T.V.R.TATACHARI, J. - (1.) This Letter Patent Appeal has been filed by the Union of India and the Secretary of the Forward Markets Commission, against the judgmt of M. M. Ismail J" dated July 27, 1967, whereby the learned Judge allowed Civil Writ Petition No. 360 of 1967, and declared that a certain condition contained in the Certificate of Registration, dated December 7, 1963, issued to Messrs Rajdhani Grains and Jaggery Exchange Limited as well as a direction contained in a letter, dated June 2, 1964, from the Forward Markets Commission, Bombay, to the said Messrs Rajdhani Grain and Jaggery Exhange Limited, were beyond the powers of the Commission. The learned Judge also restrained the Union of India and the Forward Markets Commission from enforcing the said condition and direction against Messrs Rajdhani Grains and Jaggery Exechange Limited.
(2.) Messrs Rajdhani Grains and Jaggery Exchange Limited is a Joint Stock Company (hereinafter referred to as '"the Company") incorporated under the provisions of the Indian Companies Act, 1956. Madan Lal, sole proprietor of Messrs Bhagwati Parshad Madan Lal, and Budh Parkash, partner of Thakur Dass Budh Parkash, were two members of the Company. The Company was regulating and controlling the business relating to forward contracts among its various members and was playing the role of a guarantor in respect of non-transferable specific delivery contracts entered into by its various members. On December 7, 1959, the Company was recognised in respect of Gar under section 6 of the Forward Contracts (Regulation) Act, 1952 (hereinafter referred to as "the Forward Contracts Act"). The Company conducted future trading in Gur from December 12, 1959, till January 18, 1963, when future trading in Gur was prohibited under section 17 of the Forward Contracts Act. The Company then started to conduct future trading in mustard seed oil cake from March 13, 1963. The recognition granted to the Company in respect of Gur under section 6 of the Act expired on December 6, 1963. In the mean time, on December 3, 1963, as a Registration Certificate was required under the provisions of Chapter IIIA of the Forward Contracts Act, for carrying on business relating to forward contracts, the Company applied (Annexure A) to the Forward Markets Commission for registration for forward trading in mustard seed oil cake under section 14A of the Forward Contracts Act read with Rule 7A of the Forward Contracts (Regulation) Rules, 1954, and a Registration Certificate was granted on December 7, 1963. The Company thus became a registered Association within the meaning of section 2(jj) of the Forward Contracts Act. It was stated in the Certificate of Registration (Annexure B) issued to the Company as under :- "The Forward Markets Commission having considered the application for registration made under section 14A of the Forward Contracts (Regulation) Act, 1952, by Rajdhani Grains and .Jagery' Exchange Ltd.. Delhi hereby grants in exercise of the powers conferred by section 14B of the said Act, regisiration to the said Association. The registration hereby granted is subject to the conditions (i) that the said Association shall comply with such directions as may from time to time be given by the Forward Markets Commission:; (ii) that the said Associa- tion shall not conduct forward trading in any commodity other than those specified hercunder except with the previous approval of the Forward Markets Commission; and (iii) that the said Exchange shall submit to the Commission such periodical returns and information with regard to its working procedure, trading activities, etc.. as may be called for by the Commission from time to time. MUSTARD OIL CAKE"
(3.) After the grant of the Certificate of Registration, the Company carried on business relating to forward contracts among its various members in mustard seed oil cake, and continued the said business till June 1. 1964, when future contracts in mustard seed oil cake were prohibited by a notification (Annexure R. 1) issued by the Government of India under section 17 of the Forward Contracts Act. According to the Company, it stopped transacting the business relating to forward contracts in the said oil cake immediately after the publication of the notification.;