SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
judgment-img

2020 Supreme(SC) 250

MOHAN M.SHANTANAGOUDAR, R.SUBHASH REDDY
NANDAN BIOMATRIX LTD. – Appellant
Versus
S. AMBIKA DEVI – Respondent


Advocates Appeared:
For the Appellant(s) :Raghenth Basant, Liz Mathew, Sonali Jain, Mahamaya Chatterjee, Raghav Mehrotra, Advocates
For the Respondent(s):Ranjith K. C., Advocates

Judgement Key Points
  • In consumer protection law, a farmer purchasing foundation seeds or availing services from a seed company to cultivate a crop like safed musli, with an agreement for buyback, qualifies as a "consumer" under the definition in Section 2(d) of the Consumer Protection Act, 1986, as the activity is for earning livelihood through self-employment rather than resale or commercial purpose.[judgement_subject][judgement_act_referred] (!) (!) (!) (!)

  • The exclusion from "consumer" status for goods obtained for resale or commercial purpose does not apply where an agriculturist uses purchased seeds to grow their own produce through labor, even if sold back to the provider or in the market, when done to sustain livelihood on small landholdings. (!) (!) (!) (!) (!)

  • Cultivation by a small landholder (1-1.5 acres), such as a housewife supplementing household income based on assurances of profitable buyback, is not deemed a commercial purpose excluding consumer status, as it aligns with self-employment for livelihood. (!) (!) (!) (!)

  • A tripartite buyback agreement involving purchase of wet musli seeds, technical support, and guaranteed repurchase does not constitute resale by the farmer, who instead produces a new crop; the farmer remains a consumer when availing goods and services. (!) (!) (!) (!) (!)

  • District Forum erred in dismissing complaint on maintainability grounds; State and National Commissions correctly held complainant as consumer and remanded for merits, affirmed by Supreme Court. (!) (!) (!) (!)

  • Seed companies' tendency to litigate small claims on technical grounds like consumer status, prolonging disputes against agriculturists, is discouraged; costs imposed on appellant (Rs. 25,000 per appeal) for such conduct. (!) [1000646800016]

  • Agricultural activities on small scale, involving purchased inputs like seeds with company support, fall under consumer protection for speedy redressal against deficiencies, especially given farmers' vulnerabilities. (!) (!) (!)


JUDGMENT :

Mohan M. Shantanagoudar, J.

Civil Appeal No. 7357/2010

The instant appeal arises against the order dated 15.04.2009 passed by the National Consumer Disputes Redressal Commission, New Delhi ("the National Commission"), affirming the order dated 28.04.2008 of the Kerala State Consumer Disputes Redressal Commission ("the State Commission") setting aside the order of the District Forum, Kozhikode dismissing the complaint and remanding the matter to the District Forum for disposal on merits.

2. The brief facts leading to this appeal are as follows:

2.1 The complainant (the Respondent herein) is a small landholder who responded to the advertisements issued by the Appellant, a seed company, in 2003, regarding buyback of safed musli, a medicinal crop, at attractive prices. She entered into a tripartite agreement dated 15.01.2004 with the Appellant and its franchisee M/s Herbz India. As per the agreement, the Respondent purchased 750 kgs of wet musli for sowing from the Appellant, at the rate of Rs. 400/- per kg, and cultivated the same in her land. The Appellant was to buy back the produce at a minimum price of Rs. 1,000/- per kg from the Respondent. The Respondent lodged a consumer


Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon telegram-icon
whatsapp-icon Back to top