Quota - Definition - Law Dictionary Home Dictionary Definition quota

Definition :

Quota, the proportion of a contribution. See, e.g., (English) Militia Act, 1882, s. 37; (English) Land Tax Act, 1797, s. 2.

Under the (English) Cinematograph Films Act, 1927 (17 & 18 Geo. 5, c. 29), the proportion in length of British films which renters and exhibitors respectively are obliged to include in any one year up to the end of March, 1938, for renting or exhibiting films in that year. In 1937 and 1938 the proportion in either case is 20 per cent. in coal mines, district schemes under Coal Mines Act, 1930 (20 & 21 Geo. 5, c. 34), as amended, e.g., by S. R. & O., 1934, Nos. 677 and 766; and 1935, Nos. 696 and 697; the proportion of the standard tonnage which each of the coal mines in the district is to be allowed to produce under the scheme as provided by s. 3, ibid.; and see the (English) Wheat Act, 1932 (22 & 23 Geo. 5,c. 24), s. 3, as to quota payments.

Quota attaches to the owner of a business at the point of time the quota is granted. It is the business at the relevant time which obtains quota. Therefore, quota ensures to the benefit of the business. Quota cannot be an asset of the partnership. Assets are divisible among partners. Quota could not be divided. Quota is a matter of privilege and the grant of it lies with the Textile Commissioner. Quota is licence for a particular time for a particular quantity. Quota is worked out by getting the raw material represented by the quota, Shadi Lal v. Nagin Chand, AIR 1973 SC 776: (1973) 1 SCC 185: (1973) 2 SCR 598.