SUPREME COURT OF INDIA
Shivaraj V. Patil & D.M. Dharmadhikari, JJ.
H.N. SHANKARA SHASTRY —Appellant
versus
ASST. DIRECTOR OF AGRICULTURE, KARNATAKA—Respondent
Civil Appeal No. 2253 of 1999 from Judgment & Order dated 1.7.1998 of
N.C.D.R.C, New Delhi in R.P No, 1321 of 1996—Decided on 6.5.2004
Consumer Protection Act - Defective Paddy Seeds - Section 14(1)
Fact of the Case:
The appellant purchased paddy seeds from the respondent for sowing, but they did not germinate properly, resulting in loss of crop. The District Forum directed the respondent to pay a sum of Rs. 17,500 to the appellant, which was later modified by the State Commission to Rs. 1,350 with interest and compensation. The National Commission summarily dismissed the revision petition filed by the appellant.
Finding of the Court:
The State Commission erred in reducing the compensation amount and expecting the appellant to take steps to avoid loss, despite the defective seeds supplied by the respondent. The District Forum's order was restored by the court.
Issues: The main issue was whether the State Commission's reduction of compensation was justified, considering the defective paddy seeds supplied by the respondent.
Ratio Decidendi: The court emphasized that under Section 14(1) of the Consumer Protection Act, if the goods suffer from any defect, the consumer is entitled to relief, and the Act should be interpreted broadly and purposefully to protect the interest of consumers.
Final Decision: The impugned order affirming the State Commission's decision was set aside, and the District Forum's order was restored. The appeal was allowed.
Shivaraj V. Patil, J.—The appellant approached the Consumer Disptues Redressal Forum (for short 'the District Forum') by complaining that he purchased 10 bags of paddy seeds from the respondent @ 135 per bag for the purpose of sowing and transplanting the seedlings to raise paddy in 7 acres of his land. When he sowed the seeds in the nursery, they did not. germinate properly. He made complaint to the respondent; the respondent deputed the Agricultural Extension Officer to inspect the land and to submit his report about the quality of the seeds supplied to the appellant; the said Officer having inspected the spot, reported that the germination was hardly upto 10 to 20%; having received the report, the respondent addressed a letter to the Marketing Officer, National Seed Corporation, Mysore, stating that on account of sub- standard paddy seeds sold to the appellant, the appellant had to leave 7 acres of his land fallow and uncultivated and that the National Seed Corporation was liable to make good the loss. The National Seed Corporation, in spite of the request of the respondent, did not depute any technical expert to inspect the spot for assessment. According to the appellant, in the normal course, he would have received 50 quintals of paddy from 7 acres of his land, the value of the same would have been Rs. 15,750/- calculated at the lowest rate prevailing at the relevant time. He, therefore, claimed a sum of Rs. 17,100/- with consequential reliefs from the respondent. The only defence of the respondent was that the National Seed Corporation, which supplied the paddy seeds, was directly responsible for making good the loss and it should have been made party to the proceedings and that the respondent was not responsible to make good the loss. It was not disputed that the respondent had sold paddy seeds @ 135/- per bag to the appellant. The District Forum on admitted facts held that the respondent was a "trader" in relation to the appellant. Both the parties filed respective affidavits before the District Forum and the appellant, in addition, produced two documents in support of his claim. The District Forum noticed that the statement made in the affidavit of the appellant, that he could not raise and harvest paddy in 7 acres of his land due to non-germination of the seeds purchased by him, was not denied by the respondent; the respondent had only pleaded his ignorance as to whether the appellant had to leave 7 acres of his land uncultivated. Having considered the contentions of the parties and the material placed before it, the District Forum directed the respondent to pay a sum of Rs. 17,500/- to the appellant by way of refunding of the price of the paddy seeds and damages caused to him as a result of the transaction, A further direction was given to pay Rs. 100/- as cost to the appellant.
2. The respondent took up the matter in appeal before the Karnataka State Consumer Disputes Redressal Commission (for short 'the State Commission'). The State Commission concurred with the findings recorded by the District Forum but modified the order of the District Forum directing the respondent to pay and refund a sum of Rs. 1,350/-, the price of the seeds, to the appellant with interest thereon at 18% per annum from the date of its purchase. The State Commission also awarded a sum of Rs. 1,000/- as compensation to the appellant. The reason for modifying the amount of compensation to be paid to the appellant is to be seen in paragraph 7 of the order of the State Commission which reads:
"7. The germination of the paddy seeds in the nursery takes place within a period of 8-10 days after its sowing. Therefore, the complainant would be able to know whether it was a proper germination or not within a period of 10- 12 days. When the complainant had come to know about that there was no proper germination, he would have purchased some other seeds and put it in the nursery and transplanted the same in his land, which he has not done. Simply
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