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And whereas duo to the very high consumption of coconut husks for the production of fibre by using machinery and L251 Sup CI/75 the enhancement of the price of such husks, sufficient quantity of such husks are not available at fair prices in the said districts for use in the traditional sector;

And whereas the Government are of opinion that for securing the equitable distribution and availability at. fair prices of coconut husks in the said districts for production of fibre in the traditional sector it is necessary to prohibit the use of a machinery in those districts for the production of such fibre; Now, therefore, in exercise of the powers conferred by Sub-Rule (2) of Rule 114 of the Defence of India Rules, 1971, the Government hereby prohibit the production of fibre coconut husks by the use of the machinery in the said districts.

(2) [1942] A. C. 206, 228-229.

(3) [1969] 3 S. C. R. 108.

exist. This Court said that if the opinion of an administrative agency is the condition precedent to the exercise of the power, the relevant matter is the opinion of the agency and not the grounds on which the opinion is founded. If it is established that there were no materials at all upon which the authority could form the requisite opinion, the Court may infer that the authority passed the order without applying its mind. The opinion is displaced as a relevant opinion if it could not be formed by any sensible person on the material before him. It is appropriate to refer to the Report of the Committee appointed by the State Government to hold enquiries and advise the Government in respect of revision of minimum wages fixed for employment in Coir Industry. The Committee was constituted in the year 1969. The Committee gave its final report on 25 January, 1971. The Report is published by the Government of Kerala in 1971. The findings of the Committee are these. With the help of high powered machines, fibre from husks on 1,000 coconuts could be extracted in 25 to 30 minutes. 10 workers would be required for effective attending to that work. 10 workers in 8 hours on an average could defibre husks of about 12000 coconuts. 30 workers would be required to remove the skins of the retted husks. In the usual course, 120 workers would have to be employed for beating husks of 12000 coconuts by hand. In short, by the introduction of a single high powered machine, 80 persons would lose their employment. The Committee felt that under the circumstances when employment is acute especially in that State, it is not practicable to encourage mechanisation for fibre production till alternative so of employment is developed. Therefore, it is a wise course to regulate the expansion of the use of machi- nery with high productive capacity in order to retain the labour force already working in this field. One high powered machine does the work of about 90 workers employing only 10 workers to operate it. The fibre extracted with the help of machinery is not used for the production of coir yam by a majority of employers in North Malabar area. The fibre is sold to outside agencies in Coimbatore, Salem etc. and not used for spinning coir yam. The Committee recommended that the Government might appoint a separate committee to study the various problems on account of mechanisation in the industry and make suitable recommendations in that behalf.

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 defibring 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 is 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 area. The State Government found in the context and background of the Reports and materials that the use of machinery for the purpose of extraction of fibre from husks in the, region other than Trivandrum, Quilon and Alleppey Districts has not affected the supply and availability at fair prices of husks for extraction of fibre in the traditional sector as in the case of the districts of Trivandrum, Quilon and Alleppey. The situation in other 8 districts, according to the State, does not require action under Rule 114 of the Defence of India Rules. Price increase of husk in these 8 districts was not comparable with that in the districts of Trivandrum, Quilon and Alleppey. The Government, therefore, was of opinion that for securing the equitable distribution and availability at fair prices 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 machinery in the remaining 8 districts for the production of fibre.

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 is violated. Section 3 (2) (21) of the Defence of India Act confers power on the authority to make orders providing- inter alia for the control of trade or 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 little 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 extent 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 preeminent 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 worker-, are employed in the various process of coir industry like getting, hand-spinning, spindle spinning and manufacture of coir mats and matting and that about 10 lakhs of people depend upon 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. 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 quantity 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 equit able 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.