AJEET SEEDS LTD. vs VAIJINATH SHIVALING MOHAKRE

MR Justice M.S. Rane, President-These group of 31 appeals we propose to dispose of with a common order as under, at the stage of their admission itself, the reasons being that order impugned in these appeals is common order passed by District Forum, Parbhani in 31 complaints as mentioned in the cause title of the judgment, respondent No. 1 being common in all the appeals, the subject matter common, the nature of grievance is also common. Only difference being being that in the respective complaints, complainants are different. Alleged cause of action has also arisen at the one and the same time.

WE have perused the material made available in the appeal paper book and also we have heard the learned Advocates for the appellants and the respondents. (For brevity''s sake we refer the appellants herein as Seeds Producer and respondent No. 1 as farmers/complainants.) The Seeds Producers are the appellants herein who have taken exception to the common order passed by the District Forum in the aforesaid complaints rendering findings that the seeds supplied by the seeds producers to the farmers were of defective/sub-standard quality, which occasioned the losses to the farmers when used in agricultural operation. Few relevant facts :

Farmers are the residents of the adjacent villages in Tahsil Manwath in District Parbhani and they have their respective fields in their respective villages as per particulars mentioned in the cause title mentioned in the complaints. Somewhere in the middle of the year 2000, they purchased the cotton seeds from the seeds producer for using the same in agricultural operation during then ensuing season on payment of consideration as mentioned in their respective complaints.

HOWEVER, when they used the seeds for the respective agricultural operations in their respective fields, they did not find the satisfactory outcome and the growth followed by yield. This is despite the fact, according to the farmers, adopting the normal method of operation for cultivation, etc. The matter thereafter came to be reported to the Seeds Producer, their dealer and the authorities like Zilha Parishad, etc. Complainants followed by driving of Punchanama with regard to existing position in the respective fields of each of complainants. Expert Committee under the Seeds Act namely Agricultural Officers also swung into action and they also inspected the fields and made reports. All these were placed i.e. Punchanama and reports, as also police investigation before the District Forum during the course of hearing by and on behalf of the farmers before the District Forum.

SEEDS Producers contested the claims of the farmers/complainants and opposed the relief being granted to them for compensation or otherwise, etc. They denied having supplied sub-standard quality of seeds as asserted. As far as reports of the Expert Committee are concerned, the SEEDS Producers/O.Ps. contended that same were rendered without complying with statutory provisions in that behalf. It is to be stated, that it is not explicitely indicating what was the statutory breach, which has taken place in the process. District Forum examined the rival contentions of the parties and accepted the case as presented by and on behalf of the farmers and rejected that of defence put forth by and on behalf of the Seeds Producers/O.Ps. was not tenable. We have perused the common order impugned in these appeals and we find that the District Forum has considered the material which was placed before it and has reached the conclusion to the effect that unsatisfactory result in the agricultural operation suffered by the complainants/farmers was due to inferior/sub-standard quality of the seeds.

SO holding, District Forum has made the award in favour of the respective complainants/farmers inter alia ordering to refund : (i) cost of the seeds recovered by the Seeds Producers to the farmers/complainants. (ii) Rs. 5,000/- towards the mental agony, Rs. 2,000/- towards the cost of litigation with interest @ 12% and 18%.

It is to be stated and which is relevant to note that the District Forum has not awarded compensation towards the loss suffered by the farmers and that is because no evidence as recorded by the District Forum was made available in support thereof.

ACROSS, the learned Advocate for the appellants/Seeds Producers submitted that District Forum has not adopted rational approach in determining the amount of compensation towards the mental agony and as such award impugned in this appeal suffers from such infirmity. This point raised by and on behalf of the appellant/Seeds Producer, which would certainly require consideration.

Recently Supreme Court in the case of Charan Singh v. Healing Touch Hospital & Ors., reported in the III (2000) CPJ 1 (SC)=VI (2000) SLT 867=(2000) 7 SCC 688 has enunciated luminiously the principal and criteria, which the Consumer Fora established and functioning under Consumer Protection Act, 1986 should follow while determining the quantum of compensation. In that Apex Court has posited that the Fora have to do so by applying well settled principles of law. Said judgment also lays down principles with regard to award of compensation as provided under Section 73 of Indian Contract Act. Further, it is laid down that the Fora while determining quantum of compensation must do so by applying their minds to the relevant material placed before it and the award in question for damages must manifest the application of mind of the Forum.

AS is the case, and as stated earlier, Forum has proceeded to pass the award on the evidence made available before it by applying the norms as laid down by the Apex Court in the aforesaid judgment, except on the point of compensation which appears to be somewhat arbitrary. For instance, District Forum has awarded Rs. 5,000/- towards the mental agony to all the farmers irrespective of the fact of quantity of seeds purchased and involved in the respective complaints. Those complainants/farmers who have purchased seeds for price below than Rs. 1,000/- all those who have purchased for the amount over Rs. 1,000/- all have been equated in award of compensation in the same manner. In our view, this is contrary to the principles and norms as laid down by the Supreme Court in its judgment of Charan Singh v. Healing Touch Hospital & Ors. (supra), and as such disproportionate to the likely loss suffered. Therefore, taking the rational approach in the matter, in our view as far as compensation is concerned, sum of Rs. 3,000/- would be just and reasonable in cases of those complainants/farmers who have purchased the seeds of Rs. 1,000/- and thereunder and those who have purchased the seeds above Rs. 1,000/-, sum of Rs. 5,000/- would be fair as awarded by the District Forum.

APPLYING the said norms, we hold that as far as appellants in Appeal Nos. 1833, 1836, 1841, 1842, 1844, 1846, 1847, 1849, 1853, 1856, 1857, 1858 and 1859 are concerned, the seeds purchased fall below Rs. 1,000/-. The complainants/farmers in these appeals would be entitled for compensation of Rs. 3,000/- and the award impugned in these appeals would stand modified accordingly. As far as rest of the farmers/complainants are concerned in rest of the appeals, award passed by the District Forum stand confirmed. It is clarified that rest of the award remains unchanged. ORDER Appeal Nos. 1832 to 1862/2002 in Complaint Nos. 203, 268, 269, 270, 271, 275, 276, 279, 280, 281, 282, 283 all of 2000 and 7, 8, 9, 13, 14, 15, 20, 24, 26, 38, 49, 64, 65, 69, 72, 73, 74, 184 and 206 all of 2001 are partially allowed to the extent as under : 1. Award as far as Appeal Nos. 1832, 1834, 1835, 1837, 1838, 1839, 1840, 1843, 1845, 1848, 1850, 1851, 1852, 1854, 1855, 1860, 1861 and 1862 all of 2002 are concerned, stand confirmed. 2. Impugned order as far as appellants in Appeal Nos. 1833, 1836, 1841, 1842, 1844, 1846, 1847, 1849, 1853, 1856, 1857, 1858 and 1859 are concerned, the quantum of compensation of Rs. 5,000/- stand reduced to Rs. 3,000/-. 3. Rest of the award in all the cases stands confirmed. 4. As far as these appeals are concerned, no order as to costs. 5. Copies of the order herein to be furnished to the parties. 6. Six weeks time from today is granted to the appellants/Seeds Producers for compliance of the order of the District Forum as modified by us. 7. We direct the District Forum, Parbhani to release the amount of Rs. 1,00,000/- deposited by the appellants/Seeds Producers pursuant to our interim order passed at the stage of admission of the appeal to the complainants towards the part satisfaction of the award. We expect and hope that parties concerned shall co-operate with the District Forum in following the modality in distribution of the amount. Appeals partly allowed.