N. P. Singh, J. - (1.) This writ petition Has been filed on behalf of the petitioners, who are owners and occupiers of cashew factories. They have questioned the validity of an order dated 6-7-1988, issued by the Government of Kerala, in exercise of the powers conferred on them by Section 3(1)(c) of the Kerala Cashew Factories (Acquisition) Act, 1974 (hereinafter referred to as "the Act") declaring that the cashew factories of the petitioners mentioned in the schedule of the said order shall stand transferred to, and vest in, the Government.
(2.) The object of the Act aforesaid is to acquire cashew factories in the public interest, in order to prevent large scale unemployment of workers in the cashew industry and to provide employment to such workers who have been rendered unemployed. Cashew factory has been defined under Section 2(b) to mean a factory as defined in the Factories Act, wherein processing of cashew nuts is being 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. Section 3 provides : "Order of acquisition- (1) The Government may, if they are satisfied-- (a) that the occupier of a cashew factory does not conform to the provisions of law relating to safety, conditions of service of fixation and payment of wages to the workers of the factory; or (b) that raw cashew nuts allotted to a cashew factory by the Cashew Corporation of India are not being processed in the factory to which 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 off 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: Provided that before making a declaration under this sub-section in respect of a cashew factory, the Government 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 subsection and the grounds therefor and consider the objections that may preferred in pursuance of such notice. Explanation- For the purposes of this sub-section, the expressions "layoff" 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 proviso 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 the cashew factory. (3) On 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 relation to the factory and all books of accounts, registers and other documents relating thereto shall stand transferred to, and vest in, the Government." The other Sections relate to the vesting, inventory of properties, power of the Government to direct vesting of such cashew nut factories in the Corporation, payment of compensation to the occupier of the cashew factory and the continuance of employment of the employees after vesting.
(3.) It appears that in view of the proviso to sub-section (1) of Section 3 of the Act, the Government gave notice to the petitioners in respect of their intention to take action under the aforesaid sub-section, directing the petitioners to file objections, pursuant to the said notice. The relevant part of the said notice dated 20-6-1988 is as follows :- "NOTICE Notice under Rule 3 of the Kerala Cashew Factories (Acquisition) Rules, 1974. WHEREAS it has been brought to the notice of the Government that in respect of Cashew Factories detailed below, there exist grounds as detailed below, warranting action under Section 3(1) of the Kerala Cashew Factories (Acquisition) Act, 1974, notice is hereby given to all concerned of the intention of the Government to take action under the above said section of the Act. Interested persons are hereby directed to file their objections, if any, before the Government of Kerala against the proposed action within seven days of the receipt of this notice or the publication of this notice in the newspapers, whichever is earlier or if they so desire, appear before the Special Officer for Cashew Industry, Quilon at Quilon at 11 a.m. on 4-7-1988 and state their objections. If no objections are received within the said period or no person appears on the said date it will be presumed that there are no objections against the proposed action and further steps will be taken. . . . . . . . . . . . . . . . " In the said notice the names of 35 cashew factories including that of the petitioners have been mentioned and thereafter the grounds on which the factories were being acquired have been stated as follows :- "GROUNDS It has been reported by the authorised officer that your factory is lying closed and that there is no possibility of it to start functioning within a period of ten days or in the immediate future. Government are, therefore, of opinion that the said situation will lead to a large scale unemployment, other than by way of lay-off or retrenchment, of the workers of the cashew factory." ;