Judgment

AYYANGAR J.: This is an appeal by special leave from the judgment of a Division Bench of the Bombay High Court affirming the judgement of a learned Single Judge whereby a petition under Art. 226 of the Constitution by appellants was dismissed. By their petition, the appellants challenged the validity of a notification issued by the Forward Markets Commission - a statutory body created by the Forward Contract (Regulation) Act. 1952 (Act LXX1V of 1952), (hereinafter referred to as the Act) to the authorities of the East India Cotton Association, Bombay (which will be referred to as the Association.) intimating to them that the continuation of trading in certain types of forward contracts in cotton including that known as "hedge contract" was "detrimental to the interest of the trade and the public interest and to the larger interests of the economy of India" and directed these contracts to be closed out, to be settled at prices fixed in the notification.

2. It is necessary to set out briefly certain facts in order to appreciate the points raised by the appeal. The East India Cotton Association is an "association" which has been recognised by the Central Government under S. 6 o