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2017 Supreme(AP) 457

IN THE HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
A. RAMALINGESWARA RAO, J.
Venkateswara Seeds & Pesticides and others - Petitioners
Versus
State of A.P. rep. by its Principal Secretary, Department of Agriculture, Secretariat, Hyderabad and others - Respondents
W.P.Nos.14356 to 14367, 18321, 18323, 18327, 18341, 18365, 18624, 18632, 18636, 18638, 18640, 18643, 18647, 18657 & 18661 OF 2017
Decided On : 11-10-2017

Advocates Appeared:
For the Petitioner: Sri Vedula Srinivas

Headnote:

Seeds Act, 1966 - Distributors of seeds in the States of Telangana and Andhra Pradesh – Cancellation of their licences – Petitioners are carrying on their respective businesses in seeds under the licences issued by the competent authorities under the provisions of the Seeds Act, 1966 and the Rules framed thereunder and the Seeds Control Order, 1983. - on a complaint made by the farmers, show cause notices were issued stating that Chilli Seeds of variety JCH-802 of M/s. Jeeva Agri Genetics, Hyderabad, sold by the petitioners, were found to be substandard – Held, after lodging the complaint, the Seed Inspector shall take possession of the marks or labels, the seed containers and sample of unused seeds for establishing the source of supply and shall investigate the causes of the failure of the crop by sending samples of the lot to the Seed Analyst for detailed analysis – Though the committee, after inspection, noticed the cause of failure and expressed doubts with regard to the quality of seeds, no finding was recorded with regard to sale of such seeds by the petitioners individually and an omnibus allegation was levelled against the manufacturer – It is well settled in law that in the absence of a clear finding as to violation in respect of a penal provision, no action can be taken against the petitioners - Orders of the licencing authority and the appellate authority clearly shows that no such clear finding was recorded and in the absence of any evidence on record, it is not possible to remand the matter to the appellate authority for fresh consideration - writ petitions are allowed

ORDER :

1. All the petitioners are distributors of seeds in the States of Telangana and Andhra Pradesh and as all these writ petitions arise out of cancellation of their licences, the same are being disposed of by this common order.

2. The petitioners are carrying on their respective businesses in seeds under the licences issued by the competent authorities under the provisions of the Seeds Act, 1966 (for short the Act) and the Rules framed thereunder and the Seeds Control Order, 1983. While so, on a complaint made by the farmers, show cause notices were issued stating that Chilli Seeds of variety JCH-802 of M/s. Jeeva Agri Genetics, Hyderabad, sold by the petitioners, were found to be substandard.

3. It appears that the District Level Committee inspected the fields of the farmers and has given the report stating that the standing crop is not uniform, in fruit bearing, orientation of fruits, fruit length, fruit shape and colour of the fruit and it may be a different mixture of other seeds in the original lots. Based on the said complaint and report, show cause notices were issued to the petitioners for cancellation of their licences, for which, they have submitted their reply. But the 3rd respondent, who is the licencing authority, having not satisfied with the reply submitted by the petitioners, cancelled the licences by a cryptic order dated 13.10.2016. Challenging the same, 14 distributors preferred appeals before the 2nd respondent, who in turn, dismissed the same by confirming the order passed by the 3rd respondent. The relevant portion of the order passed by the appellate authority in respect of Andhra Pradesh area, reads as follows.

1. Distributors agreed that there are off-types in the complainants fields due supply of sub standard chilly seed and further agreed that there are other OP varieties mixed as per their field observations.

2. Some of the distributors have not paid even the seed cost to the aggrieved farmers stating that seed was sold on a credit basis, where as others have paid to the extent of seed cost as stated by them and certified by concerned seed inspectors on random verification.

3. The District Level Committee has awarded to pay compensation to the aggrieved farmers @ Rs.36,000/- per acre. But the companies have not paid any compensation and approached Honble High Court challenging the proceedings of District Level Committee.

4. Further the criminal cases were filed against the concerned seed companies and compensation cases are pending in Honourable High Court.

5. As submitted by JDA, Guntur, when compared to other hybrids cultivated by the farmers of adjacent fields the decrease in yield ranges from 4-8 quintal and about 140 farmers uprooted the crop in an extent of 337 acres. The yield loss will be 2-3 QTLs/acre in case of standard chilly fields and 8-10 QTLs when compared to other hybrids.

6. It is evident from the field diagnostic team report and DNA lab analysis report that the company (Substandard seed produced), distributors and dealers have distributed and sold the substandard seed in contravention of provisions of seed legislations.

7. Hence the distributors cannot absolve from their responsibility and simply cannot shift the responsibility on producers only for the production of substandard seed besides distribution, sale and storage by them without ensuring the standards in respect of seeds as per Clause 8-A of SCO, 1983 and Section 7 of the Seeds Act, 1966.

4. In view of the above and in the interest of rendering justice to hapless farmers, the appeal filed by the above referred fourteen distributes of M/s. Jeeva Agri Genetics Pvt. Ltd and M/s. Brahmaputra Seeds is hereby rejected.

5. In respect of Telangana area, no appeals were preferred. But writ petitions were filed challenging the cancellation of licences by the Licencing Authority. Since the point involved in the said writ petitions and the cases arising from AP area are same, they are being disposed of together without relegating the parties





























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