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Smart Summary

National Consumer Disputes Redressal Commission — Revision Petitions Nos. 310, 311 & 312 of 2021 (Order dated 15 Nov 2021)

Factual and Procedural Background

The three Revision Petitions were filed by Shakti Vardhak Hybrid Seeds Pvt. Ltd. (Opposite Party No.2 / Petitioner in the revision) against the State Commission's order dated 01.10.2020 which dismissed appeals arising from District Forum orders. The underlying consumer complaints (led by Complaint No. 273 of 2018 in the District Forum) were filed by individual complainants who purchased paddy seeds of type P.B. 1401 from a retailer (M/s Kissan Beej Bhandaar / Opposite Party No.1). The complainant alleged that the seed bags were open at purchase, were purported to be of good quality, but produced a crop that was of mixed and inferior quality.

The Agriculture Team (inspection dated 04.09.2018) reported that the complainant's field showed mixed types of seeds and that the crop did not match PB-1401 quality. The complainant claimed a loss (about Rs. 2,50,000/-) and sought recovery of the purchase price of seeds, compensation for crop loss, and sums for harassment and litigation expenses.

The District Forum allowed the complaint by order dated 25.11.2019, directing the opposite parties to pay Rs.1,40,000/- with interest @9% p.a. from date of purchase, Rs.20,000/- as compensation for harassment and Rs.10,000/- as litigation expenses. The State Commission dismissed the first appeals on 01.10.2020. The seed manufacturer (Opposite Party No.2) filed these Revision Petitions challenging the concurrent findings of the two Fora.

Legal Issues Presented

  1. Whether the National Commission should interfere with the concurrent factual findings of the District Forum and the State Commission in exercise of its revision jurisdiction under Section 21(b) of the Consumer Protection Act.
  2. Whether the seeds sold to the complainant were defective / mixed in quality, taking into account the Agriculture Officer's inspection report and the Seed Testing Laboratory report(s).
  3. Whether any procedural irregularity or violation of principles of natural justice occurred (specifically, that the Seed Testing Laboratory inspected or tested without notice to the petitioner) such that the findings against the petitioner should be set aside.

Arguments of the Parties

Petitioner (Shakti Vardhak Hybrid Seeds Pvt. Ltd.) — Arguments

  • The impugned orders are contrary to the record; the Fora below failed to properly appreciate the Seed Testing Laboratory report.
  • Inspection/testing by the Seed Testing Laboratory, Karnal was conducted without any notice to the Petitioner, violating the principles of natural justice.
  • The laboratory report was not substantiated by any other report; reliance was placed on the Commission's earlier judgment in Shamsher Singh vs. M/s Bagri Beej Bhandar and Anr. (RP No.2597 of 2012, decided on 11.09.2013).

Opposite Parties / Complainant — Arguments and Contentions (as recorded)

  • The complainant purchased seeds which were represented as PB-1401 but produced an inferior/mixed crop; the Agriculture Team's inspection corroborated that the seeds were of mixed type and did not match PB-1401.
  • Opposite Party No.1 (retailer) admitted receiving similar complaints from 2–3 customers and informed the complainant that the manufacturer (Opposite Party No.2) would bear the loss, but no redress was provided.
  • The Opposite Parties contended on maintainability that the purchase was for commercial purpose. On merits, Opposite Party No.2 contended that seeds were properly tested by the Seed Testing Laboratory, Karnal, which issued a purity report; Opposite Party No.1 emphasized they bought from Opposite Party No.2 and sold in the same condition.
  • The District Forum accepted the Agriculture Officer's report and found the seeds defective, awarding damages/compensation to the complainant; the State Commission affirmed that order.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Shamsher Singh v. M/s Bagri Beej Bhandar and Anr. (RP No.2597 of 2012, decided 11.09.2013) Referenced by the petitioner's counsel to challenge the sufficiency or probative value of the Seed Testing Laboratory report. The judgment was cited by the petitioner, but the National Commission observed the Supreme Court authority in National Seeds Corp. Ltd. (below) as more directly applicable to the facts; the Commission did not rely on Shamsher Singh to overturn the concurrent findings.
National Seeds Corp. Ltd. v. M. Madhusudhan Reddy, (2012) 2 SCC 506 Holds that a buyer is not expected to retain a portion of seeds for testing; a senior government officer's inspection and report can suffice to certify that seeds were defective. The Court applied this principle to hold that the Agriculture Officer's inspection and report were sufficient evidence that seeds were defective, supporting the concurrent findings of the Fora below.
Mrs. Rubi (Chandra) Dutta v. M/s United India Insurance Co. Ltd., (2011) 11 SCC 269 Explains the limited revisional powers of the National Commission under Section 21(b) — intervention is appropriate only for prima facie jurisdictional error or miscarriage of justice, not mere re-appreciation of evidence. The Court invoked this precedent to emphasize that it should not reappreciate evidence and that no jurisdictional error or miscarriage of justice was shown to justify interference with concurrent findings.
Lourdes Society Snehanjali Girls Hostel & Ors. v. H & R Johnson (India) Ltd. & Ors., (2016) 8 SCC 286 Reiterates that the National Commission should exercise revisionary jurisdiction only where lower fora failed to exercise jurisdiction or acted illegally or with material irregularity, and should not set aside concurrent findings based on reappreciation. The Court relied on this authority to conclude that the National Commission's role does not permit overturning the concurrent factual conclusions of the District Forum and State Commission absent illegality or material irregularity, which were not shown.

Court's Reasoning and Analysis

The National Commission considered the factual record, the findings of the Agriculture Officer (inspection of the complainant's field), the admission by the retailer (Opposite Party No.1) of similar complaints from other customers, and the orders passed by the District Forum and the State Commission which found the seeds to be defective/mixed.

The petitioner challenged the seed-testing process and relied upon the Commission's own earlier decision (Shamsher Singh), arguing the Seed Testing Laboratory's inspection/testing occurred without notice and its report was unsubstantiated. The Commission analysed this contention against binding Supreme Court authority (National Seeds Corp. Ltd. v. M. Madhusudhan Reddy), which states that buyers are not required to set aside sample seed for testing and that a senior government officer's field inspection and report can properly certify defectiveness of seeds.

The Commission reiterated the limited scope of its revisionary jurisdiction under Section 21(b) of the Consumer Protection Act, relying on the Rubi Dutta and Lourdes Society precedents. These authorities were applied to underline that interference is warranted only upon a showing of jurisdictional error, illegal action, or material irregularity by the lower fora — not merely because the petitioner preferred a different appreciation of factual evidence.

Applying these principles, the National Commission held that both the District Forum and the State Commission had given concurrent findings of fact supported by the Agriculture Officer's report and admissions on record. The petitioner had not demonstrated any jurisdictional error, material irregularity, or miscarriage of justice that would justify setting aside those findings.

Holding and Implications

Holding: The Revision Petitions were dismissed by the National Consumer Disputes Redressal Commission. The order states that the petitioner failed to point out any illegality or material irregularity in the State Commission's order that would warrant interference in revision jurisdiction. The petitions were dismissed with no order as to costs.

Implications: As a direct consequence, the concurrent factual findings of the District Forum and the State Commission (that the seeds supplied were defective/mixed and the complainant was entitled to relief) remain intact and enforceable. The National Commission did not set aside or modify the relief granted below. The decision upholds the principle that the National Commission's revisional power under Section 21(b) is narrowly circumscribed and does not permit reappreciation of evidence in the absence of jurisdictional error or material irregularity; the opinion does not purport to establish any new legal precedent beyond applying existing Supreme Court authorities.

Order signed: C. Viswanath (Presiding Member) & Ram Surat Ram Maurya (Member) — Dated 15 Nov 2021.

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    SHAKTI VARDHAK HYBRID SEEDS PVT. LTD. v. BHARPOOR SINGH & ANR.

    NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

    NEW DELHI

    REVISION PETITION NO. 310 OF 2021

    (Against the Order dated 01/10/2020 in Appeal No. 854/2019 of the State Commission Punjab)

    1. SHAKTI VARDHAK HYBRID SEEDS PVT. LTD. ...........Petitioner(s) Versus

    1. BHARPOOR SINGH & ANR. ...........Respondent(s)

    REVISION PETITION NO. 311 OF 2021

    (Against the Order dated 01/10/2020 in Appeal No. 78/2020 of the State Commission Punjab)

    1. SHAKTI VARDHAK HYBRID SEEDS PVT. LTD. ...........Petitioner(s) Versus

    1. BHOLA SINGH & ANR. ...........Respondent(s)

    REVISION PETITION NO. 312 OF 2021

    (Against the Order dated 01/10/2020 in Appeal No. 79/2020 of the State Commission Punjab)

    1. SHAKTI VARDHAK HYBRID SEEDS PVT. LTD. ...........Petitioner(s) Versus

    1. KULDEEP SINGH & ANR. ...........Respondent(s)

    BEFORE:

    HON'BLE MR. C. VISWANATH,PRESIDING MEMBER HON'BLE MR. JUSTICE RAM SURAT RAM MAURYA,MEMBER For the Petitioner : Mr. N.K. Chauhan, Advocate For the Respondent :

    Dated : 15 Nov 2021

    ORDER

    1. Revision Petitions have been filed by the Petitioner/Opposite Party No.2 against order dated 01.10.2020 in First Appeal No.854 of 2019, First Appeal No.78 of 2020 and First Appeal No.79 of 2020 passed by State Consumer Disputes Redressal Commission, Punjab (for short,

    "the State Commission).

    2. Since the issue involved in all three Revision Petitions is same, facts are being taken from RP/310/2021 being leading case. Case of the Complainant is that he purchased seeds of paddy crops of P.B. 1401 type from M/s Kissan Beej Bhandaar/Opposite Party No.1 for Rs.4145/-. At the time of purchase, the bags were not sealed and were open. Opposite Party No.1 assured the Complainant that the seeds were of good quality. The Complainant sowed the paddy in his field, but he noticed that the paddy crop was not of same quality as that of P.B. 1401 type seed. The Complainant gave an application to the Agriculture Officer, Giddarbaha requesting to enquire about the poor quality of crop. On 04.09.2018, the Agriculture Team surveyed the crop of the Complainant and found that the seeds sown by the Complainant were of mixed type and did not match the quality. The seeds were of two types, one of them was

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    reaping first and other was taking time. The Complainant approached Opposite Party No.1, who admitted that they had received same complaint from 2/3 customers and assured the Complainant that they were in touch with Shakti Vardhak Hybrid Seeds Pvt. Ltd./Opposite Party No.2, who would bear the loss. Due to poor quality, the crop of the Complainant could not be sold. On 25.10.2018, the Complainant again approached Opposite Party No.1 and informed that he had suffered loss of about Rs.2,50,000/-, but nothing was done by the Opposite Parties. Alleging deficiency in service on the part of the Opposite Parties, Complainant filed Consumer Complaint No.273 of 2018 before the District Forum with following prayer: -

    "A) To pay Rs.4145/- on account of purchasing the seeds of paddy crops of type P.B. 1401 through Bill no. 1683 dated 07-05-2018 from the opposite party no. 1.

    B) To pay Rs.2,50,000/- on account of loss of paddy crops due to defective and mixed quality seeds which were sown by the complainant in his field;

    C) To pay Rs.50,000/- to the complainant on account of harassment, agony and tension occurred due to the act and conduct of the opposite parties; D To pay Rs.20,000/- to the complainant as litigation expenses."

    3. Complaint was contested by the Opposite Parties on the ground of maintainability. It was stated that the Complainant purchased the seeds for commercial purpose. On merit, it was stated that the Complainant had not got the seeds tested from any prescribed laboratory to prove that the seeds were of inferior quality. The Agriculture Officer had not issued notice to them at the time of inspection of field of the Complainant. The Agriculture Officer had prepared a false report in connivance with the Complainant. Opposite Party No.1 also took the ground that they purchased the seed from Opposite Party No.2 and sold the same to the Complainant in the same condition. Opposite Party No.2 stated that the seeds were properly tested by the Seed Testing Laboratory, Karnal and the said laboratory had also issued the purity report.

    4. After hearing the learned Counsel for the Parties and perusing the record, the District Forum, vide order dated 25.11.2019 allowed the Complaint in the following terms: -

    "After considering all facts, record on file and the law, this Forum is of the opinion that seed sold to the complainant was defective and mixed with some other variety. Hence, complaint of the complainant is allowed and opposite parties jointly and severally are directed to pay Rs.1,40,000/- to the complainant as loss of crop with interest @ 9% per annum from the date of purchase of seed i.e. 07.05.2018 till actual realization alongwith Rs.20,000/- as compensation for harassment alongwith Rs.10,000/- as litigation expenses to the complainant. This order is directed to be complied with within a period of thirty days from the date of receipt of copy of this order, failing which, complainant shall be entitled to proceed u/s25 & 27 of the Consumer Protection Act, 1986. Copy of order be

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    supplied to parties free of cost as per law. File be consigned to record room."

    5. Aggrieved by the orders of the District Forum dated 25.11.2019, Opposite Parties filed First Appeals before the State Commission. The State Commission, vide order dated 01.10.2020, dismissed the Appeals.

    6. Hence, the instant Revision Petitions by Opposite Party No.2/Shakti Vardhak Hybrid Seeds Pvt. Ltd.

    7. Heard the Learned Counsel for the Petitioner on admission and carefully perused the record. Learned Counsel for the Petitioner submits that the impugned orders are contrary to the record. Fora below failed to properly appreciate the report of Seed Testing Laboratory and wrongly held that the seeds manufactured by the Petitioner were of inferior quality. Inspection was conducted by the Seed Testing Laboratory, Karnal without any notice to the Petitioner, in violation of the principle of natural justice. Learned Counsel relied on the judgment of this Court in Shamsher Singh vs. M/s Bagri Beej Bhandar and Anr. in RP No.2597 of 2012, decided on 11.09.2013 and submitted that the report of the Seed Testing Laboratory, Karnal was not substantiated by any other report.

    8. Facts of the case are that the Complainant purchased paddy seeds from M/s Kissan Beej Bhandaar, who assured the Complainant that the seeds were of good quality. The Complainant sowed the seeds in his field. He noticed that the paddy crop was not of the same quality as that of P.B. 1401 seed. The Agriculture Team observed that the seeds sown by the Complainant were of mixed type and did not match the quality. Opposite Party No.1 admitted that they had received same complaint from 2/3 customers and assured the Complainant that the manufacturer/Opposite Party No.2 would bear the loss, but nothing was done by the Opposite Parties.

    9. The fact that the seeds were of inferior quality was also corroborated by the admission of Opposite Party No.1, who stated that they had received the same complaint from 2/3 customers. Agriculture Officer, Giddarbaha also gave a report to the effect that the seeds were of inferior quality. The Learned Counsel for the Petitioner has cited the judgment of this Commission in Shamsher Singh (supra). However, Hon'ble Supreme Court, in the National Seeds Corp. Ltd. v. M. Madhusudhan Reddy, (2012) 2 SCC 506, dealing with a similar matter, held that "it is not expected from every buyer of the seeds to set apart some quantity of seeds for testing on the presumption that seeds would be defective and he would be called upon to prove the same through laboratory testing. On the other hand a senior officer of the Government had visited the field and inspected the crop and given report under his hand and seal, clearly certifying that the seeds were defective." In the instant case, the seeds were found defective and this fact was also proved by the Agriculture Officer, Giddarbaha. Both the Fora below have given concurrent findings of fact. We do not find any material irregularity in the orders passed by the Fora below. Also, Jurisdiction of this Commission under Section 21 (b) is very limited. This Commission is not required to re-appreciate and reassess the evidences and reach to its own conclusion. The Court can intervene only when the Petitioner succeeds in showing that the Fora below have wrongly exercised its jurisdiction or there is a miscarriage of justice. It was so held by the Hon'ble Supreme Court in the case of Mrs. Rubi (Chandra)

    3

    Dutta Vs. M/s United India Insurance Co. Ltd. (2011) 11 SCC 269 has held as under: -

    "13. Also, it is to be noted that the revisional powers of the National Commission are derived from Section 21 (b) of the Act, under which the said power can be exercised only if there is some prima facie jurisdictional error appearing in the impugned order, and only then, may the same be set aside. In our considered opinion there was no jurisdictional error or miscarriage of justice, which could have warranted the National Commission to have taken a different view than what was taken by the two Forums. The decision of the National Commission rests not on the basis of some legal principle that was ignored by the Courts below, but on a different (and in our opinion, an erroneous) interpretation of the same set of facts. This is not the manner in which revisional powers should be invoked. In this view of the matter, we are of the considered opinion that the jurisdiction conferred on the National Commission under Section 21 (b) of the Act has been transgressed. It was not a case where such a view could have been taken by setting aside the concurrent findings of two fora."

    10. Same principle has been reiterated by Hon'ble Supreme Court in the case of Lourdes Society Snehanjali Girls Hostel and Ors. Vs. H & R Johnson (India) Ltd. and Ors. (2016

    8 SCC 286 wherein Hon'ble Supreme Court has held as under:-

    "23. The National Commission has to exercise the jurisdiction vested in it only if the State Commission or the District Forum has failed to exercise their jurisdiction or exercised when the same was not vested in their or exceeded their jurisdiction by acting illegally or with material irregularity. In the instant case, the National Commission has certainly exceeded its jurisdiction by setting aside the concurrent finding of fact recorded in the order passed by the State Commission which is based upon valid and cogent reasons."

    11. In view of the foregoing discussion, we find no reason to interfere with the concurrent findings of both Fora below. Petitioner has failed to point any illegality or material irregularity in the order passed by the State Commission, warranting interference in exercise of Revision Jurisdiction of this Commission. Revision Petitions are accordingly dismissed with no order as to costs.

    ......................

    C. VISWANATH

    PRESIDING MEMBER

    ......................J

    RAM SURAT RAM MAURYA

    MEMBER

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    SHAKTI VARDHAK HYBRID SEEDS PVT. LTD. v. BHARPOOR SINGH & ANR.
    (Nov 15, 2021)