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Smart Summary

Factual and Procedural Background

The respondent purchased three bags of paddy seeds (metro seeds P-1460) from the petitioner for Rs. 7,200. The seeds, manufactured by respondent no. 2, were sown on 11 acres of land as per instructions. The respondent found the seeds to be of inferior quality, resulting in uneven maturity of the crop and an estimated loss of approximately 60% per acre, quantified at Rs. 88,000 for the entire land. A committee constituted by the Deputy Director of Agriculture assessed this loss. The respondent filed a consumer complaint which was dismissed by the District Forum on procedural grounds related to seed sample testing. The State Commission allowed the respondent’s appeal, set aside the District Forum’s order, and directed compensation. The petitioner filed this revision petition challenging the State Commission’s order.

Legal Issues Presented

  1. Whether the procedure prescribed under section 13(1)(c) of the Consumer Protection Act, 1986, requiring testing of seed samples by an authorized laboratory, is mandatory in the circumstances where no seed samples are available for testing?
  2. Whether the Committee's report constituted by the Agriculture Department can be relied upon as evidence of deficiency in service and unfair trade practice in supplying inferior seeds?
  3. Whether the State Commission was justified in allowing the appeal and directing compensation based on the Committee’s report despite the petitioner’s non-appearance and procedural objections?

Arguments of the Parties

Petitioner’s Arguments

  • The petitioner was not noticed by the State Commission and did not file any written statement.
  • The Committee inspected the fields without intimation and in the petitioner’s absence.
  • The Committee’s report lacked essential details such as revenue records and parameters for assessing seed quality.
  • The procedure under section 13(1)(c) of the Act, requiring laboratory testing of seeds, was not followed.
  • The petitioner was not the manufacturer of the seeds.
  • The appeal was decided ex parte by the State Commission relying erroneously on the Committee's report.

Respondent’s Arguments

  • The petitioner was served but did not appear and was proceeded against ex parte, thus cannot contest the Committee’s report.
  • The Committee comprised agricultural experts who provided a reasoned assessment of crop loss.
  • Reliance on the Supreme Court judgment in M/s National Seeds Corporation Ltd. Vs. M. Madhusudan Reddy & Anr established that laboratory testing procedure under section 13(1)(c) need not be strictly followed where seed samples are unavailable.
  • The State Commission correctly found deficiency in service and unfair trade practice based on expert evidence and ordered compensation.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
MRF Ltd. Vs. Jagdish Lal 1993 (3) RCR (Civil) 207 Requirement of seed sample analysis under section 13(1)(c) of the Consumer Protection Act. Referenced by District Forum in dismissing complaint due to non-compliance with prescribed procedure.
Maharashtra Hybrid Seeds Co. Ltd. Vs. Parchuri Narayana 2009 (1) CPC 471 Essentiality of following procedure under section 13(1)(c) for seed testing. Relied upon by petitioner to challenge the Committee’s report and State Commission’s order.
Hindustan Pesticides Ltd. Vs. Kopolu Sambasiva Rao & Ors. 2006 (1) CPC 36 Standards for proving deficiency in service and unfair trade practice. Referenced by District Forum in dismissing complaint.
M/s National Seeds Corporation Ltd. Vs. M. Madhusudan Reddy & Anr. Civil Appeal No. 7543 of 2004 Permissibility of relying on expert agricultural reports in absence of seed samples; procedure under section 13(1)(c) is not mandatory if samples are unavailable. Applied by the State Commission and upheld by this Court to accept Committee’s report and assess loss accordingly.
J.K. Agre Genetics Ltd. Vs. Sanjeev Sehgal & Ors. RP No. 3179 of 2010 Procedure under section 13(1)(c) as essential for claims involving seed quality. Relied upon by petitioner to argue procedural non-compliance; distinguished by the Court due to factual circumstances.

Court's Reasoning and Analysis

The Court noted that the petitioner was duly served but chose not to appear before the State Commission, resulting in an ex parte proceeding. The petitioner’s objection to the Committee’s report was rejected on the basis that the petitioner had an opportunity to contest but did not. The Court acknowledged that the seeds were purchased from the petitioner and sown as per prescribed instructions. The uneven germination and consequent loss were established through the Committee’s technical assessment, which was necessary given the absence of seed samples for laboratory testing. The Court recognized that it is unreasonable to expect a farmer to retain seed samples after sowing, especially once crop failure is observed. Therefore, strict compliance with section 13(1)(c) of the Consumer Protection Act was not feasible or mandatory in this case. The Court relied on the Supreme Court precedent in M. Madhusudan Reddy, which permits reliance on expert agricultural reports when seed samples are unavailable. Accordingly, the Court upheld the State Commission’s acceptance of the Committee’s report and its findings of deficiency in service and unfair trade practice by the petitioner.

Holding and Implications

The revision petition is DISMISSED and the order of the State Commission is affirmed. The petitioner is held liable for deficiency in service and unfair trade practice for supplying inferior quality seeds and is required to pay compensation as directed. This decision confirms that in cases where seed samples are unavailable, expert committee reports assessing crop loss may be relied upon in consumer disputes under the Consumer Protection Act. No new precedent beyond the application of existing principles was set by this ruling.

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    MOHAN SEEDS COMPANY v. GURBACHAN SINGH & ANR.

    NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION

    NEW DELHI

    REVISION PETITION NO. 27 OF 2013

    (Against the Order dated 31/08/2012 in Appeal No. 771/2011 of the State Commission Haryana)

    1. MOHAN SEEDS COMPANY

    THROUGH ITS PROPRIETOR, NEW SABZI MANDI,

    KARNAL - 132001

    HARYANA ...........Petitioner(s) Versus

    1. GURBACHAN SINGH & ANR. S/O SH ARJUN SINGH R/O VILLAGE BAZIDA JATTAM

    TEHSIL

    KARNAL

    HARYAN

    2. METRO HYBIRD SEEDS (P) LTD

    NEW ADD: JIND ROAD, SABZI MANDI CHOWK,

    ROHTAK

    HARYANA ...........Respondent(s)

    BEFORE:

    HON'BLE MR. C. VISWANATH,PRESIDING MEMBER HON'BLE MR. SUBHASH CHANDRA,MEMBER For the Petitioner : Mr N K Chauhan, Advocate with Mr Paviter Mohan/ Singh - Proprietor For the Respondent : For Respondent no.1 Mr Amit Sharma, Advocate For Respondent no.2 NONE (Proforma Party)

    Dated : 03 Nov 2022

    ORDER

    ORDER

    PER MR SUBHASH CHANDRA

    1. This revision petition filed under section 21 of the Consumer Protection Act, 1986 (in short, the 'Act') assails the order dated 31.08.2012 of the Haryana State Consumer Dispute Redressal Commission, Panchkula (in short, 'State Commission') dismissing First Appeal No. 771 of 2011 filed against order dated 04.04.2011 in complaint no. 325 of 2009 before the District Consumer Disputes Redressal Commission, Karnal (in short, 'District Forum').

    2. The facts, in brief, are that the respondent purchased three bags of seed of paddy metro seeds P-1460 from the petitioner for a consideration of Rs.7200/- i.e. at the rate of Rs.200/- per kg vide bill no. 2245 dated 31.07.2008. The seeds were manufactured by respondent no. 2. The

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    respondent planted the seeds on 11 acres of his land as per directions mentioned on the bag of the seeds. The seeds supplied to the respondent by the petitioner were found to be of inferior/lowest quality. The respondent contacted the Agriculture Department on 12.10.2008 with an application. The Deputy Director, Agriculture, Karnal constituted a committee to assess the loss caused due to the supply of inferior seeds to the respondent. The Committee visited the lands of the respondent and observed that there was no uniformity in maturity and ripening in the paddy fields. Approximately 25% plants were in flowering stage, 35% in dough stage and the balance 40% had physiological matured and ready to harvest. The Committee also concluded that this uneven maturity caused loss of quality and quantity of paddy and estimated a loss of around 60% per acre in paddy yield. Based upon the rate for paddy, the respondent's financial loss was quantified at Rs. 8,000/- per acre due to the supply of inferior seeds by the petitioner which amounts to Rs.88,000/- in 11 acres of land.

    3. The consumer complaint filed was dismissed by the District Forum on the ground that the sample of seeds were not analyzed as per procedure prescribed under section 13(1)(c) of the Act and therefore deficiency in service and unfair trade practice was not established on the basis of MRF Ltd. Vs. Jagdish Lal 1993 (3) RCR (Civil) 207, Maharashtra Hybrid Seeds Co. Ltd. Vs. Parchuri Narayana 2009 (1) CPC 471 and Hindustan Pesticides Ltd. Vs. Kopolu Sambasiva Rao & Ors. 2006 (1) CPC 36. The respondent preferred an appeal before the State Commission which allowed the appeal and set aside the order of the District Forum on the basis of the Committee's report holding that it was not possible for the farmer to retain seeds on the presumption that they may be required to be tested with the direction to pay Rs 88,000/- for loss of crop, Rs.11,000/- as compensation and Rs.5,500/- as costs within 60 days failing which payment with 6% interest. The petitioner is before us impugning this order praying that this it be set aside.

    4. We have heard the submissions of both the learned counsels for the parties and perused the records carefully.

    5. Learned counsel for the petitioner submitted that he was not noticed by the State Commission and that he did not file any written statement. He argued that the Committee constituted by the Deputy Director of Agriculture, Karnal undertook inspection of the fields where paddy was stated to be planted without any intimation to him and in his absence. He also submits that the Committee's report dated 15.10.2008 did not mention revenue details such as killa and khasra number of the fields inspected and was silent regarding the quality of seeds or the parameters on which the report was prepared. He argues that the procedure prescribed under section 13(1) (c) of the Act of getting the seeds tested by an authorized laboratory has also not been followed. He places reliance on Maharashtra Hybrid seeds Corporation Ltd. Vs. Parchuri Narayana 2009 CPJ 180 (NC) and the order of this Commission in RP no. 3179 of 2010 J.K. Agre Genetics Ltd. Vs. Sanjeev Sehgal & Ors. dated 13.09.2011 wherein the procedure under section 13(1)(c) has been held to be an essential basis for the settlement of such claims. It was submitted that the petitioner was not the manufacturer of the seeds in question and the appeal was decided ex parte by the State Commission which erroneously relied upon the Committee's report.

    6. On behalf of the respondent, learned counsel submitted that the order of the State Commission records that the petitioner was served but did not appear and was therefore proceeded ex parte; therefore, he cannot contest the reliability of the Committee's report at this

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    stage. It is submitted that the Committee comprised of a Subject Matter Specialist, a Senior Coordinator, Krishi Vigyan Kendra, Haryana Agriculture University, Karnal and the Sub Divisional Agriculture Officer, Karnal who are all experts in agriculture and have set down reasons in the report for the estimation of loss in paddy yield of 60% per acre. Reliance is placed on the judgment of the Hon'ble Supreme Court in M/s National Seeds Corporation Ltd. Vs. M. Madhusudan Reddy & Anr Civil Appeal No. 7543 of 2004 which examined the compliance with section 13(1)(c) of the Act and held that

    "The reports of the agricultural experts produced before the District Forum unmistakably revealed that the crops had failed because of defective seeds/foundation seeds. After examining the reports the District Forum felt satisfied that the seeds were defective and this is the reason why the complainants were not called upon to provide samples of the seeds for getting the same analysed/tested in an appropriate laboratory. In our view, the procedure adopted by the District Forum was in no way contrary to Section 13(1)(c) of the Consumer Protection Act and the appellant cannot seek annulment of well-reasoned orders passed by three Consumer Forums on the specious ground that the procedure prescribed under Section 13(1)(c) of the Consumer Act had not been followed.

    ….In the normal course, a farmer would use the entire quantity of seeds purchased by him for the purpose of sowing and by the time he discovers that the crop has failed because the seeds purchased by him were defective nothing remains with him which could be tested in a laboratory…."

    It is also argued that the State Commission correctly relied upon several judgments in arriving at the finding that the petitioner was liable for deficiency of service and unfair trade practice in supplying mixed variety paddy seeds to the respondent and was therefore liable to compensate the respondent.

    7. From the submissions made and records, it is apparent that despite being noticed, the petitioner chose to not appear before the State Commission and had to be placed ex parte. His contention that the report of the committee constituted by the Agriculture department be not relied upon, cannot be accepted at this stage. On the basis of evidence on record, it is evident that the seed was purchased from the petitioner and was sown as per the prescribed process. It is also evident that the germination of the seeds was uneven and not as per the optimal growth expected. Consequently, crop yield was naturally expected to be less than optimum and was accordingly assessed by way of an estimation exercise directed by the Deputy Director of Agriculture who was approached by the respondent. This crop yield estimation exercise had to be resorted to in the absence of the availability of any seeds from the lot purchased by the respondent. In the normal course, a farmer cannot be expected to retain seeds for use as sample in anticipation of crop failure. Therefore the respondent cannot be faulted for not having done so. While the procedure prescribed in section 13(1) (c) of the Act requires testing of seeds in an appropriate laboratory, in the absence of any sample of the seeds having been retained, the extent of the loss has to necessarily be estimated through an alternative method. The procedure under this section cannot be mandatory in the circumstances of the instant case. The committee constituted for the purpose by the Deputy Director of Agriculture, Karnal comprised of experts in the field and has assessed the loss based upon its technical expertise. The report of the committee has been accepted by the State Commission in light of the judgment of the Hon'ble

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    Supreme Court in M. Madhusudan Reddy (supra). The finding of the State Commission therefore cannot be found fault with since it has gone by a report of technical experts under the circumstances of the case as the applicability of section 13(1) (c) was not feasible.

    8. In the light of the foregoing, we do not find merit in the contentions of the petitioner. The revision petition is accordingly dismissed and the order of the State Commission affirmed.

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

    C. VISWANATH

    PRESIDING MEMBER

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

    SUBHASH CHANDRA

    MEMBER

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    MOHAN SEEDS COMPANY v. GURBACHAN SINGH & ANR.
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