The UNREGISTERED CASHEWNUT FACTORIES PROHIBITION ACT, 1967

THE UNREGISTERED CASHEWNUT FACTORIES PROHIBITION ACT, 1967
(Act 11 of 1967)
CONTENTS
Preamble.
Sections:
1. Short title and extent.
2. Definitions.
3. Inspectors.
4. Prohibition of processing of cashewnuts in unregistered factories.
5. Powers of Inspectors.
6. Penalties.
7. Offences by companies.
8. Forfeiture of cashewnuts, etc.
9. Cognizance of offences.
10. Protection of action taken in good faith.
11. Inspectors to be public servants.
12. Power to make rules.
13. Repeal and saving.
THE UNREGISTERED CASHEWNUT FACTORIES PROHIBITION ACT, 1967*
(Act 11 of 1967)
An Act to prohibit the working of unregistered cashewnut factories in the State of Kerala.
Preamble.—WHEREAS  it  is  expedient  to  prohibit  the  working  of  unregistered
cashewnut factories in the State of Kerala;
BE it enacted in the Eighteenth Year of the Republic of India as follows:—
1.  Short title and extent.—  (1) This Act may be called the Unregistered Cashewnut
Factories Prohibition Act, 1967.
(2) It extends to the whole of the State of Kerala.
2.  Definitions.—In this Act, unless the context otherwise requires,—
(a) “Factories Act’’ means the Factories Act, 1948 (Central Act 63 of 1948);
(b)  “Inspector” means an Inspector appointed or deemed to be appointed under
section 3;
(c)  “prescribed” means prescribed by rules made under this Act;
(d)  “processing”, with reference to cashewnuts, includes extraction of cashewnut oil
and, roasting, shelling, peeling, grading and treating of cashewnuts;
(e)  “unregistered  cashewnut  factory”  means  a  factory  wherein  processing  of
cashewnuts is being carried on, which has not been registered and licensed in pursuance of
the rules made under the Factories Act;
(f)  words  and expressions  used  but  not  defined  in  this  Act  and  defined  in  the
Factories Act, shall have the meanings respectively assigned to them in that Act.
3.  Inspectors.—(1)The Government may, by notification in the Gazette, appoint such
persons as they think fit to be Inspectors for the purposes of this Act and may assign to
them such local limits as the Government may think fit.
(2) An Inspector appointed under sub-section (1) of section 8 of the Factories Act
shall be deemed to be an Inspector for the purposes of this Act within the local limits
assigned to him under the Factories Act, unless and until another person is appointed to be
an Inspector for the purposes of this Act with jurisdiction within the said local limits.
4.  Prohibition of processing of cashewnuts in unregistered factories.— No person shall
process any cashewnut in an unregistered cashewnut factory.
*Received the assent of the  President  on the 2 9th day of July, 1967 and published in the Kerala Gazette
Extraordinary No.149  dated 30th July, 1967.
5.  Powers  of  Inspectors.—(1)  An  Inspector  may,  if  he  has  reasons  to  believe  that
processing of cashewnuts in contravention of section 4 is being, or is about to be, carried on
in any premises,—
(a) enter such premises, if necessary by force, at any time for the purpose of search of
the premises ;
(b) seize any cashewnuts in respect of which the provisions of section 4 are being, or are
about to be, contravened, along with the package, covering or receptacle, if any, in
which  such  cashewnuts  are  found  1[and  the  machines,  equipments  and  other
instruments used or about to be used for such processing, in such premises.]
(c) seize any books of account, return or any other document relating to any cashewnuts
in  respect  of which  the  provisions of section  4 are  being,  or are  about  to  be,
contravened.
(2) The provisions of the Code of Criminal Procedure, 1898 (Central Act 5 of 1898),
relating to search and seizure shall, so far as they are applicable, apply in relation to search
and seizure made under this section.
2[5A.  Sale of cashewnuts seized .— (1) Notwithstanding anything contained in any
other provisions of this Act, where cashewnuts are seized under section 5, a report of such
seizure shall without unreasonable delay, be made to the Revenue Divisional Officer having
jurisdiction over  the area  in which  such cashewnuts  are seized,  and whether  or not a
prosecution is instituted for the contravention of the provisions of this Act, in respect of
such cashewnuts, the Revenue Divisional Officer may if he thinks it expedient so to do,
direct the raw cashewnuts so seized to be produced before him for inspection.
(2) Where the Revenue Divisional Officer, on receipt of a report of seizure of
cashewnuts and on inspection under sub-section (1), is of the opinion that the cashewnuts
seized are subject to speedy and natural decay or it is otherwise expedient in the public
interest so to do, he may order the same to be sold either to the Kerala State Cashew
Development Corporation or to the Kerala State Cashew Workers' Apex Industrial Co-
operative Society Ltd. at the prevailing market rate or in public auction as the situation
justifies.
(3)  Where the Revenue Divisional Officer, so order the sale of any cashewnuts
seized  under  this  section,  he  shall  prepare  an  inventory  of  such  seized  cashewnuts
containing such details relating to their description, quality, quantity, mode of packing and
other particulars as the Revenue Divisional Officer may consider relevant to prove the
identity  of  the  cashewnuts  seized  in  any  proceedings  under  this  Act,  and  make  an
application to any Magistrate for the purpose of,—
(a)  certifying the correctness of the inventory so prepared; or;
(b)  taking,  in  the  presence  of  such  Magistrate,  photographs  of  such  raw
cashewnuts and certifying such photographs as true.
(4)  Where an application is made under sub-section (3), the Magistrate shall, as soon
as may be, allow the application.
1.Added by Act 4 of 2009 (w.e.f.13.12.2007).
2.Inserted by Act 4 of 2009 (w.e.f.13.12.2007).
(5)  Notwithstanding anything contained in the Indian Evidence Act, 1872 (Central
Act 1 of 1872) or the Code of Criminal Procedure, 1973 (Central Act 2 of 1974) any Court
trying an offence under this Act, shall treat the inventory and the photographs of the seized
cashewnuts and certified by the Magistrate, as primary evidence in respect of such offence.
(6)  Where any cashewnuts are sold under sub-section (2), the sale proceeds thereof,
after deducting the expenses if any of such sale or other incidental expenses relating thereto
shall be kept under revenue deposit subject to the orders of the Court if a prosecution is
instituted for the contravention of this Act, or of the concerned Inspector who seized the
cashewnuts if no prosecution is instituted.
(7)  No order for sale of cashewnuts shall be passed under this section, unless the
person from whom the same is seized, is given an opportunity of being heard in the matter.]
1[6.  Penalties.—  If  any  person  contravenes  or  attempts  to  contravene  or  abets  the
contravention of the provisions of section 4, or of any rule made under this Act, he shall be
punished with imprisonment for a term which may extend to two years but which shall not
be less than six months and with a fine which may extend to one lakh rupees but which
shall not be less than twenty five thousand rupees and in the case of repeated contravention
with  an  additional  fine  which  may  extend  to  ten  thousand  rupees  for  every  such
contravention.]
7.  Offences by companies.—(1) Where an offence 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 be proceeded
against and punished accordingly :
Provided that nothing contained in this sub-section shall render any such person liable
to any punishment, if he proves that the offence was committed without his knowledge or
that he exercised all due diligence to prevent the commision of such offence.
(2)  Notwithstanding anything contained in sub-section (1), where any offence under
this Act has been committed by a company and it is 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 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 includes a firm or other association of
individuals; and
(b)  “director”, in relation to a firm, means a partner in the firm.
8.  Forfeiture of cashewnuts, etc.—Where any person has been convicted under this Act
for the contravention of any provision of this Act or of any rule thereunder, the cashewnuts
in respect of which the contravention has been committed, together with the package,
1.Substituted by Act 4 of 2009 (w.e.f.13.12.2007).
covering or receptacle, if any, in which such cashewnuts were found 1[and the machines,
equipments and other instruments used for such contravention] shall be forfeited to the
Government on the orders of the court to that effect.
9.   Cognizance  of  offences.—(1)  No  court  shall  take  cognizance  of  any  offence
punishable under this Act except upon complaint made by an Inspector.
(2) No court below the rank of a Magistrate of the First Class shall try any offence
punishable under this Act.
10.  Protection of action taken in good faith .—(1) No suit, prosecution or other legal
proceedings  shall  lie  against  any  person  for  anything  which  is  in  good  faith  done  or
intended to be done in pursuance of any of the provisions of this Act or any rule or order
made thereunder.
(2) No  suit  or other  legal  proceedings  shall  lie  against  the  Government  for  any
damage caused or likely to be caused by anything which is in good faith done or intended
to be done in pursuance of any of the provisions of this Act or any rule or order made
thereunder.
11.  Inspectors to be public servants .—Every Inspector shall be deemed to be a public
servant within the meaning of section 21 of the Indian Penal Code (Central Act 45 of 1860).
12.  Power to make rules .—(1) The Government may make rules for the purpose of
carrying into effect the provisions 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 if, before the
expiry of the session in which it is so laid or the session immediately following, the
Legislative Assembly agrees in making any modification in the rule or the Legislative
Assembly agrees that the rule should not be made, the rule shall thereafter have effect only
in such modified form or be of no effect, as the case may be; so however that any such
modification or annulment shall be without prejudice to the validity of anything previously
done under that rule.
13.  Repeal  and  saving.—(1)  The  unregistered  Cashewnut  Factories  Prohibition
Ordinance, 1967 (5 of 1967), is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the said
Ordinance shall be deemed to have been done or taken under this Act had commenced on
the 15th  day of June, 1967.
1.Inserted by Act 4 of 2009 (w.e.f.13.12.2007).

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