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K.C. Gopakumar

Kochi. Aug. 11

, THE Kerala High Court on Thursday upheld the takeover of 10 cashew factories by the Government under the Kerala Cashew Factories (Acquisition) Amendment Act.

A Division Bench comprising Mr Justice K.S. Radhakrishnan and Mr Justice M.N. Krishnan also upheld the constitutional validity of the Act while disposing of three writ petitions filed by owners of the cashew factories against the takeover.

The Government, which took over the 10 factories in 1985, had made the amendment in 1995.

By the provisions of the amendment Act, the 10 factories would stand vested in the State Government. The petitioners pointed out that 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 judgement. In fact, the State Government was incompetent to enact the legislation. The government had usurped the power of the Supreme Court as the amendment Act amounted to nullifying the Supreme Court judgement.

They submitted that there was no intelligent difference to distinguish between the 10 factories and the 36 factories. Besides, they were entitled to compensation for taking over their factories.

The Bench said that the 10 cashew factories stood on a different footing. In fact, the legislation was introduced with a view to avert retrenchment of workers in these cashew factories. Besides, there was labour unrest in these factories. Even minimum wages and other benefits could not be given to the workers. The factories also constituted a separate class by themselves.

The Court also pointed out that it was a well-settled law that legislation could change " the spectrum of the judgement in public interest". The Bench directed that the petitioners could approach the competent authority for compensation.

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