KARTHIK.T | SASTRA DEEMED TO BE UNIVERSITY THANJAVUR | 15th July 2020
S.T.Sadiq Vs State Of Kerala
FACTS:
The fact of this case is there was an act called the Kerala Cashew Factories Act. According to the Act under section 3 the state government acquired 46 factories in the public interest to prevent unemployment due to closure of the factories and loss to the government. So 10 factories owner filed a writ petition in the High Court under Article 226 to hand over the factories to the respective owners. The high court dismissed the case stating that the acquisition is valid. Again 36 factory owners approached the honorable Supreme Court under Article 32 to hand over the factories to respective owners.
ISSUES:
Section 3 of The Kerala Cashew Factories Act is constitutionally valid.
PETITIONER CONTENTION:
The petitioner contended that they have the right to run the industry according to Article 19(1)(g) of the Indian Constitution. And the Kerala Cashew Factories Act is violative to the Indian constitution so the act should be struck down.
RESPONDENT CONTENTION:
The respondent contended that the act was enacted to save the employee from unemployment and to prevent the closure of the factories and loss to the government. Hence it is constitutionally valid.
OBSERVATION:
The court observed that section 3 of the Kerala Cashew Factories Act is discriminatory and disposed of this writ petition by 36 factories by ordering the possession of the factory to hand over to the respective owners on the ground of procedural flaws. However, the court made it clear that it would open to the government to exercise the power of acquisition on being satisfied the basis of the relevant material as specified by the court which was as per procedure laid down by the statue. So after this judgment, the 10 factory owner who approached the high court now approached the supreme court to hand over the factories the supreme court said the government to hand over the factories stating that there is no intelligible differentia between the 36 factory owners and 10 factory owner and there is no nexus sought to be achieved so it is violative of Article 14 of The Indian Constitution.
JUDGMENT
The court held that all the factories which were acquired by the government under section 3 of the Kerala Cashew Factories Act should be hand over to the respective factories owner. Hence the court struck down section 3 of the Kerala Cashew Factories Act was violative to article 19(1)(g) and Article 14 of Indian Constitution hence the court Struck down this section.
Leave a Reply