The Kerala Cashew Factories (Requisitioning) Act, 1979 (Act 6 of 1979)

THE KERALA CASHEW FACTORIES (REQUISITIONING) 
ACT, 1979 
(Act 6 of 1979) 
CO:'i!TENTS 
amble 
·oos 
1. Short titJe, e_xtent and commencement. 
2. Definitiom. 
3. Power to requisition cashew factories. 
4. Release from requis!tion. 
5. Payment of amount. 
6. Tribunal. 
7, Appeals from decision of Tribunal. 
8. Mode of payment of rent. 
9. Service of notice or order. 
10. Protection of action taken in good fc~.ith. 
11. Bar of jurisdiction of civil courts. 
12. Power to make rules. 
13. Repeal and Saving. 
25 
•THE KERALA CASHEW FACTORIES (REQUISITIOi'-'ING) 
ACT, 1979 
(Act 6 of 1979) 
An Act to provide for the requisitioning of cashew factories 
leased out to the Kerala State Cashew Development 
Co:rporation 
Preamble--WHEREAS certain. cashew factories had been leased 
out by the owners thereof to the Kerala State Cashew Development 
Corporation Limited, which is a company owned by the Government 
of Kerala; 
AND WHEREAS such casl;ew factories were at the time of the 
lease either closed down or run by rersons other than the owners 
thereof; ' 
AND WHEREAS the term of the lease in respect of some of such 
cashew factories has expired and the owners of some of such factories 
are not willing to extent the term of the lease; 
AND WHEREAS suits have been filed in the courts by the owners 
of some of such ca~hew factories for delivery of possession thereof; 
AND WHEREAS in the interests of the workers of the cashew 
factories it is considered necessary to enable the said Corporation to 
continue in possession and managernent of such of those cashew factories 
which if given ba.ck to the owners thereof could not b~ run properly 
and in accordance with law and would either be sold or leased out to 
private individuals; 
BE it enacted in the Thirtieth Year of the Republic of India as 
follows:-
!. Short title, extent and commencement.-(!) This Act 
may be called the Kerala Cashew Factories (Requisitioning) Act, 1979. 
( 2) It extends to the whole of the State of Kerala. 
{3) It sh>il he deemed to have come into force on the 13th day 
<>f November, !978. 
2. Definitions.-In this Act, unless the context otherwise 
requires,_._ 
(a) "cashew factory" means a factory as defined in the Factories 
Act, 1948 (Central Act 63 of 1948), wherein processing of cashew nuts 
• R~ceivrrl the assent of th~ President on the 27lh March, 1979 and published in 
the Kerala Gazette Extraordinary No. 227, dated 29th March, 1979. 
is being carried on and includes the factory -buil~ing, the site thereof 
and the buildings and lands appurtenant ~hereto used or ·necessary for, 
m· iu conn('ction with, the working of the factory; 
(h) ''Corpo~.1tion" means the Kerala State Cashew Develop­
ment Corporation Limited, incorporated under the Companies Act, 
1956 (Central Act I of !956); 
(c) the expression "person interested", in relation to any cashew 
factory, includes all persons claiming or entitled to claim an interest in 
the amount payable on account of the requisitioning of that factory 
under this Act; 
Act; 
(d) "prescribed" means prescribed by. tules made W1de1 thi,s 
(e) ''processing", with reference to cashew nuts, includes extrac ... 
tion of cashew nut oil, roasting, shelling, peeling, grading and treating' 
of cashew nuts; 
(f) ''Tribunal'' means the Tribunal appointed under section 6. 
3. Power to requisition cashew fact•>:ries.--(1) Where the 
Governmeut are satisfied that if the owner of a cashew factory which is 
in the possession ot the Corporation un·Jer a lea'>e, whether current or 
time expired, is put in pusses, ion thereof, such _owner could not run 
that factory prop~rly and in accordauce with law and would either sell 
it or lease it out to any private individual and there would be large 
scale unemployment ol the workers uf that factory or their conditions 
of serv1ce wo1•ld be adv<::rsely aff..:.cted, the Government may, notwith ... 
standing any judgment, decree or order of. any court, by order, 
published in the Gazette, requisition that cashew factory for such, 
per1od not exceeding five years as may be specified in the order and 
may make sU<. h further orders as appear to them to be necessary or 
expedieut in connection with the requi1ition: 
Provided that before making an ord(:r under this sub~section in 
n spect of a cashew factory, the Government shall give the ownf'r of 
that factory and every p~rsqn interested in, that factory a notice of their 
intention to take action unc_ler this sub-section and the grounds'therefor 
and consider the objections·that may l>e'preferred in pursuance <#'such 
notice. . '· ·' .. ·' · 'i-_', ~'-'· 
(2) Where-a cashew factory -is requisitioned under· sub-section 
(1), such cashew factory together with aU machinery, other accessories. 
and other movable properties as were im·nediately before the date or 
publication ofthe order under sub-section (I) in the possession of the 
Corporation and all books of account, registers and other documerits. 
relating·thereto shall vest iu the Government with effect-from the ~aid. 
date. 
27 
(3) The Government may, by order in wntmg, direct that a 
cashew factory vested in them unJer sub-section (2) shall, instead of 
continuing to vest in them, vest in the Corporation with effect from 
such date, not being a date earlier than the> da1c of publication of the 
order under sub-section (1), as may b~ specified in the ord,~r. 
(4) \Vher~ an order vesting a cashew factory in the CorporJ.tion 
is made under sub-s~ction (3), all rights, liabilities and ob!il{atioas or 
the Government in relation to such factory shall, on and fro n the date 
of such vesting-, be deemed to have become the rights, liabilities and 
obligations respectively of the Corporation. 
4. Release from. requ:isition.-(l) The Government may at 
any time release from requi.sitio.J ~1ny cash~.:\V fJ.ctory requisitioned 
under section (3) and therei?Oil tli•: Guvcrnmcnt or the Corpordtion, 
as the case may be, shall as far a<.: pos~-iblc re'Hnre the fact)ry in as good 
J. condition as it was when pos~e~~i·m 1 h<1:n:.ur was taken by virtue of th• 
lease executed by it with the owner of the ca~hew factory, subject to the 
provisions contained in such lease and to the ch:1nges camed by reaso .. 
nable wear and tear and irresistible torce. 
(2) Where any cashew factory i3 to be released from requl~ition 
under sub section (l), the Goven1·ne1ll may, af1er such inquiry, 1f J.ny, 
as they may in any case cons;rl,~r ;v~c:~s>ary t l m_~.ke o~· cau3e to be 
made, speclJy by order in writing the \'{'l·sun to '.·:hom po3.session of such 
cashew fJ.ctory IS to be given. 
{3) The delivery ofpo')sessi~J.< of a cashew factory to the p~rson 
specified in an o:;dcr undct sub-section (2) shall b~ a full di>char!Se of 
the Governmt:'nt and, in the case of a ca3hew fJ.ctory vcs.ted in the 
Corporation, also of the Corporation from a.llliab1'ijes in r<:"Spect of 
such cashew fa.ctory, but !.hall not preju·.Jice any right in respect of 
that ca:--hcw f::~ctory which any other person may be entitled by due 
process of bw to enforce ag1inst the person to whom posses~ivn of the 
c.ashew factOiy is given. 
(4) \-\t~here any person to whon1 pos:;ession of a cashew factory is 
to be given is not found and has no agent or other person e:npowered 
to accept delivery on his behalf, the Government sh::t.ll cause a notice 
declaring that the cashew factory is relea.;;ed from requisition to be 
affixed on some .conspicious part of the- premises of the C'lshew -factory 
and sh01ll also publish the notice in the Gazette.· 
(5) Where a notice referred to in sub-section (4) is published in 
the Ga~ette, the cashew factory spec;fieU in such notice shall cease to 
be· subject to requisition on and from the: date of such publication and 
shall b.e deemed to have been delivered to the ptrson entitled to ·posses .. 
sion thereof, and the Government or the Corporation shall not be 
liable for. any c_ompensation or other claim in respect of such cashew 
factory for any pe1iod after the said date. 
(6) Where any cashew factory requisitioned under section 3 or 
any matt I ial part thereof is wholly destroyeJ or rendered substantially 
and permanently unfit fOr cco.rrying on processing of raw cashew nuts by 
reason of fire~ ec1rthquake, tempest, flood or violence of any mob or 
other irre3istible f,,rce, the requisition shaH, at the option of the 
Government, be void: 
Provided that the benefit of this sub-section shall not be available 
to the Governmt'nt where the injwy to such cashew factory is caused 
by any wrongful act or default o1 the Government or the Corporation. 
5. Payment of amount.-(!) Where any cashew factory is 
requisitioned under this Act there shall be paid rent for that cashew 
factory, the amount of which shall be determined in the manner and 
in accordaiJce w1th the principles hercinafler set out, that is to say,-
(a) whne the amount of rent can be fixed by agreement, it shall 
be paid in ac<.ordance wnh such agreement; 
(b) where no such agreement can be reached the Government 
shall by order--
(i) determine the rent at a rate which shall be in excess of the 
amount of rent w hi.ch was being paid by the Corr'ora­
tion for that cashew factory .immediately before the date 
of publication of the 01der under ~ub-section (1) of 
section 3 by twer.ty-five per cent of such amount a11d 
(it) specify the person or persons to whom such rent shall be 
paid. 
(2) Any pers0n aggrieved by an order of the Government undet· 
sub-section t 1) may, within thirty days from the date of such deter mi. 
nation, apply to the Tribunal for modification of such order: 
Provided that the Tribunal may_ entertain the ap·llication after 
the expiry of the said period of thirty days if it is satisfied that the 
applicant ,\·as prevented by sufficient cause from pcesenttng the appli-­
cation in time. 
(3) ln determining the amount of rent payable for a cashew 
factory requisitioned under this Act, the Tribunal shall have regard 
to-
-· (a) the nature and plinth area of the buildings and other 
structures and the value of the accessories and fixtures minus depre­
ciation at the rate of five per cent per annu·n subject to a maximum of 
fifty per cent depreciatiJn; 
(b) the capacity of the cashew factory for processing raw 
cashew nuts; '" 
(c) rate of rent of other cashew factories in the locality at the 
commencement of this_ Act; and 
(d) expen~es on account of re-occupying the premises upon 
re]ease from requh:ition. ' 
6. Tribunal.-( I) The Government shall, by notification in the 
Gazette, appoint a Tribunal to exercise the powers conferred on the 
Tribunal under this Act. 
(2) The Tribunal shall consist of a person who is a District 
Judge. 
7. Appeals from dedskJn of Tribunal-Any person aggrieved 
by any deci<;ion of the Tribunal may, withitl thirty days from the date 
of such decision) prt>:fer an app..:al to the High Court against such 
decision: 
Provided that the High Court rna y entertain the appeal after the 
expiry of the said period of thirty days if it is satisfied that the appel­
]ant was prevented by sufficient cause from filing the appeal in time. 
8. Mode of payment of rent.- The amount of rent payable 
under thi" Act shall, subject to any rules made thereunder, be paid by 
the Governmellt to the person or persons entitled thc:reto by means of 
cheque: 
Provided that the amount of rent payable under this Act in 
respect of a cashew f.1.ctory v~sted in the Corp.'Jration in pursuance of 
an order made under sub-section (3) of sect'on 3 shall be paid by the 
Corporation. 
9. Servic~ .-)fnotice or oMer.-(1) Every notice or order issued 
or made under this Act shall,-
(a) in the C<l~e of any notice or order affLcting a corporation or 
firm be served in the manner provided for the service of summons in 
rule 2 of Order XXIX or rule 3 of Order XXX, as the case may be, 
in the First Schedule to the Code of Civil P1occdure, 1908 (Central 
Act V of 1908); and 
(b) in the case of any no• ice or order affecting an individual 
person (not being a corporation or firm), be served on such person­
(i) by dehyery or tendering it to that person; or 
( ii) if it cannot be so delivered, or tendered by delivering or 
tendering it to any officer of such person or any adult male member of 
the family of such person. or by affixing a copy thereof on some cons­
picuous part of the premi~es in which th1t per:>on i.s known to have last 
resided of carried on busine.ss or personally worked for gain, or failing 
service by these means; 
(iii) by registered post. 
(2) Where the ownership ·of the cashew factory is in dispute, 
or where the person:- intncstul in the cashew factory are not readily 
traceable and 1 he !lOtice or order cannot be Sf'rvcd ,vithout undue 
delay, the no(ice or order may be served by publishing it in the Gazette 
and Vlrhcre pmsible, by affixing a copy thereof on any conspicuous 
part of the premises of the cashew factory to which it relates. 
10. Protecl(on of action taken in good faith.-( I) No suit, 
prosecution or other legal proceeding shall lie against any person for 
ar1ything wh.i.ch 1s in pood faith done or intended to be done in 
pUisuance of this Act or any rule or order made thereunder. 
(2) No suit or other legal proceeding shall lie against the 
Government or the Corpo1ation for any darrage caused or likely to be 
causfd by anything vv·hich is in gocd faith done or intended to be done 
in pursuance of this Act or any rule or order made thereunder. 
11. E'ar of jllrircli<:t~cn of civil courts.--Save as otherwise 
expressly provided in this Acr, no civil court shall have jurisdiction in 
re:-pect of any matter VI. hich the Government or the Corporatibn or the 
Tribunal arc or is empowered by or under this Act to determine, and 
no injunction shall be granted by any court or other authority in respect 
of any action taken or to Le taken in pursuance of any power conferred 
by or under this Act. 
12. Powe:<· to m.ake JMJ!es.-(1) The Gov•rnment may, by 
notification ln the Gazette, make rule') for carrying out the purposes 
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 
;;e~sion for a total period of fourteen days which may be comprised in 
one Sf'ssion or in two successive sessions ard if, befnre the expiry of the 
se~sion in vvhich it is so laid or the session immediately following, the" 
Legislative Asscrnbly make:. any modification in the rule or decides 
that the rule s.hould not be made the rule shall thereafter have effect 
only in such modified form or he of no effert, as th~ case may be, so 
hmvever that any such modification or annulment shall be without 
prejudice to the validit} of anything previously done under that rule. 
13. Repeal and saving.-(!) The Kerala Cashew Factories 
(Requisitioning) Ordinance, 1978 (26 of 1978), is hereby repealed. 
(2) Notwith:;1ancling such repeal, anything done or any action 
taken under 1he said Ordinance shall he deemed to have been done or 
taken under this Act. 

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