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

\ 138 THE KERALA CASHEW FACTORIES (ACQUISITION) 19744 ACT, (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. the 2. Defimtions.—-In this Act unless 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: (f) "prescribed"'means prescribed by rules made under this a 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 F afi-oz. {r99 Le \. K 139 (3) "processing", with reference to cashewnuts, includes extraction of cashewnut oil and roasting, shelling. peeling. grading 0 and treating of cashewnuts. rJi (laweUJ- ""\:‘ ‘1‘: h) “workers’ ctr-operative society" or “society” means O 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 [r , per 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 the cashew fact w o hy_ woman or mum an: ‘lun. —ueing-processen- nr'uie factory to 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. .4 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 - G°"‘"‘“““" ' "Afiwui sum, as) sea-on 3A 4'juu‘o’ by flat-276g ”Ewe-f 18-02nl?3;’ 2 m ' 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 Government in this behalf aha" miter the service of the notice 5 under the “WW-"s ‘ “(by 4M- 1 sectio s n ec3tloomrlrtx.xe'dpublication —~ " 71¢on “Hm.-5P“ ithat ' before the “(at 0‘ 3((14‘MC') m “My; 5“!» r the said sub-section (1). fiswnbfi L Est-1”“ the properties of the cashew a? 3 - 1 e relates. as on the date 0! service of guano 0 ice or the date of publication of that notice. as the case may be (2) The oiflc'er referred to in sub-section [1) shall. for the purpose of preparing the inventory. have the power to enter the premises of the cashew factory and to require the occupier or any person emploved therein :to furnish such information as he deems necessary. (3) Any person who is required to furnish any information under sub-section (2) shall be bound to furnish such information as is within his knowledge. 6 Property and assets not to be damaged or removed afterservice of notice—After the service of the notice under the proviso to sub- K section ULoLsection 3. or .tha of that notice under sub- nIIhlicEtion 7 E! “if”, a ron luff M l., p“ ml by 4k; ior or any other person shall 'sh the value of the propenties ‘ Half" ”5“”1’5’ W sub-S'JM“) which the notice relates or 593 m the premises of the factory. '. o 3391‘” 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. factory 8- POW" 0f Government to direct vesting of cashew in the Corporation—(Ll Notwithstafndin w‘aqnvthing «contained—in wt 1— . H 5.1mm; by Mr M, as 1975‘» 7.5..in hr Adk'flj1“."1", '95} @1th by MW °t ”WW ef I~5—I93& I1? 1) Notwithstanding anything contained in _sccuw -, by ordenin writing}:— Government may‘ under vested in them cashew factory (a) direct that a. the Government. this Act shall, instead o W f'c it o h nt e in ff u ec in t g fro to m ve su s e t h i w n date (not being a vest in the Corporation nespemfiedinnthe dam: earlier than the appointed day) as may order; or L . ‘ .. .> - 2 h 1' ‘ O ‘ (b) entrust a cashew factory ve c s o te -o d pe in rat t i h v e e m hsoc u ie n t d y e . r or th t i o s . workers’- O A a fo n c r y t m t w o an : t o a h r g e e i' m n F s e e t n d it t e u r f t a o Io t r i n o s n u a ' c o p h r p r p t o o e v r e i a d o b .y , d the on G s o u v c e h r ” n o te m n r - e m u n - s t a i u n n c . d u th l c u i o u s n ca d be iti h , n o a u n l u f s ; , be spec.ified m' “339.32% r - elation to such factory shall, » as may in 7 on and from the date 'of‘such vesting, be deemed to have become the 0 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 arc ll satisfied, in relation (0 a cashew factory, that it has been- clr sed for preludiciaua period of not less than three months and such closure has 11“); affected the interest of the majority of the workers outraged m restaart factory and that immediate action is necessary to the Cashew rna, 5—: ~ factory and such restarting lS necessary in the public interesi, they factor: it i by order published in the Gazelle, declare, that the cashew y ‘ shall stand transferred to, and vest in, the Government. . Provided that no order under this sub-section shall be pub ‘ l 15 hed unless the proposal for such acquisition is supported by a ”50mm“ or the Legislative Assembly. I l ‘ ‘ (2) The provisions of sub-section (3) ofsection 3 and 1111:3 ‘ 123}: a shall, as far as may be, apply to a_ declaration made ‘\ auction (1), as they apply to a declaration made under sub-section (1) of section 3 —'v (3) The provisions ofsection 7 to 16 (both inclusiv fca)c s t h o a ry ll, lax: far as may be, apply to, or i . n relation to, the cashew (1’) respect ofwhich a declaration has been made under sub-section its cashew 33.35;? Govemmenltl; ails the case may be, as they apply to a re 3 ion to ' c a declarati’on has been made under sub- ‘33 section (1)0fscczion (7)“Th'e' aniofifit'détermmed‘in cocci-dine} \Tzith‘tne ioregomg‘ _ shall he paid to the person or persons entitled thereto provnions .n cash within a period of six months froth‘hA (“$4,133.5th peter- urination: ”End 9:13 101 brim inabivom e bndzild . yam-emu! [’7 m" ‘95“ 06‘ ”8’5" 2.9-2.4??? w cf" I I'll 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 - P .‘ ‘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. * x / (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. .. "I '1 ” (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~ - --i benefits, prior to the appointed day, such perSOn may enforce his l claim against the occupier of the cashew factory immediately before the appointed day but not against the Government or the Federation i' 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 —.._."—-‘*.—._’——-ar A 9' Jamil! 6‘: Act- oir oi- l‘ffrf (me-f. 023,2, (999 x“ . C7" in moneys relatable to the employees. whose services have become transferred, by or under this Act, adhe~ Government ot-the ' Iz__on_ttle al’li’omted d vc a s y t m v a h id o e w e ne o n C y r t o k s r f e u p s r n o s ta ’ r d n a , c d ti o i ‘ s o n - t g n o a p n , e d r o a. n t t r i' a v t e n h s e f s F e o a e r c p d r 1' e p e e o d t r y x a n t 1: i t o z e h r d a a g d n a g y i . , t n v r s e a to s t t i t i t o u t i n h t n i e o . o n t c r h , r e t e h s d h T G i a t F o l ‘ ‘ l o e , v f e d \ o r e s n u r u m a t c f e h ' i n l . i p t P a r o o l .— r - : . ' (1) or the th. society o ' r the institution , as the case ma h y e b w 3 o } rk m er e s' gggpifiiv - e manner as J b “’ y “T t K h e e rs G ' o c v o e - n o frfzreanve ' s - -- ~. . M.flraho - n_ Or y 01‘ 12 s" F’Or‘kers' “t of the "lshtu superannunt In Such m CM Peratrve societ C o a ion or th benefit of the employs..."er as may hey 01' the in . tub.al], e t e h d eeza on Government or the Corporatiori'l-yzrfi RDl‘escn’be as by winch such employees we e- _:_ “Wu?" 07a inn/cu, (a DquhIPfi-Iwe amount due to each employee as if the employee Imu w 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. ' . casubsilurd by Ad- asu Htfwyua-f 38.44734 ”'SMbH-{ahl 1,“, me 2;- Art Horus-F *3- 1' ’7” is: 1mm by Ad Jr a} ("fwcf‘ 49- 1- "’54. L 1M- 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). \‘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. ‘ ] ': lull-am. Explanation—For the purposes of this section,— <§ (a) "company" means any body corporate and includes a firm or other association of inidividuals: and 1M”! Ca-o/‘v (b) "director". in relation to a firm. means a partner in the or “TSP“— Fdivoiiw o-r a lhlnkus' (a-orevad/u 500:6; an A" 'r'l-"i‘zgy J 15. Protection of action taken in good Iaith—(l) No suit. " o pmrosecutmn or other legal oceeding shall lie against the Govem- eat or the< Corporation 0 angfionrfer or other employee of the A ‘ . ('Gotcmrnent< or the dCorporai anythhing t‘which is in good E fai h d ( one hoarggliiz g ’m ; ”oAt n h b ei e -Jo d le o ga n l e xU ‘u r n .o d M c e e a r e m d t b in a i g s 3 A £1m c 11. , 1 ~ 1 ” l a ie n a :M ga L in a s i t r w T 7 he (fibril-1y ‘ Government or the Corporation 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 .; ,' r1 -'J ~g m aiwveral.wo1 " ““"-”" H‘s 16. Prower to make mics—(l) The Government may, by notification in the Gazette. make rules to carry out the provisions 1 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. '3- Swarm by Ad &r .3—2Ht)" ”‘5‘ Jubrh‘w 6, Ad?Ar"‘2 017,35, animus! ! 1.1 of 1:713”? (an L L4. 730‘Loffs ,6— Subh‘efl/g’ ,char{ an- 5‘1 aha—I989- 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. ' 34/1847/MC. .