tition Nos 116 186 18977 3935 6378 3922 2478 122177 3821 2778 3828 3178 44 5077 423778440078 92 9777
Under Article 32 of the Constitution F section Nariman R N Banerjee J B Dadachanji and K J John for the Petitioners in WP No 11677
R M Poddar for Respondent No 1 in WP No 11677
678 Lal Narain Sinha Attorney Genl P K Pillai and T P Soundara Rajan for Respondents 2 3 in WP No 11677
N M Abdul Khader M A Feroze and K M K Nair for the Respondent
R N Banerjee J B Dadachanji and K J John for the Petitioners in WP Nos 186 18977
Lal Narain Sinha Att Genl
and R M Poddar for Respondent No 1 in WP Nos
186 18977
PK Pillai and T P Soundra Rajan for Respondents 2 3 in WP Nos
186 1 8977
N M Abdul Khader M A Feroze and K M K Nair for the State
F section Nariman R N Banerjee J B Dadachanji and K J John for the Petitioners in WP Nos
3935 6378
N M Abdul Khader M A Feroze and K M K Nair for Respondent No 1 in WP Nos
3935 6378
A section Nambiar and P Parameswaran for Respondents 2 3 in WP Nos
3935 6378
P Govindan Nair and K Sukumaran for the Petitioners in WP Nos
3922 2478
K M K Nair for the Respondent in WP Nos
3922 2478
R N Banerjee J B Dadachanji and K J John for the Petitioner in WP No 122177
K M K Nair for Respondent No 1
A section Nambiyar for Respondent No 2
Miss A Subhashini for Respondent No5
P Govindan Nair and K Sukumaran for the Petitioners in WP Nos3821 2778
K M K Nair for Respondent No 1 in WP Nos
3821 2778
A section Nambiar and P Parameswaran for Respondents 2 3 in WP Nos
3821 2778
P Govindan Nair and K Sukumaran for the Petitioner in W P Nos
3828 3178
K M K Nair for Respondent No 1 in WP Nos
3828 3178
679 A section Nambiar and P Parameswaran for Respondent No 2 in WP Nos
3828 3178
R N Banerjee J B Dadachanji and K J John for the Petitioners in WP Nos
44 5077
Miss A Subhashini for Respondent No 1 in WP Nos
44 5077
KMK Nair for Respondent No 2 in WP Nos
44 5077
P Govindan Nair Mrs Baby Krishnan and Mrs V D Khanna for the Petitioners in WP Nos
423778
K M K Nair for the Respondent in WP No 423778
D Govindan Nair and Mrs Baby Krishnan for the Petitioners in WP No 440078
K M K Nair for the Respondent in WP No 440078
R N Banerjee J B Dadachanji and K J John for the Petitioners in WP Nos
92 9777
Miss A Subhashini for Respondent No 1 in WP Nos
92 9777
K M K Nair for Respondent No 2 in WP Nos
92 9777
The Judgment of the Court was delivered by VENKATARAMIAH J
The common question which arise for consideration in the above writ petitions under Article 32 of the Constitution of India relates to the validity of the declaration made by the State Government of Kerala on March 20 1976 declaring that raw cashewnut was an essential article in exercise of the power under clause a of section 2 of the Kerala Essential Articles Control Temporary Powers Act 1961 Act 3 of 1962 hereinafter referred to as the Kerala Act  and the Kerala Raw Cashewnuts Procurement and Distribution Order 1977 hereinafter referred to as the Order  made by the State Government of Kerala in exercise of the powers conferred by section 3 of the Kerala Act regulating the procurement and distribution of raw cashewnuts grown in the State of Kerala
The petitioners are persons engaged in the cashewnut processing industry in the State of Kerala
Since the impugned declaration and the Order seriously interfered with the right of the petitioners to purchase sufficient quantities of raw cashewnuts for processing in their factories and imposed several other restrictions on them they have filed the above petitions
Although the validity of several other orders was also questioned in the present petitions the petitioners confined their challenge only to the impugned declaration and the 680 Order in the course of the arguments since according to them it was not necessary to urge their contentions as against those orders
The recital in the preamble to the Order states that it was being made in order to ensure the maintenance of supplies of raw cashewnuts which was considered to be essential for the continued employment of a large number of workmen in the State of Kerala and for their equitable distribution and availability at fair prices
It is further recited that the Order was being made as the State Government felt a doubt about the question whether the Kerala Raw Cashewnuts Marketing and Distribution Order 1976 issued under the Defence and Internal Security of India Rules 1971 for the very same purpose would continue to remain in force
The main provisions of the Order broadly related to the prohibition of sale of raw cashewnuts to any person other than an agent authorised to purchase by clause 3 thereof appointment of Co operative Societies as subagents imposition of restrictions on processing or conversion of raw cashewnuts and their distribution amongst the occupiers of cashewnut processing factories appointment and powers of Cashew Special Officer and other incidental and ancillary matters
The explanatory note attached to the Order stated that it was intended to regulate the procurement and distribution of raw cashwnuts by the State Government
The Order is issued by the State Government of Kerala under section 3 of the Kerala Act the object of which is to provide in the interest of the general public for the control of the production supply and distribution of and trade and commerce in certain articles which is the title of the Act indicates are considered to be essential for the community
The Kerala Act as originally enacted was intended to be in force for a period of five years from the date of its commencement
By successive amendments its life is extended to twenty years from the commencement of the Act
Although it makes provision for conferring power on the State Government to make appropriate orders regarding regulation of production supply and distribution of essential articles substantially on the lines on which the Act 10 of 1955 hereinafter referred to as the Central Act  passed by the Parliament provides for the regulation of production supply and distribution of essential commodities as defined in the Central Act
the Kerela Act does not itself specify any article as an essential article
But the expression essential article  is defined by section 2a of the Kerala Act thus  681 2
Definition
In this Act unless the context otherwise requires a essential article means any article not being an essential commodity as defined in the  which may be declared by the Government by notified order to be an essential article
 From the above definition it is clear that the State Government can declare as an essential article under the Kerala Act only an article which is not an essential commodity as defined in the Central Act
When such a declaration is made in respect of any article the State Government acquires the power to make an order under section 3 thereof in respect of such article
The State Government is however precluded from declaring any article which is an essential commodity under the Central Act as an essential article and from making an order for the purpose of controlling its production supply and distribution
This is obvious from the words in the parenthesis in section 2a of the Kerala Act defining the word essential article 
That the object of the Kerala Act is only to provide for regulation of production supply and distribution of an article which is not an essential commodity as defined under the Central Act is also clear from what is stated by the Kerala Government in the letter dated December 5 1961 addressed by the Law Secretary Government of Kerala to the Central Government seeking the assent of the President to the Bill passed by the Kerala Legislature
The relevant part of the letter reads       
Sub The Kerala Essential Articles Control Temporary Powers Bill 1960
I am to forward herewith two copies of the Kerala Essential Articles Control Temporary Powers Bill 1960 as passed by the Legislative Assembly and reserved by the Governor for the consideration of the President
The Madras Essential Articles Control and Requisitioning Temporary Powers Act 1949 as amended by the Kerala Acts 24 of 1958 and 3 of 1959 was in force in the Kerala State till 25 1 1960 when it expired by efflux of time
The Central Act 10 of 1955 applies only in the case of essential commodities specified in that Act
At present there is no law in the State to control the production supply and distribution of and trade and commerce in essential articles required for industrial 682 and other purposes which do not fall within the ambit of the Central Act
For the implementation of the scheme under the programme of industrialisation during the Third Five Year Plan it may become necessary to control the production supply and distribution of and trade and commerce in articles which are not essential commodities and unless the Govt
have such powers difficulties are likely to arise
The object of the present legislation is to take power for the control of essential articles which are not essential commodities within the meaning of the Central Act
It empowers Govt
to declare any article not being an essential commodities within the meaning of  to be an essential article and to control by notified order the production supply and distribution of and trade and commerce in any such article
This is an enabling measure and is modelled on the Central 
It is intended to be in force only for a period of five years
The subject matter of the legislation falls within the scope of entries 26 and 27 of the State List in the Seventh Schedule to the Constitution namely 26
Trade and commerce within the State subject to the provisions of entry 33 of List III
Production supply and distribution of goods subject to the provisions of entry 33 of List III
Hence the State Legislature is competent to enact the measure
The provisions of the Bill may attract Articles 301 and 304b of the Constitution as imposing a reasonable restriction on the freedom of trade and commerce
Accordingly the previous sanction of the President for the introduction of the Bill in the State Legislature has been obtained as required by the proviso to article 304b in the letter of the Ministry of Commerce and Industry referred to as third paper above
One of the grounds urged on behalf of the petitioners in support of these petitions is that raw cashewnut being a foodstuff which is an essential commodity under the Central Act the State Government of Kerala could not make a declaration to the effect that it was an essential article under section 2a of the Kerala Act and consequently the impugned Order was outside the scope of the Kerala Act
On 683 behalf of the State Government it is contended that raw cashewnut is not a foodstuff and even if it is held to be a foodstuff having regard to the nature and object of the Order it should be treated as being within the competence of the State Government
The relevant part of section 2a of the Central Act containing the definition of the expression essential commodity  read thus 2
In this Act unless the context otherwise requires a essential commodity means any of the following classes of commodities i cattle fodder including oilcakes and other concentrates v foodstuffs including edible oilseeds and oils Since it is argued on behalf of the State Government that foodstuffs  only mean those articles which can be directly consumed without any kind of processing and that raw cashewnuts which are intended to be used as industrial raw material cannot therefore be called as foodstuffs  in the strict sense it is necessary to examine the history of legislation relating to the trade and commerce within a State and production supply and distribution of goods in India
Under the Government of India Act 1935 entries 27 and 29 of List II in the Seventh Schedule read as follows 27
Trade and commerce within the Province markets and fairs money lending and money lenders
Production supply and distribution of goods development of industries subject to the provisions of List I with respect to the development of certain industries under Federal control
 Entry 34 of List I read as 34
Development of industries where development under a Federal control is declared by Federal law to be expedient in the public interest
 From the above entries it is clear that the subject of trade and commerce within the Province and subject to entry 34 of List I the subject of production supply and distribution of goods were within the competence of the Provincial Government
As a result of the emergency proclaimed by the Governor General under section 102 of 684 the Government of India Act 1935 on the outbreak of the Second World War the Federal Legislature acquired the power to make laws on all the subjects in the Provincial List
The laws made by the Federal Legislature on the provincial subjects after the Proclamation of Emergency were to cease to have effect on the expiration of a period of six months after the Proclamation of Emergency had ceased to operate except as respects things done or omitted to be done before the expiration of the said period
The Proclamation of Emergency was revoked on April 1 1946
Consequently all laws made by the Federal Legislature on the subjects in the Provincial List were to cease to have effect after the expiry of September 30 1946
During the period of emergency the Federal Legislature had passed a law enabling the Federal Government to issue Orders with respect to trade and commerce within the Provinces and the production supply and distribution of several commodities which were considered to be essential and those Orders were also to cease to have effect on the expiry of September 30 1946
Since it was felt that the Federal Legislature should continue to have power to make laws on the subject of production supply and distribution of certain essential commodities on March 26 1946 the British Parliament passed the India Central Government and Legislature Act 1946 9  10 Geo
6 Chapter 39 amending among others sub section 4 of section 102 of the Government of India Act 1935 as to the effect of laws passed by virtue of the Proclamation of Emergency
The relevant part of that Act read 2
1 Notwithstanding anything in the Government of India Act 1935 the Indian Legislature shall during the period mentioned in section four of this Act have power to make laws with respect to the following matters a trade and commerce whether or not within a Province in and the production supply and distribution of cotton and woollen textiles papers including newsprint
foodstuffs including edible oil seeds and oils petroleum and petroleum products spare parts of mechanically propelled vehicles coal iron steel and mica and b       c       but any law made by the Indian Legislature which that Legislature would not but for the provisions of this section have been competent to make shall to the extent of the incompetency cease to have effect on the expiration of the 685 said period except as respects things done or omitted to be done before the expiration thereof
 Section 4 of that Act specified the duration of the legislative power conferred on the Federal Legislature by section 2 and section 5 prescribed the duration of laws passed by virtue of a Proclamation of Emergency
It is seen from section 21a of the above British Act that for the first time the subject of foodstuffs including edible oil seeds and oils was dealt with separately in a constitutional document
The Governor General in exercise of the extended legislative power granted by the British Act promptly issued within the specified period the Essential Supplies Temporary Powers Ordinance 1946 XVIII of 1946 extending the controls in respect of certain essential commodities including foodstuffs beyond the first day of October 1946 and the said Ordinance was repealed and replaced by the Essential Supplies Temporary Powers Act 1946 Act No XXIV of 1946 enacted by the Federal Legislature in November 1946
Section 2a of that Act defined the expression essential commodity  as meaning foodstuffs  and certain other articles mentioned therein
Section 2e defined foodstuffs  as including edible oil seeds and oils
The operation of the said Act was extended by competent legislative acts upto March 31 1950
Since by Entries 26 and 27 of List II of the Seventh Schedule to the Constitution the subject of trade and commerce within the State subject to the provisions of Entry 33 of List III and the subject to production supply and distribution of goods subject to the provisions of Entry 33 of List III had been assigned to the States and Entry 33 of List III only dealt with trade and commerce in and the production supply and distribution of the products of industries where the control of such industries by the Union was declared by Parliament by law to be expedient in the public interest having regard to the then existing conditions Article 369 was enacted as a temporary and transitional measure conferring legislative power on the Parliament during a period of five years from the commencement of the Constitution to make laws with respect to the following matters as if they were enumerated in the Concurrent List namely a trade and commerce within a State in and the production supply and distribution of cotton and woollen textiles raw cotton including ginned cotton and unginned cotton or kapas cotton seed paper including newsprint foodstuffs including edible oilseeds and oil cattle fodder including oil cakes and other concentrates coal including coke and derivatives of coal iron steel and mica 686 b offences against laws with respect to any of the matters mentioned in clause a jurisdiction and powers of all courts except the Supreme Court with respect to any of those matters and fees in respect of any of those matters but not including fees taken in any court
It was provided that any law made by Parliament which Parliament would not but for the provisions of Article 369 of the Constitution have been competency to make would to the extent of the incompetency cease to have effect on the expiration of the period of five years from the commencement of the Constitution except as respects things done or omitted to be done before the expiration thereof
It may be noticed that clause a of Article 369 of the Constitution specifically referred to foodstuffs including oilseeds and oil and cattle fodder including oil cakes and other concentrates
By virtue of the power under Article 369 the Parliament extended the life of the Essential Supplies Temporary Powers Act 1946 till January 26 1955
As the subjects referred to in Article 369 of the Constitution were of national importance and it was thought that it was desirable that the Parliament should also have concurrent power to make laws with respect to them the Constitution Third Amendment Act 1954 was enacted on February 22 1955 substituting Entry 33 of List III by the following new Entry 33
Trade and commerce in and the production supply and distribution of a the products of any industry where the control of such industry by the Union is declared by Parliament by law to be expedient in the public interest and imported goods of the same kind as such products b foodstuffs including edible oilseeds and oils c cattle fodder including oilcakes and other concentrates d raw cotton whether ginned or unginned and cotton seed and e raw jute
 It was pursuant to the new Entry 33 of List III of the Seventh Schedule to the Constitution that Parliament enacted the Central Act ie the 
It is not disputed by the State Government that if raw cashewnut is foodstuff within the meaning of the Central Act it cannot be declared as an essential article under the Kerala Act
What is however 687 urged is that since the Order regulates only procurement and distribution of raw cashewnut as industrial raw material for processing in the factories it is not being dealt with as foodstuff
Hence it should not be treated as an essential commodity under the Central Act
There are at least two good reasons to reject this contention advanced on behalf of the State Government first the language used in section 2a v of the Central Act and secondly the purpose of the Central Act
Section 2a v of the Central Act reads foodstuffs
including edible oilseeds and oils 
It is a well known rule of interpretation that associated words take their meaning from one another and that is the meaning of the rule of statutory construction noscitur a sociis
When foodstuffs  are associated with edible oilseeds which have to be processed before the oil in them can be consumed it is appropriate to interpret foodstuffs  in the wider sense as including all articles of food which may be consumed by human beings after processing
It is in this wider sense that the said term has been understood by Indian courts as can be seen from some of the decisions to which we shall presently refer
Secondly having regard to the history of legislation relating to foodstuffs dealt with above and the object of the Central Act which regulates the production supply and distribution of essential commodities amongst the poverty stricken Indian people the expression foodstuffs  should be given a wider meaning as including even raw materials which ultimately result in edible articles
Any interpretation that may be given in this case should not be governed by its consequence on the impugned Order but in the light of the importance of the Central Act in the context of the national economy
A narrow interpretation may result in the exclusion of several articles from the purview of the Central Act although nobody has entertained any doubt so far about their being essential commodities
We shall now see what cashewnut means
Cashewnut is an edible seed or nut belonging to the family of anacardiaceae and grows mostly in tropical and sub tropical regions where humidity is great
It is generally grown in the States of Kerala Karnataka and Tamil Nadu in India in East Africa and in the tropics of Central and South America
Cashewnut is shaped like a kidney or a large thick bean It appears as though one of its ends had been forcibly sunk into the calyx end of a fleshy pear shaped fruit called the cashew apple which is about three times as large as the nut and of reddish or yellow colour
The cashew apple is much used where the tree grows in beverages jams and jellies but is unimportant commercially
The nut has two walls or shells the outer of which is smooth and glass like over the surface thin and somewhat elastic but stout and of olive green 688 colour until mature when it becomes strawberry roan
The inner shell is considerably harder and must be cracked like the shells of other nuts 
The fruits are picked by hand and the nuts are first detached then thoroughly dried in the sun By improved methods of roasting the nuts pass through large revolving cylinders of sheet iron with perforated sides which are made to revolve above well controlled flames
The oil drains into containers below and is salvaged
Later the inner shells are broken open by hand labour and the kernels given further heating treatment by which the skins are removed and the kernels made ready for consumption 
Vide Encyclopaedia Britannica 1962 Edn
4 pp 958 959
It is not disputed that the raw cashewnut with which we are now concerned is used by the petitioners for processing in their factories in order to make it fit for human consumption
It is also stated that even the raw cashewnut kernel is eaten by human beings
It is well known that the food eaten by human beings consists of cereals like wheat rice or other coerce grains pulses oilseeds vegetables sugar fruits and nuts animal foodstuffs and sea food like meat beaf mutton and fish and dairy products like milk butter eggs etc
According to Webster s Third New International Dictionary the word food  means fodder  also
One of the meanings of the word food  given in that Dictionary is material consisting of carbohydrates fats proteins and supplementary substances as minerals vitamins that is taken or absorbed into the body of an organism in order to sustain growth repair and all vital processes and to furnish energy for all activity of the organism 
In the same Dictionary foodstuff  is defined as a substance with food value  and the raw material of food before or after processing 
One of the usages of the said word is given as a bountiful crop of cereal foodstuffs 
Therefore foodstuff  need not necessarily mean only the final food product which is consumed
It also includes raw food articles which may after processing be used as food by human beings
The earliest of the Indian cases cited before us on the interpretation of the expression foodstuffs  is Shriniwas Pannalal Chockhani  Ors
vs The Crown
In that case the conviction of the appellant of an offence punishable under section 7 of the Essential Supplies Temporary Powers Act 1946 had been challenged
The charge of which the appellant had been found guilty by the judgment under appeal was that he had transported bharda  or chuni bharda  which was a foodstuff without the required permit
The contention of the appellant was that it was just cattle feed which was not fit for human consump 689 tion and therefore it could not be said that he had violated the law on the footing that the material transported was tur dal  a foodstuff the transport of which alone without a permit was an offence
The said argument was rejected by the Nagpur High Court with the following observations The learned counsel for the appellants further contended that as the Essential Supplies Temporary Powers Ordinance 1946 XVIII 18 of 1946 and the Essential Supplies Temporary Powers Act 1946 XXIV 24 of 1946 dealt with foodstuffs and not cattle feed export of chuni a cattle feed was not prohibited under the Food grains Export Restrictions Order 1943
The term foodstuff has not been defined either in the Ordinance or in the Act
In common parlance foodstuffs mean materials used as food
The term is not used only for material which is immediately fit for human consumption but it also applies to material which can be used as food after subjecting it to processes like grinding cleaning etc
For instance paddy as such is not fit for human consumption but rice in it is and yet paddy is called foodstuff
So also tur
There is no reason to suppose that the word food stuffs is not used in these laws in this usual sense but is used in the restricted sense of material which is fit for human consumption immediately without subjecting it to any process
If such a restricted meaning is accepted it would lead to evasion of the Law in question by mixing some foreign matter with the stuff that is immediately fit for human consumption
The test is not whether it can be immediately used for human consumption but whether it can be so used after subjecting it to the usual processes
The uncleaned tur dal ie
tur dal without separating from it wastage and foreign matter which was being exported on 26 12 1946 in this case was such a foodstuff and comes within the provisions of the Essential Supplies Temporary Powers Ordinance 1946 and the Essential Supplies Temporary Powers Act 1946
In the State of Bombay vs Virkumar Gulabchand Shah this Court was called upon to decide whether turmeric  was foodstuff  in a case arising under the Essential Supplies Temporary Powers Act 1946
Vivian Bose J who delivered the judgment after observing 690 So far as food is concerned it can be used in a wide as well as a narrow sense and in my opinion much must depend upon the context and background
Even in a popular sense when one asks another Have you had your food one means the composite preparations which normally go to constitute meal curry and rice sweetmeats pudding cooked vegetables and so forth
One does not usually think separately of the different preparations which enter into their making of the various condiments and spices and vitamins any more than one would think of separating in his mind the purely nutritive elements of what is eaten from their non nutritive adjuncts
So also looked at from another point of view the various adjuncts of what I may term food proper which enter into its preparation for human consumption in order to make it palatable and nutritive can hardly be separated from the purely nutritive elements if the effect of their absence would be to render the particular commodity in its finished state unsavoury and indigestible to a whole class of persons whose stomachs are accustomed to a more spicely prepared product
held As we have seen turmeric falls within the wider definition of food  and foodstuffs  given in a dictionary of international standing as well as in several English decisions
It is I think as much a foodstuff in its wider meaning as sausage skins and baking powder and tea
In the face of all that I would find it difficult to hold that an article like turmeric cannot fall within the wider meaning of the term foodstuffs
Following the above decision of this Court the High Court of Calcutta held in Atulya Kumar De  Ors
vs The Director of Procurement and Supply  Ors
that paddy was foodstuff within the meaning of that expression used in the Essential Supplies Temporary Powers Act 1946 even though paddy could not be consumed without further processing
The relevant part of the decision runs thus The first point taken is that the power conferred by the Act read with the notification upon the State of West Bengal is only in relation to foodstuffs and that paddy is not foodstuff
It is stated that the description of paddy at Rice in 691 the husk is a colourable attempt to avoid this difficulty
In The State of Bombay vs Virkumar Gulabchand Shah  AIR  it was held that turmeric is foodstuff within the meaning of the Spices Forward Contract Prohibition Order 1944 read with section 2a of the Act
It was held that the term foodstuff is ambiguous and may have a vide meaning or a narrow one
Whether the term is used in a particular Statute in its wider or narrower sense cannot be answered in the abstract but must be answered with due regard the background and context
Thus in James vs Jones  1894 1 QB 304 baking powder was held to be an article of food while in Hinde vs Allmond   it was held that tea was not
Now the act had been passed to control the production and distribution of essential commodities
What can be looked upon more of an essential commodity than both rice and paddy  In West Bengal the two things most essential for the sustenance of human life are rice and paddy
Mr Mukherjee admits that rice is an essential commodity  a foodstuff but he says that paddy is not because nobody can eat paddy
But that is a very narrow view to take
Paddy is only a stage in the production of rice and the one cannot be food without the other being food as well
Nobody eats the husk in paddy but nobody eats the skin of mango or the shell of a egg and yet they are unquestionably articles of food
In my opinion paddy is foodstuff  within the meaning of that expression as used in the Act and the notification
 To the same effect is the decision of the Calcutta High Court in Nathuni Lal Gupta  Ors
vs The State  Ors
in which wheat and wheat products were held to be foodstuffs
The High Court of Punjab and Haryana in Sujan Singh Matu Ram vs The State of Haryana and the High Court of Orissa in Bijoy Kumar Routrai  Ors
vs State of Orissa  Ors
also lay down the same principle
In Tika Ramji  Ors
vs The State of Uttar Pradesh  Ors
this Court observed The essential commodities therein comprised inter alia foodstuffs which would include sugar as well as sugarcane 692 and both sugar and sugarcane therefore came within the jurisdiction of the Centre
 The above observation makes it manifest that even a raw material like sugarcane used in the manufacture of sugar is a foodstuff 
Younus vs Sub Inspector of Police is a case in which the question whether raw cashewnut was foodstuff or not directly arose for consideration
The learned Judge who decided the case held The reasoning adopted for holding that wheat and paddy are foodstuffs applies with equal force in the case of cashewnuts
There is no scope for doubt that cashew kernel is an eatable commodity both in its raw form and also when fried
It is taken in as part of the food and is also used in the preparation of food
That its kernel should be separated from the shell or outer covering or that it should be processed before use does not make raw cashewnuts any the less foodstuff
 It is also significant that raw cashewnut  is included in the group of edible fruits in Chapter 8 of section II dealing with vegetable products of the First Schedule to the 
It was however urged that even though cashewnut was an article which could be eaten it was an article which was eaten by very few persons on rare occasions and hence it is difficult to conceive cashewnut as an essential commodity
It is no doubt true that cashewnut having become expensive it is now more of a luxury
Due to export of cashewnut on a large scale it is a commodity which is in short supply in the country and therefore the price at which it sells is beyond the reach of the common man
But nevertheless it is an article of food
It is eaten in raw form and after it is fried
It is also commonly used in various preparations of food like pulav sweets etc
There is no basis for the assertion that it is a rare commodity outside the State where it is grown
It is eaten not only in Kerala but also in other parts of the country
When cashewnut is exported it is exported as a foodstuff
Now it cannot be that cashewnut eaten abroad is a foodstuff and whatever is consumed within the country is not a foodstuff
It is therefore a foodstuff and must be classified as an essential commodity
Its importance as a foodstuff can also be seen from the statements filed in these cases in which is stated that in the State of Kerala in the year 1976 77 the total quantity of raw cashewnut procured was in the order of 60000 tonnes the number of workers 693 engaged in the cashewnut processing industry was about 120000 and that there were 269 cashew factories
It was next urged that cashewnut could be treated as an essential article only for the purpose of export and not an essential commodity under the Central Act
This again is not correct
The Central Government can make an Order under the Central Act even when an essential commodity is used for industrial purpose or for purposes of export
Essential commodities do not cease to be essential commodities under the Central Act merely because they are exported after they are processed in India
Foodgrains Prohibition of Use in Manufacture of Starch Order 1971 The Fruit Products Order 1955 The Gur Regulation of Use Order 1978 Pulses Edible Oilseeds and Edible Oils Storage Control Order 1977 Rice Prohibition of Use in Wheat Products Order 1971
Vegetable Oil Standards of Quality Order 1972 Vegetable Oil Product Producers Regulation of Refined Oil Manufacture Order 1973 and the Essential Commodities Regulation of Production and Distribution for purposes of Export Order 1966 demonstrate the diverse purposes for which an Order can be made under the Central Act
It was next urged that as long as the Central Government had not passed an order in respect of the same matter it was open to the Government of Kerala to pass the impugned Order
Reliance was also placed on the decision of this Court in Tika Ramji s case supra in which UP Sugarcane Regulation of Supply and Purchase Order 1954 was upheld even though sugarcane was an essential commodity under the Central Act
In that case this Court was concerned with the question whether there was any repugnancy between a Central law and a State law
We are not concerned here with such a question
If a question of application of Article 254 of the Constitution had arisen it would have been open to consider whether there was any repugnancy at all between the two laws having regard to the scope and extent of the field occupied by the Central law and the State law
But the real question which now arises for decision in these petitions is whether the Kerala Legislature ever intended to treat any article which comes within the scope of the Central Act as an essential article
The language of section 2a of the Kerala Act steers clear of all essential commodities under the Central Act by excluding them from the operation of the Kerala Act
The power of the Central Government to make an order under the Central Act in respect of raw cashewnut which is a foodstuff cannot be doubted
If that is so the Kerala Act cannot apply to it
The argument that as long as the Central Government had not made an Order in respect of raw cashew 694 nut the Kerala Government can pass an Order is not available in the circumstances by reason of the definition of the essential article  in the Kerala Act
It might have been open to consideration if the said definition had not contained the words in the parenthesis
On a careful consideration of the matter we are satisfied that raw cashewnut is a foodstuff falling under section 2a v of the Central Act and hence cannot be declared as an essential article under section 2a of the Kerala Act
It follows that no Order can be made by the Government of Kerala under section 3 thereof in respect of raw cashewnut
The action of the Kerala Government is beyond the power conferred on it by the Kerala Legislature
In the result we hold that the declaration made by the Government of Kerala to the effect that raw cashewnut is an essential article under the Kerala Act and the impugned Order made thereunder are liable to be quashed and they are accordingly quashed
All the other contentions including those relating to the alleged infringement of the fundamental rights of the petitioners raised in these petitions are left open
Before concluding we propose to advert to the last submission made before us on behalf of the State Government
It was submitted that the cashewnut industry in Kerala was a labour oriented industry and if the declaration and the Order were struck down a number of workmen would be adversely affected
It was also submitted that the entire economy of the State of Kerala which largely depended on the export trade in cashewnuts would be disrupted
If any such serious problem arises it can always be set right by the competent Legislature or the appropriate Government taking needful remedial action in the light of Entry 33 of List III of the Seventh Schedule to the Constitution
The petitions are accordingly allowed
In the circumstances of the case there shall be no order as to costs
PBR Petitions allowed


Summary:
By an order made on March 20 1976 the Kerala State Government declared that raw cashewnut was an essential article under section 2a of the Kerala Essential Articles Control Temporary Powers Act 1961 and thereafter promulgated the Kerala Raw Cashewnuts Procurement and Distribution Order 1977 under section 3 thereof regulating the procurement and distribution of raw cashewnuts in the State of Kerala
The expression essential article is defined in section 2a of the Kerala Act as an article not being an essential commodity as defined in the  which may be declared by the Government by a notified order to be an essential article
Under Section 2a v of the essential commodity means foodstuffs including edible oilseeds and oils
 In their petitions under article 32 of the Constitution the petitioners who were engaged in the processing of raw cashewnuts urged that raw cashewnut being a foodstuff which was an essential commodity under the Central Act the State Government could not make a declaration that it was an essential article under section 2a of the State Act and that for this reason the declaration and the impugned order were ultra vires the State Act
On behalf of the State Government it was contended that the expression foodstuffs meant only those articles which could be directly consumed without any kind of processing since the order regulated only the procurement and distribution of raw cashewnuts which were used as industrial raw material they could not be called foodstuffs in the strict sense and were not an essential commodity within the meaning of that term under the Central Act
Allowing the petitions  HELD Raw cashewnut is a foodstuff under section 2av of the Central Act and hence cannot be declared as an essential article under section 2a of the Kerala Act
No order could therefore be made by the State Government under section 3 thereof in respect of raw cashewnuts
Therefore the declaration made by the State Government to the effect that raw cashewnut is an essential article under the Kerala Act and the impugned order made thereunder are liable to be quashed
694 B C The words in parenthesis in section 2a of the State Act make it clear that the State Government can declare as an essential article under the State Act 677 only an article which is not an essential commodity under the Central Act
It is a well known rule of interpretation that associated words take their meaning from one another and that is the meaning of the rule of statutory construction noscitur a sociis
When the term foodstuffs  is associated with edible oilseeds which have to be processed before the oil in them can be consumed it is appropriate to interpret foodstuffs  in the wider sense as including all articles of food which may be consumed by human beings after processing
687 C Having regard to the fact that the object of the Central Act is to regulate production supply and distribution of essential commodities amongst the people the expression foodstuffs  should be given a wider meaning as including even raw materials which ultimately result in edible articles
687 D E The dictionary meaning of foodstuff  is a substance with food value  and the raw material of food before or after processing 
Therefore foodstuff  need not necessarily mean only the final food product which is consumed
It also includes raw food articles which may after processing be used as food by human beings688 F State of Bombay vs Virkumar Gulabchand Shah  and Tika Ramji  Ors etc
vs The State of Uttar Pradesh  Ors  at 418 referred to
Although as a result of large exports of cashewnut it is now in short supply and its price is beyond the reach of the common man it is an article of food eaten in raw form and is used in various preparations
It is eaten in all parts of the country though it is grown in a few States
It is exported as foodstuff
It is therefore a foodstuff and must be classified as an essential commodity
692 M G There is no substance in the argument that cashewnuts can be treated as an essential article only for the purposes of export and not an essential commodity under the Central Act
The Central Government can make an Order under the Central Act even when an essential commodity is used for industrial purposes or for purposes of export
Essential commodities do not cease to be essential commodities under the Central Act merely because they are exported after they are processed in India
693 B The argument that so long as the Central Government had not made an order in respect of raw cashewnuts the State Government can pass an order is not available in the circumstances by reason of the definition of essential article in the Kerela Act
693 E