Case: M. A. Rasheed And Ors Vs. The State Of Kerala

of coconut husks for production of fibre in the traditional sector in the remaining 8 districts of the State it is not necessary in the prevailing circumstances to prohibit the use of mahinery in the remaining 8 districts for the production of fibre.18. The appellants also contended that Section 3 (2) (21) of the Defence of India Act does not support Rule 114 and secondly Section 38 of the Defence of India Act confers power on the authority to make orders providing inter alia for the control of trade of industry for the purpose of regulating or increasing the supply of, or for maintaining supplies and services essential to the life of the community. Rule 114 is in complete consonance with the powers conferred under the aforesaid Section 3 (2)(21). Section 38 of the Defence of India Act states that any authority or person acting in pursuance of this Act shall interfere with the ordinary avocations of life and the enjoyment of property as may be consonant with the purpose of ensuring the public safety and interest and the defence of India and civil defence. It is a matter of policy for the State Government to decide to what extend there should be interference in relation to the enjoyment of property. The public interest is of paramount consideration. In the present case the steps taken are in the larger interests of labour engaged in the coir industry. The pre-eminent question is that it is an emergency legislation. In emergency legislation the causes for inducing the formation of the opinion are that coir is one of the most labour intensive industries in Kerala and it is estimated that more than 4 1/2 lakhs of workers are employed in the various processes of the coir industry like retting, hand-spinning, spindle spinning and manufacture of coir mats and matting and that about 10 lakhs of people depend on this industry for their sustenance. Mechanisation in coir industry has been taking place in different parts of the State. The non-mechanised sector of this industry is so labour intensive that mechanisation of fibre production is strongly opposed by workers because mechanisation results in very high consumption of coconut husks by the mechanised units and the consequent enhancement of price of husks and the non-availability of sufficient quantity of husks at fair price for use in the traditional sector viz., hand beating of husks. There have been serious tensions including law and order situations.19. Because of the very high consumption of coconut husks for the production of fibre by using machinery and the enhancement of the price of such husks, sufficient quantities of such husks are not available at fair prices in the districts of Trivandrum, Quilon and Alleppey for use in the traditional sector. Therefore for securing the equitable distribution and availability at fair prices of coconut husks in the said three districts for production of fibre in the traditional sector, it is necessary to prohibit use of machinery in these three districts.20. The State Government found on materials that use of machines affected the availability of retted coconut husks for equitable distribution at fair prices. The notification is on the consideration of relevant and useful material. The opinion of the State Government cannot be said to be based on any matter extraneous to the scope and purpose of the relevant provisions of the statute. The materials supporting the subjective satisfaction indicate that there are reasonable grounds for believing that the prescribed state of affairs exists and a course of action is reasonably necessary for the given purpose of equitable distribution of coconut husks at fair prices.21. The notification is issued after due care and caution on the basis of reliable and sufficient data obtained by proper investigation and enquiries. The Government took notice of Section 38 of the Defence of India Act. The Government became satisfied about the public interest. The notification does not interfere with the avocations and enjoyment of property any more than is necessary for those purposes of equitable distribution of husks at fair price to the traditional sector.22. An argument was advanced that the notification offended Art. 14. The course of action which the State adopted is that it became necessary to prohibit the use of machinery in the districts of Trivandrum, Quilon and Alleppey in the traditional sector. It appears that out of 414 mechanised units in the State 283 units are in the Southern region of Kerala State consisting of Trivandrum, Quilon and Alleppey and the balance 131 mechanised units are in the remaining 8 districts of the State. The use of machinery for the purpose of extraction of fibre from husks in the region other than Trivandrun, Quilon and Alleppey districts has not at present affected the supply and availability at fair prices of husks for extraction of fibre in the traditional sector as in the case of the three Districts. The situation in the 8 districts does not require action at present moment. The clasification is reasonable. It bears a nexus to the objects sought to be achieved by the impugned notification. In order to secure equitable distribution and availability at fair prices of coconut husks in the remaining 8 districts of the State for production of fibre in the traditional sector, it is not necessary in the prevailing conditions to prohibit the use of machinery in the remaining 8 districts.23. It was also submitted that the notification offended Article 301, Article 302 states that the State can impose restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India. It was said that the Defence of India Act is not a law made by Parliament, imposing restrictions as contemplated under Article 302. The Defence of India Act has been passed by Parliament. The Rules under the Actt have legislative sanction. The restrictions are imposed in the interest of the general public. The restrictions are reasonable in the interest of the industry and public.

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]6. There is no principle or authority in support of the view that whenever a public authority is invested with power to make an order which prejudicially affects the rights of an individual whatever may be the nature of the power exercised, whatever may be the procedure prescribed and whatever may be the nature of the authority conferred, the proceedings of the public authority must be regulated by the analogy of rules governing judicial determination of disputedWhere powers are conferred on public authorities to exercise the same when "they are satisfied or when "it appears to them, or when "in their opinion a certain state of affairs exists; or when powers enable public authorities to take "such action as they think fit in relation to a subject matter, the Courts will not readily defer to the conclusiveness of an executive authoritys opinion as to the existence of a matter of law or fact upon which the validity of the exercise of the power is predicated.It is in evidence that mechanisation progressed at a fairly high rate in the three districts of Trivandrum, Quilon and Alleppey. Out of 414 mechanised units in the whole of the Kerala State consisting of 11 districts 283 are in these three districts alone. There is a heavy concentration of mechanised units in the three districts. The figure given is that only 10 workers are required for de-fibring husks of 12000 coconuts a working day of 8 hours by the use of machines as against 120 workers by the process known as hand-method. The mechanical work in done quickly to consume coconut husks in very large quantities. There has been large scale unemployment of labour engaged in the traditional method and there is serious unrest in the ares.The appellants also contended that Section 3 (2) (21) of the Defence of India Act does not support Rule 114 and secondly Section 38 of the Defence of India Act confers power on the authority to make orders providing inter alia for the control of trade of industry for the purpose of regulating or increasing the supply of, or for maintaining supplies and services essential to the life of the community. Rule 114 is in complete consonance with the powers conferred under the aforesaid Section 3 (2)(21). Section 38 of the Defence of India Act states that any authority or person acting in pursuance of this Act shall interfere with the ordinary avocations of life and the enjoyment of property as may be consonant with the purpose of ensuring the public safety and interest and the defence of India and civil defence. It is a matter of policy for the State Government to decide to what extend there should be interference in relation to the enjoyment of property. The public interest is of paramount consideration. In the present case the steps taken are in the larger interests of labour engaged in the coir industry. The pre-eminent question is that it is an emergency legislation. In emergency legislation the causes for inducing the formation of the opinion are that coir is one of the most labour intensive industries in Kerala and it is estimated that more than 4 1/2 lakhs of workers are employed in the various processes of the coir industry like retting, hand-spinning, spindle spinning and manufacture of coir mats and matting and that about 10 lakhs of people depend on this industry for their sustenance. Mechanisation in coir industry has been taking place in different parts of the State. The non-mechanised sector of this industry is so labour intensive that mechanisation of fibre production is strongly opposed by workers because mechanisation results in very high consumption of coconut husks by the mechanised units and the consequent enhancement of price of husks and the non-availability of sufficient quantity of husks at fair price for use in the traditional sector viz., hand beating of husks. There have been serious tensions including law and order situations.It was also submitted that the notification offended Article 301, Article 302 states that the State can impose restrictions on the freedom of trade, commerce or intercourse between one State and another or within any part of the territory of India. It was said that the Defence of India Act is not a law made by Parliament, imposing restrictions as contemplated under Article 302. The Defence of India Act has been passed by Parliament. The Rules under the Actt have legislative sanction. The restrictions are imposed in the interest of the general public. The restrictions are reasonable in the interest of the industry and public.