The Raw Jute ( Central Jute Board And Miscellaneous Provisions ) Act, 1951

West Bengal Act VI of 1951 
THE RAW JUTE (CENTRAL JUTE BOARD AWE 
MISCELLANEOUS PROVISIONS) ACT, 1951. 
[Passed by the West Bengal Legislature.] 
[Assent of thePresident was first published in the Calcutta Gazette, 
Extraordinary, of the 21st March, 1951.] 
West Ben. Act VI of 
1950. 
West Ben. 
Ord. XVII of 1950. 
LXLLT of 
1943. 
An Act to provide for the setting up of a Central Jute Board 
in West Bengal and for certain other matters. 
WHEREAS a crisis has arisen in the jute industry on 
account of the owners of jute-mills not being able to secure 
adequate supplies of raw jute at the maximum prices fixed 
under the West Bengal Jute (Control of Prices) Act, 1950; 
AND WHEREAS it is expedient to set up a Central Jute 
Board in West Bengal for ensuring equitable supply of raw 
jute to the owners o different jute-mills; 
AND WHEREAS it is also expedient to make certain other 
miscellaneous provisions for the better regulation of the 
jute trade and for the protection of cultivators of jute; 
It is hereby enacted as follows :- 
1. (1) This Act may be called the Raw Jute (Central Short 
Jute Board and Miscellaneous Provisions) Act, 1951. 	 extent 
(2) It extends to the whole of West Bengal. 
 
commence. 
(3) It shall come into force immediately on the Raw ment. 
Jute (Central Jute Board and Miscellaneous Provisions) 
Ordinance, 1950, ceasing to operate. 
2. In this Act, unless there is anything repugnant in Definitions. 
the subject or context, 
(1) "appointed day" means the date specified by the 
State Government by notification in the Official 
Gazette as the appointed day for the purpose of 
this Act; 
"the Board" means the Central Jute Board con-
stituted under section 4 of this Act; 
"cultivator of jute" means any person who, whether 
by himself or by members of his family or by 
hired labour or by adhiars or bargadars or 
bhagdars, grows jute on any land in his 
possession; 
(4) "jute" means the plant belonging to any species of 
the genus Corchorus and commonly called pat, 
kosta, nalia or bimalipatam and includes also 
the plant hibiscus cannabinus, commonly called 
mesta; 
(5) "jute-mill' means a factory defined in, or declared 
to be a factory under the Factories Act, 1948, 
which is engaged wholly or in part in the manu-
facture of jute products; 
(2)  
(3)  
2 
The Raw Jute (Central Jute Board and Miscellaneous 
Provisions) Act, 1951. 
(Sections 3, 4.) 
(6) 
"owner of a jute-mill" means the perso who has 
ultimate control over the affairs of the jute-mill: 
Provided that, where the affairs of a jute-mill are 
entrusted to a managing agent, such agent shall 
be deemed to be the owner of the jute-mill; (7) "prh esc
Aribd" means prescribed by rules made under this 	 ct; 
(8) "raw jute" means the fibre of jute which 
been subjected to any process of spinning or has not 
	
weaving, whether loose or acd in ba 	 or drums, and whethe r  or not co
p
ntai ke nin 	 les 
g any waste product or moisture and includes jute ropes and habi jabi; 	 jute cuttings, (9) "stockist of raw jute" means an owner of a 
mill, a baler, a dealer in raw jute or an jute-
y other person who in the ordinary course stocks raw jute; 	 of business  (10) "wa
r  ste product" means strippings odd filaments o fragments, droppings, sweeping s, or other waste product of jute and includes also ropes 
of raw jute used for fastening raw jute in bales 
and also articles commonly known in the jute trade as habi jabi.  
Avoidance 
of certain 	 3. (1) 
Every contract for the sale or supply of raw jute contracts. entered into before the appointed da which on such da remains to be performed wholly or in  
part shall to the extentit so remains to be performed, be void and unenforceable in law. 
(2) 
So much of any brokerage in respect of any contract as aforesaid as relates to such contract 
	
contract becomes void and 	 to the extent such (1), shall not be payable. unenforceable under sub-section 
(3) Sub-section (2) shall not -apply— (a) 
where a broker did not guarantee the delivery of any raw jute, and 
(b) 
to contracts for the sale or supply of raw jute, 
	 e performanc e  of which were to be completed on th  
or before the appointed day but in respect of which 
the time for performance has been extended by common consent,  
and in every such case brokerage shall be 
	
g 	 payable in. 
antral 	
accordance with the terms areed upon with the brok 
Ito 	 4. (1) The State Government shall constitut e  a Central lard. 	 Jute Board consisting of the following members, namely:— (a) four persons representin g  the Indian Jute Mills Association, nominated by that Association and , approved by the State Government; (b) two persons representin g  the Jute Dealers Associa-tions, nominated by the State Government; 
[West Ben. Act 
The Raw Jute (Central Jute Board and Miscellaneous-3 
Provisions) Act, 1951. 
VI of 1951.] 
(Sections .5, 6.) 
(c) two persons representing the Jute Balers Associa- 
tions, nominated by the State Government; 
(d) three persons to be nominated by Government to 
enable the Government to allow representations of all interests. 
(2) The Chairman of the Board shall be nominated by 
the State Government and shall be a member of the Board. 
The Chairman shall hold office for such period as may be determined by the State Government. 
(3) The conditions for the resignation, removal and 
leave ex-India of members of the Board and the procedure 
of the Board shall be such as may be prescribed. 
(4) The Board shall comply with such directions, if any, 
as may from time to time be issued to it by the State Government. 
(d) The Board may, with the approval of the State 
Government, make by-laws for the efficient functioning of the Board. 
Ben. 
'I of 
5. (1) No person shall sell or agree to sell raw jute to 
the owner of a jute-mill and no owner of a jute-mill shall 
buy or agree to buy raw jute save and except in pursuance 
of a contract for the sale or the supply of raw jute entered 
into in the manner provided in section 6. 
(2) Any contract entered into for the sale or the supply 
of raw jute with the owner of a jute-mill save and except 
in the manner provided in section 6 shall be void and of no effect. 
(3) Any person contravening the provisions of sub-section (1) shall be guilty of an offence under this Act and 
shall be punishable with imprisonment wh,ch may ext ,,'Ad to six months or with fine or with both. 
6. (1) Any person who intends to enter into a contn. et 
for the sale or the supply of raw jute with the owner of a 
jute-mill shall apply to the Board :  specifying the quanti,y, quality and trade description of such jute and such of er 
particulars in respect thereof, if any, as ina -;/  be prescribed. (2) The Board shall after considering the applicatic.a, 
select an owner of a jute-mill (who has signified in writing 
to the Board his intention to buy raw jute) with whom the 
applicant shall enter into a contract for the sale or the 
supply of raw jute within a date specified by the Board. 
(3) (i) The applicant and the owner of a jute-mill selected under sub-section (2) shall thereupon, within the date specified by the Board, enter into a contract for the 
sale or supply of raw jute on such terms and conditions 
(including terms as to arbitration in case of dispute) as may be .prescribed : 
Provided that the prices for raw jute fixed under such 
contract, shall not exceed the maximum prices, if any, as 
may be fixed under the West Bengal Jute (Control of Prices) Act, 1950. 
Contracts 
for 
sale or 
supply 
of raw 
jute not 
to be 
made 
except 
in the 
manner 
provided. 
Manner of 
making 
contracts. 
4 The Raw Jute (Central Jute Board and Miscellaneous 
Provisions) Act, 1951. 
[West Ben. Act 
(Sections 7, 8.) 
(ii) An applicant or the owner of a jute-mill selected under sub-section (2), who refuses to comply in any manner 
with the provisions of clause (i), shall be guilty of an 
offence under this Act and shall be punishable with imprison-
ment which may extend to six months or with fine or with both. 
(4) In considering applications and in selecting owners 
of jute-mills under sub-section (2), the Board shall endeavour to ensure equitable supply of raw jute among owners of 
different jute-mills, but the selection of the Board shall not 
be questioned by or in any court of law. 
(3) The Board may levy in the prescribed manner, a 
cess from the applicant who enters into a contract for the 
sale or the supply of raw jute in accordance with the provi-sions of clause (i) of sub-section (3), at such rate as may 
be fixed from time to time by the Board, not exceeding one-eighth per centurn of the value of the raw jute sold or supplied by the applicant under such contract. 
Prohibition 
of 	
7. (1) No person shall deliver or cause to be delivered 
delivery 	 to 	 e owner of a jute-mill and no owner of a jute-mill 
or accep- 	 shall accept or cause to be accepted any raw jute save and tance of 	 except in pursuance of a contract for the sale or the supply raw jute 	 of raw jute entered into in the manner provided in section G. except in 
pursuance 
of con -
(2) Any person contravening the provisions of sub-
tracts 	 section (1) shall be guilty of an offence under this Act and 
made 	 shall be punishable with imprisonment which may extend the 	 to six mouths or with fine or with both. manner 
provided. 	 (3) The provisions of section 5, section 6, and this 
section shall have effect on and from the appointed day. 
8. (1) The State Government may, at any time by notification in the Official Gazette, require all stockists of raw jute to take out licenses under this Act within a date 
specified in the notification. 
(2) The terms and conditions and the procedure and the 
manner of taking out licenses shall be such as may be prescribed. 
(3) The State Government may, by notification in the Official Gazette , require all holders of license to submit 
returns of stocks of raw jute in such form and at such times 
as may be specified in the notification. 
(4) Any stockist in raw jute who fails to take out license 
within the date specified in the notification or fails to 
submit returns as required under sub-section (3), shall be 
guilty of an offence under this Act and shall be punishable 
with imprisonment which may extend to six months or with fine or with both. 
Power to 
license 
stockists 
of raw 
jute. 
The Raw Jute (Central Jute Board and Miscellaneous 5 
Provisions) Act, 1951. 
VI of 1951.] 
(Sections 9, 10.) 
9. (1) Subject to such rules as may be prescribed, any Obtaining 
officer authorised in this behalf by the State Government infmna-
may, with a view to securing compliance with the provi- tion, etc. 
sions of this Act,— 
(a) require any person to give any information in his • 
possession with respect to any business carried 
on by that or any other person; 
enter with such assistants, if any, being persons in 
service of the State Government, as he thinks 
fit, any premises and— 
make or cause to be made by such assistants 
such examination of premises and of any 
accounts, books, documents and stocks of jute 
therein as he thinks fit ; 
(ii) take or cause to be taken by such assistants 
extracts from copies of any accounts, books or 
documents referred to in sub-clause (i) ; 
(iii) seize, or cause to be seized by such assistants any 
stocks of jute in respect of which he suspects 
that any offence under this Act has been 
committed and also any accounts, books or 
other documents referred to in sub-clause (i) 
which are in his opinion relevant to prove the 
commission of such offence and keep such 
stocks of jute, accounts, books or documents 
in his custody or in such other custody as may 
be prescribed, pending investigation or 
prosecution. 
(2) Any person who fails to give any information 
required to be given under clause (a) of sub-section (1) or 
who obstructs any person in the exercise of any power 
conferred by clause (b) of that sub-section shall be guilty 
of an offence under this Act and shall be punishable with 
imprisonment which may extend to six months or with fine 
or with both. 
(b) 
(i) 
10. (1) The State Government may, by notification in 
the Official Gazette, fix minimum prices which may be 
charged for raw jute bought from cultivators of jute. 
(2) Different minimum prices may be fixed under sub-
section (1) according to the quality, variety and trade 
description of raw jute and the area in which such jute is 
grown. 
(3) Any person buying raw jute from a cultivator of 
jute at any price lower than the minimum price fixed under 
sub-section (1); after a notification has been issued under 
that sub-section, shall be guilty of an offence under this 
Act and shall be punishable with imprisonment which may 
extend to six months or with fine or with both. 
Power to 
fix mini-
mum 
prices of 
raw jute 
bought 
from 
cultivators. 
Offence by 
corpora-
tions, etc. 
Cognizance 
of 
offences. 
Indemnity. 
Power to 
make 
rules. 
Act to 
prevail 
over other 
law, etc. 
6 The Raw Jute (Central Jute Board and Miscellaneous 
Provisions) Act, 1951. 
[West Ben. Act VI of 1951.1 
(Sections 11-18.) 
11. Where the person committing any offence under 
any of the provisions of this Act is a company or an asso-
ciation or a body of persons whether incorporated or not, 
every director, manager, secretary, or other officer or 
person concerned in the management thereof shall, unless 
he proves that the offence took place without his knowledge 
or that he exercised all due diligence to prevent the 
commission of such offence, be deemed to be guilty of such 
offence. 
12. No prosecution for any offence under this Act shall 
be instituted except with the previous sanction of the State 
Government or of such other officer of the State Govern-
ment as maybe prescribed. 
13. (1) No suit or other legal proceeding shall lie 
against the State Government for anything which is. in 
good faith done, or intended to be done, under this Act or 
any rules made thereunder. 
(2) No suit, prosecution or other legal proceeding shall 
lie against any person for anything which is in good faith 
done, or intended to be done, under this Act or any rules 
made thereunder. 
14. (1) The State Government may make rules for 
carrying out the purposes of this Act. 
(2) In particular and without prejudice to the generality 
of the power under sub-section (1), such rules may provide 
for all or any of the matters required to be prescribed under 
this Act. 
15. The provisions of this Act and of any rules made 
thereunder shall have effect notwithstanding anything to 
the contrary in any other law, or in any custom, usage, 
contract or instrument. 
Conti-
nuance 
and 
savings. 
16. The Central Jute Board constituted, any rule made, 
any notification or license issued, any direction given, any 
contract entered into, any minimum price fixed, anything 
done or any action whatsoever taken under the Raw Jute 
(Central Jute Board and Miscellaneous Provisions) Ordi-
nance, 1950, shall, on the said Ordinance ceasing 
to operate, be deemed to have been constituted, made. 
issued, given, entered into, fixed, done or taken under this 
Act as if this Act had commenced on the 14th day of 
December, 1950. 
West Ben. 
Ord. XVII 
of 1950. 
WBGP-01/2-1347A-4,400 

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