K L MATHEW Vs. UNION OF INDIA

JUDGEMENT

(1.) These two original petitions are filed by proprietors of two cashew factories in Quilon District. They seek a writ of certiorari or other appropriate writ or direction calling for and quashing the communications refusing to allot imported raw cashewnuts to the petitioners, to carry on the manufacturing or processing business in their factories and also for a writ of mandamus to direct the 2nd respondent, the Cashew Corporation of India Limited, to allot imported raw cashewnuts to them.

(2.) The petitioner in O. P. No. 3435 of 1972 is the proprietor of a cashew factory and is engaged in the processing of raw cashewnuts and in the exporting of processed cashew kernels. His factory was started in 1964 with a labour strength of about 100 workers. This strength is being increased and to provide employment for these workers at least 750 tons of raw cashewnuts is necessary per annum. There are about 70 manufacturer exporters mostly concentrated in Quilon District doing this business and the indigenous production of raw cashewnuts in India is hardly sufficient to meet 30% of the demand of the factories. The rest of the raw cashewnut requirement is met by imports from African countries. Due to paucity of finance and other reasons the petitioner was not able previously to directly import cashewnut and was therefore carrying on the business with indigenous raw nuts. To improve his export turnover and to give work to his existing labour he has to process more nuts into cashew kernels and for that he has to depend on imported cashewnuts only.

(3.) The petitioner in O. P. No. 3457 of 1972 is also a proprietor of a cashew factory engaged in the business of processing cashewnuts into cashew kernels and exporting them to foreign countries. The factory previously belonged to one N. Ramachandra Reddiar who was carrying on this business in this factory from 1948. He was regularly importing cashewnuts till August 1967 and conducting the business and on account of domestic troubles the factory was closed for some time until the petitioner purchased it in 1971. Before purchasing this factory the petitioner was carrying on the business by taking factories on hire and processing and exporting cashewnuts. His export turn over was over 8 lakhs in 1970-71 and over 10 lakhs in 1971-72. In May 1971 he purchased this factory. The petitioner has a labour strength of 500 workers and he requires about 1500 tons of raw cashewnuts per annum. He has also to depend on imported cashewnuts to continue the business as indigenous nuts are not available.