Judgment

N.P. SINGH, J.-

Writ Petition (C) No. 415 of 1988

1. This writ petition has been filed on behalf of the petitioners, who are owners and occupiers of cashew factories. They have questioned the validity of an order dated 6-7-1988, issued by the Government of Kerala, in exercise of the powers conferred 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.

2. 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. Cashew factory has been defined under Section 2(b) to mean a factory as defined in the Factories Act, wherein processing of cashew nuts is being carried on and includes the factory building, the site thereof, and the buildings, and lands appurtenant thereto used or necessary for, or in connection with the working of the factory. Section 3 provides :

"Order of acquisition.- (1) The Government may, if they are satisfied-

(a) that the occupier of a cashew factory does not conform to the provisions of law relating to safety, conditions of service or fixation and payment of wages to the workers of the factory; or

(b) that raw cashew nuts allotted to a cashew factory by the Cashew Corporation of India are not being processed in the factory to which allotment has been made or that such nuts are being transferred to any other cashew factory; or

(c) that there has been large scale unemployment, other than by way of lay off or retrenchment, of the workers of a cashew factory, by order published in the Gazette, declare that that cashew factory shall stand transferred to, and vest in, the Government:

Provided that before making a declaration under this sub-section in respect of a cashew factory, the Government shall give the occupier of the factory and the owner of the factory, where he is not the occupier, a notice of their intention to take action under this sub-section and the grounds therefor and consider the objections that may be preferred in pursuance of such notice.

Explanation.- For the purposes of this sub-section, the expressions lay off and retrenchment shall have the meanings respectively assigned to them, in the Industrial Disputes Act, 1947 (Central Act 14 of 1947).

(2) The notice referred to in the proviso to sub-section (1) shall also be published in two newspapers published in the State of Kerala and such publication shall be deemed to be sufficient notice to the occupier, to the owner where he is not the occupier and to all other persons interested in the cashew factory.

(3) 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 control 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."

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 compensation to the occupier of the cashew factory and the continuance of employment of the employees after vesting.

3. It appears that in view of the proviso to sub-section (1) of Section 3 of the Act, the Government gave notice to the petitioners in respect of their intention to take action under the aforesaid sub-section, directing the petitioners to file objections, pursuant to the said notice. The relevant part of the said notice dated 20-6-1988 is as follows :

"NOTICE

Notice under Rule 3 of the Kerala Cashew Factories (Acquisition) Rule