Kerala - Kochi   

High Court upholds takeover of 10 cashew factories

Staff Reporter

KOCHI: A Division Bench of the Kerala High Court on Thursday upheld the takeover of 10 cashew factories by the Government under the Kerala Cashew Factories (Acquisition) Amendment Act.

The Bench comprising Justice K.S. Radhakrishnan and Justice M.N. Krishnan also upheld the constitutional validity of the Act while disposing of three writ petitions filed by the owners of the cashew factories against the takeover. The Government, which took over the 10 factories in 1985, had brought the amendment to the Kerala Cashew Factories (Acquisition) Act in 1995. By the provisions of the amendment act, the 10 factories will stand vested in the State Government. The petitioners said the Supreme Court had earlier directed the State Government to return as many as 36 factories to the owners as it found that they had been taken over by the Government without issuing them any notice and hearing them. The petitioners contended that the amendment act was brought in to circumvent the Supreme Court judgment. In fact, the State Government was incompetent to enact the legislation.

The petitioners contended that the Government had usurped the power of the Supreme Court, as the amendment was tantamount to nullifying the Supreme Court judgment. They submitted that there was no `intelligent difference' to distinguish between the 10 factories and the 36 factories. Besides, even if the action of the Government was valid, they were entitled to compensation for their factories being taken over.

The Bench said the 10 cashew factories stood on a different footing. In fact, the legislation was introduced with a view to averting retrenchment of workers in these factories. Besides, there was labour unrest in the factories. Even minimum wages could not be given to the workers. It was under these circumstances that the Government took over these factories.

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