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  • U/s 13 (1) ( C) of the Consumer Protection Act
Smart Summary

Structured Summary of the Opinion (Pronounced 5 January 2016) — Justice K.S. Chaudhari, Presiding Member

Factual and Procedural Background

Complainants (Ishwarbhai Baburao Thakare & Ors.), father and son, purchased packets of lady finger (bhindi) seeds from the seed company (petitioner / opposite party No.1) for sowing on their land. On 8.4.2005 they bought 10 packets (250 gm each) and on 13.4.2005 four packets at Rs.220 per packet; the lot number was 255191. Seeds were sown on 3.20 acres and leftover seeds from one packet were handed to the Agriculture Officer for testing during inspection.

The complainants alleged that, despite proper cultural measures, plants grew tall but mostly did not flower or bear fruit; only sporadic plants bore fruit. They alleged substantial financial loss (claimed about Rs.12–12.56 lakhs) and filed a complaint on 11.7.2005. The District Seeds Grievance Redressal Committee inspected on 15.7.2005 and reported that 90% of plants were sterile and 30% were affected by Mosaic disease (Haladya).

The District Forum allowed the complaint and awarded Rs.5,00,000 as compensation. Opposite party No.2 appealed. The State Commission partly allowed the appeal: it exonerated opposite party No.1 and reduced compensation to Rs.1,45,000 (i.e., upheld liability as against other respondents to that extent). The petitioner (seed company) filed this revision petition challenging the State Commission's order dated 10.8.2012. The High Court (presiding member) heard counsel and reviewed the record.

Legal Issues Presented

  1. Whether the lady finger (bhindi) seeds supplied by the petitioner were defective or whether there was deficiency in service/unfair trade practice attributable to the petitioner (i.e., were the seeds deficient)?

Arguments of the Parties

Petitioner / Opposite Party No.1 (Seed Company) — Primary Contentions

  • Admitted sale of 20 packets but denied recommending that variety to the complainants.
  • Contended complainants did not get seeds tested from an authorized laboratory as required under Section 13(1)(c) of the Consumer Protection Act; reliance solely on the District Seeds Committee report was insufficient to conclude seeds were defective.
  • Produced internal test results: germination tested on 28.12.2004 (88% germination) and genetic purity tested on 23.3.2005 (90% genetic purity); no other farmers complained about this lot.
  • Asserted alleged area sown (per 7/12 extract) was false given other cropping (cotton) in the Gut; challenged arithmetic of Committee (90% sterility + 30% mosaic = 120%).
  • Argued complainants did not follow company recommendations: recommended sowing 3 kg/acre but complainants used 5 kg over 3.20 acres; soil type was heavy black although brochure recommended fairly light well-drained soil for Bhindi-10; spacing and other cultural practices not followed; temperature conditions not favorable.
  • Consequently, contended that poor crop outcome was due to agronomic and environmental factors, not defective seeds; therefore complaint should be dismissed.

Complainants / Respondents (Ishwarbhai Baburao Thakare & Ors.) — Primary Contentions

  • Alleged that despite proper measures (manures, fertilizers, pesticides, irrigation) and adequate maturity period, plants did not flower and did not bear fruits except sporadically.
  • Relied on the District Seeds Grievance Redressal Committee report which found 90% sterility and 30% mosaic disease among plants.
  • Claimed heavy financial loss (calculation based on expected yield of 200 quintals per acre and area of 3.20 acres), seeking substantial compensation from seed supplier(s).
  • Argued that District Forum's award was justified; State Commission's partial reduction of compensation still supported the claim in part; opposed revision petition seeking dismissal.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
II (2007) CPJ 148 (NC) — Indo American Hybrid Seeds & Anr. vs. Vijayakumar Shankarao & Anr. Where there is no evidence as to the quality of supplied seeds (even when a team inspects), variation in yield can be due to external factors (land preparation, care, pesticides, fertilisers, climate, temperature etc.), and responsibility must be fixed only with regard to quality of seed if supported by evidence. The petitioner relied on this decision to argue that there was no evidence that seeds were of non-standard quality and that the variation in yield could be due to external factors; the Court considered this authority in assessing sufficiency of evidence regarding seed defectiveness.
RP No. 2300 of 2010 — Mahyco Vegetable Seeds Ltd. vs. Pasam Lakshmi Narayana & Ors. Onus to prove that seeds are defective lies on the complainant; if complainant did not adopt recommended practices and failed to establish defect in quality, complaint cannot succeed. Relied upon by the petitioner to support the proposition that complainants failed to discharge the burden of proving seed defectiveness and did not follow recommended practices; Court considered this when evaluating evidence.
Civil Appeal No. 2428 of 2008 — Mahyco Seeds Company Ltd. vs. Basappa Channappa Mooki & Ors. (referring to Haryana Seeds Development Corporation Ltd. vs. N.S. Sadhu, 2005 (3) SCC 198) The Supreme Court (via the cited decision) established that variation in condition of crop is not necessarily attributable to quality of seeds; inferior crop may be the result of other factors and if the report does not mention inferior quality of seeds the complaint cannot be sustained. The petitioner's counsel relied on this Apex Court authority to argue that crop failure cannot automatically be attributed to seed quality; the Court noted and applied this line of authority in concluding insufficient evidence of seed defectiveness.
Civil Appeal No. 4704 of 2009 — National Seeds Corporation Ltd. vs. M. Madhusudhan Reddy & Anr. Where farmers do not retain a portion of seed, the District Forum should require the farmer to provide samples and send them for laboratory analysis; inspecting officers should collect samples and get them tested — omission to do so can lead to an adverse inference about seed defectiveness. Respondents relied on this authority to argue procedural steps required for testing. The Court found it distinguishable: in the present case complainant had handed over remaining seeds to the Agricultural Officer and samples were sent for testing (report not received), so the specific procedural omission addressed in that precedent was not shown to have occurred here.
Haryana Seeds Development Corporation Ltd. vs. N.S. Sadhu and another (2005 (3) SCC 198) Established that variation in crop condition cannot be simply attributed to the quality of seeds; other factors may explain the variation. Referenced within the Mahyco v. Basappa decision relied upon by the petitioner; used to support the proposition that seed quality alone cannot be presumed to cause poor crop without specific evidence.

Court's Reasoning and Analysis

The Court framed the core question as whether the bhindi seeds manufactured by the petitioner were deficient. It examined the record and made the following analytical observations (as stated in the opinion):

  • The only direct evidence suggesting a problem was the District Seeds Committee report which recorded that 90% of plants were sterile and 30% were affected by Mosaic disease. However, that report did not expressly state that sterility or disease resulted from defective seeds nor did it state that the seeds themselves were defective.
  • There was no other laboratory report on record conclusively establishing seed defectiveness. Although the complainant had handed over remaining seeds to the Agricultural Officer and samples were sent for testing, the test report was not available on record at the time the District Forum proceeded to allow the complaint.
  • The petitioner had produced its own laboratory tests showing germination at 88% (28.12.2004) and genetic purity at 90% (23.3.2005), and there were no other complaints from other farmers about seeds from that lot, which the petitioner relied upon to challenge the finding of defect.
  • The Court noted relevant agronomic and procedural factors raised by the petitioner: the brochure's recommendation about suitable soil (fairly light and well-drained) whereas complainants' soil was heavily black; recommended seed rate (3 kg/acre) versus alleged use (5 kg over 3.20 acres); failure to remove disease-affected plants as recommended to prevent spread; and unfavourable temperature at the time — all of which could explain the poor crop.
  • Reliance was placed by the petitioner on earlier decisions holding that absent evidence as to seed quality, poor yield can be due to external factors and that the burden is on the complainant to prove defectiveness of seeds.
  • The Court observed that the State Commission had itself noted that the District Seeds Committee report did not give clear findings as to the defectiveness of the seeds; consequently, awarding compensation on that basis was not justified.
  • Regarding the procedural obligation highlighted in National Seeds Corporation Ltd. v. M. Madhusudhan Reddy — that samples should be taken and sent for testing — the Court found that in the present case the complainant had handed over remaining seeds to the Agricultural Officer and samples were sent, although the resulting report was not on record; therefore the procedural omission identified in that precedent was not shown to have occurred here.
  • On the basis that there was no cogent evidence that the seeds were defective and given that the District Forum had allowed the complaint without a definitive laboratory report attributing crop failure to seed quality, the Court concluded that both the District Forum and the State Commission erred in their respective findings and orders.

Holding and Implications

Holding: The revision petition filed by the petitioner is allowed; the impugned order dated 10.8.2012 passed by the State Commission in First Appeal No. 895 of 2007 and the order of the District Forum dated 2.8.2007 in Complaint No. 37 of 2006 are set aside and the complaint stands DISMISSED.

Consequences and implications:

  • Direct effect: The complainants' claim against the petitioner for defective seeds is dismissed; the awards previously granted by lower fora are set aside.
  • Costs: Parties were directed to bear their own costs.
  • Precedential effect: The opinion applies established principles from earlier authorities (as cited) emphasizing that the burden to show seed defectiveness rests on the complainant and that crop failure may result from multiple non-seed factors. The Court did not purport to create new legal precedent beyond applying these existing principles to the facts of this case.

This summary is based exclusively on the contents of the provided opinion; no facts or conclusions beyond those in the opinion have been added.

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    Mahyco Vegetable Seeds Ltd. v. Ishwarbhai Baburao Thakare

    Pronounced on 5 January, 2016th ORDER PER JUSTICE K.S. CHAUDHARI, PRESIDING MEMBER This revision petition has been filed by petitioner against order dated 10.8.2012 passed by State Commission in First Appeal No. 895 of 2007- Mahyco Vegetable Seeds Limited Vs. .; by which appeal was partly allowed.Ishwarbhai Baburao Thakare & Ors Brief facts of the case are that complainants/ respondent No. 1 & 2 being father & son purchased seeds of lady finger (bhindi) from opposite party No. 1/ respondent No. 3-manufactured by O.P. No. 1/petitioner for taking crop in their fields. It was further submitted that on 8.4.2005, they purchased 10 packets of seeds containing 250 gm and on 13.4.2005 purchased 4 packets @ Rs. 220/- per packet and seeds Lot number was 255191. Seeds were sown in 3.20 acres land and balance portion of seeds from 1 packet was handed over to the Agriculture Officer for testing at the time of inspection. It was further contended that in spite of taking all necessary measures such as using sufficient manures, fertilizers, pesticides and giving proper irrigation and in spite of maturity period had reached which is 100- 110 days, although there was good growth of plants with average 5 ft., but there was no flowering and bearing of fruits except some sporadic plants which had fruit to some extent. Therefore complainants filed complaint dated 11.7.2005 with the Development Officer of Panchayat Samiti, Nandurbar with copies thereof to District Agriculture Officer, Z.P. Nandurbar and Agriculture Officer, Panchayat Samiti, Nandurbar. Accordingly, District Seeds Grievance Redressal Committee visited the complainants field on 15.7.2005, prepared panchanama and report. There were 8 members of the Committee present for inspection. As per Committees report 90% plants were found sterile and 30% were affected by Mosaic disease (Haladya). It was averred that they had to bear heavy financial loss of Rs. 12 lakhs considering 200 quintals of Bhindi yield per acre and area under the said crop at 3.20 acres and the income received from the said crop was only Rs. 15,095/-. Alleging deficiency on the part of opposite parties, complainant filed complaint before District Forum. Opposite party No. 1 admitted sale of 20 packets and prayed for dismissal of complaint. Opposite Party No. 1 denied that he recommended aforesaid variety of bhindi seeds to the complainants. Opposite party No. 2 resisted complaint and submitted that complainants are not their consumers as complainants have not purchased said seeds from authorized dealer. He specifically denied that opponent No. 1 was their authorized dealer. It was further contended that seeds were purchased for commercial purpose as the same is evident from the amount of compensation claimed at Rs. 12,56,715/-. It was also contended that said seed purchase receipt is in the name of complainant No. 1 and hence complainant No. 2 has no locus-standi to file the complaint. It was also the averment of the appellant seed company that seeds purchased have not been tested from any authorized laboratory as required U/s 13 (1) ( C) of the Consumer Protection Act and hence only on the basis of District Seeds Grievance Committees report, it cannot be concluded that seeds were defective. It was also contended that seeds before marketed were tested in their laboratory as on 28.12.2004 in which germination was found 88%. Genetic purity was also tested on 23.3.2005, which was found to be at 90% and there are no complaints about this seed from other farmers. Area sown of bhindi crop as per 7/12 extract also appears to be false because considering area sown under cotton crop, there remains no balance area as per total area of said Gut. The findings of the District Seed Committee were also not accepted as the total percentage of sterility at 90% and Mosaic affected plants @ 30% gives total of 120%. Financial loss of Rs. 12 lakhs as alleged due to loss in yield was also contended to be baseless. It was specifically contended that, as per companys recommendation, 3 kg of seeds per acre was required to be sown. However, 5 kg of seeds were stated to have been sown in 3.20 acres. It was, further, stated that temperature in summer season is about 35 degree centigrade which is not favourable to the said crop. Space between plants to plant was also not maintained as per recommendation. Thus it was contended that all these facts contributed for so called loss in yield and not the seeds. It was therefore contended that there was no deficiency on the part of opposite party, hence, complaint be dismissed. Learned District Forum after hearing both the parties allowed complaint and directed opposite parties to pay Rs. 5.00 lakhs as compensation. Opposite party No. 2 filed appeal and Learned State Commission vide impugned order allowed appeal partly and exonerated opposite party No. 1 and reduced compensation from Rs. 5.00 lakhs to Rs. 1,45,000/- against which this revision petition has been filed. Heard Learned Counsel for the parties and perused record. Learned Counsel for petitioner submitted that in spite of no defect in seeds, Learned Commission committed error in allowing appeal only partly, hence, revision petition be allowed and impugned order be set aside and complaint be dismissed. Learned Counsel for respondent No. 3 also supported petitioner. On the other hand, Learned Counsel for respondent No. 1 & 2 submitted that order passed by Learned State Commission is in accordance with law, hence, revision petition be dismissed. The core question to be decided in this case is whether seeds of lady finger (bhindi) manufactured by petitioner were deficient? Except evidence of District Seeds Committee report, there is no other report to suggest that seeds were defective. Aforesaid report concluded that 90% of the plants were found to be sterile, 30% of the plants were affected by disease (Haladya) but this report has nowhere mentioned that sterility of plants was due to defective seeds or seeds were defective in any manner. Learned Counsel for petitioner has drawn my attention towards brochure which required soil for the Bhindi-10 variety is fairly light and well drained but as per complainant, complainants soil was heavily black and complainant had taken crop of cotton in previous two seasons. As per brochure, plants affected by disease of Yellow Vein Mosaic were required to be removed to protect other plants from aforesaid disease but as per District Seeds Committee report, aforesaid plants were not removed. Learned State Commission rightly observed that District Seeds Committee report has not given clear findings in respect of defectiveness of seeds and in the absence of such report and without any other evidence, suggesting defectiveness of seeds, compensation should not have been awarded on account of defective seeds. Learned Counsel for petitioner further submitted that total period of crop is between 100 to

    110 days whereas complainant filed complaint in 90 days which is re-mature complaint. Only after passing of 110 days if crop was in-sufficient, he should have filed complaint. Learned State commission observed that sterility of plants cannot be attributed only to the defectiveness of seeds but defectiveness of seeds is one of the factors which amounts to deficiency and unfair trade practice. When there was no evidence on record to such defectiveness of seeds and admittedly complainant has not used required quantity of seeds and quality of land, there was no occasion for State Commission to award compensation on the basis of alleged defective seeds by reducing to Rs. 1,45,000/-. Learned Counsel for petitioner has placed reliance on judgment of this Commission in II (2007) CPJ 148 (NC)- Indo American Hybrid Seeds & Anr. VS. Vijayakumar Shankarao & Anr.; in which while allowing appeal, it was observed as under

    We are still more surprised that since this team comprised the District Seeds Certification Officer and the Quality Control Inspector, yet not a word has been stated against or about the quality of seeds supplied. The variation in yield could be on account of preparation of land and care, use of pesticides, insecticides, fertilisers, climate, temperature and the like. Those are external consideration. We have to fix the responsibilities of the appellant only with regard to the quality of seed supplied on which there is no evidence brought on record by the complainants in support of the contention that the seeds supplied were of standard or non-standard quality. We are unable to appreciate the conclusion reached by the State Commission that sale of defective seed was a case of unfair trade practice by O.P.
    He also placed reliance on judgment of this Commission in RP No. 2300 of 2010 Mahyco in which it was held that onus toVegetable Seeds Ltd. VS. Pasam Lakshmi Narayana & Ors.; prove that seeds are defective is on the complainant and complaint was dismissed as complainants did not adopt the practice recommended in the literature and failed to establish that there was defect in the quality of the seeds or the seeds are of sub-standard quality. He also placed reliance on judgment of Honble Apex Court in Civil Appeal No. 2428 of 2008- Mahyco Seeds Company in which appeal was allowed and observed asLtd. VS. Basappa Channappa Mooki & Ors; under:- In view of the decision of this Court in Haryana Seeds Development Corporation Ltd. Versus N.S. Sadhu and another reported in 2005 (3) SCC 198, it is established that the variation in condition of crop is not and cannot be attributed to quality of seeds but to other factors. Inferior quality of seeds is not a factor. But the Report, which has been given by the Agricultural Officer on the Chamatkar Cotton seeds crop condition, no mention has been made about the inferior quality of seeds. In view of that, the complaint cannot be sustained. The appeal is accordingly allowed. On the other hand, Learned Counsel for respondent placed reliance on judgment of Honble Apex Court in Civil Appeal No. 4704 of 2009- National Seeds Corporation Ltd. Vs. M. Madhusudhan in which it was observed that where farmers do not retain any portion of seed,Reddy & Anr; District Forum should have asked opposite party to provide samples of seeds and sent them for analysis for test in the laboratory. It was further, observed that officers of opposite party who also inspected filed should have collected samples and got them tested in the laboratory and on account of these omissions, it was observed that seeds sold/ supplied by opposite party were defective. This judgment is not applicable to the facts and circumstances of presence case because in the case in hand, as per complainant himself, complainant handed over remaining seeds to Agricultural Officer for testing. Not only this, samples were sent for testing but report was not received and Learned District Forum allowed complaint observing seeds as defective. Learned District Forum ought to have waited for the report and if report was received in favour of complainant, then only compensation should have been allowed on the ground of defective seeds. When seeds had already been sent for test, opposite party was not required to provide seeds of that lot for testing. Learned Counsel for respondent could not draw my attention to any order by which Fora below asked opposite party to supply seeds and opposite party failed to supply. In such circumstances, in the absence of any definite report about defective seeds, Learned District Forum committed error in allowing complaint and Learned State Commission further committed error in allowing appeal partly and complaint is liable to be dismissed in the absence of cogent evidence about defectiveness of seeds. Consequently, revision petition filed by the petitioner is allowed and impugned order dated 10.8.2012 passed by Learned State Commission in First Appeal No. 895 of 2007- Mahyco and order of District ForumVegetable Seeds Limited Vs. Ishwarbhai Baburao Thakare & Ors; dated 2.8.2007 passed in Complaint No. 37 of 2006- Ishwarbhai Baburao Thakare & Anr. VS. is set aside and complaint stands dismissed.M/s. Jain Agro Agency & Anr.; Parties to bear their own cost. -sd/- ......................J K.S. CHAUDHARI PRESIDING MEMBER
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    Mahyco Vegetable Seeds Ltd. v. Ishwarbhai Baburao Thakare
    (Jan 5, 2016)