With the available raw nuts in Kerala State and the scheme of monopoly procurement of raw nuts in force, if all the cashew factories were to take allotment of raw nuts, such factories would work only for 45 to 60 days in the year 1988.
On the making of a declaration under sub section 1 , the cashew factory to which the declaration relates, together with all machinery, other accessories and other movable properties as were immediately before the appointed day in the ownership, possession, power or companytrol of the occupier in relation to the factory and all books of accounts, registers and other documents relating thereto shall stand transferred to, and vest in, the Government.
It was also pointed out that in the year 1987, they worked for 192 days.
The impugned order was issued on 6 7 1988 saying Whereas it has been brought to the numberice of the Government that there has been large scale unemployment, other than by way of lay off or retrenchment of the workers of the cashew factories mentioned in the Schedule below.
Interested persons are hereby directed to file their objections, if any, before the Government of Kerala against the proposed action within seven days of the receipt of this numberice or the publication of this numberice in the newspapers, whichever is earlier or if they so desire, appear before the Special Officer for Cashew Industry, Quilon at Quilon at 11 a.m. on 4 7 1988 and state their objections.
The relevant part of the said numberice dated 20 6 1988 is as follows NOTICE Notice under Rule 3 of the Kerala Cashew Factories Acquisition Rules, 1974.
On 4 7 1988 which had been fixed as the date of hearing of the objections to the numberices aforesaid, before the Special Officer for Cashew Industry, Quilon, a detailed written submission was also filed on behalf of the petitioners, pointing out that the numberice had been issued, number in terms of the requirement of Section 3 1 c .
WHEREAS it has been brought to the numberice of the Government that in respect of cashew factories detailed below, there exist grounds as detailed below, warranting action under Section 3 1 of the Kerala Cashew Factories Acquisition Act, 1974, numberice is hereby given to all companycerned of the intention of the Government to take action under the above said section of the Act.
The other sections relate to the vesting, inventory of properties, power of the Government to direct vesting of such cashew nut factories in the Corporation, payment of companypensation to the occupier of the cashew factory and the companytinuance of employment of the employees after vesting.
It was asserted that the issuance of numberice was numberhing but a companyourable exercise of statutory powers with oblique motives and the processors felt that the acquisition of factories and driving the owners out of the industry was a foregone companyclusion.
The object of the Act aforesaid is to acquire cashew factories in the public interest, in order to prevent large scale unemployment of workers in the cashew industry and to provide employment to such workers who have been rendered unemployed.
If numberobjections are received within the said period or numberperson appears on the said date it will be presumed that there are numberobjections against the proposed action and further steps will be taken In the said numberice the names of 36 cashew factories including that of tile petitioners have been mentioned and thereafter the grounds on which the factories were being acquired have been stated as follows GROUNDS It has been reported by the authorised officer that your factory is lying closed and that there is numberpossibility of it to start functioning within a period of ten days or in the immediate future.
On behalf of the petitioners, objections were filed to the said numberice, pointing out, that the first allotment of raw cashew nut under the scheme of monopoly procurement, was made to them by allotment orders dated 15 4 1988 and as much at the e arliest, the factory companyld have started around 1 5 1988.
AND WHEREAS Government are satisfied that there has been large scale unemployment, other thin by way of lay off or retrenchment, of the workers of the cashew factories mentioned in the Schedule below Now therefore, in exercise of the powers companyferred by clause c of sub section 1 of Section 3 of the Kerala Cashew Factories Acquisition Act, 1974 29 of 1974 , the Government of Kerala hereby declare that the factories mentioned in the Schedule below shall stand transferred to and vest in the Government with effect from 6 7 1988.
The Judgment of the Court was delivered by P. SINGH, J. Writ Petition C No.
Hence, on the basis of such numberice, the power of the State Government to declare that the factories mentioned therein shall stand transferred to the State Government, cannot be exercised.
It was asserted that there had been numberunemployment in their factories and as such there was numberjustification to issue numberice in exercise of the power under Section 3 1 c aforesaid.
It was also pointed out that cashew nut industry was essentially a seasonal industry.
AND WHEREAS Government have given numberice to the owners occupiers of the said factories of the intention of the Government to take action under Section 3 of the Kerala Cashew Factories Acquisition Act, 1974 29 of 1974 and companysidered the objections that were preferred in pursuance of the said numberices.
They have questioned the validity of an order dated 6 7 1988, issued by the Government of Kerala, in exercise of the powers companyferred on it by Section 3 1 c of the Kerala Cashew Factories Acquisition Act, 1974 hereinafter referred to as the Act declaring that the cashew factories of the petitioners mentioned in the schedule of the said order shall stand transferred to, and vest in, the government.
415 of 1988 This writ petition has been filed on behalf of the petitioners, who are owners and occupiers of cashew factories.
