Laws & Rules

The Contract Act, 1872

Preamble (IX OF 1872) 25th April, 1872           Preamble.  Whereas it is expedient to define and amend certain parts of the law relating to contract; It is hereby enacted as follows:– PRELIMINARY Short title.—This Act may be called the Contract Act, 1872. Extent and commencement.  It extends to the whole of Pakistan; and it shall come into force on the first day of September, 1872.             Enactments repealed. Nothing herein contained shall affect the provisions of any Statute, Act, or Regulation not hereby expressly repealed, nor any usage or custom of trade, nor any incident of any contract not inconsistent with the provisions of this Act. Interpretation clause.—In this Act the following words and expressions are used in the following senses unless, a contrary  intention appears from the context– (a)        “Proposal”: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal; (b)       “Promise”: When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted becomes a promise; (c)       Promisor and Promisee”: The person making the proposal is called the ”promisor”, and the person accepting the proposal is called the”promisee”; (d)       “Consideration”: When, at the desire of the promisor, the promisee or any other person who has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from  doing, something, such act or abstinence or promise is called a consideration for the promise; (e)        “Agreement”: Every promise and every set of promises, forming he consideration for each other, is an agreement; (f)        “Reciprocal promises”: Promises which form the consideration or part of the consideration for each other called reciprocal promises; (g)       “Void agreement”: An agreement not enforceable by law is said to be void; (h)       “Contract”: An agreement enforceable by laws a contract; (i)        “Voidable contract”: An agreement which is enforceable by law at the opinion of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract; and (j)        “Void contract”: A contractor which ceases to be enforceable by law becomes void when it ceases to be enforceable. CHAPTER — I OF COMMUNICATIONS, ACCEPTANCE AND REVOCATION OF PROPOSALS Communications, acceptance and revocation of proposals.—The communication of proposals, the acceptance of proposals, and the revocation of proposal and acceptances, respectively, are deemed to be made by any Act or omission of the party proposing, accepting or revoking by which he intends to communicate such proposal, acceptance  or revocation, or which has the effect of communicating it. Illustrations (a) A. proposes, by letter, to sell a house to B. at a certain price. The communication of the proposal is complete when B. receives the letter. (b) B accepts A’s proposal by a letter sent by post. The communication of the acceptance is complete; as against A., when the letter is posted; as against B., when the letter is received by A. (c) A revokes his proposal by telegram. The revocation is complete as against A., when the telegram is despatched. It is complete as against B. when B. receives it. revokes his acceptance by telegram. B.’s revocation is complete as against B. when the telegram is dispatched and as against A. when it reaches him. Communication when complete.—The communications of a proposal  is complete when it comes to the knowledge of the person to whom it is made.         The communication of an acceptance is complete.       as against the propose, when it is put in a course of  transmission to him, so as to be out of the power of the acceptor;        as against the acceptor, when it comes to the knowledge of the proposer.        The communication of revocation is complete,—        as against the person who makes it, when it is put into course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it;         as against the person to whom it is made, when it comes to his knowledge. Illustrations  (a)       A. proposes, by letter, to sell a house to B. at a certain price. The communication of the proposal is complete when B. receives the letter. (b)       B accepts A’s proposal by a letter sent by post. The communication of the acceptance is complete; as against A., when the letter is posted; as against B., when the letter is received by A. (c)        A revokes his proposal by telegram. The revocation is complete as against A., when the telegram is dispatched. It is complete as against B. when B. receives it. revokes his acceptance by telegram. B.’s revocation is complete as against B. when the telegram is dispatched and as against A. when it reaches him. Revocation of proposals and acceptances.—A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards.         An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but afterwards. Illustrations A proposes, by a letter sent by post, to sell his house to B. B accepts the proposal by a letter sent by post. A may revoke his proposal at any time before or at the moment when B posts his letter of acceptance, but not afterwards. B may revoke his acceptance at any time before or at the moment when the letter communicating it reaches A but not afterwards. Revocation how made.—A proposal is revoked,— (1) by the communication of notice of revocation by the proposer to the other party; (2) by the lapse of the time prescribed in such proposal for its acceptance, or, if no time is so prescribed, by the lapse of a reasonable time, without communication of the acceptance; (3) by the failure of the acceptor to fulfill a condition

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The Controller General of Accounts (Appointment, Functions and Powers) Ordinance, 2001

ORDINANCE No.XXIV OF 2001 [17th May, 2001] An Ordinance to provide for separation of accounting functions and appointment of Controller General of Accounts WHEREAS it is expedient to provide for separation of accounting functions and appointment of Controller-General of Accounts and for matters connected therewith or incidental thereto; AND WHEREAS the National Assembly and the Senate stand suspended in pursuance of the Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999; 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 Emergency of the fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance:— Short title, extent and commencement.__(1) This Ordinance may be called the Controller-General of Accounts (Appointment, Functions and Powers) Ordinance, 2001. (2) It extend to the whole of Pakistan. (3) It shall come into force on the first day of July, 2001. Definitions.__(1) In this Ordinance, unless there is anything repugnant in the subject or context,— (a) “appropriation accounts” means accounts relating to expenditure brought into account during a financial year to several items specified in the schedules of expenditure authenticated under the Budgetan, Provisions Order, 2000 (Chief Executive’s Order No.6 of 2000). (b) “Auditor-General” means the Auditor-General of Pakistan appointed under Article 168 of the Constitution of the Islamic Republic of Pakistan; (c) “Controller-General” means the Controller-General of Accounts appointed under section 4; and (d) “Finance Accounts” means the accounts exhibiting annual receipts and disbursements as well as balances of assets and liabilities of the Federal Government as on the thirtieth June of a financial year. Transfer of accounting functions.On the commencement of this Ordinance, the Auditor-General shall, by order published in the official Gazette, transfer accounting functions to the Controller-General of Accounts. Controller-General of Accounts.There shall be a Controller­ General of Accounts who shall be appointed by the President from amongst the officers of the Accounts Group and shall be a B. P. S. 22 officer. Functions of the Controller-General.The functions of the Controller-General shall be,— (a) to prepare and maintain the accounts of the Federation, the Provinces and district Governments in such forms and in accordance with such methods and principles as the Auditor-General may, with the approval of the President, prescribe from time to time; (b) to authorise payments and withdrawals from the Consolidated Fund and Public Accounts of the Federal and Provincial Governments against approved budgetary provisions after pre-audited checks as the Auditor-General may, from time to time, prescribe; (c) to prepare and maintain accounts of such organizations and authorities established, set up or controlled by the Federation or Provinces as may be assigned to him by the President or, as the case may be, the Governor of a Province. (d) to lay down the principles governing the internal financial control for Government departments in consultation with the Ministry of Finance and the Provincial Finance Departments as the case may be; (e) to render advice on accounting procedure for new scheme, programmes or activities undertaken by the Government concerned; (f) to submit accounts compiled by him or any other person responsible in that behalf, after the close of each financial year, to the Auditor-General, showing under the respective heads the annual receipts and disbursements for the purpose of Federation and of each Province within the time-frame prescribed by the Auditor-General; (g) to provide, insofar as the accounts compiled by him permit, to the Federal Government or, as the case may be, the Provincial Government or, District Government such information as such Governments may from time to time require; (h) develop and maintain an efficient system of pension, provident funds and other retirement benefits in consultation with the concerned Government; (i) to co-ordinate and ensure resolution of audit observation of the Audit Department with the concerned department; and (j) to prescribe syllabus, standards and provide facilities for the training of officers and staff under his administrative control. Certain offices to work under the control of the Controller General.__(1) The Controller General shall have such offices as the Federal, Provincial and district levels and such officers working in these offices as tray be notified for this purpose by the Federal Government and the respective Provincial Government. (2) Until such time the offices of the Controller General specified in subsection (1) are notified the following accounting organization shall work under the Controller General, namely:— (a) the Accountant General of Pakistan Revenues and its sub-offices; (b) the Military Accountant General and its sub-offices; (c) the Offices of the Provincial Accountant General of each Province and the offices subordinate to them. (d) the Chief Accounts Officers of the departmentalized accounting offices; and (e) any other departmentalized accounting organizations as well as their sub-offices. (3) The Controller General shall be the administrative head of all the offices subordinate to him with full authority for transfer and posting within his organization. Reports.From the accounts directly kept or maintained by him of by accounts officers subordinate to him, and from the accounts kept and maintained by other entities, including self-accounting entities, the ‘Controller General shall,— (a) prepare each year the appropriation and finance accounts and such other accounts as may be prescribed by rules for submission to the Auditor-General on such dates as may be specified by him. (b) prepare and submit to the Auditor-General for each financial year a Consolidated and General Financial Statement incorporating the summary of the accounts of the Federation, all provinces and district authorities. The Auditor-General, after authentication, shall forward the same to the Federal Government, Provincial Governments and district authorities. (c) prepare and submit to the Federal, the respective Provincial Governments and the Auditor-General, statements and summaries of monthly or quarterly accounts as on such formats as may be prescribed by rules. All accounting offices to assist and afford facilities.All Accounting Offices shall afford all necessary facilities

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Code of Conduct for Political Parties and Contesting Candidates for the Forthcoming General Elections, 2002 issued by the Election Commission

21st August 2002 The Election Commission of Pakistan in its meeting held on today the 21st August, 2002 took the following decisions for the issuance of the Code of Conduct for Political Parties and contesting candidate for the forthcoming General Elections, 2002:— WHEREAS for the purpose of effective and meaningful consultation with the political parties, the Code of Conduct for 1997 General Elections was published in newspapers and was given extensive publicity through electronic and print media on 5th July, 2002 for eliciting their valuable suggestions by 5th August, 2002 as, to whether the provisions of aforementioned Code of Conduct may be retained in its present form or any of its provision may be modified or amended or some new provisions may be added to the Code of Conduct for General Elections, 2002. AND WHEREAS pursuant to the aforesaid measures taken by the Election Commission, proposals have been received from political parties which have been given due consideration. NOW THEREFORE, in pursuance of Article 218 (3) of Constitution of Islamic Republic of Pakistan, read with Articles 5(3) and 6 of the Election Commission Order, 2002 (Chief Executive’s Order No.1 of 2002), and Article 18 of Political Parties Order, 2002 (Chief Executive’s Order No.18 of 2002), and all other powers enabling in that behalf, the Election Commission is pleased to issue the following Code of Conduct for political parties and contesting candidates for the forthcoming General Elections, 2002:— (1)      The political parties shall not propagate any opinion, or act in any manner prejudicial to the ideology of Pakistan, or the sovereignty, integrity or security of Pakistan, or morality, or the maintenance of public order, or the integrity or independence of the judiciary of Pakistan, or which defames or brings into ridicule the judiciary or the armed forces of Pakistan, as provided under Article 63 of the Constitution. (2)      Criticism of other political parties, when made, shall be confined to their policies and programme, past record and work. Parties and candidates shall refrain from criticism of all aspects of private life, not connected with the public activities of the leaders or workers of other parties. Criticism of other parties or their workers based on unverified allegations or on distortion shall be avoided. (3)      Concerned political parties and contesting candidates may announce their overall development programme. But following the announcement of the election schedule till the day of polling, no candidate or any person on his behalf shall, openly or in secret, give any subscription or donation, or make promise for giving such subscription or donation, to any institution of their respective constituency or to any other institution, nor shall commit to undertake any development project in the respective constituency. (4)      All parties and candidates, shall avoid scrupulously all activities which are “corrupt practices” and offences under the election law such as the bribing of voters, intimidation of voters, personation of voters, canvassing within 400 yards of a polling station, holding public meetings during the period of 48 hours ending with the hour fixed for the close of the poll. (5)      The right of every individual for peaceful and undisturbed home life shall be respected, however much the political parties or candidates may resent his political opinions or activities. Organizing demonstrations or picketing before the houses of individuals by way of protesting against their opinions or activities shall not be resorted to under any circumstances. (6)      No political party or candidate shall permit his followers to make use of any individual’s land, building, compound wall etc. without his permission for erecting flag-staffs, suspending banners, pasting notices, writing slogans etc. (7)      Political parties and candidates shall ensure that their supporters do not create obstructions in or break up meetings and processions organized by the other parties. Workers or sympathizers of one political party shall not create disturbance at public meetings organized by another political party. (8)      Processions shall not be taken out by one party along places at which meetings are being held by another party. Posters issued by one party shall not be removed by workers of another party. (9)      The party or candidates shall inform the local administration of the venue and time of any proposed meeting well in time so as to enable the police to make necessary arrangements for controlling traffic and maintaining peace and order. (10)    A party or candidate shall ascertain in advance if there are any restrictive or prohibitory orders in force in the place proposed for the meeting. If such order exists, they shall be followed strictly. If any exception is required from such orders it shall be applied for and obtained well in time. (11)    Organisers of a meeting shall invariably seek the assistance of the police on duty for dealing with persons disturbing a meeting or otherwise attempting to create a disorder. Organisers themselves shall not take, action against such persons. (12)    A party or candidate organizing a procession shall decide before hand the time and place of the starting of the procession, the route to be followed and the time and place at which the procession will terminate. There shall ordinarily be no deviation from the programme. The organizers shall give advance intimation to the local police authorities of the progralT1mes so as to enable them to make necessary arrangements. (13)    The organizers shall ascertain if any restrictive orders are in force in the localities through which the procession has to pass, and shall comply with the restrictions unless exempted specially by competent authority. Any traffic regulations or restrictions shall also be carefully adhered to. (14)    The organizers shall take steps in advance to arrange for passage of the procession so that there is no block or hindrance to traffic. If the procession is very long, it shall be organized in segments of suitable lengths, so that at convenient intervals, especially at points where the procession has to pass road junctions, the passage of held up traffic could be allowed by stages thus avoiding

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The Code of Civil Procedure, 1908

    [1]Act No. V of 1908 [21st March 1908] An Act to consolidate and amend the laws relating to the Procedure of the Courts of Civil Judicature. WHEREAS it is expedient to consolidate and amend the laws relating to the procedure of the Courts of Civil Judicature; It is hereby enacted as follows:— PRELIMINARY Substituted/Amended/Inserted by section 4 of Notification Code of Civil Procedure (Punjab Amendment) Ordinance, 2021, published in Extra Ordinary Issued of the Punjab Gazette, Lahore Wednesday February 10, 2021, at page No. 6053-6061. 1. Short title, commencement and extent.- (l) This Act may be cited as the Code of Civil Procedure, 1908. (2) It shall come into force on the first day of January 1909. [2][(3) It extends to the whole of Pakistan.] [3][(4) The primary objective of this Code is to enable the Courts to:— (a) deal with the cases justly and fairly; (b) encourage parties to alternate dispute resolution procedure if it considers appropriate; (c) save expense and time both of courts and litigants; and (d) enforce compliance with provisions of this Code.] 2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,— (1) “Code” includes rules:— (2) “decree” means the formal expression of an adjudication which, so far as regards the court expressing it, conclusively determines the rights of the parties which regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint [4][the determination of any question within section 144 and an order under rule 60, 98, 99, 101, or 103 of Order XXI] but shall not include; (a) any adjudication form which an appeal lies as an appeal from an order, or (b) any order of dismissal for default. Explanation.- A decree is preliminary when further proceedings have to be taken before the suit can be completely dispose of. It is final when such adjudication completely disposes of the suit. It may be partly preliminary and partly final; (3) “Decree-holder” means any person in whose favour a decree has been passed or an order capable of execution has been made: (4) “District” means the local limits of the jurisdiction of a principal Civil Court of original jurisdiction (hereinafter called a “District Court”), and includes the local limits of the ordinary original civil jurisdiction of a High Court: (5) “Foreign Court” means a Court situate beyond the limits of [5] [Pakistan] which has no authority in [6][Pakistan] and is not established or continued by [7]the [8]Federal Government [9]***]: (6) “Foreign judgment” means the judgment of a foreign Court: (7) “Government Pleader” Includes any officer appointed by the [10][Provincial Government] to perform all or any of the functions expressly imposed by this Code on the Government Pleader and also any pleader acting under the directions of the Government Pleader: (8) “Judge” means the presiding officer of a civil Court: (9) “Judgment” means the statement given by the Judge of the grounds of a decree or order. (10) “Judgment-debtor” means any person against whom a decree has been passed or an order capable of execution has been made. (11) “Legal representative” means a person who in law represents the estate of a deceased person, and includes any person who intermediary with the estate of the deceased and where a party sues or is sued in a representative character the person on whom the estate devolves on the death of the party so suing or sued. (12) “Mesne profits” of property means those profits which the person in wrongful profession of such property actually received or might with ordinary diligence have received therefrom, together with interest on such profits but shall not include profits due to improvements made by the person in wrongful possession. (13) “Movable property” includes growing crops. (14) “Order” means the formal expression of any decision of a civil Court which is not a decree. (15) “Pleader” means any person entitled to appear and plead for another in Court, and includes an advocate, a civil and an attorney of a High Court. (16) “Prescribed” means prescribed by rules. (17) “Public officer” means a person falling under any of the following descriptions, namely:— (a) every Judge; (b) [11][every person in the service of Pakistan]. (c) every commissioned or gazetted officer in the military, [12][naval or airy] forces of [13]Pakistan while in the service of the State]; (d) every officer of a Court of Justice whose duty it is, as such officer, to investigate or report on any matter of law or fact, or to make, authenticate or keep any document, or to take charge or dispose of any property, or to execute any judicial process, or to administer any oath, or to interpret, or to preserve order, in the Court, and every person especially authorized by a Court of Justice to perform any of such duties; (e) every person who holds any office by virtue of which he is empowered to place or keep any person in confinement; (f) every officer of [14][the Government] ] whose duty it is, as such officer, to prevent offences, to give information of offences, to bring offenders to justice, or to protect the public health, safety or convenience; (g) every officer whose duty it is, as such officer, to take, receive, keep or expend any property on behalf of 4[the 5[Government]], or to make any survey, assessment or contract on behalf of [15][the (Government], or to execute any revenue-process, or to investigate, or to report on, any matter affecting the pecuniary interests of [16][the [Government], or to make, authenticate or keep any document relating to the pecuniary interests of [17][the [Government] ] or to prevent the infraction of any law for the protection of the pecuniary interest of [18][the [Government] ]; and (h) every officer in the service or pay of [19][the [Government]], or remunerated by fees or commission for the performance of any public duty: (18) “Rules” means rules and

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The Companies Act, 2017

ACT NO. XIX OF 2017 ISLAMABAD, WEDNESDAY, MAY 31, 2017 PART I Acts, Ordinances, President’s Orders and Regulations NATIONAL ASSEMBLY SECRETARIAT Islamabad, the 30th May, 2017 No. F. 22(40)/2016-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 30th May, 2017 is hereby published for general information:— ACT NO. XIX OF 2017 AN ACT to reform and re-enact the law relating to companies and for matters connected therewith WHEREAS it is expedient to reform company law with the objective of facilitating corporatization and promoting development of corporate sector, encouraging use of technology and electronic means in conduct of business and regulation thereof, regulating corporate entities for protecting interests of shareholders, creditors, other stakeholders and general public, inculcating principles of good governance and safeguarding minority interests in corporate entities and providing an alternate mechanism for expeditious resolution of corporate disputes and matters arising out of or connected therewith; It is hereby enacted as follows:— PART I PRELIMINARY Short title, extent and commencement.—(1) This Act may be called the Companies Act, 2017. (2) It extends to the whole of Pakistan. (3) This Act shall come into force at once, except section 456 which shall come into force on such date as the Federal Government or an authority or person authorized by it may, by notification in the official Gazette, appoint. Definitions.—(1) In this Act, unless there is anything repugnant in the subject or context,— (1) “advocate” shall have the same meaning as assigned to it in section 2 of the Legal Practitioners and Bar Councils Act, 1973 (XXXV of 1973); (2) “alter” or “alteration” includes making of additions or omissions without substituting or destroying main scheme of the document; (3) “articles” mean the articles of association of a company framed in accordance with the company law or this Act; (4) “associated companies” and “associated undertakings” mean any two or more companies or undertakings, or a company and an undertaking, interconnected with each other in the following manner, namely:— (a) if a person who is owner or a partner or director of a company or undertaking, or who, directly or indirectly, holds or controls shares carrying not less than twenty percent of the voting power in such company or undertaking, is also the owner or partner or director of another company or undertaking, or directly or indirectly, holds or controls shares carrying not less than twenty percent of the voting power in that company or undertaking; or (b) if the companies or undertakings are under common management or control or one is the subsidiary of another; or (c) if the undertaking is a modaraba managed by the company; and a person who is the owner of or a partner or director in a company or undertaking or, who so holds or controls shares carrying not less than ten percent of the voting power in a company or undertaking, shall be deemed to be an “associated person” of every such other person and of the person who is the owner of or a partner or director in such other company or undertaking, or who so holds or controls such shares in such company or undertaking: Provided that— (i)                 shares shall be deemed to be owned, held or controlled by a person if they are owned, held or controlled by that person or by the spouse or minor children of the person; (ii)               directorship of a person or persons by virtue of nomination by concerned Minister-in-Charge of the Federal Government or as the case may be, a Provincial Government or a financial institution directly or indirectly owned or controlled by such Government or National Investment Trust; or (iii)             directorship of a person appointed as an “independent director”; or (iv)             shares owned by the National Investment Trust or a financial institution directly or indirectly owned or controlled by the Federal Government or a Provincial Government; or shares registered in the name of a central depository, where such shares are not beneficially owned by the central depository; shall not be taken into account for determining the status of a company, undertaking or person as an associated company, associated undertaking or associated person; (5) “authorised capital” or “nominal capital” means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company; (6) “banking company” means a banking company as defined in clause (c) of section 5 of the Banking Companies Ordinance, 1962 (LVII of 1962); (7) “beneficial ownership of shareholders or officer of a company” means ownership of securities beneficially owned, held or controlled by any officer or substantial shareholder directly or indirectly, either by— (a) him or her; (b) the wife or husband of an officer of a company, not being herself or himself an officer of the company; (c) the minor son or daughter of an officer where “son” includes step-son and “daughter” includes step-daughter; and “minor” means a person under the age of eighteen years; (d) in case of a company, where such officer or substantial shareholder is a shareholder, but to the extent of his proportionate shareholding in the company:— Provided that “control” in relation to securities means the power to exercise a controlling influence over the voting power attached thereto: Provided further that in case the substantial shareholder is a non-natural person, only those securities will be treated beneficially owned by it, which are held in its name. Explanation.—For the purpose of this Act “substantial shareholder”, in relation to a company, means a person who has an interest in shares of a company- (a) the nominal value of which is equal to or more than ten per cent of the issued share capital of the company; or (b) which enables the person to exercise or control the exercise of ten per cent or more of the voting power at a general meeting of the company; (8) “board”, in relation to a company, means board of directors of the company; (9) “body corporate” or “corporation” includes— (a) a company incorporated under this Act or

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The Competition Ordinance, 2007

PART I   Acts, Ordinances, President’s Orders and Regulations GOVERNMENT OF PAKISTAN MINISTRY OF LAW, JUSTICE AND HUMAN RIGHTS Islamabad, the 2nd October, 2007     No. 2(1)/2007-Pub.-The following Ordinance promulgated by the President is hereby published for general information:-   ORDINANCE NO. LII OF 2007 AN ORDINANCE to provide for free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from and competitive behaviour WHEREAS it is expedient to make provisions to ensure free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behaviour and to provide for the establishment of the Competition Commission of Pakistan to maintain and enhance competition; and for matters connected therewith or incidental thereto; AND WHEREAS the National Assembly is not in session and the President is satisfied that circumstances exist which render it necessary to take immediate action; NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following Ordinance:—   CHAPTER-I   PRELIMINARY Short title, extent, application and commencement.- (1) This Ordinance may be called the Competition Ordinance, 2007. (2)        It extends to the whole of Pakistan. (3)        It shall apply to all undertakings and all actions or matters that take place in Pakistan and distort competition within Pakistan. (4)        It shall come into force at once. Definitions.- (1) In this Ordinance, unless there is anything repugnant in the subject or context,- (a)        “acquisition” means any change of control of an undertaking by way of acquisition of shares, assets or any other means;   (b)       “agreement” includes any arrangement, understanding or practice, whether or not it is in writing or intended to be legally enforceable; (c)        “Chairman” means the Chairman of the Commission and includes the Acting Chairman; (d)       “Commission” means the Competition Commission of Pakistan established under section 12; (e)        “dominant position” of one undertaking or several undertakings in a relevant market shall be deemed to exist if such undertaking or undertakings have the ability to behave to an appreciable extent independently of competitors, customers, consumers and suppliers and the position of an undertaking shall be presumed to be dominant if its share of the relevant market exceeds forty percent; (f)        “goods” includes any item, raw material, product or by-product which is sold for consideration; (g)       “Member” means a member of the Commission; (h)       “merger” means the merger, acquisition, amalgamation, combination or joining of two or more undertakings or part thereof into an existing undertaking or to form a new undertaking; and expression “merge” means to merger, acquire, amalgamate, combine or join, as the context may require; (i)        “Minister” means the Federal Minister for Finance and, in his absence the Adviser to the Prime Minister on Finance; (j)         “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); (k)       “relevant market” means the market which shall be determined by the Commission with reference to a product market and a geographic market and a product market comprises all those products or services which are regarded as interchangeable or substitutable by the consumer by reason of the products’ characteristics, prices and intended uses.  A geographic market comprises the area in which the undertakings concerned are involved in the supply of products or services and in which the conditions of competition are sufficiently homogeneous and which can be distinguished from neighboring geographic areas because, in particular, the conditions of competition are appreciably different in those areas; (l)        “retailer”, in relation to the sale of any goods, means a person who sells the goods to any other person other than for re-sale; (m)      “regulations” means the regulations made by the Commission under this Ordinance; (n)       “rules” means the rules made by the Federal Government under this Ordinance; (o)       “service” means a service of any description whether industrial, trade, professional or otherwise; (p)       “undertaking” means any natural or legal person, government body including a regulatory authority, body corporate, partnership, association, trust or other entity in any way engaged, directly or indirectly, in the production, supply, distribution of goods or provision or control of services and shall include an association of undertakings; (q)       “wholesaler”, in relation to the sale of any goods, means a person who purchases goods and sells them to any other person for re-sale, and (2)        The words and expressions used but not defined in this Ordinance shall have the same meanings respectively assigned to them in the Ordinance. CHAPTER-II   PROHIBITION OF ABUSE OF DOMINANT POSITION, CERTAIN AGREEMENTS, DECEPTIVE MARKETING PRACTICES AND APPROVAL OF MERGERS     Abuse of dominant position.- (1) No person shall abuse dominant position. (2)        An abuse of dominant position shall be deemed to have been brought about, maintained or continued if it consists of practices which prevent, restrict, reduce or distort competition in the relevant market. (3)        The expression “practices” referred to in sub-section (2) shall include, but are not limited to- (a)        limiting production, sales and unreasonable increases in price or other unfair trading conditions; (b)       price discrimination by charging different prices for the same goods or services from different customers in the absence of objective justifications that may justify different prices; (c)        tie-ins, where the sale of goods or service is made conditional on the purchase of other goods or services; (d)       making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which by their nature or according to commercial usage, have no connection with the subject of the contracts; (e)        applying dissimilar conditions to equivalent transactions on other parties, placing them at a competitive disadvantage; (f)        predatory pricing driving competitors out of a market, prevent new entry, and monopolize the market; (g)       boycotting or excluding any other undertaking from the production, distribution or sale of any goods or the provision of any service; or (h)       refusing to deal. Prohibited agreements.- (1) No undertaking or association of undertakings shall enter into any agreement or, in the case of an association of undertakings, shall make a decision in respect of the production, supply, distribution, acquisition or control of goods or the provision of services which have the object or effect of preventing, restricting or

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The Competition Act, 2010

  ACT NO. XIX OF 2010   An Act to provide for free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behavior [Gazette of Pakistan, Extraordinary, Part I, 13th October, 2010] No.F.22(30)/2009-Legis., dated 13-10-2010.–The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 6th October, 2010 and is hereby published for general information:— Whereas, it is expedient to make provisions to ensure free competition in all spheres of commercial and economic activity to enhance economic efficiency and to protect consumers from anti-competitive behavior and to provide for the establishment of the Competition Commission of Pakistan to maintain and enhance competition; and for matters connected therewith or incidental thereto; It is hereby enacted as follows:— CHAPTER I   PRELIMINARY Short title, extent, application and commencement.–(1) This Act may be called the Competition Act, 2010. (2) It extends to the whole of Pakistan. (3) It shall apply to all undertakings and all actions or matters that take place in Pakistan and distort competition within Pakistan. (4) It shall come into force at once. CHAPTER I   PRELIMINARY Definitions.–(1) In thisAct,unless there is anything repugnant in the subject or context,— (a) “acquisition” means any change of control of an undertaking by way of acquisition of shares, assets or any other means; (b) “agreement” includes any arrangement, understanding or practice, whether or not it is in writing or intended to be legally enforceable;   (c) “Chairman” means the Chairman of the Commission and includes the Acting Chairman;   (d) “Commission” means the Competition Commission of Pakistan established under section 12; (e) “dominant position” of one undertaking or several undertakings in a relevant market shall be deemed to exist if such undertaking or undertakings. have the ability to behave to an appreciable extent independently of competitors, customers, consumers and suppliers and the position of an undertaking shall be presumed to be dominant if its share of the relevant market exceeds forty per cent; (f) “goods” includes any item, raw material, product or by-product which is sold for consideration; (g) “Member” means a member of the Commission; (h) “merger” means the merger, acquisition, amalgamation, combination or joining of two or more undertakings or part thereof into an existing undertaking or to form a new undertaking; and expression “merge” means to merge, acquire, amalgamate, combine or join, as the context may require; (i) “Minister” means the Federal Minister for Finance and, in his absence, the Adviser to the Prime Minister on Finance;   (j) “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); (k) “relevant market” means the market which shall be determined by the Commission with reference to a product market and a geographic market and a product market comprises all those products or services which are regarded as interchangeable or substitutable by the consumers by reason of the products’ characteristics, prices and intended uses. A geographic market comprises the area in ‘which the undertakings concerned are involved in the supply of products or services and in which the conditions of competition are sufficiently homogeneous and which can be distinguished from neighboring geographic areas because, in particular, the conditions of competition are appreciably different in those areas; (l) “retailer”, in relation to the sale of any goods, means a Person who sells the goods to any other person other than for re-sale; (m) “regulations” means the regulations made by the Commission under this Act; (n) “rules” means the rules made by the Federal Government under this Act; (o) “service” means service of any description whether industrial, trade, professional or otherwise; (p) “Tribunal” means Competition Appellate Tribunal under section 43 of the Act; (q) “undertaking” means any natural or legal person, governmental body including a regulatory authority, body corporate, partnership, association, trust or other entity in any way engaged, directly or indirectly, in the production, supply, distribution of goods or provision or control of services and shall include an association of undertakings; and (r) “wholesaler”, in relation to the sale of any goods, means a person who purchases goods and sells them to any other person for re sale; (2) The words and expressions used but not defined in this Act shall have the same meanings respectively assigned to them in the Ordinance. CHAPTER II   PROHIBITION OF ABUSE OF DOMINANT POSITION, CERTAIN AGREEMENTS, DECEPTIVE MARKETING PRACTICES AND APPROVAL OF MERGERS Abuse of Dominant Position.–(1) No person shall abuse dominant position. (2) An abuse of dominant position shall be deemed to have been brought about, maintained or continued if it consists of practices which prevent, restrict, reduce or distort competition in the relevant market. (3) The expression “practices” referred to in subsection (2) shall include, but are not limited to,— (a) limiting production, sales and unreasonable increases in price or other unfair trading conditions; (b) price discrimination by charging different prices for the same goods or services from different customers in the absence of objective justifications that may justify different prices; (c) tie-ins, where the sale of goods or service is made conditional on the purchase of other goods and services; (d) making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which by their nature or according to commercial usage, have no connection with the subject of the contracts; (e) applying dissimilar conditions to equivalent transactions on other parties, placing them at a competitive disadvantage; (f) predatory pricing driving competitors out of a market, prevent new entry, and monopolize the market; (g) boycotting or excluding any other undertaking from the production, distribution or sale of any goods or the provision of any service; or (h) refusing to deal. Prohibited Agreements.–(l) No undertaking or association of undertakings shall enter into any agreement or, in the case of an association of undertakings, shall makeadecision in respect of the production, supply, distribution, acquisition or control of goods or the provision of services which have the object or effect of preventing, restricting, or reducing competition within the relevant market unless exempted under section 5. (2) Such agreements include, but are not limited to,— (a) fixing the purchase or selling price or imposing any other restrictive trading conditions with regard to the sale or distribution of any goods or the provision of any service; (b) dividing or sharing of markets for goods or services, whether by’ territories, by volume of sales or purchases, by type

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The Cotton Industry (Statistics) Act, 1926

    (Act XX of 1926) [25 March 1926] An Act to provide for the regular submission of returns of quantities of cotton goods manufactured and cotton yarn spun in [1][1][the Province of the Punjab] WHEREAS it is expedient, notwithstanding the repeal of the Cotton Duties Act, 1896, to provide for the regular submission of returns of the quantities of cotton goods manufactured and cotton yarn spun in [2][2][the Province of the Punjab]; It is hereby enacted as follows:— Short title and extent.— (1) This Act may be called the Cotton Industry (Statistics) Act, 1926. [3][3][(2)         It extends to the Province of the Punjab.] Definitions.— For the purposes of this Act, unless there is anything repugnant in the subject or context,— (a)  “cotton goods” or “goods” include all tissues and other articles (except yarn and thread) woven, knitted or otherwise manufactured wholly or partly from cotton yarn; (b)  “cotton yarn” or “yarn” means yarn wholly or partly composed of cotton fibres; (c)  “mill” means any building or place where cotton goods are woven, knitted or otherwise manufactured, or where cotton yarn in spun, by machinery moved otherwise than by manual labour, and includes every part of such building or place; (d) “owner”, in relation to any mill, includes the managing agent or other principal officer of the mill; and (e)  “prescribed” means prescribed by rules made under this Act. Delivery of monthly returns of goods and yarn manufactured by mill owners.— (1) The owner of every mill shall each month prepare and deliver, or cause to be prepared and delivered, to the prescribed officer a return of all cotton goods manufactured and all cotton yarn spun in the mill during the preceding month by machinery moved otherwise than by manual labour, and shall subscribe a declaration of the truth of the return at the foot thereof. (2)        Save as may be otherwise prescribed, every such return shall state, in respect of each description of goods and of yarn, the quantity manufactured during the period to which the return relates, and shall contain such further information, and be in such form and be subject to such conditions as to verification and otherwise, as may be prescribed. (3)        Every such return shall be delivered to the prescribed officer or posted to his address within seven days after the end of the month to which it relates. Power to inspect mills and take copies of records.— (1) Any officer authorised by the [4][4][Provincial Government] by order in writing in this behalf shall have free access at all reasonable times during working hours to any mill and may at any time, with or without notice to the owner, examine and take copies of, or extracts from the records of the mill for the purpose of testing the accuracy of any return made under section 3, or of informing himself as to any particulars regarding which information is required for the purposes of this Act or any rules made thereunder:— Provided that no officer not especially empowered by the [5][5][Provincial Government] in this behalf shall be entitled to inspect any record containing the description or formulae of any trade process. (2)        All copies and extracts and all information acquired by any officer in the inspection of any mill under this section shall be treated as strictly confidential. Publication of returns.— The [6][6][Provincial Government] shall, from the returns delivered under section 3, cause to be compiled and published, in such form as [7][7][it] may direct, statements showing for each month the total quantities of goods manufactured and of yarn spun in mills in [8][8][the Province]. Power to make rules.— (1) The [9][9][Provincial Government] may, by notification in the [10][10][Official Gazette], make rules[11][11] consistent with this Act to carry out the purposes thereof. (2)        In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a)  the form of any return required under this Act, the particulars to be contained therein, and the manner in which the return shall be verified; (b)  the nature of the records to be maintained by the owners of mills; (c)  the powers and duties, in regard to the inspection of mills under this Act, of the officers authorised to make such inspections; and (d) any other matter which may be or is to be prescribed. Penalties.— (1) Any person who,— (a)  knowingly falsifies any record of manufacture or production kept in a mill, or (b)  being required to deliver a return under section 3, knowingly delivers a false return, or (c)  omits to make any return required by section 3, or refuses to sign or complete the same, or (d) knowingly does any act, not otherwise punishable under this Act, in contravention of the provisions of any rule made under this Act, shall be punishable with fine which may extend to five hundred rupees. (2)        Any person who discloses any particulars or other information acquired by him in the inspection of any mill under this Act shall be punishable with fine which may extend to one thousand rupees:— Provided that nothing in this sub-section shall apply to the disclosure,— (a)  of any such particulars or information for the purpose of a prosecution under section 193 of the [12][12][Pakistan] Penal Code[13][13] or under this Act, in respect of any return kept or record made for the purposes of this Act, or (b)  of any such particulars or information to any person acting in the execution of any duty imposed upon him by this Act, where the disclosure is necessary for the purposes of this Act. Exemption.— The [14][14][Provincial Government] may, by notification in the [15][15][official Gazette], exempt from the operation of this Act or of any specified provision thereof any mill or class of mills, or any goods or class of goods, specified in the notification. Protection for acts done under this Act.— No suit or other legal proceeding shall be instituted against any person in respect of anything which is in good faith done or intended to be done under this Act. [1][1]Substituted, by the Central Laws (Statute Reform) Ordinance 1960 (XXI of 1960), section 3 and 2nd Schedule (with effect from the 14th October, 1955), for “the Provinces and the Capital of

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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:— 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. 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 value of the Fixed Tangible Assets 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 value of any new liabilities handed over; (b) ”repealed Act” means the Cotton Ginning Control and Development Act, 1976 (LIX of 1976.); and (c) other words and expressions shall have the same meaning as in the repealed Act. 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 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 order under section 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. Continu­ance in service of the em­ployees.Every whole-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. 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 been returned to the previous management thereof under section 3:— Provided that such prohibition shall not extend beyond the thirty-first day of August, 1978. 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 payable 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 the difference between the Net Worth Value and the Present Value of the assets and liabilities transferred to the previous owners, both such difference 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

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The Cotton Cloth Act, 1918

1ACT. No. XXIII of 1918                                                                                                 [26th September, 1918] An Act to take powers to provide for the cheap supply of cotton cloth to the poorer classes of the community. WHEREAS it is expedient to take powers for the purpose of encouraging or maintaining the supply, at reasonable rates, to the poorer classes of the community, of cotton cloth manufactured in this country; It is hereby enacted as follows:‑– Short title.This Act may be called the Cotton Cloth Act, 1918. Definition.In this Act, unless there is anything repugnant in the subject or context,‑– (a) “Controller” means a Controller appointed under this Act; (b) “cotton cloth” means cotton cloth manufactured in this country; and (c) “standard cloth” means any kind of cotton cloth which a Controller may, from time to time, declare to be standard cloth. Power to appoint Controllers.The2[Provincial Government] may, by notification3 in the 4[official Gazette], appoint one or more persons as 5[it] may think fit to be Controllers for the purposes of this Act, and shall specify in any such notification the area in which any Control­ler so appointed shall exercise his powers. Powers of controller.(1) Whenever it appears to a Controller that such a course is necessary or expedient for the purpose of encouraging or maintaining the supply of standard cloth, at reasonable rates to the poorer classes of the community, he may (subject to this Act and the rules made thereunder and to the control of the2[Provincial Government]) make general or special orders re­gulating or giving directions within the area in which he is em­powered, with respect to the manufacture, transport, distribution and sale or purchase of, or other dealings in, cotton cloth. (2) Without prejudice to the generality of the foregoing power, orders may be made by a Controller,— (a) declaring and defining the classes of standard cloth;   1For Statement of Objects and Reasons, see Gazette of India, 1918, Pt. V. p. 58; for Report of Select Committee, see ibid., 1918. V, p.77; and Proceedings in Council, see ibid., 1918, Pt. VI, pp. 754, 953, 1000 and 1147. 2Subs. by A O., 1937, for “G. G. in C “. 3For a notification issued by the G. G. in C. under this section, see Gazette of India, 1918, Pt. I, p. 1558. 4Subs. by A. O., 1937, for “Gazette of India”. 5Subs. ibid., for “he”. (b) prescribing distinctive indications which shall be woven into, impressed or otherwise displayed upon, different classes of standard cloth ; (c) requiring any person, who ordinarily manufactures cotton cloth, to manufacture, or provide for the manufacture of, standard cloth in such quantity, of such quality and by such date as the Controller may direct ; and (d) fixing the prices to be paid to the manufacturer for standard cloth or for any particular class of standard cloth, and providing for the payment thereof on delivery: Provided that in fixing prices the Controller shall have regard to the cost of production and to the allowance of a reason­able profit, without necessarily taking into consideration the market‑price, and if the Controller is satisfied that the manufac­turer has incurred actual loss arising out of forward contracts entered into before the commencement of this Act, and that such loss is immediately attributable to an order under this Act, he may take such loss into account: Provided further that the Controller may fix different prices in the case of different localities or, if special reasons exist, in respect of different manufacturers in the same locality. Appointment of Advisory Committees.Where a Controller is appointed in exercise of the power conferred by section 3, the1[Provincial Government] shall appoint a Committee consisting of such number of persons having knowledge of the cotton or cotton cloth trade as 2[it] thinks fit to assist the Controller with their advice in the performance of his duties. Before a Controller issues any order declaring and defining the classes of standard cloth or fixing the prices to be paid to the manufacturer, he shall consult the Committee, and he may consult the Committee on any other matter connected with his duties: Provided that, if the opinion of the majority of members of the Committee who are present at any meeting is adverse to the issue of any order, the Controller shall, if he does not accept the Committee’s advice, refer the matter for the decision of the 1[Provincial Government]. Manufacture and delivery of standard cloth.Where, by an order made in the exercise of powers conferred by section 4, the Controller has directed a manufacturer to manufacture, or provide for the manufacture of, standard cloth and has fixed the price therefor, the manufacturer shall deliver the same at such time and place and in such manner as the Con­troller may specify from time to time, and the Controller shall pay or cause to be paid to the manufacturer the said price, together with the freight, if any, actually paid by the manufacturer. Delegation of powers.Subject to the control of the1[ Provincial Government], a Controller may, from time to time by order in writing, delegate all or any of his powers subject to such conditions and restrictions as may be prescribed therein.   1Subs, by A.O., 1937 for “G.G. in C.”. 2Subs. Ibid., for “he” Penalty for disobedience of orders under section 4.If any person acts in contravention of, or without reasonable cause, fails to comply with, the provisions of any order made under section 4, or counterfeits upon any cloth a distinctive indication prescribed by the Controller, such person shall be punishable with imprisonment which may extend to six months, or with fine or with both. Power to fix prices of standard cloth.‑(1) The1[Provincial Government] shall, if standard cloth is sold in the Province, by order in writing which shall be notified in the 2[official Gazette], fix the price at which alone standard cloth or any class of standard cloth shall be sold to the public. (2) Orders may be made fixing different prices for different localities or for different methods of sale. (3) Every such order shall be published

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