Kerala High Court Declares Sections 3A & 6A of Cashew Factories Acquisition Act Unconstitutional
Kerala High Court Strikes Down Sections 3A & 6A of Cashew Factories Acquisition Act
The Kerala High Court has ruled Sections 3A and 6A of the Kerala Cashew Factories (Acquisition) Act, 1974, as unconstitutional and arbitrary. Justice Gopinath P referenced the Supreme Court’s decision in S.T. Sadiq v. State of Kerala (2015), which previously invalidated Section 6 of the Act.
Background of the Case
The case was brought by a cashew factory owner whose facility was slated for government acquisition due to being closed for an extended period, leading to concerns about unemployment. The petitioner challenged the validity of Sections 3A and 6A, as well as a government order from August 6, 2015, that initiated the takeover.
Key Provisions and Previous Rulings
Section 3 outlines the acquisition process, while Section 3A grants powers for public interest acquisitions. A prior ruling in Indian Nut Products & Others v. Union of India (1994) had already invalidated initial notifications related to factory acquisitions, leading to the return of several factories to their owners after government takeover by the Kerala State Cashew Workers Apex Industrial Co-operative Society (CAPEX). The petitioner now seeks the return of his factory and compensation for its illegal acquisition.
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