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The Cotton Cloth Act, 1918

( ACT NO. XXIII OF 1918 )

Powers of the Controller
4.(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 the 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;
 
 
(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.

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