SUPREME COURT OF INDIA
A.P. SEN AND E.S. VENKATARAMIAH, JJ.
K. Janardhan Pillai and another, Petitioners
Versus
Union of India and others. Respondents;
Writ Petns. Nos. 116, 186-189 of 1977; 3935-63. 3922-24 of 1978; 1221 of 1977: 3821-27. 3828-31 of 1978; 44-50 of 1977; 4237, 4400 of 1978; 92-97 of 1977, D/- 21-1981.
WITH
International Cashew Traders and others, petitioners
Versus
Union of India, Respondent;
WITH
Vijaya Lakshmi Cashew Co., Petitioner
Versus
State of kerala, Respondent;
WITH
A Younus Kuniu and others, Petitioners
Versus
State of Kerala, Respondent:
WITH
The Concord Exporting Co, Petitioner
Versus
State of Kerala and others. Respondents;
WITH
Lyla Cashew Co., Petitioner
Versus
State of kerala and others. Respondents ;
WITH
Abdul Salam and others, Petitioners
Versus
State of Kerala, Respondent;
WITH
The Kerala State Cashew Growers Dealers Association and others, Petitioners
Versus
Union of India and another, Respondents;
WITH
A.M. Sainalabdeen Musaliar, Petitioner
Versus
State of Kerala, Respondent;
WITH
G. Janardhan Pillai, Petitioner
Versus
State of Kerala. Respondent;
AND
Kerala State Cashew Growers and Dealers Association and others. Petitioners
Versus
Union of India and others, Respondents.
Kerala Essential Articles Control (Temporary Powers) Act, 1961 - Section 2 - Constitution of India, 1950 - Article 32 - Kerala Act - Section 3 - supply and distribution of and trade and commerce - Essential article – Definition of - Procurement and distribution of raw cashewnuts grown - Maintenance of supplies, of raw cashewnuts - Prohibition of sale of raw cashewnuts - Petitioners, are persons engaged in cashewnut processing industry in State of Kerala - Since impugned declaration and Order seriously interfered with right of petitioners to purchase sufficient quantities of raw cashewnuts for processing in their factories and imposed several other restrictions on them they have filed above petitions - Although validity of several other Orders was also questioned in present petitions, petitioners confined their challenge only to impugned declaration and Order in course of arguments since according to them it was not necessary to urge their contentions as against those orders - Held, Court hold that declaration made by Government of Kerala to effect that raw cashewnut is an essential article under Kerala Act and impugned Order made there under are liable to be quashed and they are accordingly quashed - All other contentions including those relating to the alleged infringement of fundamental rights of petitioners raised in these petitions are left open - We propose to advert to last submission made before us on behalf of the State Government - It was submitted that cashewnut industry in Kerala was a labour-oriented industry and if declaration and Order were struck down, a number of workmen would be adversely affected - It was also submitted that entire economy of State of Kerala which largely depended on export trade in cashewnuts would be disrupted - Petitions allowed.
Judgment
VENKATARAMIAH, J.:- The common question which arises for consideration in the above writ petitions under Article 32 of the Constitution of India relates to the validity of the declaration made by the State Government of Kerala on March 20, 1976 declaring that raw cashewnut was an essential article, in exercise of the power under clause (a) of Section 2 of the Kerala Essential Articles Control (Temporary Powers) Act, 1961 (Act 3 of 1962) (hereinafter referred to as the Kerala Act) and the Kerala Raw Cashewnuts (Procurement and Distribution) Order, 1977 (hereinafter referred to as the Order) made by the State Government of Kerala in exercise of the powers conferred by Section 3 of the Kerala Act regulating the Procurement and distribution of raw cashewnuts grown in the State of Kerala. The petitioners, are persons engaged in the cashewnut processing industry in the State of Kerala. Since the impugned declaration and the Order seriously interfered with the right of the petitioners to purchase sufficient quantities of raw cashewnuts for processing in their factories and imposed several other restrictions on them they have filed the above petitions. Although the validity of several other Orders was also questioned in the present petitions, the petitioners confined their challenge only to the impugned declaration and the Order in the course of arguments since according to them it was not necessary to urge their contentions as against those orders.
2. The recital in the preamble to the Order states that it was being made in order to ensure the maintenance of supplies, of raw cashewnuts which was considered to be essential for the continued employment of a large number of workmen in the State of Kerala and for their equitable distribution and availability at fair prices. It is further recited the the Order was being made as the State Government felt a doubt about the Question whether the Kerala Raw Cashewnuts Marketing and Distribution) Order, 1976 issued under the Defence and Internal Security of India Rules, 1971, for the very same purpose would continue to remain in force.
3. The main provisions of the Order broadly related to the prohibition of sale of raw cashewnuts to any person other than an agent authorised to purchase by clause 3 thereof, appointment of Co-operative Societies as sub-agents, imposition of restrictions on processing or conversion of raw cashewnuts and their distribution amongst the occupiers of cashewnut processing factories, appointment and powers of Cashew Special Officer and other incidental and ancillary matters. The explanatory note attached to the Order stated that it was intended to regulate the procurement and distribution of raw cashewnuts by the State Government.
4. The Order is issued by the State Government of Kerala under Section 3 of the Kerala Act, the object of which is to provide, in the interest of the general public, for the control of the production, supply and distribution of and trade and commerce in certain articles which, as the title of the Act indicates, are considered to be essential for the community. The Kerala Act as originally enacted was intended to be in force for a period of five years from the date of its commencement. By successive amendments, its life is extended to twenty years from the commencement of the Act. Although it makes provision for conferring power on the State Government to make appropriate orders regarding regulation of production, supply and distribution of essential articles substantially on the lines on which the Essential Commodities Act, 1955 (Act 10 of 1955) (hereinafter referred to as the Central Act) passed by the Parliament provides for the regulation of production, supply and distribution of essential commodities as defined in the Central Act, the Kerala Act does not itself specify any article as an essential article. But the expression essential article is defined by Section 2 (a) of the Kerala Act thus :
"2. Definitions. - In this Act, unless th
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