The Kerala Cashew Factories (Acquisition) Act, 1974 (No.29 of 1974)

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138
THE KERALA CASHEW FACTORIES (ACQUISITION)
ACT, 19744
(ACT 29 OF 1974)
An Act to provide for 'the acquisition, in the public interest, a!
| certain cashew factories
PreamblewWHEREAS it is expedient, in the public interest.
to acquire certain cashew factories to prevent large scale unemploy-
ment among the workers in the cashew industry and to provide
employment to the workers who have been rendered unemployed
and to secure to them just conditions of service,
BE it enacted in the Twenty-fifth Year of the Republic of
India as follows.—
1. Short title, extent and commencement—[ll This Act may
be called the Kerala Cashew Factories (Acquisition) Act. 1974.
(2) It extends to the whole of the State of Kerain
(3) It shall come into force at once.
2. Defimtions.—-In this Act unless the context otherwise
requires.—
(a) "appointed day" means .the date ofapubhcation of the
declaration under sub—section (1) of section 31fl>r under sub-M"
(b) “Cashew factory“ means a factory as f e
Factories Act, wherein processing of cashewnuts is eing 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;
(c) "Corporation“ means the Kerala State Cashew Develop
ment Corporation Limited, incorporated under the Companies Act.
1956 {Central Act 1 of 195(3);
{dl "Factories Act" manna Hm Fflnfnwinfl.Apf WAR JI‘an-ml
Act
63?:Edd)-.(‘Federation"“means
the Kerala Etate (Jo-operative]
MarketingiFede'aE-Ogjeans an occupier as defined in the Factories
Act:
a
(f) "prescribed"'means prescribed by rules made under this
Act;
‘Received the assent of the President in the lath day of November 1974
and pUbhshed in the Gazette Extraordinary No 787 dated 1911'.
November 1974
a. mug Ad m as Mr w.e.f 01-05,“?31,”
3.112.50er L, Act was 1733“” 1
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(3) "processing", with reference to cashewnuts, includes
extraction of cashewnut oil and roasting, shelling. peeling. grading
and treating of cashewnuts. rJi (laweUJ-
""\:‘ ‘1‘: h) “workers’ ctr-operative society" or “society” means
a‘co-o ra lve society registered under the Kerala Co-opemtive
Societies Act; 1969 (21 of 1969) and formed with the object of
managing a cashew factory which has been closed down or vested n
, under this. Act in“the Government and .ofowhich at least ninety
[rper cent at the members are workmen within the meaning of the
’
Industrial Disputes Act, 1947 (Central Act 14 of 1947). who have i
been, immediately before the appointed day, in the employment of 3y
cashew facto _
woman or mum an: ‘lun. —ueing-processen- nr'uiethe
factory to why n 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 oil 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'
vaidcd that before making a declaration under this sub—
section in respect of a cashew factory. the Govemment 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 objec-
tions that may be preferred in pursuance of such notice.
Explanation—For the purposes of this sub-section. the ex-
pressions "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 prmisio 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 thc cashew factory.
{3) 0n 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 relatlnn to the
factory and all books of accounts. registers and other documents
-
relating thereto shall stand transferred for and vest in. the
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4. General effect of nesting under section 3,—All property
vesting in the Government under section 3 shall, by force 0f SUGh
vesting, be freed and discharged from any trusts. obligations
mortgages, charges, lien and other encumbrances affecting it. and
any attachment. injunction or any decree or order of court restrict
lng the use of such property in any manner shall be deemed to
have been withdrawn.
5. Inventory 0/ properties—(1) An ofilcer authorised by the
5 under the “WW-"s
‘
.
“(by 4M- 1 section 3 or t.e publication—~
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“Hm-5P“ it t
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m “(at 0‘ 71¢on 3((14‘MC')
ha sectlomlrxx'd before the
the properties of the cashew
guano 3
- 1 e relates. as on the date 0! service of
case may be
(2) The oiflc'er referred to in sub-section [1) shall. for the
premises of the cashew factory and to require the occupier or any
person emploved therein :to furnish such information as he deems
(3) Any person who is required to furnish any information
under sub-section (2) shall be bound to furnish such information
6 Property and assets not to be damaged or removed after service
K
of notice—After the service of the notice under the proviso to sub-
7 r luff
.
ml by 4k; ior or any other person shall
E! “if”, a on M l, p“
'sh the value of the propenties‘ Half" ”5“”1’5’
W sub-S'JM“) which the notice relates or
'. o 3391‘” 593
m the premises of the factory.
7 u y to deliver possession of property acquired and docu-
ments relating thereto—(l) Where any property has vested in the
Government under this Act, every person in whose possession or
custody or under whose control the property may he, shall deliver
the property to the Government forthwith.
(2) The Government may take or cause to be taken all
necessary steps for securing possession of the properties which have
vested in the Government under this Act. and. for this purpose. the
Govemrnent may use such force as they deem necessary.
Government in this behalf aha" miter the service of the notice
L Est-1”“ fiswnbfi “My; 5“!» r the said sub-section (1).
a? 0 ice or the date of publication of that notice. as the
purpose of preparing the inventory. have the power to enter the
necessary.
as is within his knowledge.
section ULoLsection 3. or .tha
nIIhlicEtion
of that notice under sub-
8- POW" 0f Government to direct vesting of cashew factory in
the Corporation—(Ll
Notwithstafndin w‘aqnvthing «contained—in
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I1? 1) Notwithstanding anything contained in _sccuw
-,
Government may‘ by ordenin writing}:—
(a) direct that a. cashew factory vested in them under
this Act shall, instead of 'continuing to vest in the Government.
vest in the Corporation With effect from suehwdate (not being
a
dam: earlier than the appointed day)
as may nespemfiedinnthe
order; or L
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(b) entrust a cashew factory vested in them under this .
Act to the Federation'or to a workers’- co-operativehsociety.
or to
the Government in. this behalf;
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t a roved b
,
any w or institu Ion pp .y d on such terms and conditions,
for management for such perio
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.
,
-
”on-u- uculuuca nuu
as may be specified m' “339.32% in relation to such factory shall,
7
on and from the date 'of‘ such vesting, be deemed to have become the
rights. liabilities and obligations respectively of the Corporation.
9. Payment 0/ amount-(1) The occupier of every cashew
factory which is acquired under this Act shall be paid by the
Government an amount which shall be determined in accordance
with the principles specified in the Schedule:
;
_..... ..._._..__‘_______‘__‘__,__" n..,.._,,;
5:- A.. Pow" to acquire an) cashcwfadaij in public interest -—(1) Not-
withstanding anything contained in section 3, if the Government ar
satisfied,
in relation (0 a cashew factory, that it has been- clr sed for
c
ll
period of not less than three months and such closure has preludiciaua
affected the interest of the majority of the workers outraged m 11“);
factory and that immediate action is necessary to restaart the Cashew
5—:
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factory and such restarting
lS necessary in the public interesi, they rna,
it
i
by order published in the Gazelle, declare, that the cashew factor:
.
‘
shall stand transferred to, and vest in, the Government.
y
Provided that no order under this sub-section shall be bl h
unless the proposal for such acquisition is su t d
pu ‘15 ed
the Legislative Assembly.
ppor e by a ”50mm“ or
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‘
‘
(2) The provisions of sub-section (3) of section 3 and
‘
a shall,
as far as may be, apply to a_ declaration made 1111:3123}:
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auction (1), as they apply to a declaration made under sub-section (1)
of section 3
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(3) The provisions of section 7 to 16 (both inclusiv
.
c shall,
far as may be, apply to, or
in relation to, the cashew fa)ctory lax:
respect of which a declaration has been made under sub-section (1’) its
33.35;? Govemmenltl; ails
the case may be, as they apply to a cashew
re 3 ion to
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section (1)0fscczion ‘33
c a declaration has been made under sub-
_
(7)“Th'e' aniofifit'détermmed‘in cocci-dine} \Tzith‘tne ioregomg‘
provnions
shall he paid to the person or persons entitled thereto
.n cash within a period of six months froth‘hA (“$4,133.5th peter-
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Provided .that if the amount is not paid Within the period
aforesaid, the Government shall pay interest on the amount at the
rate of four per cent per annum from the date of expiry of the
said period.
10. Employment of certain employees to continue.-(l) Every
person who is a workman Within the meaning of the Industrial
Disputes Act,1947 (Central Act 14 of 1947). and has been,irnmediately
before the appointed day. in the employment of a cnshow factory
vested under this Act in the Government or the Corporation, as
the case may he. shall become. on and from the appointed day, an
employee of the Government. or as the case may be, of the
Corporation and shall hold ofiice or service in the cashew factory
on the same terms and conditions and with .the same rights to
pension‘ gratuity and other matters as would have been admissible
to him if such cashew factory had not been trasferred to, and-
\ested in. the Government or the Corporation. as the case may be.
and continue to do so unless and until his~employment in such
cashew factory is duly terminated or until his remuneration, terms
and conditions of employment are duly altered, by the Gm eminent
or the Corporation. as the case may be
(2) The Government or the Corporation. as the case may be,
in which a cashew factory has vested under this Act. may employ,
an mutually acceptable terms and conditions. any person who is
not n workman within the meaning of the Industrial Disputes Act.
1947 (Central Act 14 of 1947) and who has been. immediately
before the appointed day. in the employment of such cashew factory.
and on such employment the said person shall become an employee
of the Government or the Corporation, as the case may he.
(3) Save as otherwise provided in sub-sections (ll and (2).
the services of every person who is, on the appointed day. an
employee of n cashew factory vested in the Government or the
Corporation under this Act shall stand terminated on and from
such date as may be specified by the Government
(4) Where. under the terms of any contract of sci-Vice or
otherwise any person whose service becomes terminated or whose
service becomes transferred to the Government or the Corporation
by mason of the provisions of this Act. is entitled to any payment
by way of gratuity or retirement benefits or for any leave not
availed of, or any other benefits, such person may enforce his
claim against the occupier of the cashew factory but not against
the Government or the Corporation... My $.10];
11. Provident [amt—(I) Where a cashew factory has ooh-
bllshed a provident fund for the benefit of its employees. the
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, ‘1-5 UA. Continuance of employees wnerc cusnew factory is
) entruste to the Federation or. to a worker‘s" comperqtme society
or to an institution for management—(1) Where a cashew factory
vested under this Act in the Government has been entrusted to the
Federation or to any other institution approved; by the Government
in this behalf under sub-section (1) of section 8 for management.
every persorr who is a workman Within the meaning of the Industrial
Disputes Act, 1947 (Central Act 14 of 1947), and, has been imme-
diately before the appointed day in the employment of the cashew
factory, shall become, on and from the date on which the cashew
factory lS so entrusted for management, an, employee of the
Federation or, as the case may be, of the institution and shall hold
office or serv1ce in the cashew factory on the same terms and
conditions and \‘s'lth the same rights as to pension, gratuity and
other matters as would have been admissible to him if. such,cashew,
factory had not been transferredto,‘ and vested in, the Government
and continue to do so unless and until~ his employment in such
cashew factory is dulyfiermmated or until ‘niSvremuneration, terms
and conditions of employment are duly altered, by the Federation or
the institution, as the case may be.
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(2) Notiiithstanding anything contained in section 10 or in
anv other lav: for the time being in force, where a cashew factory
vested under this Act in the Government has been entrusted to 3.
workers’ co-operative society under sub-section (ll of section 8-for
management, only such of those persons_who are workmen within


ti.e meaning of the Industrial Disputes Act, 1947 (Central Act 14
of 1947), and have been, immediately before the appointed day,
in the employment of the cashew factory and who become members
ofr the. workers’ cooperative society.to which the management has
been so entrusted shall be eligible for employment in the cashew
factoryfi‘
(3) Every person who is eligible for employment under sub-
section (2) in a cashew factory vested under this Act in the Govern-
ment and‘ is entrusted to a workers’ co-operative somety for
management; shall become, on and from the date on which the
cashew factory is So entrusted to the society for management or
the date on which he becomes a member of such somety, whichever
is later, an employee of,the society and shall, hold oflice or semce
in the cashew factory on such- remuneration, terms and conditions
of: employment as may; be determined. by the soczety.
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(4) The Federation or a workers’. co-operative soc1ety or any
institution‘to which the management of a cashew factory vested
under this Act‘ in the Government is entrusted under sub-section
(1) of section. 8, may' employ on mutually acceptable terms and
conditions any-person who~is not a workman Within the meamng
of the Industrial Disputes Act, 1947 (Central Act 14 of 1947)
and- who has been‘, immediately before the appomted day, in the
employment of such cashew factory and on such employment the
said: person shall become an employee of the Federation or the
society or the institution, as the case‘may be.
.
(5) Where the management of a cashew factory vested under
this Act in the Government is entrusted to the Federation or to :1
workers’_ cooperative society or to any other institution for
managementunder sub-section (1) of section 8, any person whose
service becomes terminated or who becomes an employee of the
Federation or the somety or the institution by reason of the prow-
Sions of this section, is entitled to any payment by way of gratuity
or retirement benefits or for any leave not availed of, or any other~
- --
benefits, prior to the appointed day, such perSOn may enforce his
claim against the occupier of the cashew factory immediately before
the appointed day but not against the Government or the Federation
or the society or the institution.
(6) Notwithstanding anything contained in the Industrial
Disputes Act 1947 (Central Act 14 of 1947), Or in any other law
for- the time being in force, any person whose schice becomes
terminated of whose terms and conditions of employment have
been altered in pursuance of the prOViSions of this section, shall
not be entitled to any compensation under this Act or under any
who! (Ru) joy 4&1. 'Iqu bug
(A gene QM! ncSM’L (loin Ski-X! be
(3,340,401.st by 0111 COM? 4715qu of 0—Way], au'thoh‘blg
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9' Jamil! 6‘: Act- oir oi- l‘ffrf (me-f. 023,2, (999 .
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moneys relatable to the employees. whose services have become
transferred, by or under this Act, adhe~ Government ot-the
day a workers’ co-o era.
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vcs moneys standingp,
tive soc1et
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d transferred 1:
(1) the Corporation or the Federatizhagg tvth. society or the institution
manner as
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“’“TKers' co-o
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12 s J
by the Govenfrfzreanve
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y 01‘ Mflrahon
Or
" F’Or‘kers' CM
“t of the C "lshtu
superannunt In Such m Peratrve societ
o a ion or thbenefit of the employs..."er as may hey
01' the in e
Government or the
Corporatiori'l-yzrfi RDby winch such employees we e- _:_ “Wu?" 07a inn/cu, (a
nuated. or his services with the cashew factory \had terminated,
on the day immediately preceding such date as may be specified
by the Government in this behalf
I3. Penalties ~(l) Any person who—-
(a) fails to furnish any information which he is bound to
furnish under sub-section (3) of section 5 or furnishes
any such mlormation which he knows or has reason to
believe to be false. or
(b) contravenes the provisions of section 6; or
(cl having in his possession. custody or control any property
forming part of a cashew factory in respect of which
a declaration under section 3 has been made. Wrong-
fullv withholds such property from the Government;
or
(d) wrongfully obtains possession of any property forming
part of a cashew factory which has vested in the
Goxemment under this Act,
shall be punishable with imprisonment for a term which may extend
O to one year. or with line, or with both:
Provided that the court trying any ofi‘ence under clause (c) or
clause (d) may. at .the time of convicting the accused person. order
him to deliver up within a time to be fixed by the court any
property wrongfully withheld or obtained
(2) No court shall take cognizance of an offence punishable
under this section except with the previous sanction of the Govern-
ment or an officer authorised by the Government in this behalf.
.
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Iz__on_ttle al’li’omted
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ration or thTF‘edera
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on th
y or an institution, shall, out filial:
vident fund stan
e appoxnted day, to the credit ‘of\ such .pro-',
est in. the Government or.he workers'
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, as the case may b3} megggpifiive
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ed
l‘escn’be tubal], as theeza
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amount due to each employee as if the employee Imu DquhIPfi-Iwe
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14. Olfences by companies—(l) Where an onenco under
this Act has been committed by a company, every person who at
the time the offence was committed was in charge of, and was
responsible to, the company for the conduct of the business of the
company as well as the company. shall be deemed to be guilty of
the offence and shall be liable to he proceeded against and punished
accordingly:
Provided that nothing contained in this sub-section shall
render any such person liable to any pumshment, if he proves that
the offence was committed without his knowledge or that he had
exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1).
where any offence under this Act h'és been committed by a comm);
and itis proved that the offence has been committed with the consent
or connivance of or is attributable to any neglect on the part of.
any director. manager. secretary or other officer of the company.
such director, manager secretary or other officer shall be deemed
’5 to be guilty of that offence and shall be liable .to he proceeded
: against and punished accordingly.
‘
': Explanation—For the purposes of this section,—
<§ (a) "company" means any body corporate and includes a
firm or other association of inidividuals: and
(b) "director". in relation to a firm. means a partner in the
“TSP“— Fdivoiiw o-r a lhlnkus' (a-orevad/u 500:6; an A"
'r'l-"i‘zgy
15. Protection of action taken in good Iaith—(l) No suit.
pmrosecutmn
or other legal oceeding shall lie against the Govem-
J
Ca-o/‘v
"
or
1M”!
lull-am.
]
o
‘
eat
or
the< Corporation 0 infer
or other employee of the
A. ('Gotc
mrnent<orthe
dCorporaiangfor anythhing t‘which
is in good
fai h done or nbe
done‘under
t is Ac , Lair 7”A x
.
Mamba 3 m ~ ”an :M w
E ( haggliiz’mg; othei-Jolegal Uroceeding £111.11 lie against The
‘
Government or the Corporation
(fibril-1y
officer or other employee
1 of the Guiemment or the Corpora 10 \for any damage caused or
q?‘ likely to be caused by anything which is in good faith done or
r intended to be done under this Act I6 _I', rob-d3” :7
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H‘s 16. Prower to make mics—(l) The Government may, by
1 notification in the Gazette. make rules to carry out the provisions
x] of this Act.
‘ (2) Every rule made under this Act shall be laid. as soon
as may be after it is made. before the Legislative Assembly while
it is in session for a total period of fourteen days which may be
comprised in one session or in two successive sessions and it.
before the expiry of the session in which it is so laid or the session.
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145
immediately following, the Legislative Assembly makes any modifi-
cation in the rule or deCldeS that the rule should not be made,
the rule shall thereafter have ellect only in such modified from or
be ()1 no ellect, as the case may be, so howexer that any such
modification or annulment shall be Without prejudice to the
validity of anything prevrously done under that rule.
17. Repeal and sauing.—(l) The Kerala Cashew Factories
(Acquisxtion) Ordinance, 1974 (8 of 1974), is hereby repealed-
[2) Noththstanding such repeal, anything done or any action
taken under the said Ordinance shall be deemed to have been
done or taken under this Act as if this Act had commenced on the
28th day of June, 1974.
THE SCHEDULE
(See Section 9)
Principles for determining amount payable for acquisition
of cashew factories
Paragraph 1
The amount to be paid by the Government for the acquisition
of a cashew factory shall be the sum total of the value of the
properties and assets at the lactory existing on the appomted day,
calculated in accordance with the provrslons of Paragraph ll.
Paragraph 11
(a) (i) In respect of any land which was part of the factory
at the time of establishment of the factory, the value of such land
at the time of establishment ol the factory;
(ii) In respect of any land acquired by the owner or occupier
for the purposes of the factory subsequent to the establishment of
the factory, the value of such land at the time of such acquisrtlon;
(b) The cost of any buildings at the time of construction minus
depreciation at the rate of 5 per cent per annum subject to a
maximum of 50 per cent depreciation;
(c) The actual cost of acquiring any plant, machinery or other
equipment which has not been worked or used and the written
down value (determined in accnrrlar‘ce with the provisions of the
Income-tax Act, 1961) of any other plant, machinery or other
equipment, provided that such written down value shall not be
less than 25 per cent of the actual cost of acquiring such plant,
machinery or other equipment.
.
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34/1847/MC.

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