Requisitioning of property should not be acquisition through backdoor
Kerala State Cashew DevelopmentCorporation v. Shahal Hassan Mussaliar & Anr. CIVIL APPEAL NO.8247 OF 2001. Date of Judgment 16-03-09
Kerala Government's action of requisitioning the Cashew Factories of the state by the Kerala Cashew Factories (Requisitioning) Act, 1979 and perpetuating the same by a later amendment Act in 1985, is challenged in this case. The initial Act was for requisitioning the factories for a period of 5 years. The amendment Act authorised the state government to extend the lease indefinitely, by instalment of five years.
The court relied on H.D. Vora v. State of Maharashtra (AIR 1984 SC 866) and found that there is a difference between acquisition and requisition. The state Act needs to tested for its constitutionality as per the court. Finds colourable exercise of power by the state, fraud on the power and back door appropriation of property, in tune with the precedents. The court refused to interfere with the judgment of the HC and dismissed the appeal.