Judgement

SHAH, J.: The Maheshwari Devi Jute Mills Ltd., carries on the business of manufacturing jute goods and is a member of the Jute Mills Association. To protect the members against loss resulting from overproduction, members of the Association entered into an agreement dated January 9, 1932 called "the First Working Time Agreement" restricting hours of work. That agreement was to expire on December 11, 1944. With a view to continue the arrangement, a fresh agreement was executed on June 12, 1944. The preamble of the agreement was :

"Whereas the signatories generally as a consequence of over-production having been put to considerable losses and in general interests of the Members and their employees and of the association and the jute industry and trade in general etc. ------have determined that provisions similar to those contained in the Working Time Agreement should be entered into and continued in manner hereinafter appearing."

By Cl. 4 of the agreement, the association imposed restrictions upon the hours of work of its members. The number of hours for which the members were entitled to work their factories were called "loom-hours". Allotment of "loomhours" depended upon the