UNION OF INDIA & ANR. vs M/S. RAJDHANI GRAINS & JAGGERY EXCHANGE LTD.AND OTHERS

The Supreme Court held that Rule 7A of the Forward Contracts (Regulation) Rules, 1954, is intra vires the rule-making power granted under the Forward Contracts (Regulation) Act, 1952. The Court clarified that the Forward Markets Commission has the authority to impose conditions on the registration of associations, including restrictions on trading in non-transferable specific delivery contracts without prior approval. The High Court's quashing of these conditions was overturned, affirming the Commission's regulatory powers under Sections 6, 14A, and 14B of the Act.