be specified in the order :

Provided that the cess shall not be levied on, or collected from, growers of jute.

(2) The proceeds of the cess, after deducting the cost of collection, if any, shall be credited to a special fund to be called the Price Stabilisation Fund and shall be applied for meeting the expenses of any support schemes or buffer stock operations undertaken by the Central Government for the stabilisation of the prices of raw jute.

12.Registration of contracts. The Central Government may, by general or special order in writing, require any contract or class of contracts to be registered with such organisation and in such manner as may be specified in the order.

13.Power to prohibit sale, etc. The Central Government may, by general or special order in writing, direct any exporter, manufacturer or dealer or class of exporters, manufacturers or dealers not to transport, store, buy, sell, use or otherwise dispose of any jute or jute manu factures or jute or jute manufactures of any specified descrip tion except in accordance with such conditions as may be specified in the order.

14.Power to call for information, etc. -(1) The Central Government may, at any time, by noti fied order, direct such person or class of persons as may be specified in the order to maintain such accounts and furnish such returns or other information relating to their [Subs. ibid., s. 6, for "productions, sale or purchase".] [production, stocks, sale, purchase or brokery] of jute or jute manufactures to the Central Government or to such officer or authority sub ordinate to the Central Government or the Provincial Govern ment, within such period, and giving such particulars, as may be specified.

(2) The Central Government may, by order in writing, re quire any person to furnish or submit to it or to such person as may be specified in the order, any information, book or document which in the opinion of the Central Government should be ob tained, inspected or examined for the purposes of this Ordinance.

(3) The Central Government may, at any time, by order in writing, direct such person or class of persons as may be speci fied in the order to furnish in such manner and to such person, such particulars relating to the fulfilment of any contract as may be so specified.

(4) The Central Government may, at any time, by order in writing, authorize an officer of the Central Government or a Provincial Government or any other person to enter and inspect any premises in which he has reason to believe that the purchase, sale or storage for sale or baling of jute is taking place and to call for any document in connection therewith, and to collect such information as is referred to in sub-sections (1), (2) and (3).

15.Powers to secure fulfillment of contract. If in the opinion of the Central Government it is ex pedient or necessary so to do for the purpose of securing fulfil ment of any contract on which a default has taken place, it may appropriate to the contract any jute or jute manufactures be longing to the defaulter, or it may buy jute or jute manufactures elsewhere and so appropriate it, and in either or both of such cases the defaulter shall be liable for any loss which the Central Government may sustain on account of the default, but shall not be entitled to any gain on the purchase made against such default.

16.Delegation of powers. The Central Government may, by notified order, direct that any power conferred upon it by or under this Ordinance, shall, in relation to such matters and subject to such conditions, if any, as may be specified in the order, be exercisable also by-

(i) the Board, or

(ii) such officer or authority subordinate to the Central Government, or such provincial Government or such officer or authority subordinate to a Provincial Gov ernment as may be so specified..

17.Penalities.--(1) Any person who contravenes or fails to comply with any provision of this Ordinance or of any rule, order or direction issued thereunder shall be punished with imprisonment for a term which may extend to three years, or with fine, or with both.

(2) Any court trying an offence under this Ordinance may direct that the whole or a part of the jute or jute manufactures in respect of which the court is satisfied that the offence has been committed shall be forfeited to Government.

[Subs. by the Jute (Amdt.) Ordinance, 1963 (7 of 1963), s. 8, for the original sub-sections (3) and (4).] [(3) Where any person as aforesaid is a company or a body corporate, every director, manager, secretary or other officer, and every agent and servant thereof, and in the case of an un limited company or a company limited by guarantees or a pro prietary or partnership firm, also every member, proprietor or partner, as the case may be, shall, unless he proves that the con travention took place without his knowledge or that he exercised due diligence to prevent such contravention, be punishable as if he had contravened the provisions of this Ordinance.]

18.False statement. If any person

(i) when required by any order made under this Ordinance to make any statement or furnish any information, makes any statement or furnishes any information which is false in any material particular and which he knows or has reasonable cause to believe to be false, or does not believe to be true, or

(ii) makes any such statement as aforesaid in any book, account, record, declaration, return or other document which he is required by any such order to maintain or furnish, or

(iii) maintains a double set of books, accounts or any other records, in which the entries are not identical,

he shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.

19.Indemnity. No suit, prosecution or other legal proceeding shall lie against the Central Government or the Board or any official, authority or person acting on behalf of the Central Government or the Board in respect of anything in good faith done or intended to be done under this Ordinance or any rule made thereunder.

20.Power to make rules. -(1) The Central Government may, by notification in the official Gazette, make rules[For the Jute (Licensing and Enforcement) Rules, 1964, see Gaz. of P., 1964, Ext., pp. 158g-158aj.] for carrying out the purposes of this Ordinance.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may prescribe the form of ap plication and the amount of fee for the grant or renewal of a licence under section 6, the authority which may grant or renew such licences, the form of the licences and the conditions subject to which they may be granted, the authority to which an appeal may be made under section 7, the manner of presentation of appeal to such authority and the amount of fee to be paid for such appeal, and the powers and responsibilities of the agents appointed under section 9.

(3) Except in so far as they are repugnant to or inconsistent with the provisions of this Ordinance, the East Bengal Jute Dealers Registration Rules, 1950, made under the East Bengal Jute Dealers Registration Act, 1949, shall be deemed to have been made under this Ordinance, and shall have effect accordingly.(E.B. Act XVIII of 1949.)

21.Cognizance of offences. - [Section 21 was re-numbered as sub-section (i) of that section by the Jute (Amdt.) Ordinance, 1963 (7 of 1963), s. 10.] [(1)] No court shall take cognizance of any offence punishable under this Ordinance except on a report in writing of the facts constituting such offence made by the Board or a person acting on behalf of the Central Government or the Board.

[Sub-section (2) added ibid.] [(2) The Board, or the person acting on behalf of the Central Government or the Board, may, instead of making a report of an offence under sub-section (1), compound such offence for such sum of money as may be determined by the Board or the person, as the case may be.]

22.Special provision regarding fines. Notwithstanding anything contained in section 32 of the Code of Criminal Procedure, 1898, it shall be lawful for any Magistrate of the first class specially empowered by the Pro vincial Government in this behalf to pass a sentence of fine exceed ing one thousand rupees on any person convicted under this Ordinance.(Act V of 1898.)

23.Presumption as to orders. Where an order purports to have been made and signed by an authority in exercise of any power conferred by or under this Ordinance, a court shall, within the meaning of the Evidence Act, 1872, presume that such order was so made by that authority.(I of 1872)

24.Effect of orders inconsistent with other enactments. Any order made under this Ordinance shall have effect notwithstanding anything inconsistent therewith contained in any enactment other than this Ordinance or any instrument having effect by virtue of any enactment other than this Ordinance.

25.Repeals and saving.-(1) The East Bengal Jute Dealers Registration Act, 1949, and the Jute Act, 1957, shall stand repealed.(E.B. Act XVIII of 1949.)

(2) Notwithstanding the repeal of the Jute Act, 1957, the Jute Board constituted thereunder and functioning immediately before the commencement of this Ordinance shall, until a Board is constituted in accordance with the provisions of section 3, be deemed to have been constituted under this Ordinance, and all the other provisions of this Ordinance shall apply accord ingly.(XXXVII of 1957)

8-A. Fixation of baling charges, etc. [Section 8A ins. ibid., s. 4.] The Central Government may, by notified order, fix the maximum rates of charges for baling or storing, or of the commission of the brokers ; and different rates may be fixed for different areas or for different classes of dealers.]

13-A. Power to direct sale, etc. - [Section. 13A ins. by the Jute (Amdt.) Ordinance, 1963 (7 of 1963), s. 5 ] (1) The Central Government may, by general or special order in writing, direct any manufacturer or dealer or class of manufacturers or dealers, holding stock of jute or jute manufactures, to sell the whole or specified part of his stock to such person or persons as may be specified in the order.

(2) The Central Government may also fix the price at which any stock shall be sold in pursuance of any direction under sub section (1) :

Provided that no such price shall be fixed unless an opportunity has been given to the buyer and seller to agree on a price between themselves within a specified period and they have failed to do so.

(3) The Central Government may, by general or special order in writing, direct any manufacturer or dealer, or class of manufacturers or dealers, to purchase, during such period or periods and from such area or areas, such quantity of jute, and to hold such minimum stock, as may be specified in the order.]

14-A.Power to seize books of accounts, stocks, etc. [Section 14A, ins. by the Jute (Amdt.) Ordinance, 1963 (7 of 1963), s. 7.] Any person, authorised in this behalf in writing by 'the Central Government, may, if he has reason to believe that a contravention of the provisions of this Ordinance or the rules made thereunder has been committed,-

(1) seize, with previous sanction in writing of such au thority as may be prescribed, licences, vouchers, books of accounts, stocks of jute or jute manufacture, weigh ment scales, weights and allied equipments in respect of which such contravention is believed to have been committed; and

(2) require any person reasonably suspected to being con cerned in such contravention to cause his stocks of jute and jute goods or any part thereof to be weighed and, if so directed, to be shifted to such place or places as may be specified.]

20-A.Power to exempt. [Section 20A ins. by the Jute (Amdt,) Ordinance, 1963 (7 of 1963), s. 9.] The Central Government may, by order in writing, exempt, to such extent and subject to such conditions as may be specified therein, any person or class of persons or any kind or kinds of jute or jute manufactures, from the operation of all or any of the provisions of this Ordinance or of any rule or order made thereunder.

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