(1) Every forward contract for the sale or purchase of, or relating to; any goods, specified in the notification under sub-section (3) of section 1 which is entered into made or to be performed in any notified area shall be illegal if it is not entered into, made or to be performed-
(a) in accordance with such bye-laws, made under section 6 or 7 relating to the entering into, making or performance of such contracts, as may be specified in the bye-laws, or
(b) (i) between members of a recognised association,
(ii) through a member of a recognised association, or
(iii) with a member of a recognised association, provided that such member has previously secured the written authority or consent, which shall be in writing if the bye-laws so provide, of the persons entering into or making the contract,
and no claim of any description in respect of such contract shall be entertained in any civil court.
(2) Any person entering into or making such illegal contract shall, on conviction be punishable with imprisonment for a term which may extend to six months or with fine or with both.