The Kerala Cashew Workers Relief and Welfare Fund Act, 1979 (Act 19 of 1984)

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THE KERALA c'ASHEW WORKERS RELIEF AND 
WELFARE FUND ACT, 1979 
(ACT 19 OF 1984) 
CONTENTS 
Preamble 
Sections 
1. 
2. 
3. 
4. 
5. 
• 6 . 
1. 
8. 
9. 
10. 
11. 
12. 
13. 
14.. 
15. 
16. 
17. 
18. 
1~l. 
20. 
21. 
22. 
23. 
24. 
25. 
Short title, extent, commencement and application. 
Definitions. 
Kerala Cashew Workers Relief and Welfa.re Fund. 
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Purposes for which ~d may be expended. 
ContributiOn and matters whwh may be provided for in the 
scheme. • 
Modification of scheme. 
Constitu)!on of Board. 
Appointment of officers. 
Duty of employer to file return. 
Determination of amo~nts due from employers. 
Provisiorfal assessinent where return is IlOt tlled. 
Mode of recovery of money due from employers. 
Penalties. 
Enhanced punishment for default in payment of employees' 
contributions already 'deducted. 
Enhanced punishment fo! second or ~ubs~quent cffence, 
Offences by companies. 
Cognisance of offences. 
Power to order inquiry. 
Power to supersede the Board. 
Power to recover damages. 
Bar of benefits under Industrial Disputes Act, 1947. 
Bar of Jurisdiction of civil courts , 
Directors of the Board etc., to be public r ervants. 
Protection of actions taken in good faith. 
Power to remove difficulties. 
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THE ltERALA CASHEW WORKERS RELIEF AND WELJ<"ARE 
FUND ACT, 1979 ,. 
(Act 19 of 1984) 
An Act to provule for t1w const.ztution of a fund to grant rez,,ef to, 
and to promote the welfare of, employee.s ~n cashew factones 111 
the Strde of Kerala. 
Preamble -WHEREAS It IS expedient to provide for the 
constitution of a fund to grant relief to, and to promote the WE>lfare 
of, employees m cashew factories in the State of Kerala; 
BE it enacted in the Thirtieth Year of the Republic of India as 
follows:-
!. Short fttle, extent, commencement and appl?cation.-(1) 
This Act may be called the KeraJa Cashew Wo\kers Relief and 
Welfare Fund Act, 1979. 
(2) It extends to the whole of the State of Kerala. 
(3} It shall come into force on such dale as th~ Gcvernment 
may, by notification in the Gazette, appoint. ~-
( 4) It shall apply to all cashew factories registered and 
licE-nsed in the State of Kerala under the Factones Act. 194R (CE>ntral 
Act 63 of 1948) . 
2. Defimtion.s -In this Act, unless the· context otherwi!';e 
requires,-
( a) "Board" means the Kerala Cashew Workers ReliPf and 
Welfare Fund Board constituted under section 'i'; 
(b) "contribution" means the contribution payable by an 
employer or employee under the scheme; 
(c) "cashew factory" means a factory wherf'in processing 
of cashewnuts ie being carried on and \'.rhich is registered and licensed 
under the Factories Act, 1948 (Central Act G3 of 1!)4~1; 
(d) "employer" means any person who Pmploys, whether 
directly or through another person or whether on behalf of himself 
or a lily o1 he.r person, one or more employee or em11loye.es and includes 
-------------------------------------------------· • -Received the assent of the Pre~ident on the 30th day of .Tnly, 
1994 and published in the Kerala Gazette Extnordinary 
No. 742 dated the 22nd August, 1984. 
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any person who has a licence for the construction of e"'-temlion of a 
cashew factory nnder the Factories Act, 1948 _(Cent.ral Act 63 of 1948) 
and the rules made therennder; . (e) "employee" means any person who IS employed m any 
casllew factory for wages for processmg cashewnuts and who gets 
his wages directly or mdirectly from the employer and mcludes-
(I) any person employed by or through f. contractor or 
through an agent in or in connectiOn wtth the processmg of 
cashewnuts; and 
. (ii) clerical and other staff employed m connectwn with 
the processmg of cashewnuts; 
(f) "Fund" means the Kerala Cashew Workers Rc·Iief and 
Wdfare Fund established under the scheme; 
(g) "member" means any employee who contnbutcs to the 
Fnnd, 
(h) "processing", with reference Lo cashevmuts, means 
. loadmg, unloading, transporting, stackmg, imstacl;:mg, soaking, 
roasting, shellmg, frying, peeling, grading, fillmg, packing or other­
<t- \vise treating or adapting cashewnuts, with a view to their use, 
dehvery, sale or other disposal, and mcludc.S work connrctcd \•:ith 
the maintenance of processed cashewnuts, 
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r (1) "scheme" means the scheme framed under this Act; 
(J) "State" means the State of Kerala, 
(k) "wages" means all remuneration paid or payable to an 
· employE.e for work done or services rendered by him and mcludes 
leave and holiday wages paid or payable to him under any law or 
agreement for the time being in force, but·does not mclud~ overtime 
allowance, bonus and commission . 
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3. Kerala Cashew Workers Rehef a?lrJ Welfare Fnnd -(1) The 
Government may, by notificatiOn in the Ga:.>:ette. frame a scheme to 
be callt•d the Kerala Cashew Workers Rehef and Welfare Fund 
Scheme for the establishment of a Fund under this Act and ther~ 
shall be established,· as soon as may be after the framing of the 
scheme, a Fund to be called the Kerala Cashe\v Workers Relief and 
'W~lfare F'nnd, in accordance with the provisions of this Act and the 
~cheme. .. , 
(2) There shall be credited to the Fund--
(a) the contributions to be paid by emplo~·crs and employ~es 
under section 5; 
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(b) any voluntary donations; 
' ~ (c) grants or advances made by the Central Government ~ 
or the Government of KeraJa or any local aulhonty, and f 
(d) any other amount which, under the {n·ovJstous of the 
scheme, shall be credited to the Fund. 
(3) The Fund shall vest in, and be admiGbtered by, the 
·Board. 
(4) SubJect to the provisions of this Act., the ~cheme may 
provide for aJl or any of the matters specified ill the Schedule. . . 
(5) The. echeme shall be laid, as soon as may be~ after it 1' 
framed, before the Legislative Assembly whlle :t is 111 session for a 
total period of fourteen days which may be compr1sed in one session 
or in two successive sessions and if before the cxptry of the session 
in whJCh it is so laid or the session immediately following, lh•~ 
L-egislative Assembly makes any modification m the scheme, th~ 
scheme shall thereafter have effect only in such 111cdified form. so 
however that any such modificatiOn shall be Without preJUdiCe to the 
validity ol anything previously done under th,~ schem('. ~ 
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4 Purposes for wlnch Fnnd may be expended -SubJect to the 
provisions of this Act and the scheme, the 1<'und shall be expended 
for the following purposes, namely:- · 
(a) payment of relief wages to employees ia cashew faatorie8 
When there is no work in those factones, and 
(b) payment of such other amount as may be Rpecified in the 
scheme. 
5. Contnbut10n and matters which may be pro'uded for m the 
·scheme.-(1) The' contribution whtch shall be paid oy an employer 
to 'the Funsi shall be at the rate of twenty rupees for every twenty­
five kilograms of cashewnut kernels processed w1thin the State. 
(.2) The contributiOn which shall be paid by an employee shall 
be at the rate of one rupee for every day of work done by him in 
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I the cashE-w factory. ,. · 
(3) The employees' contribution shall be deducted by_ the 
employer fl'Om the wages payable and remitted to the Fund along 
with the employer's share before the date specifi<:>d in section 9. , 
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- . t 4) Where the amount of contribution }Jayab!e ur1der this Act, 
involves a fraction of a rupee, the scheme may prov.Jde for rounding · 
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off of the fraction to the nearest rupee, half-a-rupee or quarter of a 
rupee. • .. 
· 6. Modtficatwn of scheme.-(l) The Govenunent may, bj 
notification in the Gazette, add to, amend or vary the scheme e1ther 
prospectively or retrospectively. • 
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(2) Every notification under sub-section (1) shall be laid, as 
soon u.s may be, aiter it IS ISsued, beiore the Legislative .Assembly 
while 1t Is m session for a total penod of fourtfen nay.J which may b~ 
comprised m one sessiOn or in two successiVe sesswus and if ~etore 
the exp1ry of the sessiOn m which 1t Is <>o laid or the sess10n 
imrnedmtely following, the Legislative AssemiJly n.akes any modi­
fication in the notlficanon or decides that the nou1icat10n should not 
be issued, the notificatiOn shall thereafter nave eltect c11ly m such 
modified iorm or be of no etfect, as the case may be; sc however 
that any such modification or annu!ment shall be wrthout preJudice 
to the volidity of anythmg preVIously .done under that notihca.t1on. 
7. Constttutwn of Board.-(1) The Government may, by 
notifica·tion in the Gazette, constitute, with ettect from such <.lc.~te a~. 
may be specified therein, a Board to be called the Kerala Cashew 
Workers Relief and Welfare Funu Board for the admmJ.StratJon of 
the Fund and to. 'superviSe or carry out the activ1tic3 fir.anced from 
the ltWld. 
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(2.! The Board shall be a body corporate by the name aforesaid 
having perpetual succession and a common seal a.Hl shall by the said 
name sue and be sued. 
(3) The Board shall consist of such number of Directors as 
may be appointed by the Gove,rnment and they shall be chosen m 
such manner as may b.e provided for in the scheme: 
Provided that the Board shall include a.n equal number of 
Directors representing the Government, the employers and the 
employees. 
(4) One of the Directors of the Board shall be appomted by 
the Government as its Chairman. · 
(5) The Chairman shall exercise such powers and perform 
such functions as may be specified in the scheme. 
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• .(6) 'lhe ·Board shall elect from among its members 8. Vice• 
_Chairman who shall exercise sueh powers and perform such fw1ctiona 
of the Chairman as may be specified in the scheme. 
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( 7) The Government shall publish in the Gazett~ the names 
of the Cl1all'man, the VIce-Chrurman and the othl!r Directors of the 
Board. 
(8) The Board shall administer the Fund vested in it in such 
manner as may be specUJ.ed lh tne scheme. 
S. Appointment of o[ficers.-(1) The Government may appomt 
a Ch •ef .b.hecutive Officer and as many Inspectors as they consider 
nece~sa1y to assiSt the Cmef Executive Otbcer m the exacise of his 
powers and the discharge ot .tus duties. 
(2) The Board may, with the previou:; approval of Lhe 
Govunment, appomt such officers and other emi,ioyees as it may 
consider necessary for assistmg 1t m the admmlst1·atwn of the Fund. 
(3) The method of recn.utment, salary and allowances, 
disciplme and other conditions of service of the Ch1ef Exe~utive 
01hcer and the lnspectors shall be such as may be specified by the 
Governmtr.t, and the method of recrUitment, salary and allowances, 
dlsciplme a.ud other conditions of service or <-he officers and other 
emplOyeE-s appomted by the Board shall be such as way be specified 
by the Board With the previous approval of the <.;overnment. 
( 4) ln making appointments to the posts oi officers and other 
employees to be appomted by the Board, the prov1stans of clauses 
(a), (b) and (c) o! rule 14 and the proviSIOns ot rules 15, 16 and 17 
ot the 1\erala State and Subordinate ~ervices Rules, J 95jj, as amended 
from lrme w trme, shall, mutatis mutandis, be observed. 
9. Duty of employer to file retum.-Every employer shall, before 
the lOth ot every month, file a return showrng the detmls of contri­
butions paid mto the iund, in such manner as may be specified in the 
scheme. 
10. Determmation of amounts due from employers.-(1) The 
Chief Executive Officer or any Inspector authorised ny him in this 
behalf may, by order, determine the amounts due from any employer 
unuer the provisions of this Act or of the scheme ar..d for this 
purpose may conduct such enquiry as he may deem necessary. 
(2) The officer conducting the enquiry under sub-section (1) 
shall, for the purposes of such enquiry, have the same powers as are 
vested in a civil court under the Code of Civil Procedure, 190St 
(Central Act 5 of 1908), when trying a swt, in respect of the 
followmg matters, namely:-
(a) enforcing the attendance of any person and ex.arJ,ining 
· him on oath; 
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:bJ rf'!llirl!'g the d1scovery an1 prudart'rn of d •-:-arr.~.~1s; 
(c) rrce1ving evidence on affidavit. 
(d) issumg commissions for the CJ\.dmmation of witnes<,cs. 
(3) Any ·~llquiry under this sectoin shall b~ ~et>IYicd to be a 
judicial proceeding within the meaning of sections 193 and 228, and 
for the purposes of sectiOn 196, of the Inidan Penal Code, 1860 
(Central Act 45 of 1860). 
• (4 l No order determining the amount due from any employer 
shall be made under sub-sectwn (1) unless the employer has been 
given a reasonable opportunity of being he~rd. · 
15) Any person aggrieved. by an order under sub-section (1) 
may prefer an appeal to the Government or such other authority as 
'may be specifit'd by the Government m this behalf. within sixtv days 
from the date of the receipt of the order, and the decision of the 
Govemment or such other autholrity on such appeal shall be final. 
II. Prov'!,Simwl assessment where retta·n 1,8 not filed.- -lf any 
employer fRils to submit the return· as required by section 9. the 
Chief Executive Officer or the Inspector. authonsed by him in this 
behalf !l'ay provisionally determme the amount due fron1 that 
employer to the Fund: 
Provided that no provisional assessment shall be made final till 
the party is g~ven an opportunity of being heard. · 
J 2. Mode of recovery of money due from empl.oyer.<'.--Any 
amount due from an employer in pursuance of the prov1sions of this 
Act or ~he scheme may, if the 8JJll.Ount is in arrears, be recovered in 
the same manner as an arrear of land revenue. • 
J3. Peno,lties.-(1) Whoever, for the purpose of avoidinV- any 
payment to be made by himself under this Act or under the ·>cheme 
or of enabling any other person to avoid such payment. knowin~ly 
makes or causes to be made any false statement or false renresen­
tation, shall be pu!lJshable with imprisonment for a tenn whkh mav 
extend to. six months, or with fine which may extend to one thousand 
rupt"es, 0r with both. 
1 2) Whoever contrqvenes or makes default m comnlving with 
any of the provisions of this Act or of the scheme s:hall. if no ether 
penalty is elsewhere provided by or under th1s Act for such contra­
vention or non-compliance, be punishable with impri.sonmcnt for a 
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14~ whieb may extend to six months, or with fine· which may extend 
to tJne thousand rupees, or with both. 
14. Enhanced pumshment for default in payment of employee's r 
co,~tnbutwns already dedncted.-(1) Whoever makes default m the 
p tyment of the employees' share of the contribution to the Fund after 
ta.ving dE·ducted it from the wages of the employees in atcordance 
w lth the provisions of this Act or the scheme, shall be punishable with 
Imprisonment for a term which may extend to on~ year, but which 
Rhallnot be less than three months, and with fine which may extend 
to four thousand rupees. 
-(2) Notwithstanding anything contamed in the Code of 
Crimmal Procedure, 1973 (Central Act 2 of 197·1), f.n c.tfence undE'r 
sub· sectioh (1) shall be cognizable. , 
15. Enhanced pim'lShment for second or subsequent of!cncc.­
Whoever, having been convicted by a court of an offence punishable 
under this Act, commits the same offence again, shall be punishable 
for every ~uch subsequent offence with imprisonment for a term whirh 
may extE'Pd to one year; but which shall not be less t.han three months, 
and with fine which may extend to four thousand rupees. 
16. Offences b11 companies.-Where an offence under th;s Act 
has been committed by a company, every person who, at t.he time the 
offen<'e wnE> 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 de€med to be guilty of the offer.ce and shall 
be liable to be proceeded against ~md pumshed accordmgly: 
Provided that nothing contained in this ~~ub-section shall render 
any such rJerson liable to any .punishment if he proves 1 hat the offence 
was committed without his knowledge or that he exercised all due 
diligence to prevent the commission of such offence. '--
(2) Notwithstanding anything contained m sub-section (1)_. 
where an offence undE'r this Act 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 also be deemed to 
be guilty of that offence and shall be liable to be .Proceeded against 
and punished accordingly. 
Explanation.-For the purposes of this section,-
(a) "company" means any body corporate and includ~s a firm 
or other association of individuals; and 
(b) "director", in relation to a firm, means a partner in the 
llnn. 
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17. Cognisanc; of offences -No court shall take c?gnis~J?-Ce of 
'"''Y offence punishable under this Act except on a report m v.Titmg_ of 
l.be facts constituting such offence made with the prevwu;; sanctiOn 
or the Govenunent or such other authority as may be specified in this 
behalf by the Government, by the Chief Executive Officer or any 
Inspector appointed under this Act. ., 
' 18. Power to order tnquiry -{1) The.Government may, at any 
time, appoint any person to inquire into the \vor:dng of the Board and 
to F.ubmit a report to the Government. 
(~) The Board shall give the person so appointed dl facilities 
for the proper conduct of the inquiry and furmsh to him such 
tocmments, accoilllts or information in the possess10n of the Board 
as he may require. 
19. Power to supm·sede the Board.-(1) If, on consideration of 
the n:port under section 18 or otherwise, the Government are of 
opinion that the Board has persistently made default in the perfor­
Jnance of the duties imposed on it by or under the provisions of this 
; Act or the scheme or has exceeded or abused its powers, 1 he Govern­
~- Jnent may, by notification in the Gazette, supersede the Board for 
.. such period not exceeding six months as may IJe speci.fied in the 
notification: · 
Provided that, before issuing a notification under this sub­
llection, the Govenunent shall give a reasonable opporhmity to the 
Board to show cause why it should not be superseded and shall 
consider the explanations and objections,. if any, of the Board. 
(2) Upon the publication of a notification under 
8Ub-section (1) ,-
(a) all the Directors of the Board ohan, as from the date 
of such publication, vacate their offices as s~ch Directors.; 
(b) all the powers and duties which may be exercised or 
p:.rformed by the Board shall, during the period of supersession, be 
aucised or performed by such officer or officers as may be specifi.E'd 
lD the notification; , ' 
1 (c) all fWlds and other properties vesled in the Board shall, 
..;....( durlng the period of supersession, vest in the Government. 
' · · (3) On the expiration of the period of supersession specified 
Ill tne notification issued under sub-section (1), the Government shall 
noonatttute the Board in the manner provided in section 7. 
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20. Power to recover damages.-Where an emP.loyer makes 
default in the payment of any contribution due to the Fund under 
this Act, the Government may recover from the employer damagE-s 
nut cxceedmg twenty-five per cent of the amount of arrears as they 
may thlnk fit to impose. 
21. Bar of benefits under Industrtal Disputes Act, 1941.-Any 
employee who is paid relief wages under this Act shall not be entitled 
to claim the compensation, it any, payable under Chayter VA of the 
Industrial Disputes Act, 1947 (Central Act 14 of 194:7), for the days 
on which !>UCh relief wages have been paid. 
22. Bar of JUrisdiction of cwil cmirts.-No civil court shall have 
jurisdiction to settle, decide or deal with any question or to deter· 
mine any matter which is by or under this Act required to be: settled, 
decided or dealt with or to be determined by the Government or the 
Board or the Chief Executive Officer or any Inspector. 
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23. Directors of the Board etc., to be public servants.-Every 
Director d' the Board and every officer or other employee appointed 
under this Act shall be deemed to be a public servant within the 
meaning ot section 21 of the Indian Penal Code, 1Su1) (Central Act 45 
of J860). ~ 
24. Protection of actwns taken in qood faith.-No suit, 
prosecution or other legal proceedings shall lie aga\nst the Govern­
ment or the Board or any officer or other pernon in respect of 
anythlng which is in ~:;ood faith done or intended to be done under 
this Act or the scheme. 
25. Power to remo-ve difficulties.-If any difficulty, arises in 
g!ving effect to the provisions of this Act or of the scheme, the 
Government may, by order, do anything not inconsi<>tent with such 
proviRi0nS which appears to them to be necessa-ry Or expedient for 
the purpose of removing the difficulty. . 
SCHEDULE 
[See sub-section ( 4) of section 3] 
l\latters for which provisions may be made, iu the Scheme 
1. The time and manner in which contributions s!JSJl be mad~ 
to the Fund by the employers. 
2. The payment by the employers of sums 0f money as may be 
JIEcessa.ry to meet the cost of administering the F~d and 
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the rate at which and the manner m which the payment 
shall be made. 
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_ ) 3. The constitution of any committee for assisting the J?oard. 
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4. 'lhe manner in wluch accounts shall be kept, the investment 
of money belonging to the Fund in accordance with any 
direction issued or condition specified by the Gcvernment, 
the preparation of the budget, the audit of accvw1ts and the 
submission of reports to the Government. . '·. t. ""1:.\-' 
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5. The conditions under which the Fund may be expended .tor 
payment of relief wages to the workers dt.ring the penod 
of closure of cashew factories. 
6. The registers and records to be maintained v.rith respect to 
employees and the retu.cJlc; to ~ furmshed by emp~oy•:rs. 
7. The form or design of any identity card, token or disc for 
the purpose of identifying-any employee; and for issue, 
custody and replacement thereof. 
~ 8. The fee to be levied for any of the purposes f;pecified in thiS\ 
Schedule. 
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9. The further powers, if any, which may be· exercised by the 
Chief Executive Officer and the Inspectors. 
10. Any other matter which is to be provided for in the scheme 
or which may be necessary or proper for the purpose of 
implementing the scheme. 

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